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To the extent that they are merely an infrastructure-like instruments that power decentralized operating systems, from a traditional investment valuation perspective, all DeFi tokens could be worth much less long-term. This article contrasts the merits of Bitcoin (BTC-USD) as a new base layer of money with DeFi projects (and decentralized ecosystems built on top of them), and questions whether the latter can have any fundamental value.
Generally speaking, you would expect that when people invent better way of doing things, they replace the old with the new, although this is not what always happens.
Sometimes, it is because a change would just cost too much. To this day, the U.S. has not adopted metric system, despite the known fact that conversion errors cause planes to run out of fuel midair and much worse. Other times, it is because the change is so fundamental that it would lead to a complete replacement of the incumbents who resist?
That money is a bad database is something I like to write about again and again. You would think that money is moved around the world by some giant interconnected network of computers, but that is wrong. It is still based on hundreds…
