Babylon: Pledging will determine Bitcoin's place in the global digital economy
Fisher Yu, co-founder of the Babylon project, wrote that next year's staking will determine Bitcoin's place in the global digital economy. In addition to benefiting retail investors by enabling them to receive passive rewards from their holdings of BTC, Bitcoin staking also provides an attractive opportunity for businesses and governments, with governments around the world holding around 2.2% of the Bitcoin supply as of August 2024.
The article states that the huge opportunity presented by Bitcoin staking is expected to transform Bitcoin from a store of value and medium of exchange into an active asset, thus further incentivizing wider participation in decentralized systems and digital assets. Bitcoin staking may just be the beginning of Bitcoin as a foundation for innovation. In 2025, we may see the rise of other native use cases that will continue to solidify Bitcoin's position as a foundational asset in the global financial ecosystem.