In a recent podcast, Dan Held discussed Bitcoin’s evolution from ‘digital gold’ to a platform with enhanced functionality. With increasing institutional interest and shifting geopolitics, he highlights potential developments in decentralised finance (DeFi) on Bitcoin. Amidst political support from figures like Trump, the discussion also touches upon the challenges and innovations within the Bitcoin community without altering its core principles.
Bitcoin, often referred to as “digital gold,” has been appreciated for its scarcity and decentralised nature. But as institutional interest peaks and geopolitical landscapes shift, many in the cryptocurrency community believe that it’s time for Bitcoin’s narrative to change. On a recent episode of The Clear Crypto Podcast, Dan Held, a seasoned Bitcoiner, discussed how Bitcoin might enhance its functionality and broaden its appeal beyond traditional crypto circles, opening doors to new use cases.
Held pointed to some significant political changes in the US, particularly with Donald Trump’s public support of Bitcoin, suggesting that a regulatory shift is underway. He remarked, “We have the most open administration toward Bitcoin in the United States. It’s a strange turn of events, especially since Bitcoin has often faced negative press about its environmental impact and association with illegal activities. Now, the president is advocating for cryptocurrencies.”
His analysis highlights Bitcoin’s resilience, having weathered challenges such as the crackdown on mining in China and the Biden administration’s regulatory scrutiny of crypto banking. Despite these hurdles, about 25% of Americans are now Bitcoin owners, showing significant growth, according to Held.
Moving forward, Held and co-host Gareth Jenkinson are keen on the possibility of integrating decentralised finance (DeFi) tools on the Bitcoin network. Traditionally, these tools have resided on other blockchains such as Ethereum and Solana, but bringing DeFi mechanisms to Bitcoin could take its utility to new heights. Held argued, “If we could bring DeFi back to Bitcoin, it would allow for not just mere speculation, but various speculative opportunities that could see Bitcoin’s growth accelerate further.”
This potential includes various activities like borrowing, lending, and staking, thus enabling users to interact with Bitcoin in ways that transcend mere holding or trading. Jenkinson added to this sentiment, pointing out that integrating DeFi with Bitcoin would essentially leverage Bitcoin as the underlying asset, giving individuals more utility and control.
However, there’s a notable tension between Bitcoin purists, who focus on its core attributes, and those who see the benefits of expanding its use cases. Held mentioned the divisive 2017 Bitcoin Cash fork, which he termed a “civil war” within the Bitcoin community. Fortunately, he notes that the current evolution is evolving without needing to alter Bitcoin’s foundational rules: “No one’s proposing to change the rules of Bitcoin. This is innovation built on top.”
For listeners interested in this discussion on Bitcoin’s future and broader implications, the complete episode of The Clear Crypto Podcast is available on Cointelegraph’s website, as well as Apple Podcasts and Spotify. Don’t miss out on the other insightful shows offered by Cointelegraph!
