This is a segment from the Supply Shock newsletter. To read full editions, subscribe.
Serial entrepreneur Dan Held, whose past exits include Zeroblock and Interchange, sees Bitcoin DeFi as the largest untapped opportunity of his decade-long crypto career.
Speaking on the Supply Shock podcast Tuesday, Held told host Pete Rizzo that he sees decentralized finance (DeFi) as the key to unlocking bitcoin’s potential as a $300 trillion global asset. He pointed to the ability to earn yield for lending bitcoin — one of the many financial functions DeFi replicates without centralized intermediaries — as a major opportunity.
Held’s journey into Bitcoin DeFi began with his exploration of yield-generating opportunities, including providing liquidity for Lightning channels and Coinjoins. Initially skeptical of DeFi due to its association with scams, Held became convinced of its potential after witnessing new use cases on alternative crypto platforms like Ethereum and Solana.
He noted that DeFi could introduce new users to bitcoin, much like early adopters were drawn in through activities like Silk Road and speculation. “If DeFi could be unlocked on Bitcoin, it would be by far the biggest opportunity ever to happen in crypto,” Held said.
Elsewhere, Held told Rizzo he does not see Bitcoin DeFi as a zero-sum game where Bitcoin replaces other blockchains entirely. “I think what will happen is that this just absorbs market share from the other ones significantly, but not totally, and that this increases Bitcoin’s dominance,” Held explained.
