Why Bitcoin Doesn't Need to Be a Payments Platform

Recently, Twitter founder Jack Dorsey stated that for Bitcoin to remain relevant, it needs to focus on scaling payments. However, as someone who works closely with Bitcoin builders and interacts with market-makers and investors, I strongly disagree with this notion. The key to growing Bitcoin's relevance lies in creating more functionality for everyday users, allowing them to utilize their bitcoin without having to sell or send it away. This is particularly important on the institutional side, where a robust corporate strategy involves more than just holding BTC on a balance sheet. Bitcoin has established itself as a generational asset, with most holders having no intention of selling. As such, it's essential to focus on maintaining the health of the chain, especially as miner rewards decrease with each halving cycle. Scaling activity to Layer 2s, such as Stacks, which can introduce smart contract functionality without compromising the base layer, presents far more opportunities than merely scaling payments. In 2025, Bitcoin has solidified its position as 'digital gold,' with individuals, institutions, and countries holding it as a safe-haven reserve investment. This trend suggests that Bitcoin is unlikely to become a payments vehicle; instead, it creates an opportunity for Bitcoiners to participate in Bitcoin DeFi and make BTC a productive asset. According to a recent Binance research report, only about 0.8% of bitcoin is currently being used in DeFi, indicating nearly $1 trillion in untapped potential value on-chain if we can create a compelling case for building on Bitcoin. Bitcoin's core strength lies in its security, decentralization, and finite supply. Given this, it's unlikely that individuals would use their BTC as a form of payment. However, through DeFi protocols, it's already possible to bridge bitcoin to an L2 and borrow stablecoins, using BTC as collateral. Bitcoin DeFi unlocks BTC as the most pristine form of collateral. I agree with Dorsey that Bitcoin won't succeed if it fails to be relevant to people on a daily basis. Nevertheless, we can grow long-lasting relevancy by allowing people to do more on-chain through Bitcoin DeFi. Builders working on platforms that extend Bitcoin's functionality, enabling lending, borrowing, and other financial services without compromising its security, will emerge as the new leaders in this space. By leveraging these L2s, we can expect to see people create savings accounts filled with bitcoin, earn yield in bitcoin, and take out loans against their bitcoin, with most of these actions abstracted by the scalable L2s. Ultimately, Bitcoin can continue to be a store of value against inflation while being an active asset across an evolving financial ecosystem. The true utility of Bitcoin lies in creating opportunities to do more, not in using it for everyday purchases like morning coffee.