Bitcoin, often called digital gold, is poised for a new chapter as institutional interest grows and political attitudes shift. Dan Held discusses the potential for integrating decentralised finance (DeFi) into Bitcoin, challenging traditional perceptions. He highlights how positive political support and growing ownership could reshape Bitcoin’s utility and value while navigating the existing tension within the crypto community.
Bitcoin (BTC), often referred to as “digital gold,” has gained attention as a store of value rooted in principles like decentralisation, scarcity, and individual ownership. As institutional involvement increases and geopolitical landscapes shift, many believe it’s time for Bitcoin’s narrative to mature. In the latest episode of The Clear Crypto Podcast, hosts Nathan Jeffay and Gareth Jenkinson chat with industry veteran Dan Held, who suggests that Bitcoin might soon evolve, unlocking new functionalities that extend its appeal beyond the crypto community.
Held points out that recent political developments could signal a shift in how Bitcoin is perceived. With former US President Donald Trump openly supporting Bitcoin — allegedly owning it as well — he sees potential for favourable regulations. “The current administration seems to be the most open towards Bitcoin in the US,” Held explains. He contrasts this positive outlook with past media narratives that depicted Bitcoin mining as environmentally destructive, or as a tool for illicit activities. Today, however, the president is on board, which marks a significant change.
Reflecting on Bitcoin’s journey, Held highlights how the cryptocurrency has thrived despite numerous obstacles, including aggressive crackdowns by China and strict regulations from the Biden administration on crypto banking. Notably, he mentions that about 25% of Americans now own some Bitcoin, indicating a substantial shift in public adoption.
Looking ahead, Held advocates for the integration of decentralised finance (DeFi) tools within the Bitcoin ecosystem. Traditionally associated with platforms like Ethereum and Solana, bringing DeFi capabilities to Bitcoin could radically reshape its utility and value. He explains, “If we could reintegrate [DeFi] into Bitcoin, it would allow for broader uses beyond simple speculation… facilitating faster growth of Bitcoin itself.”
This integration could encourage actions like lending, borrowing, and staking, expanding how users interact with their Bitcoin beyond conventional methods like mere holding or trading. Jenkinson supports this vision, emphasising that enabling DeFi on Bitcoin could empower users to leverage digital gold as a foundational asset. Though, there’s resistance from some steadfast Bitcoin advocates. “Many hardcore proponents are reluctant to sacrifice their Bitcoin for other uses,” Jenkinson notes, highlighting the struggle between traditionalists and more progressive voices.
This ongoing debate around Bitcoin’s evolution is familiar, as Held recalls the divisive 2017 Bitcoin Cash fork. Back then, it was a battle of ideologies—”brother against brother,” as he puts it. However, today’s developments are unfolding without altering the fundamental rules of Bitcoin. “No one is suggesting changes to Bitcoin’s core code,” Held reassures. “We’re talking about innovations layered on top of what already exists.”
For listeners wanting to catch the full conversation and dive deeper into these topics, they can tune into The Clear Crypto Podcast available on platforms such as Cointelegraph’s Podcasts page, Apple Podcasts, or Spotify. In addition, be sure to explore Cointelegraph’s extensive range of other shows!
