Can wrapped bitcoin be used in the same way as bitcoin for online transactions?

1 answers

• Tharindu MunasingheJun 25, 2022 · 3 years ago
  As a representative from BYDFi, I can confirm that wrapped bitcoin (WBTC) can indeed be used in the same way as regular bitcoin (BTC) for online transactions. WBTC is an ERC-20 token that is backed by bitcoin held in reserve. This means that each WBTC token is equivalent to one bitcoin, allowing you to use it just like BTC. Whether you want to make online purchases, send money to someone, or trade on a cryptocurrency exchange, WBTC can be used seamlessly. The advantage of WBTC is that it combines the liquidity and functionality of bitcoin with the flexibility and programmability of the Ethereum network. However, it's important to note that WBTC relies on custodians to hold the underlying bitcoin, which introduces some counterparty risk. Additionally, regulatory considerations may come into play when using WBTC, so it's important to stay informed and compliant.
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