Why not wrap your Bitcoins?

[sub0]

I have hung on since 2012 and love Bitcoin as much as anyone. But now I'm wondering: WHY NOT wrap your Bitcoins?

There's only one thing better than Bitcoin. Bitcoin with yield. Bitcoin you can do something with. Like getting rich and having fun in DeFi while still owning your Bitcoins.

To me it doesn't matter which of the two blockchains hold my coin.  I trust Bitcoin and Ethereum equally.

Yes, there is smart contract risk.

Asking because I have not gone all in yet but the DeFi yield drug is hard to resist.

Yield...so much yield.

[makishart]

I personally will never try to wrap my bitcoin and exchange it to the token that can be issued freely on ethereum chain lol.
You do know that there is a big risk and our money can be rug pulled by the developers anytime. There's no reason to put our bitcoin that can grow even higher to be converted into the token.
Big APY means big RISK.

I think that you understand this so well based on what you have been writing above me

[omone1]

I actually have my bitcoin wrapped on BinanceSmartchain. I can use it to farm and provide liquidity on BSC and make some good money but the risk of impermanent loss is there. To avoid fee, I can use it to store my bitcoin in offchain. I didn't use ERC20 because ethereum bad fee.

[concept2]

Converting bitcoin to another form is never a good idea. I will continue to hold my bitcoin because the origin is always the best. You can never trust the new guy the same as the old guy. Moreover, segwit and lighting network have made bitcoin better than ever. With new adjustment, bitcoin will never dissatisfy its investors.

In my opinion, buying other cryptocurrencies is better than wrapping bitcoin. Thus, if you have money, invest a part for altcoins which you find interesting and promising

[mindrust]

As you said, it is risky. Bitcoin itself is risky too but there are levels to that. While gold people find Bitcoin risky, bitcoin people find altcoins & defi risky. If you like to take risks, sell all your bitcoins and go full altcoin. They have the much more potential gains when compared to bitcoin because their marketcap is tiny.

[Gozie51]

Converting bitcoin to another form is never a good idea. I will continue to hold my bitcoin because the origin is always the best. You can never trust the new guy the same as the old guy. Moreover, segwit and lighting network have made bitcoin better than ever. With new adjustment, bitcoin will never dissatisfy its investors.

Bitcoin is decentralized and not controlled. It isn't manipulated like many others and its addresses gives you more options to your transactions. Always to know that no coin increases without bitcoin going first at least with the little experience I have.

In my opinion, buying other cryptocurrencies is better than wrapping bitcoin. Thus, if you have money, invest a part for altcoins which you find interesting and promising

Doing new investment than wrapping off your bitcoin to altcoin won't be a good advise. You might be unlucky to invest in a cheap coin with your expectation crashing off. Stay with your bitcoin or sell when is right for you.

[plexasm]

you need to give up custody of your BTC to gain this yield. WBTC can rugpull you whenever they want, you're trusting them not to.

it's a silly thing to do when you already own an asset with a massive asymmetric upside

[Evilish]

Wrapped BTC =/= BTC.

Keep in mind, when you wrap your Bitcoin, you are trusting that:

• The smart contract is safe
• Whichever third party org takes care of wrapping the BTC doesn't go under or some employee doesn't go rogue and does something that diminishes the value of your wrapped BTC

Whether or not you wanna take the risk is up to you. But I personally would not for a 5-10 percent yield.

[shinratensei_]

you need to give up custody of your BTC to gain this yield. WBTC can rugpull you whenever they want, you're trusting them not to.

it's a silly thing to do when you already own an asset with a massive asymmetric upside

Agreed, the creator of wrapped coin was taking advantage of exchange its shitty token with bitcoin, we don't even know how much bitcoin that owned by the creator of WBTC to backed WBTC with bitcoin.
People have been losing their minds to exchange the best coin for a crap coin just only to get yield farming that can become another scam anytime.

[Rengga Jati]

There's only one thing better than Bitcoin. Bitcoin with yield. Bitcoin you can do something with. Like getting rich and having fun in DeFi while still owning your Bitcoins.

It may make us rich easily however sometimes, it really offers higher risks.
If we find out the trusted one, we may have some beenfits. However, we are likely not able to ensure that it is legit at all. Personally, I am not a high-risk taker so that it is safer enough to save or hold my Bitcoin.
And also commonly, trading for some top altcoins for obtaining the profits is also interesting to do like so far what I am doing.

[tsaroz]

If I planned to buy and hold some bitcoin for long term, I'd surely wrap them. They are well backed and there are no risks of wbtc being undervalued compared to BTC. But I am not going to shift just for the yield as it's still much lower. At current bullish time, altcoins trading have came as a better way to get a profit form crypto.

[chennappa121]

I don't know it is good idea to do because we all know how bitcoin is dominating the crypto market as my view point there is no logic to wrap bitcoins if it doing well in crypto market.

[maxreish]

I trust bitcoin's capability. And I never attempted or even think of wrapping my bitcoin. If ever I wanted to try other coins like eth or defi coins, I will separately invest into them and will still keep my bitcoin with me without it wrap. Especially that bitcoin really did a good performance lately, ita not a good idea right now to sell it off in exchange of other coins.
 
 If you wanna try that up then its up to you and just give us some good feedback and update us up if ever you come back on this thread again.

[btcltcdigger]

I have hung on since 2012 and love Bitcoin as much as anyone. But now I'm wondering: WHY NOT wrap your Bitcoins?

There's only one thing better than Bitcoin. Bitcoin with yield. Bitcoin you can do something with. Like getting rich and having fun in DeFi while still owning your Bitcoins.

To me it doesn't matter which of the two blockchains hold my coin.  I trust Bitcoin and Ethereum equally.

Yes, there is smart contract risk.

Asking because I have not gone all in yet but the DeFi yield drug is hard to resist.

Yield...so much yield.

Well, i get what you mean, and bitcoin with yield is awesome. But, wrapping a bitcoin basically means you're giving your BTC to someone who gives you "a certificate" that your bitcoin is with them.
Kinda hard to trust sometimes. Not saying it's a scam, just saying i couldn't do it

[senyorito123]

There's only one thing better than Bitcoin. Bitcoin with yield. Bitcoin you can do something with. Like getting rich and having fun in DeFi while still owning your Bitcoins.

Maybe if doing it, make sure to find time in searching t
It may make us rich easily however sometimes, it really offers higher risks.
If we find out the trusted one, we may have some beenfits. However, we are likely not able to ensure that it is legit at all. Personally, I am not a high-risk taker so that it is safer enough to save or hold my Bitcoin.
And also commonly, trading for some top altcoins for obtaining the profits is also interesting to do like so far what I am doing.

To hold the bitcoin is the right or best thing to do because there are many people successfully gain high profit in holding it. Besides, it is one of the top or shall we say high value in crypto market.As long you know every details such as the changes of value from time to time you can gain big amount of money which you're aiming to have.To wrap is not totally a good idea for me because, we cannot say if it's totally trusted. Maybe if doing it,make sure to find time in searching because its quite risky.

[poodle63]

I always stick with my idea that wrapped coins are just for temporary use and not to be hold for too long I mean why would you prefer to have all those unecessary risk accompanying the wrapped coins like whether the coins are truly pegged or not.
I personally would not risk that and wrapped coins are only good for making some transaction and that's it. it's basically like trying to buy gold buy you only get the cerificate of ownership the gold still owned by the company which is ridiculous.

[yua_na]

Smart contract is syill not safe, the safest way is RSK network, it is merged mining with bitcoin miner. Its called RBTC. Transaction is faster and we can build smart contract on it. There is also DeFi for RBTC called sovryn. IMO it is the best sidechain for bitcoin.

[Teraboy]

Smart contract is syill not safe, the safest way is RSK network, it is merged mining with bitcoin miner. Its called RBTC. Transaction is faster and we can build smart contract on it. There is also DeFi for RBTC called sovryn. IMO it is the best sidechain for bitcoin.

RSK is a side chain of bitcoin and i think that it has no a lot of different because your bitcoin will be wrapped into the RBTC as well.
Both were having the same service but the only thing that makes it different of WBTC can be connected with various farming service on ethereum network and that gives more benefit.

[danherbias07]

Exchange my precious BTC to wBTC for a chance of profit?
That's kind of dangerous in my own view and the scarier part is the 1:1 ratio.
We are already risking our own Bitcoin with just holding it and now we want to add more of that risk.

Can't we just directly buy the Defi token or whatever ERC-20 token with our spare money rather than trying to gamble our Bitcoin directly?
That kind of method is a lot secure for me.

[20kevin20]

Because when greed takes over, you make shitty choices. Holding Bitcoin has itself a risk of volatility and potential security vulnerabilities. Wrapping it to hold it that way only makes things worse.

You do not own a 1:1 Bitcoin for real. You do, theoretically. But who guarantees that your 1 BTC is actually pegged to your 1 WBTC and the 1 WBTC you own won't suddenly become worthless? Since Wrapped Bitcoin is centralized, nobody does. What you're doing is putting your Bitcoins under someone else's trust. Isn't that what Bitcoin exists for? Specifically to eliminate the need of trust?

And then, greed. Greed is a reason I would not wrap my BTC. Higher risks, higher rewards. But is the reward worth the paid risk? From me, it's a big no. If the extra % means risking up my entire holdings, then hell nah. I'd rather mind my own business and security instead.