Are you as confused as I am about @balajis' million-dollar bet on hyperinflation & Bitcoin mooning? π€
He said hyperinflation is coming in the next 90 days & Bitcoin will hit $1M! Some say he's insane, but hey, that's why he's a millionaire!
Let's break it down π§΅
2/ I attended a Twitter Space with @balajis & @gladstein and let me tell you, I've got some tea β to spill about this situation.
3/ Thanks to the pandemic and US Government's stimulus, people & businesses had more cash than before. π°
So instead of borrowing more, businesses and consumers were paying off old loans and holding onto their cash. And banks were left with...not much to do. π¬
1/ ππ Buckle up, friends! We're about to take a ride to the moon
ππ Let's talk about one of the hottest things in web3: Decentralized Finance (#DeFi).
(Thread 𧡠Alert π¨)
2/ π€ First off, what is DeFi?
DeFi refers to a new financial system built on blockchain technology that operates without traditional intermediaries like banks, brokerages, or exchanges.
In simpler terms, it's finance without the fat cats! π
3/ π°πΈ DeFi applications allow users to lend, borrow, trade, and store their assets without relying on centralized institutions.
And the best part?
It's all done through smart contracts, meaning that all transactions are transparent, automated, and secure.
Move over, #Bitcoin! π Central Bank Digital Currencies (#CBDCs) are the newest players in town.
But what are they, and why are governments creating them? π€
Let's dive in: (Thread 𧡠Alert π¨)
CBDCs or Central Bank Digital Currencies are essentially digital versions of fiat currencies issued by central banks.
They exist for a variety of reasons, including:
π Improved efficiency and lower transaction costs for payments
π Increased financial inclusion by providing access to digital payments for everyone
π Reduced reliance on cash, which can be costly to print, distribute, and handle
π Combating illicit activities by providing traceable digital payments