Since its emergence in 2009, Bitcoin has been referred to as "digital gold." Currently, there are over 19 million Bitcoins in circulation, with a total supply cap set at 21 million. This scarcity gives Bitcoin a unique store of value function. However, looking back at Bitcoin's development over more than a decade, we observe an interesting phenomenon: despite Bitcoin's market capitalization ranking among the top in global crypto assets, its actual use cases are quite limited, as it is mostly held long-term by investors.

This phenomenon has led to a large amount of Bitcoin being in a "static" state. They are stored in cold wallets, neither participating in transactions nor generating returns, and are unable to circulate within the blockchain financial ecosystem. Some describe this state as "capital idleness." How can the potential value of these Bitcoins be released? How can Bitcoin be made to truly flow while ensuring its security and scarcity? This is indeed an important challenge facing the industry today.

In traditional finance, capital is rarely in a stagnant state. US dollars can enter the banking system for lending, investment, and allocation, generating returns. Even gold, which does not appreciate in value on its own, maintains high liquidity in the market through financial instruments such as gold ETFs and futures contracts. In contrast, the situation with Bitcoin is quite different:

First of all, its payment function has not yet been fully realized. Although Bitcoin was originally designed as a "peer-to-peer electronic cash system", it has gradually evolved into a store of value rather than a means of everyday payment due to limitations such as transaction speed and fees.

In addition, Bitcoin's investment properties also face challenges. Although it is seen as a tool for hedging against inflation, its price volatility remains high, which makes many investors prefer to hold it for the long term rather than actively trading.

Finally, in the field of decentralized finance (DeFi), Bitcoin's participation is relatively low. Most DeFi protocols are built on smart contract platforms like Ethereum, and the Bitcoin network itself does not support complex smart contract functionalities.

In the face of these challenges, the industry is exploring various solutions. For example, the development of the Lightning Network aims to improve the transaction speed of Bitcoin and reduce costs. Advances in cross-chain technology are expected to allow Bitcoin to better integrate into the DeFi ecosystem. In addition, some emerging projects are committed to developing Bitcoin-based financial services to activate these "sleeping" capitals.

With the continuous advancement of technology and the development of the ecosystem, we have reason to believe that Bitcoin will gradually transform from a pure store of value into a more active and practical digital asset. This will not only help to unlock the potential value of Bitcoin but will also bring new opportunities and challenges to the entire cryptocurrency industry.