Well, the concept of holding cash and gold at home is easier than managing a private key. But as soon as you want your money to work i.e. earn interests or invest it, crypto currencies are easier to work with. I mean, you can literally deposit and earn interest by touching a button inside your Coinbase wallet, right now.
Regarding your second argument: Change in the financial system does not happen by itself. You need severe pressure. DeFi has a huge potential to put pressure on the traditional financial markets to make them more accessible to the poor and limit their excesses (monetary inflation).
The government could of course “ban” Bitcoin and DeFi. But since they are decentralized it can’t make them really disappear — only more cumbersome to get into (and out of), for example, by closing down centralized exchanges. But the government can’t really prevent you to meet a “dealer” cashing in/out on your cryptos.
> But the government can’t really prevent you to meet a “dealer” cashing in/out on your cryptos.
If that “dealer” doesn’t report your transactions under KYC or either of you don’t pay taxes, you’ll get a hard reminder that governments can and routinely do prevent things like this. It’s especially risky to break those laws with cryptocurrencies because you’re leaving a full irrepudiable history of every transaction so when they bust your dealer they get _every_ transaction, not just the one that was caught, and that’s for everyone they’ve dealt with — and since those transactions are all by definition illegal, they have both grounds to investigate and an easy lever to pressure each person to turn in bigger players in exchange for leniency.
Regarding your second argument: Change in the financial system does not happen by itself. You need severe pressure. DeFi has a huge potential to put pressure on the traditional financial markets to make them more accessible to the poor and limit their excesses (monetary inflation).
The government could of course “ban” Bitcoin and DeFi. But since they are decentralized it can’t make them really disappear — only more cumbersome to get into (and out of), for example, by closing down centralized exchanges. But the government can’t really prevent you to meet a “dealer” cashing in/out on your cryptos.