In a recent discussion, Jack Dorsey, the founder of Twitter, emphasized the importance of payment scalability for Bitcoin’s future relevance. He stated, “I think it has to be payments for [Bitcoin] to be relevant on the everyday.” source

However, Rena Shah, COO of Trust Machines, disagrees. She believes that the future of Bitcoin lies not in payments but in its capacity as a generational asset, emphasizing the need for greater functionality beyond mere transactional use.

Shah argues that to foster Bitcoin’s relevance, the focus should be on enabling users to utilize their Bitcoin without needing to sell or transfer it. This perspective holds particular weight for institutional investors, suggesting that a robust corporate strategy should involve innovative uses of Bitcoin rather than simply holding it on a balance sheet.

As Bitcoin approaches what many consider “digital gold” status, with individuals and institutions increasingly viewing it as a reserve asset, the focus must shift to how Bitcoin can be integrated into decentralized finance (DeFi). Shah points out the significant potential for using Bitcoin in DeFi, noting that only 0.8% of Bitcoin is currently engaged in DeFi activities, leaving a vast market yet to be explored.

Moreover, she highlights the critical importance of Bitcoin’s security and its finite supply, questioning why users would leverage their Bitcoin solely for payments when DeFi can offer robust collateral options without sacrificing security. Shifting focus to DeFi can unlock Bitcoin’s potential, enabling it to serve roles that go beyond its traditional functions, ultimately establishing it as a productive asset in a dynamic financial ecosystem.

As the cryptocurrency landscape continues to evolve, it is crucial to create new opportunities for Bitcoin holders that foster long-term utility rather than merely facilitating everyday payments. This strategic shift may redefine Bitcoin’s trajectory in the years to come.