[Tokenization] Bitcoin on Ethereum ?! VS DeFi

[hugeblack]

We often hear the DeFi (Decentralized Finance) even though it is not a currency or based on a specific blockchain, meaning that it can happen on any smart contract platform. But is this idea successful?

Today I'd like to make a strange comparison, which is tokenization concept.

The idea is not modern and is based on the principle of locking BTC through some mechanisms, placing tokens on another network, and using BTC as a tokens on that network.

we can lock some BTC (which have some values) and get ETH ERC-20 tokens that have the same value. is the real value in this the tokens or locked BTC?

Does this make Bitcoin more valuable? Will you buy those tokenization tokens?
I want you to think about these things before investing in DeFi.


One of the other answers about the reason for investing in DeFi is that its value is high. We can only judge the value after the price rises, and then it will be too late and the investment is often a loser.

[JeromeTash]

I think there are a couple of project already doing this. The one i am more familiar with is WBTC(Wrapped BTC or BTC on Ethereum network). The project started off in 2018, if i remember very well, It wasn't popular back then but the DeFi hype resurrected it.

What I don't like by this kind of arrangement is that more money is now going int ETH more than it's supposed to be for BTC -  Nearly $100M in Bitcoin Moved to Ethereum in July, Led by Retail Traders



This consequently affects the price of BTC in general. For example since March, BTC price has risen by about x2 But Ether's price has risen by about x3.5