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cointelegraph.com Mar 22, 2025 15:00

Bitcoin sidechains will drive BTCfi growth - Opinion by: Brendon Sedo, Core DAO initial contributorBitcoin is outgrowing the “digital gold” narrative. The primary driver of this shift is the rise of Bitcoin DeFi (BTCfi), which looks beyond the mere store-of-value use cases. In 2024, Bitcoin (BTC) became a natively yield-generating asset and the centerpiece of Ethereum-style decentralized finance ecosystems. 2025 is when that kindling can grow its flame on innovative Bitcoin sidechains. Most past attempts to tap Bitcoin’s value as a productive asset required significant changes to its base layer. That’s a big reason they failed. The Bitcoin layer 1 is not designed for much change, leaving most Bitcoiners to merely hodl and not do much else. The result is that Bitcoin remained underutilized as a network and an asset.Bitcoin sidechains have emerged as the perfect solution to all these problems, scaling Bitcoin’s utility without altering or being limited by the base layer. Naturally, these protocols will be the most potent catalyst for BTCfi’s growth, especially with BTC surpassing $100,000, constituting over 60% of the total crypto market share, and entering a new regulatory landscape with the first “pro-crypto” US government regime.Scaling Bitcoin, a productive assetPer Hal Finney, “Bitcoin itself cannot scale to have every single financial transaction […] included in the blockchain.” That’s why there’s a need for a secondary level of payment’ in his view. For a long time, the blockchain space ignored Finney’s call to action and prioritized innovation that isolated Bitcoin. However, innovations previously limited to chains like Ethereum are now crossing over to the world of Bitcoin. Sidechains, rollups and other scaling solutions offer more options for holders who want Ethereum-style utility while remaining aligned with Bitcoin. This prepared the ground for BTCfi, where holders can access a range of income-generating solutions like staking, lending and derivatives. The industry is, however, still in the early innings of this revolution in Bitcoin. As of November 2024, merely 0.8% of its circulating supply is utilized for DeFi use cases, according to Galaxy Digital. Out of Bitcoin’s roughly $2 trillion market cap, less than $7 billion comprises BTCfi TVL.While this may appear unencouraging, it highlights the massive remaining opportunity. Bitcoin L2 infrastructure scaled 7x from 2021 to November 2024. Recent: Bitcoin DeFi TVL up 2,000% amid bumper 2024 for BTC price, adoptionMore importantly, it has accounted for a sizable share of new liquidity flowing into BTC, besides institutional products like exchange-traded funds (ETFs). Even if the supply of Bitcoin in BTCfi platforms and sidechains grows by 0.25% annually, the sector will have a total addressable market of $44 billion to $47 billion by 2030, according to Galaxy Digital. However, as Bitcoiners know, this is a conservative estimate and would be accelerated by accelerating BTC price action or even more Bitcoin DeFi adoption. VCs, for one, have started to recognize the potential of Bitcoin sidechains, investing over $447 million already, according to Galaxy Digital. Of this, about $174 million was invested in Q3 2024, setting the stage for more explosive growth in 2025. More funding for early-stage projects will ensure more successful launches, innovations, choices for users, and overall value. As Bitcoin-native solutions provide access to productive use cases for Bitcoin, users will no longer need to rely on trusted intermediaries and Bitcoin-agnostic smart contract platforms. Sacrifices that were necessary to expand the utility of Bitcoin in the past will no longer be required. That can unlock substantial value for principled BTC holders and even the Bitcoin network itself. Yields on Bitcoin for BitcoinSo far, bridging to Turing-complete Ethereum Virtual Machine (EVM) chains has been a go-to way to facilitate yields and other financial use cases on Bitcoin. For example, the wrapped Bitcoin (WBTC) market on Ethereum is more than $10 billion. While solutions like WBTC have been suitable for some, many Bitcoin holders prefer not to entrust custodians with their capital or rely on chains like Ethereum, which do not align with Bitcoins consensus principles or support the network at all. BTCfi, defined by Bitcoin-aligned and Bitcoin-powered infrastructure, is a solution from which both WBTC users and Bitcoin purists can benefit. Users who are already accustomed to Ethereum’s smart contract sophistication can continue to enjoy that EVM experience while also growing closer to Bitcoin’s roots. Principled Bitcoin users can get more options for their BTC’s utility if the sidechain aligns with the base network. Bitcoin holders also gain access to BTC derivatives superior to Ethereum-native solutions like WBTC. Yield-bearing BTC derivatives on Bitcoin-aligned sidechains are a 100x improvement, offering self-custody and previously unavailable yield sources to Bitcoin holders. Overall, BTCfi can be much more significant. Not just compared to where it is now, but also vis-a-vis EVM and SVM-based DeFi. Bitcoin sidechains are already driving this shift, and will continue to do so throughout 2025. All that is needed is the right approach and consistency regarding development and product pipelines.For BTCfi, the path is clear: Deliver use cases with product-market fit to Bitcoin holders on Bitcoin-powered platforms. This will lay the foundation for generating even more value for the Bitcoin community as a whole. And ultimately, there will be a positive flywheel of Bitcoin adoption. The institutional side led headlines in 2024. Now, it’s time for the native, onchain camp to show its strength and deliver. Opinion by: Brendon Sedo, Core DAO initial contributor.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

FOMO: 90%
cointelegraph.com Mar 22, 2025 16:40

Pakistan Crypto Council proposes using excess energy for BTC mining - Bilal Bin Saqib, the CEO of Pakistans Crypto Council, has proposed using the countrys runoff energy to fuel Bitcoin (BTC) mining at the Crypto Councils inaugural meeting on March 21.According to an article from The Nation, the council is exploring comprehensive regulatory frameworks for cryptocurrencies to attract foreign direct investment and establish Pakistan as a crypto hub.The meeting included lawmakers, the Bank of Pakistans governor, the chairman of Pakistans Securities and Exchange Commission (SECP), and the federal information technology secretary. Senator Muhammad Aurangzeb had this to say about the meeting:“This is the beginning of a new digital chapter for our economy. We are committed to building a transparent, future-ready financial ecosystem that attracts investment, empowers our youth, and puts Pakistan on the global map as a leader in emerging technologies.”The Crypto Council represents a radical departure from the government of Pakistans previous stance on crypto. In May 2023, former minister of state for finance and revenue, Aisha Ghaus Pasha said crypto would never be legal in the country.Pasha cited anti-money laundering restrictions under the Financial Action Task Force (FATF) as the primary motivation for the governments anti-crypto stance.The presence of Bitcoin miners can stabilize electrical grids. Source: Science Direct Related: Pakistan eyes crypto legal framework to boost foreign investmentPakistan follows the United States in embracing cryptoThe government of Pakistan moved to regulate cryptocurrencies as legal tender on November 4, 2024 — the same day as the elections in the United States.Following the re-election of Donald Trump in the US and the Jan. 20 inauguration, Trump moved quickly to establish pro-crypto policies at the federal level.On Jan. 23, President Trump signed an executive order establishing the Working Group on Digital Assets — an executive advisory council tasked with exploring comprehensive regulatory reform on digital assets.President Trump signs executive order establishing the President’s Working Group on Digital Assets. Source: The White HouseThe Jan. 23 order also prohibited the government from researching, developing, or issuing a central bank digital currency (CBDC).President Trump also signed an executive order creating a Bitcoin strategic reserve and a separate digital asset stockpile in March 2025 that will likely include cryptocurrencies made by US-based firms.Magazine: How crypto laws are changing across the world in 2025

FOMO: 85%
cointelegraph.com Mar 22, 2025 21:09

Gold-backed stablecoins will outcompete USD stablecoins — Max Keiser - Gold-backed stablecoins will outcompete US dollar-pegged alternatives worldwide due to golds inflation-hedging properties and minimum volatility, according to Bitcoin (BTC) maximalist Max Keiser.Keiser argued that gold is more trusted than the US dollar globally, and said governments of foreign nations with an adversarial relationship to the United States would not accept dollar-pegged stablecoins. The BTC maximalist added:Russia, China, and Iran are not going to accept a US dollar stablecoin. I predict they will counter the USD stablecoin with a Gold one. China and Russia have a combined 50,000 tonnes of Gold — more than what is reported.The potential for gold-backed stablecoins to outcompete dollar-pegged tokens in international markets would upend plans to extend US dollar dominance through stablecoins proposed by US lawmakers.Source: Max KeiserRelated: Gov’t can realize gains on gold certificates to buy Bitcoin: Bo HinesGold-backed stablecoins fulfill the original promise of USD?Stablecoin issuer Tether launched a gold-backed stablecoin called Alloy (aUSD₮), backed by Tethers XAU₮ — a token that provides a paper claim to physical gold — in June 2024.According to PointsVille founder and former VanEck executive Gabor Gurbacs, Tether Gold is what the dollar used to be before 1971.XAU₮ is up 15.7% year-to-date, while the broad crypto market is in the red. Foundations and businesses should hedge their holdings with XAU₮, the executive wrote in a March 19 X post.XAUT is now at all-time highs following a historic rally in the gold market. Source: Gabor GurbacsUS policymakers have a different ideaUnited States Treasury Secretary Scott Bessent said that the Trump administration would focus on using dollar-pegged stablecoins to protect the dollars reserve currency status and ensure US dollar hegemony in global financial markets.Speaking at the March 7 White House Crypto Summit, Bessent indicated that this stablecoin regime would be a top priority for the administration.Federal Reserve governor Christopher Waller also voiced similar comments and expressed support for using stablecoins to prop up the US dollar before Bessent made the remarks at the summit.US lawmakers have also introduced several stablecoin bills to establish a comprehensive regulatory framework for tokenized fiat assets, including the Stable Act of 2025 and the GENIUS stablecoin bill.Magazine: Unstablecoins: Depegging, bank runs and other risks loom

FOMO: 88%