DeFi to Overshadow Bitcoin in Coming Years - Says Former Goldman Sachs Trader

The ongoing decentralized finance (DeFi) boom has impressed a lot of traders and institutional investors who have shown a great deal of interest in this industry. The DeFi industry seems to have witnessed more interest than the world’s largest digital currency by market cap Bitcoin (BTC) throughout this year.

Bitcoin (BTC) vs Decentralized Finance (DeFi)

Richard Rosenblum a former global head of crude oil and derivatives trading at Goldman Sachs, believes that decentralized finance (DeFi) applications are going to steal Bitcoin’s spotlight over the next years, according to his interview with TD Ameritrade Network on Sept 18.

Rosenblum is of the view that with the current ongoing growth, the decentralized finance (DeFi) industry is going to overshadow the king cryptocurrency in the coming years. He claimed that in the coming years, you are going to hear more about decentralized finance as compared to Bitcoin.

 

“We’ve had a major change in the paradigm of the market, and I think that you are going to increasingly hear about decentralized finance and hear less talk about Bitcoin in the coming years” 

The DeFi industry continues to grow even more as time goes by. The year 2020 has been the year of DeFi. However, on the other hand, it has not been a bright year for Bitcoin as compared to DeFi.  Despite the fact that Bitcoin made some bullish moves, it is still trapped in the $10k-$11k zone.  

Nevertheless, Rosenblum, who himself holds BTC, claims that the top crypto is still in its early stage.

 

Decentralizing everything

Initially, crypto was about transferring value in a decentralized fashion with Bitcoin, but the world's first cryptocurrency is already 12-years-old.  

 

Galaxy Digital Mike Novogratz also opined that BTC is already an established asset and everything else “a giant sandbox.”  

 

At the current stage, people are flocking to DEXes such as Uniswap that surpassed Coinbase in terms of daily trading volume last month.

 

The next logical step, according to Rosenbaum, is going to be the decentralization of everything in finance.

While there are plenty of comparisons between DeFi and the ICO bubble of 2017, Rosenblum is convinced that this time it is indeed different:

 

“Today, we are seeing real adoption. There’s as much as a billion trading on these decentralized venues.”  

 

The word of the year

Rosenblum claims that governance has been the word of the year in the cryptocurrency space:

 

“If you are a holder of this governance token (you and I), you will be part of this discussion.”

 

He draws parallels with real estate company WeWork, saying that it’s all about the rights of the community.

The Goldman veteran also predicts that crypto is going to have a profound impact on other industries:

 “So, I think because there are incentives there...it’s been leading the charge but we are absolutely gonna see the next stages in the coming years of everything that struck parallel ecosystems that is crypto is gonna impact the rest of the world.”