Discovering meme tokens with Oliver Camponovo

MEME TOKEN OLIVER CAMPONOVO - In recent years, the rise of cryptocurrencies and blockchain technology has been inevitable. October 2021 was an exciting month for all cryptocurrency investors, as the price of bitcoin skyrocketed to $67,000, and Ethereum quickly followed suit. The most notable event, however, is another.

What you need to know about Meme token

In recent years, the rise of cryptocurrency and blockchain technology has been unavoidable. October 2021 was an exciting month for all cryptocurrency investors, as the bitcoin price skyrocketed to US$67,000, and Ethereum quickly followed suit. The most notable event, however, was the Shiba rose, which stunned the entire cryptocurrency community. Shiba quickly overtook Dogecoin's ninth position in marketcap, and investors made every effort to keep the meme coin crown. As a result, meme coins have quietly dominated many significant cryptocurrencies.

So, Oliver Camponovo, what's the big deal, and why are meme token making headlines? What exactly are meme coins? Is it coins, memes, or memes about coins? What's the deal with SafeMoon, Shiba, and Dogecoin?

Memecoins, also known as meme tokens (crypto assets that can purchase coins), are digital tokens inspired by popular sarcasm, social media puns, jokes, and memes. As a result, their concept is primarily derived from the internet. There are currently around 130 meme coins in the crypto market. Meme coins differ from traditional cryptocurrencies in that they are created without a specific goal or reason. Dogecoin was the first and most popular meme coin. It was created in 2013 as a parody, but it is now one of the most successful cryptocurrencies.

Even though their initial reputation was created as a joke, meme coins have done quite well in the cryptocurrency arena. People have already made a lot of money from these coins.

The only difference between a meme coin and a crypto coin is that meme coins do not currently have a utility like Bitcoin or Ethereum, designed to solve real-world problems. That being said, some meme coins are doing great things other than being memes, such as earning dividends. Dogecoin, for example, can be used on both a Mastercard-backed card and BitPay. It allows you to spend the coin wherever Mastercard is accepted, just like any other currency. There is a good chance that Tesla will accept Dogecoin as payment very soon!

How powerful can meme coins become?

Currently, predicting the future of meme coins, like all other cryptocurrencies, would be difficult.

At the moment, Dogecoin is the only original and largest meme coin. To understand its value, consider comparing it to Bitcoin, the first and original cryptocurrency and the most valuable at the moment. Dogecoin reached its peak in May 2021, with a value of $0.74 and a market cap of more than $35 billion. It is currently trading at $0.27. As a result, it is incomparable to other meme coins. SafeMoon is now worth $0.00000508 and has a market cap of $40 billion.

Shiba Inu is currently ranked third among the most popular cryptocurrencies, with Doge and Coinbase ranking 13th.

What's important to know here is whether Dogecoin users are selling out into Shiba. That could be a ruse to raise the price, and they may be able to repeat this trick in the future with a new token. So far, this remains an open question.

So, what makes these coins so valuable when their face value is less than a pound?

Memecoins are accessible to almost everyone, which means that as their value rises, so will their volume. Alternatively, as demand rises, so does the price. As a result, meme coin owners are well aware of how they can profit from them.

So, Oliver Camponovo, does this mean that meme token will take over the crypto market and make you rich?

Memecoins have the potential to work in parallel with traditional cryptocurrencies, personally I do not see them replacing in any way traditional crypto coins! To be realistic, there is always the possibility that they will fail. On the other hand, if you invest a pound in these coins and skyrocket in value, you could become a millionaire. SafeMoon, Shiba Inu, Dogecoin, and other cryptocurrencies are good examples of this. In addition meme coins mey be the driver of the young generation into the blockchain world and a link between blockchain and metaverse!

Meme coins can be used for a variety of purposes, including:

In theory, meme coins can replace existing payment mechanisms such as Paypal and bank transfers, and a few shops already accept them. We are very likely to start paying our bills with Shiba Inu instead of dollars through PayPal soon.

The key takeaway, as well as which meme coins are doing well:

Shiba Inu is a legitimate meme coin that is doing quite well in the market at writing. This coin's value increased by 60 million percent in 2020, reaching an all-time high, and it's dropped quite a bit since then. However, when compared to where it started, it has made significant progress.

Floki is another new and not-so-popular meme coin that is currently holding the grip, and it is now at 20.8 percent. Elon Musk's Shiba Inu inspired the coin.

However, keeping in mind that these coins are doing well right now does not mean that they will continue to do so. In this industry, anything can happen at any time. In any case, you must research before selecting or dropping any coin on any cryptocurrency.

Disclaimer: This is not a piece of investment advice. Do your research and eventually ask for advice from tax advisors and legal professionals in the function of where you live.

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Oliver Camponovo: The following Century will belong to Asia

OLIVER CAMPONOVO - Asian economies are expected to lead the next phase of globalization once the pandemic fades. More than two dozen "unicorn" start-ups have emerged from the Indian subcontinent this year alone. Asia's expanding global prominence has long been dominated by China, and Asia's continued rise in the twenty-first Century is becoming a much bigger phenomenon. The Asian Century is evolving into a fully realized regional narrative. Starting now, we are beginning to witness the complementing features of different Asian countries coming together. This is an exciting time.

Consumerization

That a region that in 2000 only represented a third of world GDP in purchasing power parity terms has changed dramatically. According to a McKinsey study, Asia might control up to half of the global GDP by 2040.

According to a separate estimate, Asian consumers will account for about half of global consumption growth over the next decade. Asia is predicted to have half of all upper-middle-income families and half of all international transactions.

Why is Asia leading the next chapter of globalization? Which industries will be the most dynamic in the future years?

Rapid industrialization analyzed by Oliver Camponovo

One motor is the region's continued industrialization, which has seen China become the world's most giant manufacturing powerhouse.

By 2018, China accounted for 28% of global manufacturing output, ten points ahead of the US. In 2018, manufacturing provided about 30% of the country's total economic output. While that trend is likely to continue, other Asian countries, particularly India, Thailand, Malaysia, and Indonesia, are rapidly industrializing.

As labor prices rise in established manufacturing hubs like China, low-wage countries step in to relieve some pressure.

As China's labor costs rise, supply chains for apparel, shoes, toys and electronic assembly are shifting away from the country to South and Southeast Asia countries. They are not always visually appealing, but they do bring employment and economic progress. The manufacturing sector in India still accounts for less than 15% of the country's GDP.

Urbanization in a hurry

Urbanization is another prospective growth driver in Asia, offering higher income and economic development than rural agriculture jobs. That expands and deepens the middle classes. For example, just 35% of India's 1.4 billion people live in cities, compared to 60% in China. Vietnam and Indonesia, with respective cities of 37% and 57%, have similar growth potential.

The most dynamic industries in the future years would be IT, consumer discretionary, and healthcare. Taiwan and South Korea already dominate the semiconductor business. This will only increase as the global economy becomes more digital, a new generation of digital-native employees emerges, and remote working becomes more popular.

China is already the world's largest producer of solar cells, electric vehicles (EVs), and battery storage for EVs and other electrically driven machines and devices. China's supremacy in the sector will be brutal to challenge given its size and extensive manufacturing platform.

In terms of consumer spending, the post-Covid-19 reopening of trade will spur short-term demand, while China's commitment to pushing through its "common prosperity" agenda will spur long-term demand. It's all about the middle classes, and that will help the consumer-discretionary sectors.

Additionally, Covid-19 has changed people's perceptions of health and wellness. Many people have become more concerned about their health as a result of the pandemic.

Lingering worries by Oliver Camponovo

Still, the future of Asia's growth is uncertain. One focuses on regulation, particularly changes in China's business policies. In this year's technology crackdown, the government restricted many of the country's largest technology enterprises.

Concerns about Asian companies' ability to transition to a low-carbon economy and the credibility of their ESG-related accounting are rising among worldwide investors as ESG investing takes center stage.

Transparency is essential. If we want to reach carbon neutrality, businesses must adopt this rule of thumb. Despite these challenges, the region's growth appears assured. Asia, rather than America, will likely dominate this Century.

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Analysis of the future of finance and blockchain with Oliver Camponovo

FINANCE BLOCKCHAIN OLIVER CAMPONOVO - The only thing that comes to mind when we hear the term "Distributed Ledger Technology (DLT)" is "Bitcoin." Bitcoin is merely a small fraction of the massive DLT pool, which will astonish you. Other examples of public DTL technologies are Ethereum and all the EVM chains that have allowed for smart contracts and the development of an entirely new Decentralized Finance infrastructure.

But, first and foremost, what is a Distributed Ledger Technology?

DLT is a technology that has the potential to alter the financial services infrastructure. It provides increased transparency, efficiency, decentralization, automation, cost savings, and other benefits. It will serve as the cornerstone for the financial services infrastructure of the future.

Financial services reimagined

By next year, it is expected that 80 percent of banks will have started initiatives on both public and private DTL. However, there are still many obstacles to overcome because formal legal frameworks do not yet exist, which can be a stumbling block in large-scale adoption. Furthermore, updating the entire financial infrastructure via DLT takes a significant amount of time. Finally, the top DTL resources are unavailable on the market and difficult to obtain.

The question here is whether the investment in DLT is worth all of the hardship.

The solution is straightforward! It enables parties to digitally transfer assets without the use of a "middle" party. Yes, indeed! It is well worth the hype, as it allows for transparency and autonomous business rule execution. Yes, indeed! It's well worth the effort. It reduces risks, speeds up and simplifies transactions, simplifies dispute resolution, and performs binding agreements in real-time. That is why the pain of modernizing financial infrastructure is worth it for DLT

.

Many improvements can be achieved:

So, what should financial services companies do now?

Given the massive amount of change that DLT will bring, now is the moment to recognize that there is still much work to be done. Companies must conduct cost-benefit evaluations and develop roadmaps. Legal and regulatory tax guidelines must also be worked out between the financial industry and the government; in Switzerland, the Parliament recently authorized such a new legal infrastructure, making DTL application easier.

Global Payments:

Because DLT offers lower fees, real-time settlement, and rules, it has the potential to flourish in the future of global payments.

Global transactions are currently complicated and expensive, with several steps to complete a process. Manual and repetitive operations are common. The payments are cleared through local clearing networks. Payments are also delayed by weeks and are occasionally refused if the corresponding bank fails to meet certain conditions. Similarly, each party's identity and re-verification takes a significant amount of time.

All of these obstacles can be overcome with DLT. To begin, there exist digital identification profiles, which are sufficient for quick verification. Currency conversion is also simplified, and authorities have access to transaction data.

As a result, DLT is more cost-effective because it eliminates the need for human resources and correspondent banks.

El Salvador, for example, recently created such a system and went even farther by declaring Bitcoin to be legal cash, allowing anybody to receive and send Bitcoin. The economy of El Salvador is still founded on remittances from outside, and the saved commissions of roughly 400 million dollars will be saved by the people and reinvested in the country. Are you shocked that El Salvador's economy is booming?

Processing of commercial property and casualty claims

It is now possible to lower the risk of fraud using DLT. Thanks to distributed ledger technology (DLT), which can help to speed the claim submission process by utilizing smart assets. It is possible to reduce processing time and eliminate unnecessary procedures. With the use of records, any fraudulent action can be quickly discovered.

Not only that, but DLT can make it easier to integrate credible data sources, reducing the need for manual labor.

Syndicated Loans:

Syndicated loans pose a risk of a single customer borrowing a considerable amount. Usually, the lenders are in the form of groups as the borrowing amount is enormous. Once again, the record-keeping functionality of DLT can make this process easy, effective, efficient, and risk-free.

Participation of financial institutions in syndicated loan opportunities can be made more accessible with DLT.

Trade Finance:

Every year, around $18 trillion of trade involves finance! DLT can boost trade efficiency by streamlining the processes involved in trade, such as capital efficiency and faster settlement. It also minimizes the risks as all records are trackable.

“And this is only the start of a global revolution that will shake the foundations of financial infrastructure.

Only those economies, politicians, managers, and individuals that begin to use this technology will be able to stay in the game. Even dinosaurs have gone extinct, so start learning and adapting.”

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Is the hype about Metaverse for business worth it? This is Oliver Camponovo

METAVERSE BUSINESS - Welcome to the grid of always-on virtual spaces where you may mingle and interact in ways you never thought possible! Welcome to the Metaverse, the augmented reality cloud, the mirror universe, and the three-dimensional Internet. It's coming, and it's going to be massive!

The new "buzz" in the market is "metaverse," which is hitting the Internet like a wave and capturing the interest of the tech and business industries. The Metaverse is gaining traction where one of the most popular online sites is rebranding to promote this futuristic concept.

What exactly is METAVERSE?

Metaverse can be thought of as a "virtual habitat." Virtual reality headsets, smartphone apps, augmented reality devices, and other gadgets are used to create online spaces of interconnected virtual communities where humans may interact more realistically and meet, work, and play outside of traditional ways of communication.

The word "metaverse" is derived from "meta," which means "beyond," and "verse," which refers to "universe." As a result, it relates to a virtual world separate from the actual one, in which physical commodities such as land and buildings can be transferred for digital cash. Humans can now explore places, make friends, buy things, develop virtual assets, and even attend virtual events in this new "world."

The entire "pandemic scenario" and lockdown tactics have elevated the Metaverse notion even more. More audiences are exploring the virtual world for leisure and business due to remote working regulations and the "work-from-home trend." It has created a plethora of commercial options.

While Metaverse can be interpreted in various ways, three key features are presence, interoperability, and standardization. Interoperability refers to the movement between virtual worlds with avatars and other digital things, and presence refers to the experience of being in the virtual world. Interoperability of services and platforms across the Metaverse is built on the foundation of standardization.

Why is METAVERSE important in business?

With the future of Metaverse in mind, major corporations such as Google, Apple, Microsoft, and Facebook are already planning to embrace it ahead of their competitors. There's no denying that the Metaverse has the potential to revolutionize our culture, society, and politics. Nonetheless, it has the potential to create new industries, innovative social networks, improved gadgets, and new consumer behavioral patterns and patents.

Because of the way Metaverse works—blockchain technology—businesses can significantly profit from it. It's nearly impossible to tamper with a record after it's been made and added to the chain because of its decentralized database shared across networks of computers. This system maintains the integrity of data and eliminates the possibility of fraud.

When it comes to real-world use cases, the entertainment business is most important for customers to use virtual reality. The entertainment business will significantly gain from the Metaverse, from training to developing new products and services.

Tokens that aren't fungible (NFTs)

NFTs represent virtual assets such as films and photographs. Users who are registered on blockchains own these virtual assets. It makes it possible to trade and accumulate NFTs as digital assets. Businesses employ NFTs for promotional purposes as well as to monetize their assets. Popular brands like Louis Vuitton and Nike have expressed interest, opening up new marketing and promotion opportunities. Coca-Cola produces and sells these memorabilia as well. It suggests that NFTs have the potential to become a tool for business owners to take advantage of the Metaverse's growing possibilities.

The Metaverse can assist enterprises in a variety of ways, many of which are yet to be discovered, but which include:

The Metaverse can transform customer and company relationships:

By providing additional locations for potential customers and improving their involvement with their products and services, they can expand their market. Sotheby's Metaverse, an online marketplace where clients may purchase NFT art, is the best example.

In the Metaverse, corporate interest is fast growing. The entertainment sector is capitalizing on this opportunity, and online games are evolving from simple video games to a vast universe, and Roblox and Fortnite are the best examples.

On a traditional scale, Metaverse can allow new currencies to enter the market

Businesses can now sell their services on a whole new and distinct marketplace as blockchain cryptocurrencies gain popularity. The best feature of Metaverse is its decentralized nature, which allows people to make decisions rather than having them made for them from the top down. This decentralized character is a key sign of how new currencies will develop and how new businesses will operate. Companies can now use the Metaverse to implement their business strategies and concepts. This trend will continue to improve as cryptocurrencies become more widely recognized and integrated into society.

Metaverse can bring new conversational tools to improve and simplify teamwork

The Metaverse provides new modalities of collaboration and teamwork for commercial firms, in addition to monetary incentives. During the epidemic and shutdown, there was an upsurge in meeting cooperation over Zoom, which was handy but also limited. Metaverse can help close the gap by combining the convenience of online conferencing with the efficacy of in-person meetings via virtual conference rooms.

Are there any risks for enterprise businesses in the Metaverse?

At the time, there were two major hazards associated with Metaverse adoption. The first is the unpredictability of blockchain technology's future, and the second is the threat of cybersecurity. This and any other hazards associated with Metaverse and other blockchain technology should be monitored by businesses and corporations.

Take-away

Metaverse has the potential to be a game-changer in the modern corporate environment, where data science, virtual reality, and artificial intelligence dictate the rate of growth, profit, and productivity. However, by transferring our entire lives to a purely virtual platform, Metaverse will raise the traditional cybersecurity threat to a new and more serious level. Metaverse, without a doubt, allows us to escape the confines and limitations of the physical world. However, the shift is still ongoing, and there is still plenty to learn.

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Oliver Camponovo: Four megatrends that will transform the world

OLIVER CAMPONOVO MEGATREND - Looking to the future requires a certain knowledge of the present, traits of trend-following, and an understanding of possible perturbations. With that in mind, I tried to identify four megatrends of change.

Four megatrends in works that could transform the way businesses operate in the future

Economist John Kenneth Galbraith joked: "The main role of economic forecasts is to make astrology appear credible". And he was right. The fact that economic and financial market forecasts function in a complex adaptive system is one of the reasons why they are so risky. A modest change in a tiny component could significantly affect a completely different system at a completely different time and place. That’s why I spotted four megatrends.

One or more of the four pillars will have a favorable or unfavorable impact on businesses. These four pillars will demand consideration and investment in business strategies. As investors, we must consider how one or more of these four pillars will impact the businesses we own and how corporations will manage these concerns.

The four megatrends identified by Oliver Camponovo

What can I say about it that hasn't already been said by everyone? Our lives have become increasingly reliant on technology. Students' online classes, mobile games, the rise of e-sports, and 101 apps for every possible activity are now a part of our daily lives.

The Metaverse comes next. With a VR headset, you might be able to fly to Alaska without ever leaving your couch or complete your online shopping by walking around a virtual store and selecting products.

Companies will become increasingly reliant on technology, not merely to stay ahead of the competition but also to survive! The more qualified a business is at utilizing technology, the more competitive it will be.

The Paris Agreement of 2030 and other similar agreements will compel countries to regulate climate change agents and take corrective measures. China has already taken steps in this direction by prohibiting chemical factories and other polluting enterprises, which is expected to become more of a trend. More rich and developing countries will be pushed to do so when the actual cost of climate change (more weather disruptions and natural disasters) becomes apparent.

Better sanitation, clean water, and clean air will be priorities for governments and corporations. We've already seen the start of it. Increasingly stringent emission standards for automobiles and the resulting switch to cleaner fuel and electric vehicles; extensive water treatment and desalination plants; rainwater harvesting efforts; solar and wind energy adoption, and a slew of other initiatives are all gaining traction around the world.

We also see a push for biodegradable items, plastic bans, and recycling, as well as the right to repair (something new for the developed world, but something we've been doing for a long time!).

People throughout the world seemed to appreciate the importance of health and wellness while trapped indoors due to a pandemic. People and governments worldwide have failed to contain the pandemic, and the scars will take a long time to heal. As a result, governments, corporations, and individuals are expected to place a greater emphasis on healthcare spending.

This would encompass the entire range of health and wellness, including diagnostics, online consultations, e-pharmacies, online health records, medical insurance, and preventive health care. Mental health has become a topic that people openly discuss, and this sector may receive much more attention. These businesses would benefit from a tailwind for the next few decades.

With the battle lines formed between China and the Western world, a Cold War 2.0 is a distinct prospect in the coming years. It has already begun. Global firms will be obliged to de-risk their sourcing and wean themselves off of their reliance on China as a sole supplier. Global supply networks may need to reconfigure to limit and eliminate the dominance of a single point of failure.

On the other hand, China Plus One is more than just a reduction in reliance on China; it is a complete rethink of decades of super-efficient supply chain policy. As corporations develop inventory and build in some slack in their supply lines to deal with unforeseen events, the just-in-time delivery model will likely take a back seat.

Manufacturing is going back to developed nations as labor costs become less and less critical in the overall scheme of things, thanks to increased automation and the use of technology. Furthermore, we see an increase in global nationalistic fervor. Politicians will be more likely to encourage enterprises that create jobs in their nations, even if it means sacrificing optimal efficiency.

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Oliver Camponovo: Inflation is rampant, and the SNB is dozing off

OLIVER CAMPONOVO INFLATION - Everything is rising in price: electricity, food, automobiles, and taxes. The free money, not the pandemic, is to blame, and Jordan and his associates aren't content with it. The SNB is up against a huge obstacle. It risks inflation, an interest rate shock, a real estate crisis, and a financial catastrophe if it engages in the currency market. If it does not, it may be able to keep inflation from spreading into Switzerland. The franc, on the other hand, would most likely skyrocket.

Analysis by Oliver Camponovo on the inflationary situation

Every day, more terrible news about rising costs demonstrates how serious the threat of inflation has grown.

The September value of the US CPI was released the day before yesterday (a monthly value of 0.4 percent, compared to 5.4 percent in the same month last year), and the September value of the PPI producer price index was released yesterday (a monthly value of 0.5 percent, compared to 8.6 percent in the same month last year).

If a significant deflation was feared a year ago, the "narrative" is now continuously changing. "It's because the economy is reopening," "it's because of high energy prices," "it's because of supply restrictions," and so on. They don't seem to know what story to tell or what to do, in my opinion—neither in Switzerland nor other countries. If we want to summarize the situation, we may say that the macroeconomic vision has failed.

In almost every case, the epidemic is blamed in some way for inflation. Price hikes and inflation are caused mainly by central bank money supply expansion, which is rarely mentioned.

After the lockdowns, central banks dramatically extended their financial sheets, coinciding with a drop in output and services. More money equates to fewer items and services, as well as higher pricing. Isn't it logical?

Oliver Camponovo and inflation in Switzerland

Since the beginning of the year, inflation in the eurozone and Germany has been substantially higher. The eurozone's annual inflation rate is currently at 3.4 percent (estimate September 2021, Eurostat). It is considerably higher in Germany, at 4.1 percent since 1993, and more than double the ECB's long-term aim of 2%.

Thomas Jordan and the SNB are unconcerned about such matters, and they see no cause to alter monetary policy. In a nutshell, they believe:

But, in an open economy, how can Jordan be so confident in himself? When it comes to inflation and consumer pricing, can Switzerland entirely insulate itself from the rest of the world?

Certainly not. In a 2017 study paper, the same SNB determined that foreign influences are the primary drivers of Swiss inflation, suggesting that the SNB's present position contradicts its study.

The same study indicates that a stronger Swiss franc can help prevent inflationary imports and a situation similar to that of 1973-1974.

However, it appears that the SNB is unconcerned with inflation today. Inflation is mentioned only once in the current Financial Stability Report (September 2021) in the case of an extreme "interest rate shock" scenario. Growing inflation rapidly pushes up interest rates around the world. As a result, economic growth slows considerably, and real estate prices plummet.

BNS talks too little about inflation

Is that the end of it? It's amazing how seldom the SNB talks about inflation in public, even though any logical economist would consider it a significant risk.

I honestly hope they're simply playing poker with us and that inflation is being thoroughly monitored and analyzed behind closed doors. We already see it with commodity prices, utility rates, and food shortages in the real world.

According to the SNB, the most substantial damage from an interest rate shock would be on domestic Swiss banks, which would suffer from under-collateralization of their mortgage loan portfolios and losses on nominal and unpaid interest. It's a horrible situation. And, while everything appears to be for the time being, how close are we to an "interest rate shock" scenario?

Inflation is continuously rising in the United States, the eurozone, and Germany. Is there a risk of a "spillover," and what are we doing about it? Is it possible to hide the truth from the general public? Or, even worse, supposing that this horror won't affect us because we're the best in the world?

Oliver Camponovo proposes two interventions to address inflation

The matter, in my opinion, should at the very least be discussed, with two possible SNB interventions:

(a) Reduce or eliminate foreign exchange market actions to reduce or eliminate inflation imports. The Swiss franc exchange rate would be set solely by the market from now on, resulting in a (significant?) increase of CHF against EUR and USD. But what will happen to the SNB's strong financial position? Will their assets and dividends to the cantons paid to complete their mismanaged balance sheet be depleted?

(b) Intervention continues, and inflation is imported from abroad, resulting in an "interest rate shock," a real estate crisis, and possibly a banking crisis in Switzerland.

The second option, in my opinion, is the more likely. What role will Swiss politics play? Will they safeguard their banks (as they have always done), or will they protect the SNB and its asset portfolio?

In whatever form it takes, inflation in the United States and the eurozone appears to represent a more significant threat to Switzerland than the SNB now acknowledges.

That’s how Oliver Camponovo talked about inflation in April, https://www.finanzeinvestimenticriptovalute.it/en/inflation-is-coming-protecting-cash-and-deposits/

Importance of DEFI as a disruptor of traditional Finance

DEFI TRADITIONAL FINANCE - DeFi stands for decentralized Finance. It is the latest addition to the financial technological (Fintech) revolution. The DeFi is driven by blockchain technology that runs on a decentralized network of independent nodes. These nodes are responsible for verifying transactions and smart contracts and record them on the various blockchain ledgers. DeFi refers to decentralized Finance as no third party controls the user's funds except the decentralized infrastructure. DeFi includes borrowing and lending, farming, staking, flash loans, and stablecoins.

The traditional finance system is currently on the surface system with which we are already familiar. The conventional financial system involves an extensive network of companies that carry out the investing, credit, debit, money markets, lending, insurance, and almost everything that has to do with money management. Unlike DeFi, the traditional finance systems are centralized and usually run by for-profit companies. The conventional financial systems all around the world are running on fiat today.

How Is DeFi Disrupting Traditional Finance?

Benefits Of DeFi Over Traditional Finance

The following are some of the advantages that Defi offers over traditional financial systems,

Verdict

It is a fact that DeFi protocols cannot compete with traditional financial systems yet in terms of security, speed, and ease of use. But, there is no doubt that DeFi has produced real, efficient, working applications that have successfully attracted billions of capital. The resources generated from them will be further used to develop more competitive and user-friendly applications in the future.

Traditional Finance is currently looking with anxiety to decentralized systems because of their disruptive potential.

I bet decentralized DeFi will kill traditional Finance and not only integrate it. However, we have a lot of improvements to complete, such as:

  1. Improve scalability maintaining security by combining proof of stake with and proof of work
  2. Integrate privacy-based KYC/AML solutions
  3. Have frontier markets adopting cryptocurrencies as an alternative to USD (El Salvador just started this route)
  4. Have people learn, study and educate themselves on the natural privacy plan B.