The Scoop Banks are looking to get started in DeFi - Aya Kantorovich
Feb 21, 2025
Aya Kantorovich, Co-founder and CEO of August, dives deep into the evolving world of DeFi and its potential integration with traditional banks. They discuss why many institutions are hesitant to embrace DeFi, despite its resilience in downturns. Aya highlights the shift in perception of Bitcoin as a reserve asset and examines the emergence of meme coins versus institutional investments. Additionally, they explore the impact of AI on financial decision-making and how it can enhance trading experiences in a decentralized landscape.
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Institutional Impact on Volatility
- Institutional Bitcoin holders impact volatility by buying when the market is down and selling when it's up.
- This behavior dampens volatility, as evidenced by Bitcoin being less volatile than some S&P 500 stocks.
Weekend Volatility Perception
- Crypto markets seem more volatile because they react to weekend macro events when traditional markets are closed.
- This perception may not reflect actual volatility differences, but rather the ability of crypto to express views during traditional market closures.
Bitcoin as a Reserve Asset
- Bitcoin's attractiveness as a reserve asset stems from its decreasing inflation and limited supply.
- Unlike the US dollar with historically high CPI, Bitcoin acts as a hedge against inflation.