Ether (ETH), the second-largest cryptocurrency by market capitalization, is setting fresh all-time highs every day now. It’s on a mission to conquer the $2000 price level and it’s dragging all the DeFi assets up with it.
The average DeFi asset is up 3x this past month, the total value locked in DeFi is at an All Time High going over $30 billion locked according to data aggregator DeFi Pulse. The amount of ether locked in DeFI is up, at over 7.4 million ETH.
Meanwhile, the amount of bitcoin locked is heading upward, with the TVL at 45,632 BTC
There’s real value flowing through these markets, and we’ve argued before that many DeFi asset valuations are supported by fundamentals (i.e. network earnings power) despite their sky-high sticker prices. This is especially true when considering long-term growth potential. Still, just how high are the ceilings for DeFi assets? Can they one day rival today’s largest global financial institutions, or are their ceilings structurally lower?
Banking has had a monopoly on most of the financial services that DeFi is tackling right now and as the confidence in this new form of financing is growing, the banks are at risk of losing their dominance, which is why we’ve seen them trying to make it hard for the customer to transact in crypto. However, with time the crypto adoption is growing and they will not be able to keep this dominance for too long. On top of that, DeFi projects have a global reach, they are border-less and as such, they are not beholden to any specific jurisdiction; they are available everywhere (easy to access) and have no physical “home” (making them hard to kill).
That’s a turbo-combination for a disruptive technology.
Which brings me to today’s featured project.
I’ve featured many DeFi projects on this channel over the past year and as you know, my money is on DeFi for the foreseeable future.
Yahoo.Finance published an article recently, where they talk about Cryptocurrencies being the future of ecommerce. Ecommerce is a huge industry, so this is extremely bullish news.
They also suggest that conventional banking may soon be a thing of the past, a rhetoric that is very often seen on mainstream media lately.
In another article, published yesterday, I saw analyst Ryan Watkins talk about DeFi taking on JPMorgan and successfully disrupting the whole banking sector.
The Coinspeaker published this article just over a week ago where they also claim that the future of finance is crypto and DeFi in particular. They also make a reference to BitcoLoan – a project I am presenting to you in this post.
However, there is no doubt that decentralized finance has its drawbacks, which are stopping many potential users so far. For example the following:
Vulnerability to hacking due to the use of open-source code.
Difficulty scaling up. Smart contracts used in DeFi systems have low transaction throughput.
The similarity of products working on smart contracts, in which the same errors are often copied, often cause the loss of digital funds.
Now the developers of some DeFi products are creating mixed systems based on decentralized networks, while still being managed centrally, which helps to completely neutralize or at least, as far as possible, reduce these disadvantages.
Such systems usually:
– have closed source code, which does not allow attackers to easily use it to hack the system;
– allow to scale up, excluding the use of smart contracts from the applied technology, each desired extension can be easily added;
– unique technologies of hybrid systems that do not copy other people’s systems and errors, being subjected to rigorous tests.
One of the successful examples of such a hybrid system is BitcoLoan, which provides secure financial services – lending with cryptocurrencies, as well as the opportunity to make money on providing cryptocurrency for such loans, that is, on crypto investments.
BitcoLoan is on its way to become one of the most popular hybrid service providers. It gives its clients not only opportunities to lend in cryptocurrency but also to invest in cryptocurrency loans.
BitcoLoan is a peer-to-peer crypto lending platform, it is not a bank or some financial institution, but a rather – a service provider, linking the lender and the borrower to enable quick and easy access to loans for those who need them – be it for personal use or business purposes.
An individual loan can be issued to one person with up to 1.2% daily interest rate. It gives people an opportunity to get instant loans on favourable terms without intermediaries.
Business loans are group loans for businesses. In a business loan, a group of investors raises money for a certain business. A business loan term is between 90 and 360 days with up to 1.5% daily interest rate.
These days we’re in a tough economic climate with businesses all around the world being hit badly by the lockdowns we’ve experienced since last March, especially small and medium business owners are struggling to keep afloat with reduced capital inflow, so they turn to the banks for loans that too often are being rejected.
This is why Decentralized services are taking the lead now and on top of that they offer a way to many of us to make extra income. As lenders, those who own cryptocurrencies can earn a healthy interest from their crypto – which compared to the near zero interest rates of most banks is really a no-brainer.
You can make passive income this way but there’s also more you can do.
Bitcoloan is actually giving you a $50 bonus for simply taking a free training in their Academy.
You become a crypto lending pro and in the process you get your first $50 reward that you can use as your first investment.
In addition to that, shout out to my marketing friends – affiliate marketing or internet marketing – you know the benefits of this already – you get rewarded for bringing new clients to the business and every company these days has some form of affiliate referral progam.
BitcoLoan is no exception – Inviting a partner gets you 8% of their invested amount, and you also profit from referrals your partner invites.
The referral program suggests 3 referral levels on the following terms: 8% commission at level 1; 4% at level 2 and 2% commission at level 3.
Not only that, but you can earn even more with the BitcoLoan rating system, where completing simple tasks will increase your rating and affect your profit percentage. The maximum rating is 3.0, which is 0.3% to your deposit interest rate. You will find more about this on their website.
So who is BitcoLoan useful to?
Well, they appeal to those who want to get extra interest on their crypto holdings and also to borrowers who are in need of instant cash with minimum drawbacks. No delays in withdrawing for borrowers is also quite a plus. On top of this, unlike other key players in the lending niche, there’s an insurance involved with BitcoLoan – the users invest right into the company’s insurance fund. By doing so, Bitcoloan ensure their compliance with the terms and generate profit for all investors on the platform. Such a way of funds allocation makes for a safer investment environment.
This is the marriage between CeFi and DeFi – where decentralized banking solutions meet the benefits and security of the established Centralized ones. And BitcoLoan is a leader in this field.