Bitcoin’s main appeal has always been its potential for significant capital appreciation. However, unlike Ethereum and Solana, which offer staking rewards to holders, Bitcoin lacks a straightforward method of generating yield. Traditionally, investors have resorted to lending out their Bitcoin to earn interest. However, this approach carries significant risks, particularly due to rehypothecation, where assets are used as collateral for new loans. This practice led to a credit bubble that ultimately burst in 2022, leading to widespread bankruptcies and a loss of confidence in many facets of the market.
