DeFi Vs Stock Exchange: DeFi Changing the Patterns of Stock Investors Model

What has happened to stock buying and stock exchange, I can feel a gradual dwindling of stock exchange market and this can only be pushed by Decentralized Finance (DeFi) and the activities of Decentralized Autonomous Organizations (DAOs).


The arrival of DeFi industry as changed the model of somethings around the financial world. DeFi has been in battle with fiat money transactions as well as Central Bank Owned Digital Currency (CBDC) for who will take over the financial world in the nearest future.

The evolution of technology have brought gradual changes in all facets of life. For the financial world, there have a new face and a paradigm shift from the pattern of buying and selling stocks to the way of investing (buying and selling) cryptocurrencies.

With cryptocurrency, we are seeing all being disrupted. Our entire relationship to money, and by extension, everything, is changing. We often frame the discussion in terms of the traditional financial system versus one we are creating. The reason for this is that is what people understand.Source

During the stock market dispensation, only one kind of people get involved in stock market transaction, they're either a stockbrokers or the investors. Every other person that intends to invest in stocks must seek the advise of a stockbroker to be able to invest. This was because the stockbroker has the responsibility to advise you on what stock to buy and the dividends that'll accrue from that particular stock.

In the DeFi era, everyone assumes the position of an investor. This is because, the individual bears the risk and gets the gains. What a person needs to have to make an investment in the DeFi dispensation is just a digital wallet that he or she can make transactions.

We're no longer in a time where only the investor through the stock investor's model was invoke.

Remember that stock exchange market is still on due to the trading on fiat money but only time will tell on the market since everyone is now on the trading platform through crypto market.

Another way the DeFi industry has brought changes is through the tokenization of everything. In recent times, things like pictures, music and others didn't have values other than the personal value and in the case of music, the sole right was hidden in the copyright ©️. Currently, music's and photos are now added into NFTs and people earn crypto through DeFi platforms.

I'll conclude by saying that, change is a constant things that occurs in life and with the arrival of technology that led to the development of Decentralized Finance (DeFi), more is yet to be seen in the future. In the DeFi World everybody is somebody.

Posted Using LeoFinance Beta