Bitcoin's status as "digital gold" is a well-known fact. However, a significant issue is emerging: currently, about $2.2 trillion of Bitcoin assets globally are in a static storage state, such as in Cold Wallets or ETFs, and are not realizing their potential economic value. This situation is akin to locking gold in a safe; while it preserves its value, it cannot generate additional returns.
Traditional lending and decentralized finance (DeFi) models face numerous challenges in terms of profitability. They primarily rely on issuing new tokens to provide subsidies or on internal cycles of funds. These strategies often lead to market bubbles or risk concentration, as seen with Celsius and BlockFi, and even face the issue of diluted returns when scaled up.
In the face of these challenges, an innovative solution is emerging. This new approach directly connects Bitcoin collateralized assets with the off-chain real economy, opening up a new avenue for value creation:
1. Invest in U.S. Treasury bonds and money market funds to obtain stable interest income. 2. Participate in institutional loans and real-world asset (RWA) products to obtain actual cash flow.
The advantage of this model is that its revenue does not come from arbitrary subsidies, but from cash flows generated by real economic activities. At the same time, by diversifying risks across different protocols and asset classes, it greatly enhances transparency and security.
More importantly, the enormous scale of the U.S. bond market and the global financial market provides almost unlimited development space for this model, with the potential to accommodate trillions of dollars worth of Bitcoin assets.
This innovative approach not only provides new revenue channels for Bitcoin holders but also opens up new possibilities for the integration of cryptocurrency with traditional financial markets. It demonstrates how to fully leverage its economic potential while maintaining the core value of Bitcoin, pointing to a promising direction for the future development of digital assets.
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MissingSats
· 15h ago
Finally, I don't have to watch it sleep anymore.
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WalletDoomsDay
· 09-01 07:34
It's the pro trap doll coming to make money again.
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TokenEconomist
· 08-30 10:50
actually, this is just rehashing the same yield farming dynamics but with TradFi wrapper smh
Reply0
Rekt_Recovery
· 08-30 10:42
been rekt so many times but still breathing... guess that's why they call it diamond hands
Reply0
DegenRecoveryGroup
· 08-30 10:41
The crypto world will definitely win in the long run.
Bitcoin's status as "digital gold" is a well-known fact. However, a significant issue is emerging: currently, about $2.2 trillion of Bitcoin assets globally are in a static storage state, such as in Cold Wallets or ETFs, and are not realizing their potential economic value. This situation is akin to locking gold in a safe; while it preserves its value, it cannot generate additional returns.
Traditional lending and decentralized finance (DeFi) models face numerous challenges in terms of profitability. They primarily rely on issuing new tokens to provide subsidies or on internal cycles of funds. These strategies often lead to market bubbles or risk concentration, as seen with Celsius and BlockFi, and even face the issue of diluted returns when scaled up.
In the face of these challenges, an innovative solution is emerging. This new approach directly connects Bitcoin collateralized assets with the off-chain real economy, opening up a new avenue for value creation:
1. Invest in U.S. Treasury bonds and money market funds to obtain stable interest income.
2. Participate in institutional loans and real-world asset (RWA) products to obtain actual cash flow.
The advantage of this model is that its revenue does not come from arbitrary subsidies, but from cash flows generated by real economic activities. At the same time, by diversifying risks across different protocols and asset classes, it greatly enhances transparency and security.
More importantly, the enormous scale of the U.S. bond market and the global financial market provides almost unlimited development space for this model, with the potential to accommodate trillions of dollars worth of Bitcoin assets.
This innovative approach not only provides new revenue channels for Bitcoin holders but also opens up new possibilities for the integration of cryptocurrency with traditional financial markets. It demonstrates how to fully leverage its economic potential while maintaining the core value of Bitcoin, pointing to a promising direction for the future development of digital assets.