What is Wrapped Bitcoins ?

 

What is Wrapped Bitcoin (WBTC)?

Wrapped Bitcoin or WBTC is a new way of using Bitcoin on the Ethereum Blockchain.It is the new and popular version of the famous cryptocurrency Bitcoin tokenized for the use of the popular blockchain network, Ethereum. 

In simple terms, Wrapped Bitcoin is nothing but the tokenized version of the famous cryptocurrency Bitcoin which runs on the Ethereum Blockchain network. Through this WBTC, we can bring the liquidity of Bitcoin to the Ethereum network. 

The major use cases of WBTC lies in decentralized finance, shortly termed as DeFi.

What are the benefits of Wrapped Bitcoins?

Benefits of Wrapped Bitcoins

Listed here the advantages of buying or having wrapped BTC or wrapped tokens as a whole.

The wrapped BTC or wrapped token gives the owner the complete freedom to access or explore other blockchain networks.

WBTC is made to use BTC on Ethereum blockchain, and as there are many DeFi protocols and dapps on Ethereum Blockchain network rather than the Bitcoin network.

Many DeFi protocols allow for the borrow and lend of WBTC as collateral.

Can be locked up in smart contracts and crypto loans that can be paid with DAI stablecoins.

The wrapped Bitcoin projects are overseen by WBTC DAO and many DeFi protocols are supported for WBTC.

Many DeFi protocols like Dharma, Compound, MarkerDAO, and Kyber network allow for borrowing and lending of WBTC.

Where to get the WBTC coin?

There are several exchanges such as centralized and decentralized that both serve as WBTC merchants on the wrapped Bitcoin network. Listed here are some of the top cryptocurrency exchanges that offer Wrapped Bitcoin (WBTC Coin)

Binance

Uniswap

OKEx

Kyber Network

Huobi and so on.

How do Wrapped Bitcoins Work?

Let us look at the working of the WBTC token in detail.

Bitcoin is the most familiar and widely used cryptocurrency. Now the crypto world is moving fast in the adaptation of DeFi, the decentralized finance. Most of the DeFi protocols or dapps are built on the Ethereum blockchain network. Since there is no bridge that connects Bitcoin and Ethereum.

Thus, people who use Bitcoin suffer using DeFi platforms. To eliminate this issue, the concept of wrapped Bitcoin arises and which increases the liquidity of the DeFi protocols.

WBTC is thus a way of using Bitcoins in the Ethereum blockchain and DeFi products. 

The amount of WBTC in circulation has been made public with the aim of making transparent along with the proof of Bitcoin and underlying assets being held securely in custody. Thus wrapped Bitcoins increase the way to use DeFi dapps and which in turn pays way for a better economy for decentralized finance.

Wrapped Bitcoin Price Prediction

Wrapped Bitcoin has a greater future and this WBTC can be a profitable investment in recent days. If you are planning to invest in any cryptos in the nearer or future, then Investing in WBTC would be the best choice, as this WBTC coin is being the 6th largest Ethereum Coin in the crypto space. There are a lot more predictions on the price of WBTC in 2020- 2025. The current price of WBTC is 17094.30 USD, and the predicted price of WBTC is $45355.041714(114,341%).

This implies that if you invest $100 now, your current investment may be worth of $200.886 on 2021 November 28. The price of WBTC till 2025 is predicted and the price will more or less be the same as predicted.

The Future with WBTC 

The future of WBTC is not on the Individual but on what developers build using WBTC. With this permissionless ERC 20 token, WBTC becomes another building block for the DeFi applications and decentralized finance space. This WBTC has a greater scope among the DeFi products and DeFi product users. The future of WBTC is well explained by the DeFi product is TokenSets, which has created the products that make trade between WBTC or ETH automatically.  

Thus WBTC and all other wrapped tokens aim to provide a way to use cryptocurrencies on cross-blockchain platform and which inturns increase the liquidity of DeFi protocols. Thus wrapped tokens being a way to bring better-decentralized finance globe.

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