Bitcoin: The Double-Edged Sword of Defi
This article explores Bitcoin's dual impact on the financial system. On one hand, Bitcoin, as a currency immune to arbitrary devaluation, solves the problem of fiat inflation, allowing for true savings instead of forced investment. On the other hand, the cryptocurrency space has seen a phenomenon of 'hyper-financialization,' where various assets are rapidly financialized, from meme coins to NFTs—everything is tradeable. The author argues that these two phenomena are not contradictory but rather two manifestations of the flaws in the fiat system: people are forced to invest to combat inflation, and cryptocurrencies amplify this speculative behavior. Ultimately, the author believes Bitcoin's value proposition will prevail, leading to true decentralized finance.