Altcoins News

Story: What Is Wrapped Bitcoin (WBTC) And Should You Buy It?

By Sydney TheCMO

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Why buying WBTC might be a good idea

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If you are new to the crypto market, chances are that you are aware of Bitcoin but may have recently noticed another cryptocurrency called Wrapped Bitcoin currently ranking 20th…

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By now you are probably aware that the Bitcoin blockchain is slow and relatively inefficient compared to other blockchains.

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Interestingly, Wrapped Bitcoin or WBTC trades at the same value as the original Bitcoin. This is because it is backed by Bitcoin in a 1:1 ratio which means that 1 BTC exists in a…

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Because Wrapped Bitcoin is an ERC20 token, it creates an avenue through which Bitcoin can interact with the Ethereum network, which could have significant positive implications.

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There are four key players necessary for the WBTC ecosystem to function as intended. They include the custodian, the merchants, the DAO, and users.

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When the user wants to get back their BTC, they return the WBTC, which is then burnt. The DAO selects the merchants and custodians for the platform.

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Another major benefit that comes with WBTC is that it makes it easy for BTC holders to participate in the DeFi ecosystem.

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The Wrapped Bitcoin approach has been viewed as one of the best solutions for Bitcoin scaling and more importantly, it helps facilitate more liquidity for the cryptocurrency.

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The ability to use BTC through the Wrapped Bitcoin approach is a great way of providing liquidity to a cryptocurrency that is becoming increasingly more difficult to move around…

The Currency Analytics

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