As a kid who grew up with nothing in a midsize American town, I know what it is to read parachute journalism that covers topics and stories that are close to my heart. However, I have some bad news for my DeFi brothers: They are all in the process of getting a taste of this feeling.
This is slang spoken to when reporters address material outside of their normal scope (imagine a correspondent “jumping” into a war zone, cutting off a short segment, and sending it back in a more hospitable environment): Parachute journalism, which often leads to misinformed, sensational and / or propaganda reports lacking important nuances, is work that consciously or unconsciously confirms the prejudices of the audience or the reporter himself. Growing up, I read it over and over again when a new intellectual came through town: a man in a tie about the G20, the Stanley Cup final or an election campaign. They often worked for a publication that had “New York” in its name, and they were amazed that an old, smoke-filled steel city could have restaurants serving edible food. Somehow our “culinary scene” has been “promising” for almost thirty years.
I could go on but I’ll save it. The point is that, If the past week is any sign of this, you better prepare.
Amidst the predictable Memecoin narrative “Look at these guys who speculate” over the past week CNBC, Bloomberg, Fortune, and the Wall Street Journal have published articles on introductions, profiles, and descriptions of decentralized funding. Some were legible, like CNBC’s “Made It” profile of DeFi angel investor Cooper Turley, a well-respected attorney whose only flaw is his persistent support for “Social Token” as a use case. Others were puzzling.
Sometimes you cultivate the content
and sometimes the content cultivates you https://t.co/SnhyCFgC9d
to???? Andrew T (@Blockanalia) May 20, 2021
It is strange to hear strangers clapping in your house. In this sense, It was a relief to see Blockchain Capital’s Spencer Bogart interviewing CNBC with grace, charm, and enough wit to dance the head of a pin.::
Defi will massively change the crypto industry, right? @emilychangtvAnd @thestalwart Spencer Bogart from Blockchain Capital interviewed https://t.co/GYN6SHomsh pic.twitter.com/X1utENtqAr
to???? Bloomberg TV (@BloombergTV) May 25, 2021
The bar is set: Every DeFi fan interviewed live owes it to culture to wink at the local audience. “The Future of France”, indeed.
Separating signal and noise in the cryptocurrency space can be notoriously difficult. I would say the sudden influx of traditional air regiments is all noise; You need to look beyond that and see what is brewing in the background.
In this week, The Wharton School of Business at the University of Pennsylvania published a research report entitled “DeFi Beyond the Hype”.. In addition, Goldman Sachs published an article earlier this month arguing that Ethereum outperforms Bitcoin to some extent as a store of value, as an overwhelming portion of DeFi is made using the Ethereum chain..
“Ether surpasses Bitcoin as a store of value. The Ethereum ecosystem … gives developers the ability to create new applications. Most DeFi applications are based on Ethereum. The largest number of transactions between Ether and Bitcoin reflects this dominance” – Goldman Sachs Global macro research pic.twitter.com/vNkQ1HlDYM
to???? SantÎ ?? before R Santos (@santiagoroel) May 22, 2021
Like the value propositions that Bitcoin proponents emulated for a decade before they finally found their way into the research notes Last year, the rise of the DeFi narrative seems inevitable.
Even if it is meant well Parachute journalism can be simplistic and condescending to the true connoisseur of the subject. However, it is easier to digest when broader and better knowledge is in sight.
A compressed history of DeFi on Bitcoin
The tweet of the week comes from Scott Lewis of DeFi Pulse, who gave us a condensed story about how Bitcoin maximalists are trying to skew the narrative reality about the growing power of DeFi:TO
Bitcoin history on defi:
December 2018: DeFi is a scam
March 2019 – It’s insulting to say that the Lightning Network is DeFi.
July 2020: Well, in fact, Bitcoin is the only DeFi project that matters. Yield is a scam.
May 2021: We love Defi. We build defi. The yield is about to arrive.
to???? I ?? (@scott_lew_is) May 26, 2021
This is a sharp turn from the last year or two, when die-hard Bitcoin fans ignored DeFi, piqued him curiously, or in some cases tried to dissuade him from his existence. When Michael Saylor strangely tried to argue in a poignant battle of denialism recently, If you simply ignore all of the other chains and assets (and the significant sums of value that drive them) with arbitrary definitions, Bitcoin’s dominance is actually 93%!
When I look at network dominance in the cryptocurrency industry, I find it clear to separate networks from crypto assets like #Bitcoin from crypto app networks like Ethereum and stablecoins. Bitcoin’s dominance has increased from a low of 71.05% on December 20, 2017 to 93.57% today. pic.twitter.com/03cbWVyoLY
to???? Michael saylor (@michael_saylor) 20th September 2020
Indeed, Good teams have worked for a long time to get Bitcoin-based smart contracts and products DeFi. Perhaps the best known is RSK Labs, although like Ethereum’s own optimism, they always seem a few months away (Rufe, Bruno Caboclo). Bitcoin’s early experiments must be seen as pioneers for blockchain-based smart contracts;; Vitalik cites the Colored Coins project as one of his inspirations for ETH.
In the future, the Bitcoiners will be cheering RSK and others on and watching closely as they approach production.who do the kind of obsessive tracking and “breadcrumb hunting” typically found in shitcoin communities. Sir, how delicious.
But no matter how many BTC-based projects reach the mainnet, the race has already been held. To date, there are trustworthy and untrustworthy products based on BTC in production.. Badger and Ren’s collaboration is a testament to just how far away non-native ecosystems are: two projects could work together on a full integration that links multiple contracts and products together to create a multi-chain income account with a single click . Each step of this component is a small feat that requires an organic developer community that takes years to build..
Hodlers, of course, will argue that Bitcoin is the most reliable, that it is the only one that institutions will opt for, something like “the benefit of the second step”. The problem is, that Institutions don’t trust currencies, harder Hodlers don’t trust RSK, and while Ethereum-based DeFi users are increasingly relying on alternatives such as Solana and Polygon, what properties can Bitcoin-based DeFi offer uniquely? Realistically, where do the TVL and the developers come from?
I have bitcoin and I plan to buy more in the future so I am not criticizing. But Now, and for the foreseeable future, the DeFi narrative is out of your control.