Summary
Bitcoin has become more mainstream, appearing on the balance sheets of companies and even in government reserves. As institutions hold significant amounts of bitcoin, they are under pressure to find ways to make it generate income. Bitcoin's unique features make it suitable to become a foundation for global financial systems and potential future use in blockchain-based financial products like bitcoin-backed stablecoins.
Key Facts
- Bitcoin is now included in the finances of public companies and governments.
- Institutions are looking to use bitcoin holdings productively, similar to how cash and bonds are used.
- Bitcoin is positioned as a trustworthy, borderless asset that can be tracked on a public ledger.
- Institutions are beginning to employ bitcoin as collateral in credit markets.
- Bitcoin's supply is fixed, unlike traditional assets that can be inflated.
- Bitcoin-backed stablecoins could be a way to make bitcoin more productive by using it to issue digital dollars.
- The concept of stablecoins involves creating digital tokens that maintain a stable value, usually linked to the U.S. dollar.
