DeFi needs Bitcoin and people need to be encouraged to buy more
Two reasons:
–Liquidity
–Control
People don't yet realize how much they need Bitcoin. It's not about the price rising to the moon to make lads USD-rich.
It's about freedom. To this, it's easy to guess which of the two above reasons is most important.
That said, liquidity is quite important too, it's only a smart choice to go after what has significant supply and buy-side liquidity. Yet, at the end of the day, it's most important that the asset is verifiably decentralized.
Bitcoin is still the most decentralized blockchain and BTC is the most decentralized asset. Both needed for DeFi to be a success.
It's easy to get lost in the noise. Genius Act-enabled stablecoins, tokenization of real world assets, digital assets treasuries (DATs), Crypto ETFs, institutional interest in crypto staking, all these things matter, but what matters most is getting people to buy Bitcoin.
Everything that's mentioned in the last paragraph are all of the traditionally regulated market, meaning that they have to and will play by the rules of said market. This means that we'll have assets leverage the decentralized blockchain tech but still have TradFi characteristics such as KYC.
We cannot afford to allow capital come on-chain and have it reside in assets that are centralized and serving the broken and exploitative traditional finance and economic systems.
This is why Bitcoin is so important. The government understands that it is that important, that's why it would appear that many are trying to acquire large sums of the asset.
Most people seem to think that this move is about making money and that's quite comical. Traditional government don't need to make money investing in assets, that's something the people do, the government simply tax and do all other shits they do in the name of governance and regulations.
People need to understand that the government doesn't care about Bitcoin in the way native investors do. The masses have to be compelled to buy Bitcoin, it's important that they do so to ensure that the fight for a future where finance is truly decentralized isn't a very long one.
Through centralized stablecoins, tokenized real world assets (RWAs), deposit tokens and everything else of TradFi, the government will try to monitor and control capital on-chain and effectively the people. Buying bitcoin is one way, the most effective way right now, to avoid giving significant power to them over the future layer of finance.
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I am seeing your views friend. Bitcoin itself as a blockchain still remains decentralized irrespective of this side chain ETF activities and others. The challenge currently about Bitcoin is its price. Many investors are not here to buy 'freedom assets' but financial freedom. Bitcoin is currently out of reach for many to keep a reasonable sum unless you are talking of just saving the fractions in BTC. As you know, no investors is interested in savings, why should it just sit there.
I think financial freedom is something people shouldn't look forward to.
There's a saying, "surviving is winning," if people aimed to survive and built accordingly, they'd have more luxury than people simply chasing riches, hoping to get lucky.
That said, what good is "financial freedom" when accumulated wealth is within a financial system designed to exploit the masses?