Is Wrapped Bitcoin a Riskier Investment Than Bitcoin?
The Wrapped Bitcoin (CRYPTO: WBTC) cryptocurrency is and Ethereum (CRYPTO: ETH) token that mirrors the value of an ordinary Bitcoin (CRYPTO: BTC) token. This odd arrangement gives Ethereum-based applications access to a Bitcoin-like system for value storage and money transfers. You can also look at it as a version of Bitcoin that also offers Ethereum-like benefits such as smart contracts.
Baking the upside of two very different cryptocurrencies into a single package makes a lot of sense, but isn't this idea too good to be true? Holders of Wrapped Bitcoin must shoulder the long-term ownership risks of both Bitcoin and Ethereum, after all.
Let's see how the market is treating this unusual cryptocurrency.
Source Fool.com
