The crypto ecosystem started with decentralization as its ethos. Bitcoin [BTC] was the first cryptocurrency to make its debut. The asset was introduced with decentralization as one of its primary elements. However, the founder and CIO of Cyber Capital suggested otherwise.
Earlier today, Justin Bons created quite the buzz on Twitter after he categorized a few cryptocurrencies as not true decentralized finance assets. This list included Bitcoin, XRP, Binance Coin [BNB], as well as Stellar [XLM]. Here, he calls out Bitcoin for not being able to carry out “complex financial products.”
With regard to the other assets mentioned above, he believed that they run on “permissioned blockchain architecture.” In permissioned blockchains, users must request permission before joining the network, and a central organization or a small group of entities sets the network’s rules. This sadly steered them towards the centralized category.
Furthermore, he suggested that Ethereum [ETH], Cardano [ADA], Polkadot [DOT], Avalanche [AVAX], and a few others display the characteristics of DeFi.
In addition to these, he included Solana [SOL] in a separate tweet. Bons added,
“Solana is technically a decentralized & permissionless network. However, being technically decentralized & permissionless is a low bar.”
“Bitcoin is not capable of DeFi”
Centralized crypto assets can be meddled with and manipulated by the parent company of that particular coin. Therefore, dragging Bitcoin and XRP into this debate irked quite a few members of the crypto community. Several called out Bons for his “anti-Bitcoin narratives.” However, the Cyber Capital founder stood his ground and said,
“I mean, BTC is not capable of DeFi; that is just a fact. Some Bitcoiners even think that is a good thing, not that I agree with that assessment, but I can respect it. Though I suspect some maxis might also enjoy my critiques of altcoins”
Here’s a look at BTC in the DeFi space
The DeFi space is certainly overpowered by Ethereum. The total value locked by the Bitcoin network was at $200.4 million as seen in the below image.
Ethereum on the other hand, has $29.03 billion locked in USD in the DeFi market. This shows that ETH is a popular choice for DeFi protocols or entities as opposed to BTC. Bons could have been using this narrative to justify his statements.