Traditional banks, once dismissive of Bitcoin, are now embracing its use as collateral and getting involved in Bitcoin-collateralized lending. They are attracted to Bitcoin's superior characteristics as institutional-grade collateral and its ability to offer instant verification, real-time settlement, and programmable lending terms. This shift in attitude towards Bitcoin is highlighted by MicroStrategy's approach to using public markets to amplify its crypto position, which has led to increased interest from other companies. Bitcoin-backed loans are becoming popular as they offer standardized properties and verification processes, eliminating the arbitrary risk premiums imposed on borrowers from emerging markets. Nations are also competing to attract Bitcoin business and capital, with some offering tax incentives and visa programs for crypto entrepreneurs. Banks are now racing to keep up with the changing landscape and are likely to acquire crypto businesses to enter the growing market. The cryptocurrency industry is expected to have a breakthrough year in public markets, with high-profile crypto IPOs exceeding $10 billion in valuation anticipated. Overall, the shift towards embracing Bitcoin and its infrastructure is seen as the future of finance.



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