Bitcoin is on the cusp of a transformative era, dubbed “Bitcoin Season 2,” where its utility is set to expand beyond its traditional role as digital gold. This evolution was a hot topic on this week’s episode of The Clear Crypto Podcast, where hosts Nathan Jeffay and Gareth Jenkinson delved into the subject with Isabel Foxen Duke, general partner at Unbroken Chain and a stalwart advocate of Bitcoin. Duke believes that the next wave of Bitcoin innovation is all about exploring its potential beyond mere monetary transactions.
Bitcoin Beyond Currency
Duke articulated a vision of Bitcoin that transcends its current identity. “Bitcoin Season 2 is really about seeing what we can do with Bitcoin outside of just being money,” she noted. The conversation pivoted to what she called “the broad range of financial use cases” that Bitcoin could support, highlighting new developments such as ordinals, runes, and decentralized financial (DeFi) tools. These innovations are not just theoretical musings—they’re actively reshaping Bitcoin’s narrative. As explored in our recent coverage of Franklin Templeton’s backing of Bitcoin DeFi, institutional interest is driving new utilities for investors.
One of the most promising avenues is trustless lending. This concept allows users to borrow against their Bitcoin holdings without involving third-party intermediaries. Duke explained, “We don’t have the ability to lend against our Bitcoin in a trustless way without third-party intermediaries,” underscoring the limitations of current systems. In her view, trustless lending could become as significant as Bitcoin’s use as a payment method.
The Mechanics of Trustless Lending
The mechanics of this new financial frontier are intriguing. Discreet Log Contracts (DLCs) are emerging as a solution, enabling users to maintain control over their Bitcoin even when it’s locked as collateral. The enforcement of repayment through smart contracts—rather than centralized authorities—means that trust is replaced by mathematical certainty. “That’s proven by math rather than trust,” Duke emphasized, pointing to the potential of these technologies to revolutionize financial interactions.
Equally compelling is the concept of trustless bridging. This innovation could allow Bitcoin to interface seamlessly with external computational platforms, preserving its decentralized nature. “If you could use Bitcoin not just as money but as a base asset that can trustlessly plug into any financial system, that would be… the end of the road for this asset,” Duke predicted, highlighting the transformative potential of these technologies. This aligns with predictions that Bitcoin DeFi will surpass Ethereum and Solana in user adoption, potentially reaching 300 million users.
The Path Forward
Looking ahead, Gareth Jenkinson expressed optimism about the role of Bitcoin-native DeFi in democratizing financial access. “A few little changes to some lines of code might just unlock [permissionless finance] for all of us,” he said. The potential implications are profound, especially for individuals who have been excluded from traditional banking systems.
As the conversation wrapped up, listeners were left with the sense that while Bitcoin’s journey is far from complete, its trajectory is set. The innovations discussed—trustless lending, bridging, and more—are not just technical upgrades. They represent a fundamental shift in how Bitcoin can be used and perceived.
The full discussion is available on The Clear Crypto Podcast, accessible via Cointelegraph’s Podcasts page, Apple Podcasts, and Spotify. For those eager to explore more, Cointelegraph offers a rich lineup of other shows.
As Bitcoin Season 2 unfolds, the crypto community will undoubtedly watch with bated breath. The potential for Bitcoin to move beyond its identity as a mere store of value is tantalizing, yet questions remain about the feasibility and adoption of these innovations. Will these new use cases gain traction? Only time will tell. But one thing is certain: Bitcoin’s evolution is just beginning, and its journey promises to be nothing short of revolutionary.
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This article is based on: Bitcoin Season 2: Why the next wave of Bitcoin innovation is all about utility
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
