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BTCFI: From passive means to financial power plant?

Discover: Here are views and opinions belong exclusively by the author and do not represent the views and opinions of the CRIPTO.NEVS ‘editorial.

Bitcoin (Btc) There was always a face crypt, the first thing that comes to mind when you think about this market. But for years, his role was largely a path held as a shop, which is still rarely used for anything else. Then BTCFI entered the scene: unlike the traditional defident definitive, which was dominated by Etherum (El) And other Smart Acroation platforms, BTCFI is built around Bitcoins as a basic means.

In the last quarter of 2024. year, the total value of BTCFI saw a massive nickname– of $ 800 million up to $ 6.5 billion. Momentum is impressive, to say at least. More institutional players taken, and analysts predict that by 2030. Year of approximately 2.3% of circulating bits of bitcoin (about 47 billion bitcoin can be actively used in decentralized finances.

So clearly, Btcfi is not just a passing trend. But why does it get it that towing? Can it really be called the future of Bitcoin’s usefulness as a financial good?

Let’s try to figure it out.

What is btcfi and why is it growing now?

BTCFI is a crossroads of Bitcoin and decentralized finances, and the first crypto plays the role of the basic means in this case. They are usually built by deflatants on blocks like Etherem, while Bitcoin wore had to wrap BTC in ERC-20 tokens (such as VBTCs) to participate in this area.

This type of tokenization began to take over the tempo around 2020. years, allowing BTC holders to access deficios not available at Bitcoin Blicckain. These “wrapped” tokens are built in a way that makes them compatible with other blockchain networks. And so, they have been effectively expanding the functionality of Bitcoin.

However, improvements in Bitcoin L2 solutions and lrts or layered bidding technologies, now change the rules. It becomes unnecessary for Bitcoin more “Citizen of the second class” ERC-20 tokens.

BTC LRTS, for example, also works on ethereum and other chains, but use Bitcoin as primary security in transactions. This means unlocking the use of bitcoin as a means that creates a yield in other networks outside its native chain.

Meanwhile, the BitCoin L2S into accounts with these problems with long-lasting scalability that enabled faster and economical transactions. These innovations will basically redefine Bitcoin, converting it from a passive value store actively used financial asset.

Why btcfi gate for bitcoin whales 2025. years?

Big Brackets Bitcoin, especially used CEFI loans supported by their BTC to finance their business, because they did not want to sell those assets. This practice is still going today, but BTCFI promises to make some changes. And there will be all starting, really: by the BTCFI that allows new opportunities for Bitcoin owners to set their property to work.

Shortly Bitcoin whales will start watching on BTCFI as a powerful passage that can be used to enter the proportion of definiteness. And the way I see it, there are two key factors in 2025. years that will affect that perception.

The first is the Bitcoin ETFS increase. BTC ETFS Currently account For almost 6% of Bitcoin, he crossed $ 100 billion in a farm at the beginning of 2025. With them they get the main cartridge, Bitcoin is increasingly experienced as the safest and oldest cryptocurrencincent.

It makes it a major choice for definitely, I attract large-scale owners who want to use their BTC without sales. Earlier in February this year, Goldman Sachs announced If in Bitcoin, she had instilled 1.63 billion dollars in Bitcoin ETFs. It’s easy evidence there.

The second main factor is the appearance of the BTC L2 technology we have already covered before. Until recently, the lack of scalability and efficiency of the transaction held Bitcoin back from deficiency. We will now see the L2 solutions that will improve network performance. And here’s an important part: It will do it while they will do it, while preserving the basic principles of decentralization and simplicity (and, therefore, its robustness).

Which war platforms must do for the corresponding integration of BTCFI

There are several challenges that will need to be overcome before BTCFI can achieve really seamless integration. The greatest technical question will ensure that L2 solutions based on bitcoin become really unreliable. They are not right there at the moment, they often rely on intermediaries and centralized elements, which opposes Bitcoin’s basic philosophy.

The good news is that much more lasts that this happens. If successful, it could make huge amounts of BTC currently only lying “dust collection” to be useful in definite.

Another big challenge will arise from people’s trust. Among the owners of Bitcoin, there are many who does not believe in entirely Ethereum and existing methods of Bitcoin token. The key to winning them will cross in the creation of robust and cost-effective solutions on the Motherland Bitcoin. The completely unreliable and cheap layer of execution on BTC Blockcain could really become a job for these people.

Bitcoin’s future: more than just “digital gold”

For years, Bitcoin carries Moniker “Digital Gold” – A-Haven funds intended for holding, not use. These days it is becoming everything untrue. As multiple institutional players enters the crypt space, the potential for BTCFI to become evolution of Bilcoin below is very real.

The demand is on the rise, and the infrastructure is already being built. For Bitcoin whales who want to maximize property without sales, BTCFI could become the perfect answer.

Detection: This article does not represent investment advice. The content and materials presented on this page are only only for educational purposes.

Michael Egorov

Michael Egorov

Michael Egorov is a physicist, entrepreneur and a crypto makimalist who stood on the origin of the opening of definiteness. It is the founder of funding curve, decentralized exchange designed for efficient and low-skating stable trade. From the beginning of funding curves in 2020. years, Michael independently developed all his solutions and products. His great scientific experience in physics, software engineering and cryptography helps in creating the product. Today, Finance Curve is one of the three deficiencies in terms of the total amount of funds locked in smart contracts.

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2025-03-30 17:38:00

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