Bitcoin: the foundation of the new digital financial architecture

The past year has marked a pivotal moment in Bitcoin’s history. It is not just a simple market fluctuation but a structural change in the global perception of this digital resource. From “controversial speculative investment” to “fundamental asset” supporting the global digital economy — this leap represents a profound institutional transformation capable of redefining the entire $300 trillion traditional financial ecosystem.

According to industry observers, including experts from leading institutions in the crypto-financial world, this repositioning does not originate from the internal tech community but from the top echelons of traditional power and capital structures, paving the way for the full institutionalization of Bitcoin.

The pillars supporting this evolution

From skepticism to systemic consensus

Political recognition is the first element of this transition. At the government level, support for cryptoassets has shifted from a marginal issue to a strategic national component. Key appointments in the treasury sector, market regulation, commerce, and security all reflect a favorable view of digital assets. This means that consensus on Bitcoin now spans administrations and regulatory bodies, offering unprecedented political certainty.

Meanwhile, the traditional banking system — historically cautious and risk-averse — has accelerated its entry into the sector. Regulatory authorities overseeing US banks and deposit guarantees have issued joint directives explicitly encouraging institutions to offer custody services for cryptographic assets, accept Bitcoin as collateral, and provide related credit services. Major global banks have quickly moved from initial skepticism to concrete operational explorations.

The material foundation ensuring solidity

Bitcoin has four pillars that no other digital asset has built over ten years:

A global community of users and stakeholders forms the first foundation. Hundreds of millions worldwide constitute a significant socio-political force. In the United States, about 30% of registered voters support cryptocurrencies — a proportion no politician can ignore. This deep popular base acts as protection against political risks and promotes favorable legislation.

Institutional capital is the second element. Over $1 trillion of real assets have been permanently allocated to the Bitcoin network. Publicly traded companies, such as the tech entrepreneur who invested approximately $48 billion (holding 3.1% of the total supply), have made long-term strategic choices. This is not temporary speculation but a commitment to Bitcoin as a core reserve asset, demonstrating its maturity as a store of value.

The computational infrastructure is the third foundation. The network’s computing power has surpassed 1000 EH/s, exceeding the combined capacity of all data centers of tech giants like Google and Microsoft. This decentralized network, composed of millions of mining machines distributed globally, creates an insurmountable security barrier. The level of protection offered surpasses any centralized system or traditional financial infrastructure.

The energy anchor is the fourth pillar. The Bitcoin network consumes about 24 gigawatts of energy constantly, equivalent to the maximum output of 24 large nuclear power plants — more than the operational needs of an entire navy. This massive and specialized use of real energy ties the value of virtual digital assets to physical reality, demonstrating that Bitcoin’s value is not an abstract construct but rooted in tangible global energy conversion.

From capital to digital credit transformation

The next step is to transform Bitcoin, from a highly volatile “primary asset,” into “digital credit instruments” capable of meeting broader economic needs. This embodies the practical implementation of what could be called the “Bitcoin treasury society” model.

Resolving the corporate financial contradiction

Traditional corporate finance faces a paradox: the cost of capital (expected return on shares around 14%) significantly exceeds the return on liquid assets held (about 3%), continuously eroding shareholder value.

The proposed solution is a strategy of “positive polarization”: raising funds through equity or bond issuance (cost 6%-14%) to acquire Bitcoin, which has historically generated annual returns around 47%. This operation produces a huge surplus of value, strengthening the corporate capital structure during expansion and shifting the dynamic from “value destruction” to “value creation.”

Building a range of credit instruments

The goal is to transform Bitcoin capital, characterized by high volatility, into financial instruments that generate stable and predictable cash flows.

The flagship product — conceived as a “high-yield deposit account” — maintains a price stability around $100 with minimal volatility, offering an annual yield of about 10.8% distributed monthly. This meets the needs of investors seeking stable cash flows and low risk tolerance.

Alongside, there are differentiated risk instruments: super-priority credits with maximum security and yields around 9%; long-term high-yield products with returns up to 12.9%; and structured instruments allowing investors to retain part of Bitcoin gains while earning interest.

A crucial element of this model concerns tax efficiency. By structuring payments to creditors as “return of capital” rather than “taxable interest,” investors obtain cash flows substantially tax-exempt. A product with a nominal yield of 10.8% can thus offer subjects in certain jurisdictions an effective net yield up to 17% — a significant advantage over traditional bank savings accounts or fully taxed money market funds.

Reforming the global credit system

This innovation concerns not just a single company but represents a systemic transformation of the entire global credit architecture.

In economies with zero or negative interest rates — such as Switzerland and Japan — the traditional financial system cannot offer real returns to savers. Digital credit instruments backed by Bitcoin could provide stable yields exceeding 10% in local currency, rebuilding healthy yield curves and protecting savers’ purchasing power from financial repression.

Compared to traditional bank credit or corporate bonds, Bitcoin-backed digital credit offers structural advantages: extreme transparency (the guarantee ratio and risk profile are publicly updated every 15 seconds), homogeneity of the underlying asset, and unmatched liquidity (Bitcoin is one of the most liquid assets in the world, and the credit instruments themselves benefit from frequent trading). The efficiency of issuance and allocation is unprecedented: hundreds of billions of dollars in credit can be created and distributed in a day, while traditional real estate or project financing cycles take years.

Looking ahead, the model will be replicable in different jurisdictions. Bitcoin treasury companies will emerge in Japan, Korea, Europe, and other markets, applying the same logic to offer efficient digital credit services to their national markets. The Bitcoin-based digital capital and credit system will not remain confined to a few privileged actors but will become a global, competitive financial ecosystem.

The nature of volatility: energy, not flaw

In concluding this analysis, a philosophical perspective on Bitcoin’s volatility emerges: it is not a flaw but an external expression of enormous energy density. Just as a nuclear reaction contains extraordinary energy, Bitcoin’s price volatility reflects the immense energy that, as the “capital engine” of the new era, has the potential to transform the world order.

For individuals and institutions, the paths are clear:

Those seeking long-term growth and able to tolerate volatility should hold Bitcoin directly as a “digital asset.”

Those needing stable cash flows or with low risk tolerance can participate in Bitcoin network yields through digital credit instruments, effectively managing exposure to volatility.

Businesses and innovators should consider how to integrate the “Bitcoin as capital + digital credit” model into their asset or corporate structure to achieve significant efficiency leaps.

The digital transformation of the world is irreversible. From information to assets, to fundamental financial rules, everything is being reconstructed digitally. Bitcoin and the emerging new financial system represent the most central “energy source” of this evolution. As the final wisdom of those observing this phenomenon suggests: do not run from the flames of change but learn to walk through them. In this wave of digital civilization sweeping the planet, Bitcoin is no longer just a speculative investment but the cornerstone for understanding and consciously participating in the future.