Decentralized finance (DeFi) is an emerging system of financial products and services built on blockchain technology. It utilizes secure distributed ledgers similar to those used by cryptocurrencies. In today’s episode of Grow Money Business, we have an insightful conversation with Matteo Binfarè, a professor at the University of Missouri. He teaches his students about investments, pensions, endowments, and decentralized finance. Throughout the conversation, Matteo imparts his insight and years of experience in decentralized finance and cryptocurrency.
[02:33] Decentralized Finance – To kick off the conversation, Matteo defines decentralized finance and discusses its current state.
[07:13] Cryptocurrency – Matteo shares his thoughts on the impact of cryptocurrency.
[10:34] Asset Class – Matteo shares his thoughts on whether cryptocurrency deserves its own asset class.
[13:28] Web 3.0 – Web 3.0, the next avatar of the internet’s world, is a technology capable of understanding and interpreting the concept of data on its own. Matteo explains Web 3.0 is and how it works.
[19:11] Governments and Bitcoin – Matteo discusses a variety of government viewpoints and regulations surrounding bitcoins.
[23:49] Smart Contracts – Matteo defines a smart contract and outlines its potential applications and benefits.
[26:25] Matteo’s Story – Matteo shares his background and journey thus far.
[32:03] Asset Allocation – Matteo expresses his thoughts on whether or not cryptocurrency deserves a place in most people’s portfolios, as well as how much an individual should consider allocating to it.
[43:47] Institutions – Matteo explores how institutions are approaching cryptocurrency and allocating resources.
[47:43] Research and Studies – Matteo discusses his research studies and plans to study cryptocurrencies and DeFi formally.
[24:59] Hazards – Matteo points out some key risks to consider while investing in cryptocurrencies.