Time to Rethink What Bitcoin Is All About
Let’s be honest—2025 isn’t the same world Bitcoin was born into. Satoshi’s whitepaper painted a vision of peer-to-peer digital cash. But since then, things have taken a turn. While some purists still believe Bitcoin should be used to buy your coffee or pay your rent, a growing crowd says, “Hold up—Bitcoin’s potential goes way deeper.”
People like Rena Shah, COO at Trust Machines, are steering that conversation. In her view, Bitcoin is more than a digital wallet—it’s an ecosystem waiting to be unlocked. And she’s not alone in thinking that way.
Bitcoin Isn’t Broken. It’s Just… Different
We need to stop judging Bitcoin by whether you can buy a croissant with it.
Seriously—just because BTC isn’t being swiped at checkout counters doesn’t mean it’s underperforming. In reality, that’s part of what makes it powerful. Its scarcity, its immutability, and the fact that nobody can mess with its monetary policy? That’s the stuff of modern financial revolution.
In places like Argentina, Nigeria, and Turkey, Bitcoin has quietly become the life raft. Not flashy, not loud—just quietly doing what it does best: preserving value.
So instead of forcing Bitcoin into being a Visa knockoff, maybe we should ask: how can we make Bitcoin more useful without undermining what makes it valuable in the first place?
From Idle Asset to Financial Powerhouse
Rena Shah makes a compelling case: Don’t push BTC to be your next PayPal. Instead, help people do more with the bitcoin they already have.
We’re talking about:
- Borrowing against BTC
- Earning yield while holding it
- Participating in DeFi systems
- Contributing to decentralized governance
- Unlocking liquidity—without selling a single sat
If Bitcoin is the gold of the digital age, then we need the equivalent of banks, treasuries, and vaults built on top of it. Just without the middlemen.
Jack Dorsey (@jack) told @HBerkoe that #Bitcoin needs payments activity to scale. @renapshah, COO of @trustmachinesco, disagrees. She says Bitcoin can continue to be a store of value, while becoming an active asset across the financial system. https://t.co/EwHJUfNLhe
— CoinDesk (@CoinDesk) April 10, 2025
Bitcoin DeFi: The Real Revolution Hasn’t Even Started
Ethereum has had a massive head start in the world of decentralized finance. Lending, swapping, earning yields—it’s all possible thanks to smart contracts. Only about 0.8% of its total supply is active in DeFi today.
That’s absurdly low for a $1+ trillion asset.
And yet, that’s the opportunity. Bitcoin DeFi (or “BTCFi,” if you like buzzwords) is barely scratching the surface, and developers are starting to take it seriously.
Layer 2s: The Secret Sauce of Bitcoin’s Next Chapter
Let’s talk tech. Bitcoin’s base layer is rock-solid. But it’s also kind of… stiff. It wasn’t built for flexible applications or lightning-fast interactions. That’s where Layer 2 solutions come in.
Projects like:
- Stacks – brings smart contracts and DeFi tools to Bitcoin
- Lightning Network – enables fast, nearly fee-less payments
- Rootstock (RSK) – adds Ethereum-compatible functionality to BTC
These aren’t just technical add-ons—they’re the foundation for an entirely new Bitcoin-powered economy.
BTC as Collateral: Your Digital Swiss Bank
Here’s a killer use case: imagine you’ve been stacking sats for years. Now you want to buy a home, launch a startup, or cover an emergency expense.
Instead of selling your BTC and taking a tax hit, you use it as collateral. Platforms now let you lock your bitcoin into smart contracts and borrow stablecoins or real-world assets against it.
That’s financial efficiency done right.
Institutions: Holding BTC Is No Longer Enough
Let’s not forget the big fish.
Corporations have woken up to Bitcoin, but holding it passively is only the first step. Now they want to:
- Earn passive income through BTC-based protocols
- Use bitcoin as a hedge against macro risks
- Engage in decentralized finance at scale
But here’s the catch: the infrastructure to support this demand? It’s still being built. The builders who solve this problem are going to unlock a tidal wave of institutional capital.
Miners and the Sustainability Question
There’s a problem brewing on the mining front.
Every four years, Bitcoin cuts the rewards miners receive in half. That’s how the protocol works. But if rewards keep shrinking, where does that leave miners?
Answer: transaction fees.
But for fees to support miners in the long run, there needs to be activity on the network. More apps, more interactions, more volume. That’s where Layer 2s come back into play again—by making Bitcoin more than just a place to store wealth, but also a place to use it.
What the Future Might Actually Look Like
Picture this:
- Your BTC is in a vault earning 4–6% yield
- You’ve borrowed stablecoins using BTC as collateral to fund your startup
- You’re part of a DAO that allocates BTC to impact-driven ventures
- You’re paying contributors in real-time via Lightning microtransactions
And the kicker? You never sold a satoshi.
That’s not a far-off future. That’s the BTC economy that’s already in motion.
Jack Dorsey Isn’t Wrong—But He’s Not Entirely Right Either
Jack Dorsey has long championed Bitcoin as the currency for global payments. And that’s a noble vision.
But here’s the nuance: daily relevance doesn’t have to mean daily spending. It can also mean daily utility—access to capital, tools for financial growth, and empowerment through self-custody.
You might not buy a burger with Bitcoin, but you might fund a company, manage your retirement, or build generational wealth with it.
That’s the kind of relevance that sticks.
Conclusion: Bitcoin Is Building Something Bigger
Let’s stop trying to make Bitcoin behave like a debit card. It was never meant to compete with PayPal.
It’s meant to be the foundation of a more sovereign, decentralized, and transparent financial system. One that empowers people not just to hold wealth—but to activate it, grow it, and build with it.
If we embrace Bitcoin’s strengths and stop forcing it into outdated molds, we unlock its real magic.
FAQs – Let’s Clear a Few Things Up
1. Is Bitcoin failing because it’s not used for payments?
Not at all. Bitcoin was designed for security and value retention. Spending it daily was never the endgame.
2. What is Bitcoin DeFi?
It refers to financial services like lending, borrowing, and yield farming built on or around Bitcoin—especially through Layer 2 networks.
3. Why do Layer 2s matter for Bitcoin?
They add speed, flexibility, and programmability—basically allowing Bitcoin to do a whole lot more without compromising its base layer.
4. Can Bitcoin still be used for payments?
Yes, especially with tools like the Lightning Network. But its most valuable role might be as an asset you build on, not spend.
5. How are institutions using BTC today?
They’re exploring staking, borrowing, and even DeFi participation using Bitcoin. It’s not just about holding anymore—it’s about leveraging.
