What Is RenBTC (renBTC)? How It Works & Where To Buy It?

renBTC is a tokenized version of Bitcoin. The token is built on the Ethereum network and is an ERC20 token that is pegged to the price of Bitcoin and represents a Bitcoin on the Ethereum network.

renBTC, along with other tokenized versions of Bitcoin, has quickly grown in popularity. Many individuals choose to purchase tokenized versions of Bitcoin because they’re more liquid and can be used in DeFi.

renBTC has rapidly grown to the 2nd largest wrapped version of Bitcoin by market cap.

 

How RenBTC (renBTC) Works

The Ren platform is an open protocol that makes inter-blockchain liquidity available to all. Minting a renBTC token is a fairly straightforward process. The purpose of inter-blockchain liquidity is to streamline the process of bridging assets from various blockchains to Ethereum’s lucrative decentralized applications.

The platform supports Zcash, Bitcoin Cash, Bitcoin, and more than 30 other cryptocurrencies.

RenVM is the powerhouse blockchain technology that facilitates the minting of ERC-20 cryptocurrencies that represent wrapped versions of Bitcoin and other cryptocurrencies.

The process of minting renBTC is simple:

• User deposits their BTC or any other supported cryptocurrencies into the RenVM
• Sequentially, renBTC tokens are minted in accordance with the BTC allocation
• Finally, the renBTC is deposited in the user’s wallet

The circulating renBTC supply reflects the amount of renBTC tokens that are active in the market. The ERC20 digital asset, renBTC, is not a native Bitcoin, but its price follows the Bitcoin market rate.

The native token of the Ren platform is REN and can be used to run a node on the Ren Network. The process behind the conversion of various Bitcoin-backed tokens is efficiently achieved by utilizing Atomic swaps.

renBTC is different from other wrapped versions of Bitcoin because it isn’t a synthetic token. Many digital assets that are used in Ethereum decentralized applications are synthetic tokens that maintain their peg algorithmically rather than through actual Bitcoin assets.

Additionally, RenVM doesn’t utilize a centralized custodian when it stores locked assets. Rather, randomly selected nodes on the network are tasked with securely storing the locked assets. This approach is much more decentralized and ensures that users can feel at peace when minting or redeeming renBTC.

Users can read through the Ren whitepaper (Republic protocol) to get a better understanding of the RenVM and the functionality of the protocol.

 

What Is RenBTC (renBTC) Used For?

Like many wrapped coins, renBTC has a multitude of uses in decentralized finance. Users can profit from liquidity mining, participate in yield farming, benefit from decentralized lending pools, and even margin trade on certain decentralized exchanges – many see the utility of tokenized assets in the Ethereum DeFi ecosystem as innovative and profitable.

Ethereum has a total value-locked that exceeds $40 billion – users can earn generous yields on their renBTC tokens by adding them to liquidity pools as well as participating in other DeFi projects.

Most users have developed a keen interest in DeFi protocols, and because of the Bitcoin Blockchain’s limitations, they can participate in DeFi with their BTC tokens. This is where protocols such as Ren add more utility to Bitcoin.

Additionally, many individuals earn an income by arbitrage or swing trading. These types of traders try to capitalize on price fluctuations in cryptocurrencies and wrapped tokens to earn a profit. These strategies can be very profitable, but they are incredibly risky.

 

Where To Buy RenBTC (renBTC) Tokens

RenBTC (renBTC) is the 179th largest cryptocurrency by market cap.

renBTC tokens can be purchased on several centralized crypto exchanges. But, before you’re able to purchase renBTC, you’ll need to deposit Bitcoin, and sequentially renBTC tokens will be credited to you.

renBTC is also commonly available on decentralized exchanges like Uniswap.

The crypto exchanges below are the safest place where you can buy, sell and store tokens.

Five of the most popular crypto exchanges that US citizens use are:

1. Binance
2. Coinbase
3. KuCoin
4. HTX
5. Gate.io

All of the above exchanges allow users to buy, sell, transfer, and store renBTC in a digital wallet on the exchange. Some exchanges will allow you to use your debit or credit card to purchase renBTC on centralized exchanges.

Users intending on using their renBTC for DeFi can transfer their tokens to a wallet off of the exchange – popular options include Metamask (use Ethereum Mainnet Address) or other ERC20 compatible wallets.

How long has RenBTC (renBTC) existed?

renBTC was officially launched in May 2020. The ren platform, formerly known as Republic protocol, was created in 2017 by Taiyang Zhang.

Initially, renBTC was available mainly on decentralized exchanges like Uniswap; this is where the majority of trading took place for a while. In recent years, renBTC has been listed on Gate.io.

What’s controversial about RenBTC (renBTC)?

Doing as much research as you can before investing in any cryptocurrency or blockchain project is essential. Many retail investors make investments or trades without conducting due diligence.

Many people invest merely based on what they may have read or heard about a project in the news or media, or because they have a good friend or relative who has previously invested in a certain cryptocurrency.

• It’s Not “Real” Bitcoin – renBTC is an ERC20 token that is pegged to the price of Bitcoin, and represents Bitcoin on the Ethereum network. Essentially, it acts as a placeholder that brings new utility to the Bitcoin token.
• However, it’s not an actual Bitcoin and isn’t compatible with the Bitcoin blockchain. There are several risks associated with a tokenized version of crypto assets – there is an inherent security risk because frequent exploits are occurring on various decentralized platforms.
• The DeFi sector is still very opaque and is much more complex than using standard centralized platforms. For this reason, users can easily make mistakes that could result in the permanent loss of their tokenized assets.

How many RenBTC (renBTC) tokens are there?/

At the time of writing, renBTC has a circulating supply of 5,213.27 RENBTC.

The total supply of renBTC is 5,213.

The max supply of renBTC is 13,698

Can RenBTC (renBTC) be mined?

You can’t mine renBTC. The renBTC token is only minted upon the deposit of Bitcoin or other supported crypto assets in the RenVM.

Users can utilize their renBTC assets in lucrative ways to earn yields. Some of the most popular DeFi products that individuals use to earn yields on their renBTC tokens include staking, liquidity provision, and yield farming.

What is the market cap of RenBTC (renBTC)?

The market cap of RenBTC (renBTC) is:

RenBTC (renBTC) market cap = total amount of coins in circulation x current market price of renBTC

RenBTC (renBTC) Market Cap = 5,213.27 RENBTC x $21,069.32 = $109 million (179th largest market cap)

The market cap fluctuates according to circulating supply and market price.

 

Biggest Competitors Of RenBTC (renBTC)

renBTC is a tokenized asset that is coupled to the price of Bitcoin. In essence, it works by giving bitcoin more versatility and utility. Tokenized asset protocols seeking to become the most popular wrapped Bitcoin coins need to prove to users that they are reliable, secure, and can remain pegged to the market price of Bitcoin.

Some notable competitors are:

• WBTC (16th largest market capitalization – Ethereum Blockchain)
• BTCB (204th largest market capitalization – BNB Chain)

What are the future plans for Ren and renBTC

The future of renBTC includes growing user adoption, increasing the token’s listing on exchanges, and expanding its market capitalization. Since the launch of the Ren platform, the blockchain protocol has grown significantly in popularity.

The renBTC token has quickly grown to become known as one of the most credible tokenized Bitcoin assets on the market.

 

Pros and Cons of RenBTC (renBTC)

Pros:

• DeFi Functionality – renBTC is an ERC20 token that can be used in any smart contract on the Ethereum blockchain. Bitcoin doesn’t have this functionality – that’s why tokenized versions of Bitcoin have become increasingly popular.
• renBTC is Backed by Crypto-Assets – There is always a concise procedure followed for users to obtain renBTC. The essential requirements involve depositing BTC or any supported cryptocurrency that is supported to mint renBTC. This procedure protects the integrity of the tokens and the overall supply by ensuring that each renBTC token is backed by BTC or an equivalent supported asset.
• Pegged 1:1 with BTC – Only the price of BTC affects the fluctuations of renBTC. The price of renBTC tokens is unaffected by any other outside influence. The token supply fluctuates when renBTC is redeemed and increases as new renBTC are minted, ensuring the price is in line with the price of Bitcoin.
• It Is More Decentralized – Ren utilizes an innovative system to ensure that Bitcoin is stored in a decentralized nature. The platform users randomly selected nodes to facilitate the storing of Bitcoin and other crypto-assets that are used to mint tokenized assets. Many users prefer a decentralized protocol instead of a centralized protocol.

Cons:

• It Isn’t Real Bitcoin – The tokenized asset is simply a representation of Bitcoin but isn’t a native Bitcoin. The supply of the token is different from Bitcoin, as well as the functionality of the token. The token is an ERC20 version of Bitcoin, but the functionality and security of the Ethereum network are completely different from the Bitcoin Network.