Onchain credit is the future of blockchain-based finance
The article discusses the prospects for the development of cryptocurrency financial services and the transition from crypto cards to onchain credit on the blockchain. Crypto cards, despite their apparent convenience, have a number of significant limitations and drawbacks.
The main problems of crypto cards:
- The need to sell assets when paying, which leads to tax costs;
- The complexity and inconvenience of managing cryptocurrency accounts and balances;
- High volatility of cryptocurrency exchange rates, which complicates expense planning.
Unlike cards, onchain credit on the blockchain allows using crypto assets as collateral to obtain loans and make payments without the need to sell them. This makes it possible to maintain a positive return on cryptocurrency savings, as well as simplifies the payment process.
Thus, onchain credit is becoming a more promising and convenient tool compared to crypto cards, gradually displacing them from the blockchain-based financial services market.