Many pro-crypto influencers have time and again pointed out that the age of Web3 would revolutionise finance and put an end to the traditional financial systems which are burdened with loopholes and inefficiency. One such personality has recently gone on record to stand firm on these beliefs.
Cathie Wood, an American investor and the founder, CEO of Ark Invest said during a lecture series that she believes decentralised finance (Defi) is a major threat to the survival of established financial institutions.
Wood, who is an influential figure when it comes to financing and investing, has been bullish about cryptocurrencies and their potential to revolutionise finance.
In a lecture series conducted at the Miami Herbert Business School last week, she discussed the potential influence of the Decentralised Finance sector on traditional finance.
Decentralized finance (Defi) delivers financial instruments without relying on middlemen such as brokerages, exchanges, or banks by employing smart contracts on a blockchain.
Woods clarified that the combination of digital wallets and decentralised finance would result in the collapse of a significant number of financial institutions. Moreover, she believes that this collapse has probably already begun, “..because a lot of lending and saving is taking place on Defi because it offers lower loan rates and higher saving rates, so that’s a compelling combination.”
As per Wood’s observations, DeFi is “scaling enormously”and has already had its resiliency put to the test by recent market events. Wood cites DeFi customers' use of Bitcoin (BTC) and Ethereum (ETH) through recent market volatility as proof that the DeFi ecosystem is still thriving.
Woods has previously been extremely bullish on cryptocurrencies in general, and Bitcoin in particular. She has said on record that Bitcoin would touch $500,000 in the next five years and by the year 2030 would trade at over a million dollars.