Opinion by: Armando Aguilar, head of capital formation and growth at TeraHash
Bitcoin’s Evolution from Passive to Productive
For years, Bitcoin was seen as a static asset—an inert, decentralized store of value with a fixed issuance. However, the landscape is changing as over $7 billion worth of Bitcoin now generates native, on-chain yields through various significant protocols. This transition signifies a pivotal shift.
Redefining Asset Value Through Productivity
While gold’s ~$23-trillion market value largely sits idle, Bitcoin is now able to earn on-chain yields while its holders retain custody. As innovative layers unlock new returns, Bitcoin is moving from being merely a passive asset to one that is productively scarce. This shift is redefining capital risk pricing, reserve allocation by institutions, and portfolio safety strategies.
The Changing Economics of Bitcoin
Bitcoin’s fundamental principles remain intact: its supply is limited to 21 million, the issuance schedule is transparent, and it cannot be inflated or censored by any central authority. Nevertheless, by 2025, these unique attributes began to have profound implications. The introduction of new protocols allows Bitcoin holders to earn genuine yields without sacrificing their custody, altering capital engagement practices without disturbing the asset’s foundational mechanics.
Adoption by Institutions and Miners
Real-world implications are evident, with Bitcoin being the only cryptocurrency officially recognized in sovereign reserves, such as in El Salvador’s national treasury. A recent U.S. executive order also acknowledged Bitcoin as a strategic reserve asset. Additionally, spot ETFs now hold over 1.26 million BTC, representing more than 6% of the total supply.
The Challenge of Measuring Yield
As the concept of earning returns on Bitcoin gains traction, an important question arises: how should this yield be measured? Currently, there is no standardized method to assess Bitcoin’s productive value, leaving investors and institutions without clear benchmarks to guide their decisions. The absence of a clear reference complicates risk assessments for treasury teams and miners alike.
A Call for Standardized Benchmarks
What Bitcoin requires is a benchmark for its yield—something repeatable, self-custodied, and generated natively on the blockchain, organized by various term lengths. Once a clear structure for yield is established, treasury policies and strategies can be developed accordingly. This clarity will distinguish between those effectively managing capital and those merely storing it—marking a departure from the traditional view of Bitcoin as just a trinket like gold.
Opinion by: Armando Aguilar, head of capital formation and growth at TeraHash.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
