How does DeFi prevent a 'bank run' that people are so scared of?

in Reverio2 years ago

Recently, as we've all heard, there were several banks that needed bailouts. If we have decentralized finance, how is the money protected in events such as in the crypto world? Is our money considered safe in DeFi? If it isn't, how will it ever compete with traditional banks?

 

I'm not super familiar with finances on the macro level, like with economies, so I'm just asking the question for clarity purposes.

--- This question was created on [reverio.io](https://reverio.io), Reverio is a question and answer platform built exclusively for Hive. Answer this question on Reverio by clicking [here](https://Reverio.io/question/timmy-turnip/how-does-defi-prevent-a--bank-run--that-people-are-so-scared-of-).

Sort:  


The rewards earned on this comment will go directly to the people( @tobias-g ) sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.

Congratulations @timmy-turnip! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)

You got more than 200 replies.
Your next target is to reach 300 replies.

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Check out our last posts:

LEO Power Up Day - March 15, 2023
HiveBuzz rewards participants in the Afri-Tunes Anniversary event
The Hive Gamification Proposal