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Investing In the renBTC – Everything You Need to Know

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Bitcoin is the world’s oldest and largest cryptocurrency when it comes to its market cap. In fact, it is also the most dominant coin and the second most used cryptocurrency in the entire crypto industry. However, despite its size, its popularity as a brand, and the fact that it is the most important crypto in the history of the industry, Bitcoin is very limited in terms of what can do.

Of course, you can use it for payments, as it is probably the most adopted coin in the world, and it is excellent when it comes to trading and investing, being extremely volatile and the leader of pretty much every rally that happens in the crypto sector. Some speculate that it could replace gold someday and become a digital version of it — a digital store of value.

However, in the current era of smart contracts, DeFi, NFTs, metaverse, and other trends, Bitcoin is pretty much useless. Its blockchain does not support smart contracts, the coin cannot be used for staking or other kinds of DeFi activity, and no blockchain products can be developed on its network, not even new cryptocurrencies.

So, in order to combine Bitcoin’s superiority in terms of value, dominance, and other mentioned attributes with the capabilities of smart contracts, the Ethereum-based Ren platform launched a new ERC-20 token — RenBTC (RENBTC). The coin is essentially an ERC-20 token that is pegged to Bitcoin, and as such, it is basically Bitcoin’s clone that has access to everything that Ethereum’s network has to offer.

What Problems Does renBTC Solve?

You might be wondering how is everything described above useful? What problems does it solve, if any? In fact, it does solve a few big issues for Bitcoin and its supporters, such as:

It makes Bitcoin interoperable

Today, there are plenty of interoperable or cross-chain projects, that can reach other networks, and that are setting the foundation for Web 3.0. However, Bitcoin, in its original form, is not one of them. As discussed above, the coin cannot do much but be used for investments, trades, and payments. With renBTC, that changes, and Bitcoin can finally move out of its own little bubble universe to more developed networks with all kinds of products and functionalities that it can interact with.

It uses a direct supply peg

renBTC is not the first, nor the only Bitcoin-backed token that allows the coin to access other networks. However, it differs from others in the sense that it is not a synthetic token. It also doesn’t rely on liquidation mechanisms to make sure that it will stay pegged to Bitcoin’s value. Instead, it uses a direct supply peg, which means that there is always enough Bitcoin in the project’s reserve to cover the renBTC supply.

Additional use cases for BTC

Of course, this will also mean that Bitcoin itself will receive additional use cases. While not directly within its own network, those who own it will be able to get renBTC instead of it and gain access to various DeFi functionalities, use it in dApps and smart contracts, and more, which will significantly increase the number of activities that can be done with Bitcoin, or rather, its clone on Ethereum’s network.

Simplicity regarding minting/redeeming

Another problem that the project has solved is the simplicity when it comes to minting and redeeming the coins. Minting is very straightforward, and all that users need to do is send their BTC to RenVM. After that, the assets will be secured, and the equivalent number of renBTC tokens will be minted on Ethereum. Redeeming the tokens is just as simple, only in the opposite direction. Users will have to send renBTC back to RenVM, and their BTC will be sent back to the wallet from which they came.

Benefits of renBTC

We have seen ways in which renBTC improves things for the project, but what are its advantages for the users themselves?

Granting Bitcoin access to smart contracts and DeFi

The first big thing to note is that Bitcoin will have access to DeFi and smart contracts, which opens up numerous new opportunities. This was mentioned briefly before, but the implications can be quite large. Imagine buying Bitcoin at its bottom, and instead of simply waiting for its price to grow and hit a new ATH — which might take years — you lock it up in a DeFi protocol and earn rewards while waiting.

This is a great way to make money with your dormant coins and reduce the risk you would otherwise be exposed to by investing in lesser-known cryptos who might fail or even end up accused of being securities.

Brings Bitcoin to Ethereum’s DEXes

Another advantage for users is that they will finally be able to use Bitcoin on Ethereum’s DEXes. As a non-Ethereum cryptocurrency, BTC was not compatible with decentralized exchanges on Ethereum, and so it could not be used for buying countless DeFi tokens belonging to various protocols. However, that is not the case with renBTC, which does have access to these platforms, and without it, Bitcoin would have to wait for centralized exchanges to list some of these tokens, which robs it of the advantages that early investors get to experience.

The same process can bring Bitcoin to other chains

Finally, why stop on Ethereum’s network? renBTC can use this same process to take Bitcoin on virtually any development platform in the crypto industry, and allow the coin to become universally available in various ecosystems and environments. renBTC could even become a go-to cryptocurrency for investors, as it would open up even more of new opportunities by giving you access to the entire crypto industry’s DeFi sector, not just that of Ethereum.

How Does renBTC Work

renBTC is an ERC-20 token built on Ethereum’s network. As such, it allows users to deposit their Bitcoins on the Ren platform and mint new renBTC cryptos, which they can then proceed to use in Ethereum’s ecosystem, whether for investing into ERC-20 tokens that are not listed on exchanges, participation in the use of smart contracts, various DeFi protocols, or something else.

The token is a direct competitor of Wrapped Bitcoin, but it makes minting and redeeming the tokens much simpler and straightforward. It is also not a synthetic token, and the main thing that makes it differ from other wrapped Bitcoin tokens is its fluid value exchange. And, just like it arrived on Ethereum, it can also be imported on any other blockchain of this kind.

How to Buy renBTC

renBTC is available on the following exchanges: 

BinanceBest for Australia, Canada, Singapore, UK and most of the world. USA residents are prohibited from buying renBTC. Use Discount Code: EE59L0QP for 10% cashback off all trading fees. 

Gate.io – This exchange was established in 2013, and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK.  USA & Canada residents are prohibited.

renBTC – The coin that brings Bitcoin to Ethereum’s ecosystem

renBTC is an interesting token that opens a lot of new doors for Bitcoin and allows users to use it in ways they couldn’t before. It offers new functionalities to the crypto industry’s leading cryptocurrency, and it is extremely simple to mint, use, and redeem. There are no real downsides to using it, but there are plenty of opportunities if you know how to use it right, which is why we believe it is quite worth keeping an eye on.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.

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