Here are some reasons why Wood predicts the target of $1.5 million: ① Bitcoin is a new asset in human history (Wood believes that the digitization of this asset will greatly push up the price of Bitcoin and is an important milestone in the digitization of human society) ② Changes in regulatory attitudes (Wood believes this is the biggest core reason, from resistance to embrace, from ETF allocation to bank customer purchases, to national sovereign fund allocation). She believes that these two reasons will push up the price of Bitcoin, reaching $1.5 million in 2030! If that day really comes, the Bitcoin ecosystem, such as BounceBit, will benefit the most. Let me analyze the reasons for you:
Reason 1: The long-term financial management demand of BTC will greatly develop the prosperity of BBCeDeFI ecosystem.
As the price of Bitcoin rises, investors' demand for long-term holding of Bitcoin and financial management will continue to increase, which will bring more development opportunities and vitality to the BBCeDeFI ecosystem.
Reason 2: As a governance token, the price of BB will rise like BTC.
Due to the sharp rise in Bitcoin prices, the related governance token BB will also be positively affected, and its price is expected to increase accordingly.
Reason 3: The continued rise of BTC is likely to increase the activity on the BounceBit chain, thereby increasing the demand for BB purchases.
As the price of Bitcoin continues to rise, it will attract more investors to participate in the Bitcoin ecosystem, thereby increasing activities on the BounceBit chain, and causing a corresponding increase in demand for BB.
Finally, here is a complete introduction to BBCeDeFI:
Definition and concept
BBCeDeFI is a decentralized finance (DeFi) concept related to the Bitcoin ecosystem. It may be a financial ecosystem built by combining the characteristics of BounceBit (the related project mentioned in the article) with the traditional DeFi concept. DeFi itself refers to financial services built using blockchain technology outside the traditional financial system, aiming to provide decentralized, transparent, and intermediary-free financial transactions.
Possible functions and application scenarios
Financial Services:
Based on the long-term holding and financial management needs of Bitcoin, the BBCeDeFI ecosystem may provide a variety of financial management tools. For example, it can provide Bitcoin savings accounts, where users deposit Bitcoin and obtain returns based on a certain interest rate or income mechanism. This interest rate may be set and executed through smart contracts, similar to traditional bank savings accounts, but with decentralized characteristics and not controlled by a single financial institution.
There may also be Bitcoin revenue aggregators that integrate revenue opportunities from different DeFi protocols to provide users with the best Bitcoin financial solutions. For example, through smart contracts, users’ Bitcoins are automatically allocated to different high-return projects such as lending and liquidity mining, and then the aggregated revenue is returned to the user.
Decentralized Exchange:
BBCeDeFI may provide a decentralized Bitcoin trading platform where users can directly trade Bitcoin with other digital currencies or assets. Unlike traditional centralized exchanges, it does not need to rely on third-party institutions to keep users' assets. Transactions are completed through smart contracts, which is safer and more transparent.
This trading platform may also support technologies such as the Lightning Network to achieve fast and low-cost Bitcoin transactions. The Lightning Network can conduct small, high-frequency transactions outside the main blockchain, greatly improving transaction efficiency, and the BBCeDeFI ecosystem can integrate this technology to provide users with a better trading experience.
Loans and mortgages:
In the BBCeDeFI ecosystem, users can use Bitcoin as collateral for lending. Through smart contracts, users pledge their Bitcoin to the lending platform, and the platform provides users with corresponding loans based on the value of Bitcoin and a certain collateral rate. For example, if a user pledges 10 Bitcoins and the collateral rate is 60%, then the user may receive a loan equivalent to the value of 6 Bitcoins, which can be other digital currencies or legal currencies.
This lending method provides Bitcoin holders with more liquidity, while also providing a new channel for capital flow within the ecosystem, thereby promoting the activity of the entire ecosystem.
Relationship and difference with other ecosystems
Relationship with Bitcoin Ecosystem: The BBCeDeFI ecosystem is closely centered around Bitcoin, and the realization of its value and functions largely depends on the price stability and market acceptance of Bitcoin. The rise in Bitcoin prices will attract more users to participate in the BBCeDeFI ecosystem and use its financial services. At the same time, the development of the BBCeDeFI ecosystem will in turn promote the use and circulation of Bitcoin, such as by providing more convenient trading and financial services, so that more people are willing to hold and use Bitcoin.
Difference from traditional DeFi ecosystem: Although BBCeDeFI belongs to the category of DeFi, it may have its own unique characteristics. Unlike some general DeFi ecosystems, it focuses more on Bitcoin-related financial services, and the value of its governance tokens (such as BB mentioned in the article) may be more closely related to Bitcoin. In addition, in terms of specific service design, it may be optimized according to the characteristics of Bitcoin and the needs of users. For example, the mortgage lending rate of Bitcoin, the calculation of financial management income, etc. may have different mechanisms from other DeFi ecosystems dominated by other digital currencies.
