What is WBTC and Price Predictions in 2024, Check Out the Review!

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Bittime - As blockchain technology develops , a variety of decentralized applications (dApps) are emerging, offering a variety of interesting financial services.

However, many of these dApps are only compatible with Ethereum (ETH) tokens , leaving Bitcoin (BTC) users behind in accessing innovative DeFi opportunities.

What is WBTC?

This is where WBTC comes in as a solution. WBTC is a converted version of Bitcoin that can be used on Ethereum's growing network of dApps.

Launched in January 2019, WBTC is an Ethereum token that is one-to-one backed by Bitcoin (BTC), meaning that one WBTC is always equal to one Bitcoin.

How WBTC Works

The WBTC work process involves several parties:

• Users: Users who wish to use WBTC should first exchange their Bitcoins for WBTC through a compatible platform, such as Kyber Network or Uniswap.
• Custodian: A custodian is a third party responsible for storing the Bitcoin underlying WBTC. A trusted and guaranteed custodian is needed to maintain WBTC security.
• Guarantor: The guarantor is the party responsible for verifying that the Bitcoin held by the custodian actually exists. Guarantor ensures that WBTC is always backed by Bitcoin equivalent.
• Smart contract: A smart contract is a computer program that automatically executes the process of exchanging Bitcoin for WBTC and vice versa. Smart contracts ensure the process is transparent and secure.

Here are the steps of how WBTC works:

1. Users deposit their Bitcoins with a custodian.
2. The custodian sends proof of Bitcoin deposit to the smart contract.
3. Smart contract issues WBTC to users.
4. Users can use WBTC to participate in dApps on Ethereum.
5. When users want to redeem their Bitcoins, they can burn their WBTC in the smart contract.
6. The smart contract instructs the custodian to send the equivalent Bitcoin to the user.

Also read: Bitcoin (BTC) Price Prediction: It's Time for a 10% Correction

Wrapped Bitcoin (WBTC) Price Prediction 2024 in IDR

Source: coinmarketcap.com

Also Read How To Buy Crypto:

Prakiraan Bullish

Highest Price: IDR 916,000 (CoinMarketCap) Average Price: IDR 990,000,000 (CoinGecko)

Based on data from CoinMarketCap, WBTC is predicted to reach its highest price of IDR 1,124,847,448 in 2024. This is driven by several factors, such as:

• Increased Bitcoin adoption: The more people use Bitcoin, the higher the demand for WBTC.
• DeFi Development: WBTC is widely used in DeFi applications, and the growth of DeFi will increase demand for WBTC.
• Integration with new platforms: WBTC integration with new platforms, such as exchanges and lending platforms, will increase accessibility and demand.

Bearish Forecast

Lowest Price: IDR 670,000,000 (CoinMarketCap) Average Price: IDR 780,000,000 (CoinGecko)

CoinMarketCap predicts that the lowest price for WBTC in 2024 will be IDR 670,000,000. Factors that can cause this price reduction include:

• Bitcoin price drop: If the price of Bitcoin falls, the price of WBTC will likely follow.
• Unfavorable regulation: Strict regulation of cryptocurrencies may hinder the growth of the WBTC market.
• Competition from other tokens: Other tokens that offer similar functionality to WBTC may attract users and reduce demand for WBTC.

Neutral Forecast

Average Price: IDR 875,000,000 (average of CoinMarketCap and CoinGecko)

The neutral forecast predicts the WBTC price will be around IDR 875,000,000 in 2024. This takes into account the bullish and bearish factors mentioned previously.

Factors Affecting the Price of Wrapped Bitcoin (WBTC)

• Bitcoin Price: The price of WBTC is closely related to the price of Bitcoin. If Bitcoin price rises, WBTC price will likely rise.
• Demand and Supply: Demand for WBTC will increase as DeFi adoption and integration with new platforms increases.
• Regulation: Strict regulation of cryptocurrencies may hinder the growth of the WBTC market.
• Competition from other tokens: Other tokens that offer similar functionality to WBTC may attract users and reduce demand for WBTC.

Notes

It is important to remember that cryptocurrency price predictions are not always accurate. The cryptocurrency market is highly volatile and can be influenced by various unexpected factors.

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Conclusion

WBTC is a solution that allows Bitcoin users to participate in various decentralized financial services (DeFi) on Ethereum. WBTC offers benefits such as:

• Access to DeFi: Users can lend, stake, and trade WBTC to earn interest, rewards, and profits.
• Increases liquidity: WBTC increases Bitcoin liquidity and allows users to participate in various dApps on Ethereum.
• Profit potential: WBTC provides opportunities for Bitcoin users to earn profits from various sources.

Dear Beli Crypto from Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn Complete Guide How to Buy Crypto on Bittime . 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.