Topic: Bitcoin(BTC) vs wrappedBitcoin(wBTC) (Read 238 times)

I agree with you on that because if he were an expert as you claim, he would definitely known the difference between wrapped bitcoin and the real bitcoin but yet he failed to access such knowledge which I supposed falls under most of the basic knowledge a supposed expert in the crypto space should have. although learning never stop maybe  at some point in the near future he will surely know about saving your bitcoin in hardware ware in your PC but I just hope by then, he might have not acquired some kind of loss or internet attack.

You are right about wrapped Bitcoin not completely decentlratized. However, you can trade it on both decentralized and centralized exchanges. Binance is an example of such.

Maybe it's time for the Bitcoin Core developers and the BTC community to register the name "Bitcoin" as a trademark.
I know that this is against the open source nature of Bitcoin, but we must do something about getting rid of all those forked shitcoins, that have the name "Bitcoin" on them. Creating some centralized shitcoin, calling it "Bitcoin whatever" and misleading the newbies into thinking that this is the real Bitcoin is simply a scam. There are even some newbies, who think that those forked shitcoins are better than Bitcoin Core, because they have some useless features like staking or smart contracts. This is delusional and we have to do something about it.

Nobody that understands bitcoin from other crpytocurrency will fall for what you just said. Your information is misleading because there is no shitcoins that can have a potential value up to bitcoin,talk more of having potential value than bitcoin. All those shitcoins depends on bitcoin for its pump and dump. No shitcoins can survive all the negative impact that government has put on bitcoin adoption. You should make your proper research so that you don't end up investing your money on ponzi project because you will end up regretting it. Wbtc are centralized tokens and can never have the same potential like bitcoin because it can be compromised

The pro of wrapped coins like wBTC is we can do transactions to many chains like EVM compatible chain example etherum bnb polygon and lot more and playing with the defi

the cons are remembered with UST the stablecoin that is supposed to be 1 dollar and ending up being disaster the wrapped bitcoin can also be like this when the provider doesn't have enough liquidity or when they greed and print more btc more it will be doomed

If you want to hold bitcoin for long term hold bitcoin native coin and save it on hardware wallet but if you want crazy ride APY from defi you can try it but DYOR first

Every cryptocurrency enthusiasts need to stay away from the WBTC token since it relies on smart contracts, and we have a situation where the smart contract had a problem with bugs, hack, etc. Therefore, there remain huge potential vulnerabilities of WBTC tokens for bugs, and hacks associated with the smart contracts.

The differences between BTC and WBTC are entirely distinct, yet some did not able to distinguish them. They perceive both are the same thing, especially for anyone who barely knows cryptocurrency. This is another story that I heard somebody misinformed about WBTC dues to extra features like your friend was perceiving. These wrapped bitcoins are able to expand the possibilities within cryptocurrency spaces such as staking, lower transaction fee, borrowing or lending. It makes some naive users attracted by those opportunities while ignoring the basic fact that it is not a bitcoin at all.

I do remember the case where some user withdrew bitcoin, but since the exchange has shown other networks like ETH/BSC option, the user was deceived by selecting that other network because it would be cheaper due to the transaction fee.

Wrapped Bitcoin is nothing but a token and the only advantage it has is the leveraged DeFi operations which is what the OP friend uses it for but we judge by the risk involved it's better to have the real BTC because Wrapped Bitcoin because technically depends on centralized custodians. Although people may have it in their non-custodial wallet but they have to change their real BTC for Wbtc which is controlled by the team that collects their real BTC to give them token instead of BTC.
Nevertheless, in the future, if regulators push for the regulation of the Bitcoin market, Wbtc will experience serious challenges and will possibly lose its BTC price peg.
Be careful guys.


There goes another Wbtc token

I have to admit that it's a bit of a strange way of motivation, because personally it would never occur to me to ask someone how much BTC or $ they have, and even less that it would motivate me to want to have more.


Everyone takes their own risks, and if you think you can safely store your BTC in a mobile wallet, then that is your personal matter.


That doesn't make sense to me, because it seemed to me that he was a complete beginner who doesn't know the difference between some wBTC and BTC, let alone know the difference between mobile and hardware wallets. The fact that you explain to him what Bitcoin actually is and advise which wallet to use definitely does not support what you claim.

The most concerning part of this story is that the fact he's staking his wBTC for interest. After a quick search I found the providers for this interest:

Compound Interest rate (APY)
0.02% (Lending)

Aave Interest rate (APY)
0.0002–0.7741% (Lending)

CoinLoan Interest rate (APY)
3.2–4.2% (Lending)

FMFW.io Interest rate (APY)
1% (Staking)

So unless he's staking his wBTC for very low interest, it's likely he's gone for CoinLoan, which looks like another Celsius waiting to happen (as is another centralised borrowing/lending platform).  

This is why it's never worth risking your entire stash for 3-4% interest. And otherwise unless you're using your wBTC to engage in smart contracts, there is no reasoning for holding it either.

There is a purpose for wBTC imo, in order to engage with the Ethereum network while holding value in Bitcoin, but gaining interest in it is not what wBTC is for...


To play devils advocate, wBTC is different from other shitcoins, as it's value is pegged to Bitcoin (unlike most shitcoins apart from BNB-Bitcoin). But you're right you're still holding an altcoin at the end of the day.

At any point the SEC could declare it a security, or otherwise the centralised company could face lawsuits for X,Y,Z, and the whole house of cards could collapse, unlike Bitcoin obviously.

Well, nothing serious here really, like I said in the op, he is a good friend of mine, and sometimes, several of us who are fiends try to know how much Bitcoin the other person is holding, not to get jealous or envy or anything, but to particularly know if to buy more bitcoin or not, it is just like  a fun competition we usually have, where each of us want to own the highest bitcoin...

Lets say for example, he told me he's holding 1.5 bitcoin and I am sure he's telling the truth, and what I hold at that time is just 1 bitcoin, I will instantly find motivation to buy extra 0.6 bitcoin so as to hold more bitcoin than him..
So wanting to find how many bitcoin he held, was just for fun and motivation, that's all.



It surprises me that someone who should have a much better understanding of the risks of storing sensitive information uses and recommends to others as the main storage a wallet used on mobile devices. After online wallets, it is almost certainly the riskiest way of storage (long term) and we only use such wallets as hot wallets and some smaller amounts.
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If you read the later part of that same line, I clearly stated that the recommended wallet is not particularly the best, but yeah, I agree with you, but also understand that a good mobile wallet is just as secure as the device it's installed on, I've being using mycelium wallet since 2018 or so, can't vividly remember, but it's been a very long time, I've never had any issues with it..

And besides, the person I recommended the wallet to is not a newbie in crypto, he knows he way around crypto very well, and would go for a better more secure wallet like hardware wallets, if he feels the wallet I recommended is not secure enough..

I simply recommended that wallet because he wont have to spend a dime or wait up to 5 minutes to get it and start using, but for a hardware wallet, he will spend money to order it, and still wait a couple of days or weeks for it to arrive, he might even end up using that as an excuse as to why he didn't convert he's wrapped bitcoin to real bitcoin at the time he was advised to do so.

Your question was definitely not appropriate, because why would you need to know how many Bitcoins someone has, or how much money they have in their bank account or gold in their safe?



It surprises me that someone who should have a much better understanding of the risks of storing sensitive information uses and recommends to others as the main storage a wallet used on mobile devices. After online wallets, it is almost certainly the riskiest way of storage (long term) and we only use such wallets as hot wallets and some smaller amounts.


If you invest in something that you are not sure what it is about, then you definitely have a problem - and considering that there are various projects that use Bitcoin in their name, then it is quite normal that some are convinced that they have something that they actually do not have.

This is quite common, many believe wrapped Bitcoin is Bitcoin. The best explanation for such people is to question them first by asking whether Bitcoin transactions can be performed outside Bitcoin Blockchain. Those who are confused would say yes and eventually argue. To explain them you only need to show the deposit address of Bitcoin on Binance. They have seperated deposit address for WBTC and BTC & BTC (segwit). I had a similar experience and I used this trick to explain the difference.

The peculiarity with these guys is that they would believe an exchange but won't believe on text available on Bitcoin.org. If you even show them the whitelaper they will ignore it or will come out with something brand new to counter you. When you use a reputed exchange as an example then they will not question you further. I felt that you friend was far educated about Bitcoin that is why he understood you so easily.

After the ICO shitcoin hype where token creators would take away valuable Bitcoins and Ether from gullible newbies in exchange for tokens of no value, some scammers sat down a thought about tokenizing Bitcoin, DeFi and NFTs and here we are again in yet another scam cycle.

I wish people could open their eyes. Getting wrapped bitcoin in exchange for the valuable real bitcoin is no different to giving a stranger your legitimate fiat notes in exchange for some meaningless clone paper that they claim has an equivalent value to your real fiat notes. I am glad you managed to teach your friend about something value.

I guess yes. he is shilling for that shitcoin. Look at his post. It's like a Twitter thread where he comments and suggests this shitcoin. I somewhat agree with the statement. Those shitcoins have more potential  . Wait, don't get me wrong. Those shitcoins are on the market and creating FOMO using social influencers. We all know what their target is. The influencers say this coin will do 100x in the next two months or a few weeks. People will buy those shitcoins, and the team will increase the supply limit once they reach their target. It's like a Ponzi scheme. Eventually, they will rug pull. Whoever enters first and can take their profit in two weeks will be in profit. The people who come late will lose their entire investment.

It's cool that you're watching out for your buddy, but don't dismiss WBTC as another run-of-the-mill shitcoin just yet!

You're right about the centralization bit, but hey, the Bitcoin network ain't completely decentralized either. Remember those pesky mining pools? And if the WBTC unwraps, it doesn't vaporize into thin air; it's just back to being BTC.

Pulling out liquidity can indeed leave folks high and dry, but that's a risk inherent in the wild west of DeFi. Also, WBTC is tradeable on centralized exchanges, too, bro! Your mate may be onto something with his WBTC escapades. So, next time, just chill and enjoy your beer without raining on the WBTC parade.

Wrapped Bitcoin is a fake Bitcoin, but your friend must know Bitcoin run in other network e.g. ERC-20, KCC, BSC, and any other centralized chains are no longer real Bitcoin anymore. There are many people want to mislead people to use their "fake Bitcoin".

The innovations is you can use this "fake Bitcoin" to trade with other ERC-20 tokens in swap sites, staking, connect to dApps, that's all. Based on this quote, it seems only stupid people are want to use this "fake Bitcoin".

Are you shilling for this shitcoin, nobody is going to believe you that centralized, new shitcoins have more potential than BTC, whether now or in the future, i don't know about the coin you mentioned and i am not going to spend 2 seconds of my time finding out what it is, because i guess that's what you want. There's nothing impressive about staking shitcoins because you will probably lose in the end, anyway it is a free market, so each to their own; but don't spread misleading information because you want to shill.

Well, you are wrong , wBTC basically has a contract running on every blockchain, but the wBTC contract on Ethereum blockchain was the very first I think, so it definitely is enjoying the first mover advantage, but like I said, you could look through WBTC's coinmarketcap page, I took some shots which I share below, every single blockchain has a wBTC contract running on it, except for the very new blockchains of course..

It does strike me as strange that after advising your friend to sell his WBTC, he didn't tell you that he actually (supposedly) gets back the same BTC 1:1 if he redeems those wrapped BTC for actual BTC?

I mean, sure, you can sell the WBTC and then buy back BTC but you'll lose on the exchange (lose twice actually). If he'd actually known enough about wrapped Bitcoin to educate you, he might have understood how it works...