“Will the Bitcoin bubble burst as it had done last time?”, many people might ask themselves when looking at the incredible gains in value the flagship of cryptocurrencies has realized within the last weeks. In fact the dynamic growth momentum most digital currencies have been able to create recently reminds of the situation the digital money had seen in 2017/2018. But many details seem to be different this time. It seems to be realistic that Bitcoin can break through the barrier of 100.000 USD value per coin this year. Will 2021 finally be the year when Bitcoin and its family of crypto tokens arrive at the masses? Will we all eventually get our share of this new economy, distributing back to the public the humongous profits the financial industry is making year by year? And how can normal citizens participate practically?

A big problem back in 2018 had been missing mass adoption. The value of digital currencies had mostly been pure speculation about rising demands for assets with very limited supply. Since then many new use cases have been established, not just in theory, but in practice. Whereas in 2017/18 a competition of fantastic ideas had been carried out by competing digital tokens, it is a competition of real-life products that is dominating the world of digital assets today.

The most creative and productive area of these new digital products is called “Decentralized Finance” (DeFi). Under this term use cases of cryptocurrencies and decentralized applications are summarized, which aim to allow anyone to participate in financial activity without the involvement of centralized institutions like banks, investment funds, insurance companies or stock exchanges. The motivation behind this is simple: The differences in wealth in all societies is rapidly growing, international financial institutions fill their pockets with ever larger profits while the majority of people does not have access to the modern financial opportunities making this growth possible. An amplifying factor to this growing wealth gap is the long-term low interest politics of central banks world-wide, since it leaves modern financial products as sole opportunities for harvesting any returns with one’s hardly accumulated reserves. Already in 2020 the profits realized by investments in centralized finance products have been exceeding those generated by Bitcoin by far.

Today with decentralized finance products everybody can earn fees for giving out credits to others, providing liquidity to emerging markets or by investing in other innovative finance products, theoretically at least. In fact, it is the young, tech- savvy and often nerdy intellectual part of the population, which is actually willing and capable of profiting from the new financial chances DeFi can offer. Before being able to participate in the game of decentralized finance one has to collect and evaluate information on products, information that is often rapidly changing and full of technical details. Then decisions have to be made taking into account economic questions as well, such as weighing up profit chances for financial risks involved. Last but not least, the procedures to finally invest real money into the new world of DeFi products can be quite complicated, often creating obstacles too high to overcome for most of us.

The Europe-based start-up Savix promises to lower these barriers. “Easy DeFi For Everyone” has been chosen as its mission statement for very good reasons. The Savix token will yield predictable interest rates on investments automatically without any need for technological decisions or complicated procedures. You can simply buy Savix tokens and keep them to receive your returns (Staking). The analogy to a classic savings book is obvious, hence the name Savix reminds of it. Savix will offer a simple and easy-to-use online dashboard for predefined DeFi products, which puts additional investment opportunities in the hands of its users with the ease of a single click. These one-click  investments can be realized by reducing complex technological processes by predefined setups which are optimized for the majority of everyday investors. Again the analogy to predefined and well-selected financial products of consumer banks is obvious. But this time it is all of us who will participate in the fees and profits of these products, which will not flow into high bonuses of CFOs or luxurious corporate buildings, but into the pockets of the people who invest their money into the decentralized financial system.

There seems to be hope for a more democratic alternative to the existing world of institutional finance. And Savix might play its part in it. Maybe the time has come. Let’s hope we will not miss the train departing. It might be on track this time.