In physics, Newton’s Laws of Motion dictate the outcome of two moving objects colliding. Different factors such as mass and speed make calculating the impact of, say, a linebacker tackling a wide receiver in the open field relatively predictable.

In society, however, when two competing ideologies clash, the results are less predictable. Factors like resources and social capital can help experts make historically rooted predictions, providing analyses for what to expect during unstable times, but in a far less scientific manner.

While economics is a social science, only one financial model has dominated the global economy for centuries, remaining largely unchallenged, until recently.

TradFi vs DeFi

The creation of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, the world’s original cryptocurrency, marked a pivotal moment in modern economics: the first time an alternative financial system was actually capable of challenging the centralised banking industry status quo.

Of course, this didn’t happen immediately. It took over a decade of events and technological developments for the decentralised model that spun out of Bitcoin’s launch to gain its place.

But political, religious, or social conflicts tend to result in one side asserting dominance over the other, with little or no room for compromise.

While traditional finance (TradFi) and crypto are diametrically opposed in theory, the former has grown increasingly drawn to the latter’s maturation, expansion, and technological achievements.

Decentralised finance (DeFi), for instance, represents one area that is particularly appealing to institutions as it includes tokenised real-world assets and other blockchain-based applications with high-potential revenue opportunities.

Likewise, the crypto industry, originally established to reject TradFi’s centralised system, has increasingly opened up to the idea that institutional participation is beneficial for expansion.