BTC News: Never Sell Your Bitcoin? Bitlayer CEO’s Vision for Lending as the Future of Bitcoin Use

Bitcoin has received sustained encouragement from supporters who advised investors to stand firm in Bitcoin ownership using the term “HODL.” In February 2025, Michael Saylor expressed his take on Bitcoin through social media: ‘You should never sell your Bitcoin.’ An alternative way to produce returns from your Bitcoin investments exists that avoids the necessity of selling them. The Bitlayer CEO, Charlie Hu, provides a new option to generate Bitcoin profits through lending services.

The Bitcoin Lending Evolution: From Centralized to Decentralized

The practice of lending Bitcoin has existed for some time. BlockFi and Celsius recently introduced central Bitcoin lending platforms, letting users generate interest through Bitcoin loans. Bitcoin lending platforms faced numerous problems, including poor management, resulting in bankruptcy. According to Charlie Hu’s assessment during the Roundtable at TheStreet, ‘’the total failure of centralized lending platforms created substantial problems for the cryptocurrency sector’’.

Hu clarified that the funds managed by BlockFi, Celsius, and others experienced bankruptcy after mismanagement. Following this failure, a major change arose in decentralized lending solutions. Decentralized finance platforms now provide trustless and transparent transactions to the market as an alternative solution. Users no longer need to depend on central authorities in decentralized platforms, significantly reducing the possibility of mismanagement. 

'Never sell your Bitcoin?' Bitlayer CEO says now you can lend it instead pic.twitter.com/lbrDcMBePI

— Sienna🦢 (@Bright2_Sienna) April 3, 2025

DeFi’s rapid growth is undeniable. According to Hu, DeFi transactions continue to rise as users perform on-chain settlements, trading, lending, and derivatives transactions. The number of transactions and total volumes continue to rise in the DeFi space. The growth of DeFi’s popularity allows BTC holders to use new earning methods that protect their assets from centralized platform risks.

Why Bitcoin, Not Altcoins: A Unique Asset for the Future

Bitcoin is the foremost cryptocurrency because of its superior position in the global financial market. Hu believes Bitcoin possesses dual characteristics: it functions as an extremely valuable store of value that will achieve broad mainstream market adoption and demonstrates high-risk, high-reward attributes.

According to Bitlayer CEO, Bitcoin possesses significant prospects while altcoins such as Solana and Ethereum hold lesser potential. According to his prediction, Bitcoin ‘’will become central for asset management systems while also influencing public companies and nation-states.’’

Bitcoin stands apart from other altcoins because it offers maximum security and adopts a first-mover advantage in the financial markets. The prediction indicates that Bitcoin will be essential in both comprehensive banking structures and decentralized monetary platforms. According to Bitlayer CEO, ‘’Bitcoin will become mainstream as an institutional and nation-state asset within five years.’’

The Future of Bitcoin Lending: A DeFi-Backed Revolution

The Bitcoin lending solution uses its strategy to benefit from the expanding decentralized finance market. The Bitlayer platform prepares for expanding Bitcoin lending features to let investors gain passive income from their Bitcoin holdings. Bitcoin holders can now use decentralized lending protocols to provide their assets for loan purposes without selling them for profit. Through these platforms, users can transfer their Bitcoin assets to other users to receive interest payments due to lending. 

Decentralized Bitcoin lending utilizing blockchain technology provides better security and transparency, surpassing the advantages of centralized platforms. The main benefit of borrowing Bitcoin through decentralized finance platforms is their operational flexibility. Bitcoin owners can select loan conditions and obtain interest payments on their assets while retaining full Bitcoin ownership. Bitcoin holders can now use their digital currency to earn revenue, leaving their investment potential intact. Decentralized Bitcoin lending combines blockchain security with the features of traditional centralized lending, as explained by Hu.