Scaling the World's Hardest Asset: Rich Rines x Bitcoin Magazine
Initial Core contributor Rich Rines recently sat down with Matt from Bitcoin Magazine Pro to discuss Bitcoin’s evolution, the challenges of scaling, and how Core is redefining what’s possible with Bitcoin DeFi. With over a decade in the space, from running money movements at Coinbase to helping build Core into the leading Bitcoin scaling solution, Rines has seen it all. What follows are the key takeaways from the interview.
Why Should Bitcoiners Care About Core?
“Core is the leading Bitcoin scaling solution,” Rines explained. “Think of it as the proof-of-stake layer for Bitcoin. On one side, you have this fully EVM-compatible Bitcoin-powered ecosystem with about a billion in TVL and hundreds of thousands of daily active users. On the other, you have self-custodial Bitcoin staking—letting holders earn yield while keeping their Bitcoin secure.”
Unlike previous attempts at Bitcoin scaling, Core takes a different approach. Instead of forcing Bitcoin into use cases that don’t fit or trying to change the base protocol, Core extends its capabilities without at all changing Bitcoin fundamentally.
“Bitcoin is great at what it does, but it’s not meant for everything,” Rines said. “We’re not trying to change Bitcoin. We’re making it more usable.”
The Problem With Previous Bitcoin Scaling Solutions
The Lightning Network was one of the first big attempts to scale Bitcoin without changing its fundamental design. It was designed to facilitate fast, low-cost transactions, but Rines clarifies that it never fully lived up to its promise.
“Lightning was an effort to make Bitcoin payments work, but it ran into a ton of issues,” he said. “Capital efficiency problems, usability issues, and most of all, it just wasn’t truly self-custodial. The reality is, most people using Lightning end up trusting custodians anyway.”
Beyond that, Rines argues that Bitcoin’s best use case today isn’t payments at all.
“I bought some really expensive coffee with Bitcoin back in the day,” he joked. “What we’ve realized over time is that Bitcoin isn’t really meant for payments—it’s meant to be the best collateral asset in the world.”
That’s where Core’s model shines. Instead of focusing on microtransactions, Core is unlocking Bitcoin’s potential as productive capital.
How Core Makes Bitcoin a Yield-Bearing Asset
One of Core’s biggest innovations is Self-Custodial Bitcoin Staking, which lets Bitcoin holders earn yield without giving up control of their assets.
“This is what makes Core different,” Rines said. “It’s fully self-custodial. You’re not trusting anyone but Bitcoin itself. The yield comes from Core’s native token economy—so you only have to understand how the CORE token works, rather than relying on third-party lending or risky restaking strategies.”
By using Bitcoin’s time-locking feature (which has been part of Bitcoin since 2015), Core enables Bitcoin stakers to retain control of their assets without handing them over to an exchange or centralized lender.
“The rule in Bitcoin has always been: Not your keys, not your coins,” Rines emphasized. “That’s why people lost money with Celsius, BlockFi, and all those platforms. Core fixes that.”
On top of base Bitcoin staking, Rines also emphasized the importance of Core’s Dual Staking, which allows stakers to earn higher yields by also staking CORE tokens.
“This aligns Bitcoin and CORE together,” Rines explained. “If you want the highest yields, you stake both. That means Bitcoin holders become part of the Core ecosystem, and the two networks reinforce each other.”
Bitcoiners Need a Path from Zero to 1%
For years, the message to Bitcoiners has been simple: buy and hold. And for many, that’s been enough.
“A large amount of Bitcoin just sits there,” Rines said. “And that’s fine—some people just aren’t ready to take the next step.”
Nevertheless, Core is helping Bitcoin advance beyond the HODL phase.
“If 1% of your portfolio is in Bitcoin, why not have 1% of your Bitcoin staked?” he explained. “That’s the new message: get off zero. Even if you're not ready for DeFi, staking is an easy, no-risk way to put Bitcoin to work while keeping full custody.”
The idea is to meet Bitcoin holders where they are. Some will stake a portion of their Bitcoin just to earn passive yield. Others will go further—into Dual Staking (staking Bitcoin and CORE together for higher yields) or full-on Bitcoin DeFi, where BTC-backed stablecoins, lending, and advanced strategies unlock even more opportunities.
But it starts with getting off zero.
Bitcoin DeFi Will Outgrow Ethereum DeFi
Bitcoin DeFi is still in its early days, but Rines believes it will surpass Ethereum DeFi within the next three years.
“Look at the numbers,” he said. “Bitcoin is a much bigger asset, and it’s a better collateral asset. Why would you use ETH as collateral when you can use Bitcoin? The only reason Ethereum DeFi is bigger right now is that Bitcoin didn’t have the same basic functionality. Now it does.”
With Core’s Self-Custodial Bitcoin Staking and Bitcoin-powered DeFi ecosystem, that balance is starting to shift. Institutions, custodians, and high-net-worth individuals who previously had to sit on their Bitcoin with no yield now have an incentive to participate in Core’s ecosystem.
“We’re already seeing institutions like BitGo, Hashnote, and Cactus Custody integrating with Core,” Rines said. “The moment institutional Bitcoin holders realize they can earn yield without counterparty risk, this whole space is going to explode.”
The Bitcoin Strategic Reserve and Nation-State Adoption
One of the most talked-about narratives lately is the idea of nation-states building Bitcoin reserves. Some have suggested that the U.S. could be positioning itself to acquire a Bitcoin stockpile, and while that may not happen tomorrow, Rines sees a world where it becomes inevitable.
“It’s going to happen,” he said. “Once one major country starts seriously accumulating Bitcoin, it triggers a game-theory effect. Other countries will have to follow.”
While Rines doesn’t expect the U.S. to make a move immediately, he believes it’s only a matter of time before we see central banks holding Bitcoin as part of their reserves—just like they do with gold.
“It’s not a question of if, it’s a question of when,” he said. “Bitcoin is a better version of gold. It’s more scarce, more portable, and easier to verify. Eventually, that’s going to be impossible for governments to ignore.”
The Institutional Wave and Bitcoin’s Next Evolution
Bitcoin’s last few cycles have each had a defining theme.
- 2017: Retail speculation
- 2020-2021: Leverage and debt-driven growth
- 2024-2025: Institutional adoption
“We’re in the institutional cycle now,” Rines said. “Everyone was talking about it last cycle, but this time, it’s actually happening. The ETFs, corporate treasuries, sovereign wealth funds—this is real adoption.”
But institutions don’t just want to hold Bitcoin. They want to earn on it.
“Wall Street doesn’t buy assets just to sit on them,” he said. “They want yield. That’s why the next phase of Bitcoin’s evolution is all about structured products, yield-bearing Bitcoin ETPs, and sustainable ways to put Bitcoin to work.”
Core is at the center of that shift. By combining Bitcoin security with the flexibility of an EVM-compatible chain, it’s bridging the gap between Bitcoin and DeFi in a way that aligns with both retail and institutional needs.
“For anyone who thinks they missed Bitcoin, this is the next big thing,” Rines said. “Bitcoin staking and DeFi are a trillion-dollar opportunity. It’s just getting started.”
The Best Way to Get Involved
For those looking to get started with Core, there are multiple ways to engage:
- Bitcoin Staking: The simplest way to start—stake Bitcoin self-custodially and earn CORE token rewards.
- Dual Staking: Stake Bitcoin and CORE together to unlock higher yields.
- Bitcoin DeFi: Use Core’s DeFi ecosystem for lending, borrowing, and trading.
“We’re meeting Bitcoin holders where they are,” Rines said. “Some just want to stake Bitcoin. Some are ready for DeFi. Wherever you’re at, there’s a way to participate.”
With Bitcoin’s next evolution unfolding, Core is positioning itself as the platform that will make Bitcoin not just a store of value—but a productive financial asset for the future.
➡️ Bitcoin’s next evolution is here. Are you staking yet? Start at stake.coredao.org.
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