Why Bitcoin Needs a Thriving Economy, Not Just a Bull Run

Despite its growing market cap and institutional interest, Bitcoin's network activity is declining, with more than 60% of BTC remaining stationary for over a year. This trend poses a significant problem for the network, as it relies on transaction fees and demand for new tools and apps to function securely. The current incentive structure, which favors long-term storage over circulation, threatens the network's viability. To overcome this, Bitcoin needs to transition from a store-of-value asset to a circulating medium of exchange, with the emergence of Bitcoin Financial (BTCFi) protocols offering a potential solution by providing yield-generating products that support network security and create an incentive loop for users and miners.