Topic: Bitcoin(BTC) vs wrappedBitcoin(wBTC) - page 2. (Read 238 times)

That's exactly the reason, to catch newbies who don't know any better.

The principle is usually the same too with all tokens (including stable coins). The creators of such tokens have no money, no revolutionary idea or anything they could use to make money. So instead they sell "air". They simply create these tokens and start selling them to newbies, making money in the process!

The fact that there is also "staking" on top of it where you get profit for holding your bitcoins in THEIR pocket shows what a filthy Ponzi scheme this is
These things don't fall apart like regular schemes since there is a market where people keep trading them. In other words some of them manage to create an artificial utility that lasts as long as the gamblers keep trading. Then it falls apart catastrophically.

If I remember correctly, WBTC runs on the Ethereum network. So why would you bother with it? WBTC has no innovations at all and it can be compared to something like USDT.

Sadly pretty much all new coin projects these days are only concerned with the financial parts of things such as supply, the peg, and burning instead of technological innovations like in the early days of this industry.

They are not copies of Bitcoin, not forks of Bitcoin.

Bitcoin forks are a lot but they are Proof of Work altcoins from Bitcoin source code that is modified by those fork developers.

How many Bitcoin forks are there?

Tokenized bitcoin tokens are tokens and they are not Proof of Work coins.

I had heard of wrapped bitcoin but did not know about all these coins pegged to the bitcoin price. What is the point of them? The only one I see is to catch clueless people like the OP's friend.

With the dollar, if I see sense that there are some stablecoins because there is no dollar crypto today, but there is a bitcoin already, unique and original, that was also the first cryptocurrency of those existing today in the market. So why buy bad copies?

Wrapped bitcoin is not bitcoin but a tokenized coin that tries to beg its value with bitcoin. The peg can be de-pegged.

Tokenized btc coins on coinmarketcap

If you need examples, SoBTC Wrapped Bitcoin (Sollet): https://www.coingecko.com/en/coins/wrapped-bitcoin-sollet

It lost the peg in November 2022 and has never reclaimed the peg.

It is minted by a developer team and fully centralized, not decentralized.

They can make rug pull or the peg can be de-pegged by market volatility or attacks.

Wrapped bitcoin tokens can be traded on centralized exchanges too. It depends on centralized exchanges to list those tokens or not list those tokens, but your statement is not true.

Wrapped Bitcoin is on Binance, Kucoin, Kraken, Coinbase, more.

I think we are privileged to know more of all these things than those out there, you know sometimes when trying to educate people on how to go with bitcoin or altcoin they alway felt of knowing the best than you, sorry to say this, likely same thing happened to me though it was about bitcoin discuss but altcoin. Someone ran to me about a coin that was about to launched yet haven't so, they were asked to invest on the coin then during launching they all have access to it and probably can withdraw and sell, what i did was to look at him twice and asked him to borrow me the money let me use it for important business than putting money in a mouth of crocodile which he will never get back again.

To cut the long story short, i told him the reason why he shouldn't invest in that token and why he must make a turn from that project and he stops, guess what?
After 2 months thereabout he ran to me saying that platform has crashed that people are panicking, those who invested with a motive to make millions are in their respective home crying for their lost. This was how he would have made serious lost, today whatever thing comes up he must inboxed me to confirm before going further.

Wrapped bitcoin can be traded too on centralized exchanges. It is not bitcoin though.

He did not tell you the amount he is staking, It could be a big amount of bitcoin. You should let him know the differences between hot and cold wallets and why cold wallets are important.

I support all your above statements, adding to that the creators of wrapped Bitcoin are just after taking off all their users' real Bitcoin and giving them something else in return.


WBTC can't only be traded on decentralized exchanges; a lot of centralized exchanges also support its trade, Binance is trading it with about 4 active pairs: WBTC/BTC, WBTC/USDT, and WBTC/ETH, but they all have lesser trading volume compared to other coins active there, and I believe most of the wrapped tokens are being listed on big centralized exchanges because they want to convince their holders that there is no difference from the original coin that they wrapped to another one, so why they have hidden their true agenda behind their proposed advantage over the real Bitcoin or whatever coin the case may

Today, I came across a crypto friend whom I hadn't seen for a very long time, and over a bottle of beer, we had a very long discussion, discussing majorly about crypto currencies and life in general..

As we were discussing crypto, I asked him if he's holding bitcoin at the moment, he said yes, I was curious to know how much Bitcoin, he refused to say though, but went further to tell me how he has his entire bitcoin staked for interest, then I began to advice him on how risky it actually is to hold bitcoin on a centralized exchange, but he quickly made me understand that he's not holding bitcoin on a centralized exchange but rather, on a non-custodial wallet, I asked if it's possible to stake bitcoin through a non-custodial wallet..

He then told me its very possible with wrapped bitcoin, he was probably ready to educate me on how wrapped bitcoin makes all the impossibilities of bitcoin possible, but I was quick to let him know that I know majorly every thing about wrapped bitcoin, and that they are no different from shitcoins - he was surprised, he then asked me how is a wrapped bitcoin a shit coin...

Then I began to explain to him that -
1. Wrapped bitcoin is not completely decentralized like the original bitcoin is..
2. Those who wrapped the bitcoin can decide to unwrap it, then his supposed bitcoin will ultimately return back to zero (0) dollars.
3. Wrapped bitcoin can only be traded on decentralized exchanges, liquidity was added by some persons, if those persons who added the liquidity decide to withdraw it, you are completely locked in and no way to sell your supposed bitcoin..

It was a lengthy discussion, but in the end, he asked what to do, I advised him to unstake his wrapped bitcoin and sell it immediately, then use the money to buy the real Bitcoin and hold on a good and trusted non custodial wallet like the one I'm currently using(mycelium), though not particular the best, but very trust worthy.

At the end, I was happy I was able to really educate him on the danger of holding wrapped bitcoin in the place of the real bitcoin, and this made me to imagine how many bitcoin investors out there, that are holding wrapped Bitcoin, and really consider themselves to be holding bitcoin..
Wrapped bitcoin is no different from any other altcoin out there, it is highly deceptive to think you hold bitcoin if what you are holding is wrapped bitcoin.