In this article, the author discusses the potential for Bitcoin to assert its position in the decentralized finance (DeFi) space by the year 2025. Historically, Bitcoin has been seen as a store of value rather than a platform for DeFi, with Ethereum dominating the space due to its smart contract capabilities. However, recent advancements such as the proposed BitVM system and Bitcoin staking protocols like Babylon are changing the narrative and opening up opportunities for Bitcoin in DeFi. By leveraging these innovations, Bitcoin could combine its security and capital with Ethereum's ecosystem and drive for innovation to create a hybrid DeFi model. The author also mentions the challenges and limitations that Bitcoin has faced in entering the DeFi space, such as its lack of programmability and slow block times. However, solutions like BitVM aim to address these issues by allowing Bitcoin to support complex decentralized applications and financial operations. The article highlights the growing interest in Bitcoin DeFi, with platforms like Babylon facilitating billions in staking deposits, and the potential for Bitcoin to bridge the gap for retail and institutional investors who have been hesitant to enter the DeFi space. The author concludes by noting that Bitcoin DeFi is now a movement and those who recognize its potential early on will benefit as the ecosystem continues to evolve.



Other News from Today