The rapid and risky world of decentralized financing – or Challenge– is what could soon do Bitcoin “Hodlers” more money on their investment, according to new research from Binance.
A Thursday report of the greatest exchange of crypto in the world indicates that the use of Bitcoin, the largest and oldest cryptocurrency, on Defi protocols is an “great unexploited opportunity” and has the “potential to unlock billions of dormant BTC liquidity and to improve the efficiency of Bitcoin capital”.
About only 0.79% of Bitcoin is used for DEFI, indicates the report.
Bitcoin is a payment network originally created to send money anywhere in the world at any time. But it is now largely sold, in particular since the approval of ETF Spot in the United States last year – as “digital gold”: coverage of inflation against the collapse of currencies.
This is why many investors hold – or “Hodl“In crypto, speech – assets for years (many see great yields.)
Binance says that using cryptocurrency in DEFI could help investors earn even more money.
“Bitcoin architecture has not been designed to support complex financial applications,” said Thursday’s report, adding that with DEFI applications, “BTC holders now have greater flexibility to put their bitcoin at work, whether by using it as a guarantee for funding, the lending for performance or entry into structured products.”
This would work then that developers work on growing applications in the DEFI space which are compatible with Bitcoin, especially since the Securities and Exchange Commission rebuilt The staff accounting bulletin (SAB) n ° 121 under the new user -friendly Trump administration of crypto.
DEFI allows people to do things through Blockchain technology that traditional financial products are already doing: borrow, lend or win the return.
These applications are generally built on EthereumThe second largest Crypto network. Bitcoin on Defi Exist for some time but has never really understood, notes Binance.
Now, however, just like gold and treasury bills are used in traditional financial markets, Bitcoin should become “more productive” as its base develops and more layer 2 networks become available to allow Bitcoin investors to put their money at work, says Binance.
The world of Defi is experimental and the industry has been Hacks and scams, losing investors Huge sums of money Over the years.
“Unlike traditional DEFI users, BTC holders have historically prioritized security, self-destruction and preservation of long-term value on the active deployment of capital,” said the report. “BTCFI applications will have to align with these preferences.”
The report added that if the development protocols are “successful, Defi arrives at Bitcoin – and by taking advantage of the original blockchain safety and resilience, BTCFI should be a sector to watch closely.”
Edited by James Rubin
Daily debriefing Bulletin
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