MachiavelliTrader

BTC Throne Challenge 😱(WBTC beat BTC to over $200,000 in a Day)

BINANCE:WBTCUSD   Wrapped Bitcoin / US Dollar (calculated by TradingView)
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"BTC is King" I have heard this countless times without number but what happens when BTC backed brother stands a better chance of over throning BTC?
Before You say "Oh Makaveli that is so impossible🙄 ",
Wait! first let me introduce you to the younger coin brother that stand the chance to out run BTC faster any time BTC Lifts a leg up to make any Move because of the Usability of this younger coin brother.
This is no other coin than Wrapped BTC .
Everything changed for BTC Younger coin brother also Called WRAPPED BTC (WBTC) on the 10/ 01 /2021,
Kindly Take a good look at the price action Performance of WBTC on 10 January 2021 on the Binance exchange

But first let's Understand What Is WBTC....
What is Wrapped Bitcoin ?

WBTC stands for Wrapped Bitcoin and is simply an ERC20 token that represents Bitcoin . One WBTC equals one BTC .
simply meaning that BTC can be converted into WBTC and vice-versa.
Wrapped Bitcoin is a tokenized version of Bitcoin ( BTC ) that runs on the Ethereum (ETH) blockchain.
Wrapped Bitcoin was first announced on October 26, 2018, and officially launched on January 31, 2019.
According to CoinMarketCap,WBTC is also backed by Bitcoin at a 1:1 ratio via a network of automatically monitored merchants and custodians,
ensuring that its price is pegged to Bitcoin at all times and allows users to transfer liquidity between the BTC and the ETH networks in a decentralized and autonomous manner.
WBTC is compliant with ERC-20 — the basic compatibility standard of the Ethereum blockchain — allowing it to be fully integrated into the latter’s ecosystem of decentralized exchanges,
crypto lending services, prediction markets and other ERC-20-enabled decentralized finance (DeFi) applications.

The goal is to bring Bitcoin’s price value into play and combine it with Ethereum’s programmability, Therefore the major Key advantage of WBTC is its integration into the world of Ethereum wallets, dapps, and smart contracts.
The concept of WBTC emerged in a bid to improve Bitcoin’s functionality and usability. Consequently, these tokens help provide more sophisticated financial services to traditional BTC holders.

Who Founded WBTC?
According to CoinMarketCap,the Wrapped Tokens project, of which WBTC is a part, wasn’t founded by individuals but is rather a joint project of three organizations: BitGo, Kyber Network and Ren.

You may now be wondering, “ but why would I want to convert my BTC over to wBTC ?”
well,Wrapped Bitcoin users can even gain access to DeFi lending and borrowing networks without actually giving up or trading their Bitcoin directly.

But How about Safety Makaveli, how safe is WBTC ?

I have No doubt that whenever you involve third-party custodians that custody large amounts of Money ( Bitcoin in this aspect), mint new tokens, and monitor the value of the Bitcoin collateral, you have a market ripe for a concentration of power and power can change anyone or any organization. So yes, I will state it clearly that the concept of WBTC is fairly safe in the sense that the technology itself is sound.

However, there are still some risks that you should be aware of before you decide to convert your BTC over to WBTC or invest into WBTC for long term. One of my main concerns arises from the trust-based models of early WBTC platforms.
in the sense that In this scenario, there is always a risk that the platform could somehow unlock the real BTC and leave token holders with fake wBTC.
So please do your own diligent research before getting yourself into WBTC as this Post is by no means a financial advice.

What is my near future target of WBTC?

The current All Time High( ATH ) on WBTC binance is currently around $200,700 zone which was hit on the 10 January 2021. As a result of the Demand and liquidity growth of WBTC at the current stage,
we could see a rise to above $100,000 ones more before the end of 2021.