Bitcoin’s Role in DeFi Seen as Greater Than Payments Potential

Jack Dorsey stated that the Bitcoin community should prioritize scaling payments for everyday relevance. However, there is a counterargument emphasizing the importance of enhancing functionality to boost adoption without selling or sending BTC. Key points include:

Bitcoin's role as a generational asset suggests that most holders intend to keep it rather than use it for transactions.
Incentivizing miners sustainably will be crucial as rewards decrease over time.
Layer 2 solutions, like Stacks, can introduce smart contract functionality, expanding opportunities beyond just payment scaling.
Bitcoin is increasingly viewed as "digital gold," making DeFi participation a promising area for users to leverage BTC as a productive asset.
A Binance report indicates only 0.8% of bitcoin is utilized in DeFi, revealing nearly $1 trillion in potential on-chain value.
DeFi protocols allow users to borrow stablecoins against their BTC while keeping it secure, positioning it as strong collateral.
Builders enhancing Bitcoin’s functionality through lending and borrowing services will lead the market.
Focusing on creating more opportunities within DeFi could enhance Bitcoin's relevance in daily life.

The utility of Bitcoin lies in expanding its functionalities rather than solely facilitating small purchases.