Why Cathie Wood Thinks Crypto Will Beat the Banks
One of the internet's favorite investors thinks it's a bad time to be a bank. In a recent interview with CNBC, Ark Invest's CEO, Cathie Wood, confidently said banks have a big problem called crypto. Wood explained the rapid rise of decentralized finance or DeFi applications enabled by blockchain technology is rapidly changing the way people save or borrow.
The popularity of DeFi apps is growing so fast that stodgy old banks are rapidly becoming obsolete relics. That's partly because banks are built on reputations that aren't nearly as important as they used to be. DeFi apps employ distributed ledgers or blockchains that are nearly impossible to manipulate, which makes trusted intermediaries unnecessary.
The popularity of decentralized finance is probably growing a lot faster than you think. At the end of 2020, there were only around 1 million unique addresses that had purchased or sold a DeFi-related asset. By March 21, this figure exploded to around 4.5 million.
Source Fool.com
