Bitcoin (BTC) Value on Ethereum (ETH) Blockchain Exceeds $100M. Is That Bearish for BTC?

News
Sun, 06/28/2020 - 15:01
Vladislav Sopov
Wrapped Bitcoin (wBTC) and similar tokens are a class of assets that represent Bitcoin (BTC) but are issued on top of the Ethereum (ETH) blockchain.
Cover image via twitter.com
Contents

Through multiple services, it is now known that total value of Bitcoin (BTC) assets on the Ethereum (ETH) blockchain exceeds $100M. Some analysts believe that this may be a crucial milestone for the 'wrapping' services and a mark of death for Bitcoin (BTC).

Nine-Digit Milestone

Yesterday, participants from the Ethereum (ETH) community noticed that the volume of tokenized Bitcoin (BTC) on the Ethereum (ETH) network inched closer to the $100,000,000 mark. Some hours ago, (June 28, 2020), Anthony Sassano, an Ethereum (ETH) educationist, host of Into the Ether podcast, and EthHub Co-Founder,  reported on a major milestone:

Image via Twitter

He also posted an ultra-bearish analysis on the influence that this progress may have on Bitcoin (BTC), both on the asset and the blockchain.

In terms of evaluating the asset, Bitcoin (BTC) on Ethereum (ETH) will never play in the sandbox with Ethereum (ETH) by itself. Staking and fee payouts are unavailable with wBTC. In a nutshell, the flagship cryptocurrency has become one more coin in the Ethereum (ETH) realm.

Moreover, the progress of tokenizing can also damage the integrity and security of the Bitcoin (BTC) network as rewards for maintaining this integrity are a major economic catalyst for miners. More transactions occur on Ethereum (ETH), and less fees are paid to Bitcoin (BTC) miners.

Opportunity for Scaling

What that being said, more miners and holders will be interested in working directly with the Ethereum (ETH) network. It is the Ethereum (ETH) network that may allow every asset to become programmable and join the amazing and profitable DeFi game, Mr. Sassano highlights.

As recently covered by U.Today Crypto News, legendary Bitcoin (BTC) developer and Bitcoin Foundation Founder Gavin Andresen believes that the migration to the Ethereum (ETH) network may be the best solution for the Bitcoin (BTC) scaling problem.

Related
Bitcoin Foundation’s Gavin Andresen Unveils Surprising Proposal for Bitcoin (BTC) Scaling

Mr. Andresen outlined that only the tokenization of Bitcoin (BTC) with Ethereum (ETH) 2.0 instruments may resolve this thorny issue much better than the Lightning Network.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

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