Jack Dorsey, the founder of Twitter, recently emphasized that the Bitcoin community should prioritize scaling payments to maintain its relevance. He stated in the podcast “21 in 21” with Haley Berkoe, “I think it has to be payments for [Bitcoin] to be relevant in everyday life.”
However, I have a different perspective.
As someone who collaborates with Bitcoin developers and engages with market-makers and investors, I fundamentally challenge the notion that payments are the sole pathway toward widespread Bitcoin adoption.
To enhance Bitcoin’s relevance, we must develop more functionalities that allow everyday users to utilize their bitcoin in ways beyond just selling or transferring it (essentially hodling). This is especially crucial for institutional users, who need corporate strategies that extend beyond merely holding BTC on their balance sheets.
Bitcoin represents a generational asset. With most holders intending not to sell, attention should shift toward maintaining the viability of the blockchain. As rewards for miners decrease with each halving cycle, it will be vital to discover sustainable methods to keep them incentivized, becoming a major topic in the Bitcoin discourse over the next decade. Expanding activity to Layer 2 solutions, such as Stacks, which can incorporate smart contract functionality into the ecosystem without affecting the base layer, presents far more potential than merely scaling payments.
By 2025, Bitcoin established itself as “digital gold.” Individuals, institutions, and nations are treating it as a stable reserve investment. This trend does not favor a future as a payment method; rather, it opens abundant opportunities for Bitcoin enthusiasts to engage in Bitcoin DeFi and convert BTC into a more productive asset.
A new report from Binance indicated that only about 0.8% of bitcoin is currently being utilized in DeFi, suggesting nearly $1 trillion in untapped on-chain value if a clear case for building on Bitcoin can be made.
The core strengths of Bitcoin are its security, decentralization, and limited supply. Given this, why would anyone prefer to use their BTC for transactions? Instead, through DeFi protocols, you can bridge your bitcoin to an L2 and secure stablecoins. Now considered by many as a generational asset, BTC serves as excellent collateral. DeFi enables the use of digital assets as a medium of exchange while keeping your BTC safely stored on the Bitcoin blockchain, unlocking BTC as the ultimate form of collateral.
I concur with Dorsey’s assertion that Bitcoin’s success is contingent upon its “[Bitcoin] relevance to daily life.” Nonetheless, we can cultivate enduring relevance by enabling users to engage in more on-chain activities through Bitcoin DeFi.
Any developers creating platforms that enhance Bitcoin’s functionality—facilitating lending, borrowing, and other financial services—without jeopardizing its security will emerge as the frontrunners in this space. By harnessing these L2s, we can foster the creation of bitcoin-based savings accounts, yield-earning accounts, loans against bitcoin, all of which will be simplified via scalable L2s.
Bitcoin can retain its status as a store of generational wealth or a shield against inflation while actively participating as an asset across an evolving financial landscape.
Real utility lies in generating opportunities for greater use, not simply in purchasing morning coffee with BTC.
