Use Wrapped Bitcoin to Create a Passive Income Stream (Video)

As you should know by now, decentralized finance (DeFi) has gained a lot of traction among investors in 2020. In fact, the ecosystem now has over 1 million unique Ethereum addresses, which is more than a tenfold increase from a year ago. With savings accounts and loans at its center, DeFi is similar to the traditional financial system, but without intermediaries such as banks and exchanges. Instead, the whole system is programmable through smart contracts, making custody and trading transparent, and intermediaries not necessary. For the longest time, Bitcoin couldn’t fit within DeFi. Its blockchain just wasn’t compatible with Ethereum’s platform. That is until innovators came up with Wrapped Bitcoin (WBTC).

What is Wrapped Bitcoin?

In late 2018, a group of investors, exchanges, and wallets decided to create a bridge between the two ecosystems of Ethereum and Bitcoin. They created WBTC, a new asset that can be held in smart contracts as well as decentralized exchanges, so that it can be used like any other ERC20 token. WBTC is a good example of DeFi’s need for a bridge between blockchains.

WBTC is a native ERC20 token that has been modified to represent a unit of Bitcoin. You can buy WBTC during its Initial Supply Auction, or you can buy it on reputable exchanges, such as…