Upside & Risks of an Investment in DeFiChain (DFI)

  • Why & When the DFI Coin’s first sharp increase took place
  • Why & When the DFI Coin could continue to appreciate much further
  • What is a realistic and potential long-term price of the DFI Coin?
  • How does DeFiChain compare to other alternative cryptocurrencies?

Why & When the DFI Coin’s first sharp increase took place

DeFiChain launched on the day of bitcoin halving on May 11, 2020.

Why & When the DFI Coin could continue to appreciate much further

The successful launch of the decentralized exchange is far from the last product DeFiChain will bring to market.

What is a realistic and potential long-term price of the DFI Coin?

As described above, one of DeFiChain’s biggest new use cases will be decentralized trading of stocks, adding to the existing functionality of decentralized trading of cryptocurrencies.

How does DeFiChain compare to other alternative cryptocurrencies?

One important point to consider is: In any market apart from currently crypto, the value of different investment opportunities is widely spread. This can be seen in the example of stocks: as mentioned above, they were worth $95.2 trillion as of 2019, but the highest-valued company at the time, Apple, had a market value of “only” just over $1 trillion — just over 1% of the total market.

  • A critical error in the programming (bug in the code)
  • A manipulation of the blocks (centralization)
  • The platform risk (How & Where you hold your coins)
  • High volatility (combined with high liquidity)

Risk: A critical error in the programming

Every one of us has experienced it: you use an app or website and somehow something just doesn’t work the way it’s supposed to. This can be a specific action that causes a crash, or completely harmless things like a small display error.

Risk: A manipulation of the blocks

One risk that is generally present in every blockchain is the risk of malicious manipulation of the blocks.

Risk: The platform on which you hold your coins

As with any investment in general, you are also exposed to a platform risk when investing in DeFiChain.

  1. On a centralized platform, such as a traditional exchange or also a company like Cake DeFi, which offers various financial services in the field of cryptocurrencies — including the staking of the DFI Coin for returns of currently over 90% per year. Here, your Private Key is held for you by the respective company.
  2. A completely decentralized storage, for example on the DeFi Wallet developed by DeFiChain. This also offers decentralized trading, liquidity mining, or — if you can deposit at least 20,000 DFI as collateral — also staking of the DFI Coins for currently over 90% per year. Here you are the only one in possession of your private key and therefore do not have to trust any central platform. On the other hand, you are also solely responsible for the safekeeping of your private key.

Risk: High volatility due to speculation (& high liquidity)

The fourth and final risk is the high volatility of the DFI Coin, but this is also a reality with most other cryptocurrencies.

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Bringing #DeFi (Decentralized Finance) to #Bitcoin. https://defichain.com

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DeFi Blockchain

DeFi Blockchain

Bringing #DeFi (Decentralized Finance) to #Bitcoin. https://defichain.com