The demand for cryptocurrency continues to rise, the price for bitcoin increases and the niche products expand as the interest rates grow. 2020 has demonstrated how far cryptocurrencies can go by opening up a broader spectrum of possibilities. DeFi (decentralized finance) and crypto lending are the most fascinating to all of us. Why is it so important all of a sudden?
Please Note: This is a Press Release
Is Cryptocurrencies the future of Finance?
We’ve seen a dramatic increase in the price of cryptocurrencies this fall. The explanation for this is the renewed involvement of the large institutional investors in the crypto market. The high price stays constant, but it does not preclude more corrections that would just show cryptocurrency predictability and solid durability. Such a tendency shows a promising future ahead of the digital currency and indicates once again that it is definitely worth investing in.
Hybrid solutions, the best of the two worlds for digital finance
Crypto banking is a well-established niche replacing conventional internet banking and online lending. The industry literally substitutes advanced fiat credit services for cryptocurrency banking. It’s been fairly recently when the latest delegate emerged in the niche – DeFi.
DeFi stands for decentralized financial networks that cover nearly any crypto-friendly operation. Many analysts claim that DeFi is the future of cryptocurrencies. However, they should not refute the DeFi flaws, such as:
Transparence. The source code for many of these DeFi projects is available, leaving those projects hackable.
Scalability. The efficiency of smart contracts is quite poor and almost difficult to scale.
Uniformity. Smart contracts are, in general, not written at all. Contract models are open-source and frequently updated, leading to financial failure of bugs and errors.
Not too long ago, the “hybrid” financial systems came into the market. These networks are effectively centralized services running on their own technology and solving the issues of typical cryptocurrency banking and DeFi services:
Locked source. The source code is shielded from third parties, cyber criminals, and security bugs.
Scalability. Service infrastructure works without smart contracts; any extension is built into the system.
Initial technologies. The technology is manufactured from scratch and is subject to constant monitoring.
BitcoLoan is among the most common hybrid service providers. The platform provides its customers not only options for cryptocurrency lending, but also for investing in those loans.
Investing in crypto lending
Due to the worldwide financial crisis, the stock market is currently very uncertain. Numerous ventures have halted their operation, and the hospitality and catering sectors are either in decline or at risk of shutdown. There are fewer stable investing options than ever before.
DeFi and centralized networks provide the opportunity to invest in crypto lending. As a consequence of its high importance, provided the conditions, such an investment strategy is now very popular with all investors worldwide. Low barriers to entry, reduced risks and longevity just contribute to their advantages.
These services serve as an intermediary between the lender and the borrower, making the whole transaction as smooth as possible. They make those promises so that customers don’t have to think about anything more than filling up their account and making a payment. Another advantage, for example, is that there is no hesitation in withdrawing money.
Why should hybrid financial systems be granted more credit?
As the specialists in the cryptocurrency and IT sectors have found out, a bunch of emerging innovations, such as DeFi, have made consumers believe so early. In fact, such a financial model only unlocks its potential within 5-7 years of mass adoption.
Hybrid services such as BitcoLoan use only the validated crypto banking techniques to solve the problems found. For this cause, the “trial period” of certain innovations has been drastically shortened. With regard to centralized hybrid systems, it may be claimed that this niche is now on the brink of widespread acceptance and healthy for work and investment..