Bitcoin Is Not a Payments Platform

Twitter founder Jack Dorsey just lately mentioned that the Bitcoin neighborhood ought to concentrate on scaling funds so as to stay related. “I think it has to be payments for [Bitcoin] to be relevant on the everyday,” he told Haley Berkoe on the 21 in 21 podcast.

I disagree.

As someone in the trenches with Bitcoin builders, who also talks to market-makers and investors, I fundamentally disagree with the idea that payments are the path forward for actual Bitcoin adoption.

The only way to grow Bitcoin’s relevance is by creating more functionality for everyday users to do something with their bitcoin that doesn’t involve selling or sending it away (i.e. hodling). That’s especially true on the institutional side, where a good corporate strategy involves more than just holding BTC on a balance sheet.

Bitcoin is a generational asset. Understanding that most holders don’t plan to sell, you have to look at how you keep the chain healthy. As the rewards for miners shrink each halving cycle, finding sustainable ways to incentivize them will be a big part of the discussion around Bitcoin over the next decade. Scaling activity to Layer 2s, like Stacks, that can bring smart contract functionality to the ecosystem without compromising the base layer, creates far more opportunities than simply scaling payments alone.

Bitcoin has established itself as “digital gold” in 2025. Individuals, establishments and countries are holding it as a safe-haven reserve investment. This trend does not lend itself to a future as a payments vehicle; instead, it creates a ripe opportunity for Bitcoiners to participate in Bitcoin DeFi and make BTC a productive asset.

A recent Binance research report stated that only about 0.8% of bitcoin is currently being used in DeFi. That means there’s nearly $1 trillion in untapped potential value on-chain if we can create a clear case for building on Bitcoin.

Bitcoin’s core strength is its security, decentralization, and finite supply. Knowing that, why would someone look to use their BTC as a form of payment? Instead, through DeFi protocols, you are already able to bridge your bitcoin to an L2 and borrow stablecoins. Since BTC is now considered by most as generational wealth, it becomes your best collateral. DeFi allows you to use digital assets as payment, while keeping your BTC securely stored on the Bitcoin blockchain. Bitcoin DeFi unlocks BTC as the most pristine form of collateral.

I agree with Dorsey when he said that Bitcoin won’t succeed if “[Bitcoin] fails to be related to individuals on a every day foundation.” But we will develop long-lasting relevancy by permitting individuals to do extra on-chain by way of Bitcoin DeFi.

Any builders engaged on platforms that reach Bitcoin’s performance, permitting for lending, borrowing, and different monetary providers with out compromising its safety, will come out as the brand new leaders on this area. If we leverage these L2s, we’ll see individuals create financial savings accounts stuffed with bitcoin, earn yield in bitcoin, take out loans towards their bitcoin, and just about all of these actions might be abstracted by the scalable L2s.

Bitcoin can proceed to be this asset of generational wealth or retailer of worth towards inflation, whereas really being an energetic asset throughout an evolving monetary ecosystem.

Utility lies in creating alternatives to do extra, not in making your morning espresso buy in BTC.