Bitcoin’s decentralized finance ecosystem, known as BTCFi and valued at around $123,645, has been promoted as an innovation designed to expand the functionality of the world’s largest cryptocurrency. However, new data suggests that most Bitcoin holders remain hesitant. A recent survey of more than 700 investors across North America and Europe revealed that 77% have never interacted with BTCFi platforms, even though many recognize their potential benefits.
The survey shows a clear reluctance among Bitcoin users to engage with decentralized finance. While 73% expressed interest in earning yields through lending or staking their Bitcoin, concerns about trust and complexity have kept most from participating. Over 40% of respondents said they would allocate less than 20% of their holdings to BTCFi, reflecting a cautious attitude toward these emerging tools.
One of the biggest challenges for BTCFi is building confidence within the wider Bitcoin community. Many respondents voiced concerns about the transparency and complexity of current BTCFi products. Mark Zalan, CEO of GoMining, said that there is strong appetite for these opportunities, but the industry has built products for crypto natives rather than regular Bitcoin holders.
This underscores the need to design platforms that better serve both traditional and casual Bitcoin users, bridging the gap between advanced crypto systems and mainstream investors.
To attract a broader audience, developers must focus on education, user-friendly design, and clear financial incentives. Respondents highlighted the importance of straightforward yield options and accessible learning tools. Simplifying user experiences and demonstrating tangible benefits could help drive greater participation.
Despite growing interest, BTCFi still has low adoption, especially among users unfamiliar with decentralized platforms. Overcoming educational and structural barriers will be essential to unlocking broader use.
As Zalan noted, providing simpler access to BTCFi services could strengthen confidence and participation, potentially leading to wider growth.
For now, BTCFi’s potential remains largely untapped, limited by hesitation and a lack of trust. Building transparent and intuitive systems may be the key to encouraging widespread adoption among Bitcoin holders.