Bitcoin found ‘another’ use case through BTCfi — DLC.Link co-founder
Bitcoin may be one of the best investments of all time, and many investors believe its best days are still ahead. If Bitcoin reaches the $100,000 to $3 million price target predicted by various analysts, it will be a win for the holders. Still, the data shows that they are reluctant to spend their BTC, and generally, they are terrible at timing when to sell and when to buy.
The Bitcoin (BTC) market has a “fragmented value” feature where a subset of investors are unable (or unwilling) to capitalize on BTC's value. The market itself has limited reliable opportunities for holders to get a product, use BTC as collateral, and easily access some of the important features of decentralized finance (DeFi).
The Agenda Podcast's Ray Salmond and Jonathan DeYoung spoke with DLC.Link Founder and CEO Aki Balogh to discuss the latest developments in Bitcoin.
“Two years ago, Bitcoin was mostly like a pet rock.”
To kick off the discussion, Balog noted that many people “have a good handle” on Bitcoin, but it's been difficult to realize the gains or even unlock some side capital.
“If you have all this capital, why let it sit on the sidelines? Why not use it? For example, you can invest it and you get more income, you know, more production, more currency with it, more tokens.
Balog says Bitcoin has a market cap of $1.35 trillion. However, over the years, options for investors have been centralized options such as BitGo, which offered WBTC as IOUs to BTC offered to customers and experimental DeFi platforms, often exposing investors' funds to total loss.
DLC.Link takes a different approach where “our depositors lock their bitcoins with themselves”.
“We call it self-wrapping. And then DLC BTC on Ethereum. Of course, DLC BTC can be verified because you can see that it's locked on the chain, in a certain UTXO on Bitcoin, and then get DLC, BTC, use it, invest it. So it's backed by real Bitcoin. And then, when DLC BTC is burned, that unlocks Bitcoin.
When asked about detention and security concerns, Balog explained.
“We never get anyone's bitcoins. We are not a chain. We are not a watchdog. We make software that lets you lock in with yourself. And that's it and that keeps it very secure. Because as long as you have your private key, you know, if you lose your private key, that's in all crypto. Of course we can't get it back, but as long as you have your private key, you'll always have access.
Related: BlackRock Adds Its Own Bitcoin ETF to Income and Bond Fund
To hear more from Balog's conversation with Agenda — including an alpha on new features and plans for DLC — listen to the full episode on Cointelegraph's Podcasts page, Apple Podcasts, or Spotify. And don't forget to check out Cointelegraph's full lineup of other shows!
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This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
