So borrowing and lending is no real world use case?
EDIT: This is genuine question. I want to understand if this is considered a real world use case or not.
EDIT: This is genuine question. I want to understand if this is considered a real world use case or not.
There is a "real world use case" that most would agree with, just cynical. Borrowing and lending crypto is not a taxable event. You can have a capital gain on the blockchain and borrow stablecoins against it, indefinitely delaying taxation. At the same time, as of this moment you can wash trade crypto and tax harvest any new bottoms, making this tax favorable (a common assumption here is that crypto is an expected value 0 gambling game).
Example in the wild https://twitter.com/mcuban/status/1465002539603185668
In this way, it resembles high finance trades e.g. that Matt Levine of Money Stuff used to do to lower client taxes
I know people who get a loan on their stock portfolio. For that they need to apply for the loan at their bank. This takes time and could be denied. But, if you get it you have a nice lever to play with (basically re-invest in stocks).
The principle is exactly the same with DeFi, isn't it?
People have been borrowing and lending for centuries before blockchain.
"On the current trajectory, Bitcoin miners will surpass coal miners as a major contributor to greenhouse emissions."
source: https://www.sfchronicle.com/opinion/openforum/article/Bitcoi...