New Bitcoin Is Infrastructure, Not Digital Gold 2025
Bitcoin’s true potential lies in its infrastructure role as productive capital, not just a digital store of value like gold.
Bitcoin exchange-traded funds (ETFs) have solved the access issue but remain passive. What is needed now are credible, auditable, institutional-grade pathways to convert Bitcoin exposure into scalable yield.
Bitcoin is evolving from a digital store of value into a form of productive capital. Continuing to treat Bitcoin (BTC) like digital gold — storing it for appreciation over the long term — misses its true opportunity as a reserve asset for the digital age.
Bitcoin isn’t simply a store of value; it is programmable collateral. It is productive capital. It is the base layer for institutional participation in onchain finance.
The liquidation event of Oct. 10 occurred due to the inability to execute a core risk-management function efficiently. On the other hand, this event also proved that Bitcoin yield projects emphasizing security and simplicity will win through. As volatility increased, Bitcoin yield projects saw an increase in arbitrage opportunities in the market as spreads widened. Market-neutral strategies that didn’t take on a lot of leverage were able to weather and actually outperform as they profited on the market dislocation.
Composable, capital-efficient infrastructure has evolved, and transparent and auditable yield pathways now exist. Institutional deployment frameworks have matured, both in technical and legal ways. Yet most of the Bitcoin held by institutions has the potential to offer far higher yields.
Strategy’s management team has been able to financially engineer BTC acquisition with finesse. The same may not hold for other BTC digital asset treasuries. Copytrading Strategy is not a strategy. Eventually, the BTC accumulation phase will come to an end, and the BTC deployment phase will begin.
In traditional finance (TradFi) markets, allocators don’t park up their assets indefinitely. They rotate, hedge, optimize and continually adjust them to maximize yield (risk-adjusted). With Bitcoin, however, allocators are still in the accumulation phase, but eventually, like any other asset, they’ll need to start putting their Bitcoin to work.
What does that mean for allocators? It’s making Bitcoin work like productive capital with known and reliable frameworks. Think short-term lending that’s backed by substantial collateral. Furthermore, market-neutral basis strategies that are not dependent on Bitcoin’s price appre
Source: CoinTelegraph
