Bitcoin and Lightning Network can save DeFi from adversity: MicroStrategy CEO
In light of the recent fragility in the decentralized finance (DeFi) sector, Bitcoin (BTC) maximalist and MicroStrategy CEO Michael Saylor feels that Bitcoin and the Lightning network can come to the rescue of the DeFi market.
With two enormous protocols, Terra and Celcius, facing acute difficulties within a month of each other, the DeFi sector is going through a tough time. And in a recent tweet, Saylor suggested that Bitcoin and Lightning could help stabilize the industry.
According to Saylor, Bitcoin provides a "sound ethical, economic, and technical foundation for DeFi." He went on to say that the Lightning protocol and BTC token will be used to construct the next generation of DeFi.
The sound ethical, economic & technical foundation for DeFi is #Bitcoin. The next generation of DeFi will be built using the #Lightning⚡️ protocol and the #BTC token.https://t.co/5LlNlXkLMt
Saylor was responding to a Bloomberg story on Tuesday, highlighting numerous key concerns in the DeFi field. Mahin Gupta, founder of digital-asset custody platform Liminal, told Bloomberg that:
Celsius Networks has closed down withdrawals and other transactions on its platform barely a month after the spectacular collapse of the Terra blockchain, which enticed investors with yearly returns of around 20%. The collapse of Terra, which was triggered when its stablecoin lost its 1-to-1 peg to the U.S. dollar, and Celsius' halt in withdrawals have added to cryptocurrencies' losses.
As a result, the MicroStrategy CEO has been very enthusiastic about Lightning Network, Bitcoin's Layer 2 scaling solution. According to Saylor, Bitcoin is the future of money and the Lightning protocol will aid in transaction scalability. He added that:
“If you're going to do payments
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