Review: Uncensored Crypto docuseries episode #5

So, Uncensored Crypto docuseries episode 5 is out and I’m here with your trusty review and recap. As usual, you’ll want to watch the whole thing yourself because there’s too much for me to pack into one article, but here are the high-level blockchain and cryptocurrency concepts that you can look forward to in this episode of the docuseries.

Just in case you somehow missed episodes 1-4 and you have no idea what Uncensored Crypto is, I recommend you get on that right away and catch yourself up. If you want to learn about everything relevant and interesting happening in the crypto world right now from influential people inside the industry, this is a series you don’t want to miss. Everyone from beginners to knowledgeable enthusiasts will all enjoy the docuseries, as I have so far.

Episode overview

Uncensored Crypto docuseries episode 5 covers a lot of ground. DeFi is a pretty big topic and diving into lending and staking can make a person’s head spin when they realize how crazy the new ideas and applications are. But that’s what makes them exciting. 

What is DeFi?

“A bunch of smart guys got together—and actually it was Vitalik Buterin’s idea to create this DeFi system where people can lend money to other people’s cryptocurrency holdings. That’s really how DeFi came about.” –Jerry Tang, Co-Founder & CEO at VCV Digital Group

If you want to understand what DeFi is and how cryptocurrency is going to change how the whole world does financial transactions, this is the episode to watch. Like Jerry Tang says, a bunch of smart guys created something revolutionary. The elevator pitch for DeFi is that it uses blockchain technology to recreate and reimagine traditional financial services without the middlemen. This means no banks, no lending institutions, no gatekeepers charging fees and stringing up red tape. By decentralizing companies and automating the services with smart contracts, everything becomes peer-to-peer and accessible without the hoops we all know and hate.

The DeFi market

“The social impact of DeFi will be blowing the doors open of opportunity for all of those who are currently disenfranchised.” -Bryce Paul, Co-founder of Crypto 101

DeFi isn’t just an idea though. It’s quickly becoming a real force to be reckoned with. One of the huge goals of DeFi is opening up the financial market to more people. There are currently way too many people (around 2 billion) who are cut off from resources to better their lives because they can’t access financial services. They’re called the unbanked and cryptocurrency wants to help them. Instead of just people in first-world countries of decent economic standing having financial options, DeFi wanted to reach the entire market: 7.5 billion people.

Blockchain’s impact on the financial system

“The DeFi market has gone from zero to 100 billion, in roughly a year. I’d say that’s pretty big, and pretty fast, the sort of thing that could go to 500 billion, or a trillion, in another year, as people start realizing that you don’t need to keep your money in a bank, and you’re better off putting it in this new parallel sort of financial system.” -Brock Pierce, CEO of Helios

In October of 2021, the total value locked in DeFi protocols was more than $233 billion. That happened in just the span of a couple of years. Of course, as money flows in and usability improves, adoption will fly upward as well. As protocols become more reliable and more familiar, people will realize the cost of keeping their wealth in the traditional financial system and move over to blockchain. As Uncensored Crypto docuseries episode 5 lays out, cryptocurrency may not completely replace the financial system, but it offers a needed alternative.

Staking and lending

“The little guy doesn’t need a third party to give them permission to do anything now. You have your own financial sovereignty. You have access to investments that typically have only been held out for accredited investors and institutions.” -Alex Benfield, Crypto Analyst at Weiss Research

You might be wondering exactly what kind of financial services are provided by DeFi. The short answer is everything. The second short answer is that much of DeFi is driven by borrowing and lending (as is the legacy financial system). It’s a complex topic to unpack here, which is why you need to watch Uncensored Crypto docuseries episode 5 yourself. But using cryptocurrency for peer-to-peer lending and borrowing can generate yields for investors and savers that they would never find in legacy finance. Only the currently wealthy can gain in the old financial system, but in DeFi, everyone can.

Cryptocurrency caution

“With cryptocurrencies, we’re seeing very high yields because it is so new. The underlying security could be so volatile that if you get paid 11%, but it drops 11%, you’re breaking even.” -Richard Little, Founder and Managing Director of Serenity Wealth Management

While cryptocurrency and DeFi are exciting and truly poised to change how the entire world interacts with our finances, Uncensored Crypto docuseries episode 5 doesn’t dismiss concerns and risks. DeFi is a new sector with a lot of questions and problems to iron out in the near future. These things can be real without being a total deterrent, however. Everything new that changes the status quo requires some initial bravery and risk by early adopters.

Why it’s exciting

“The lending protocol is probably the most exciting thing about crypto in my opinion right now…It’s basically like a bank directly on the chain. It eliminates all the bank fees and the money going to the upper management and all that. You see 11, 12, 15% interest on stablecoins.” -Giorgi Khazaradze, CEO of Aurox

The reason DeFi lending is so exciting is simple: yields. Through time, keeping wealth in fiat currency has only lost value. You can’t just save your money and expect your dollars to buy the same amount of stuff at the end of your career as they did at the beginning. The history of inflation tells us that much. This forces you to invest to try to grow your money, but even then, yields are hard to come by for the average investor. DeFi wrestles away all the yields that intermediaries are currently taking from investors and gives it back to them. That concept is exciting.

What’s to come in the docuseries

There are still several more episodes coming, and Uncensored Crypto docuseries episode 5 bodes well for what you can expect out of the rest of the docuseries. A few more topics on the way are mining, energy, regulations, data sovereignty and more. Make sure to clear a spot in your day so you have time to watch all of them. See you for the next review!