Cryptocurrency is a fascinating concept: it’s a digital currency that can be used as a way to exchange value on a computer network. And while it’s controversial to some, nobody can deny that it’s been very successful. But which one is the “best,” and how can we know which one we should buy?
Well, with so many choices of crypto coins available out there, it can be difficult to distinguish between them. That’s why it’s best to hone in on just a few. That’s why in this article, we’ll be looking at crypto giant Bitcoin and the innovative crypto coin renBTC solely.
History
We know Bitcoin has a rich history and has over a decade of presence in the crypto world, but what about renBTC? We’ll explore these two coins’ history in the following two sections.
renBTC (RENBTC)
renBTC was made as part of the Ren Protocol Project in 2017 and was finally released in May 2020. It was designed to incentivize users to transfer new and existing assets across various blockchains. The heart of the Ren Protocol REnVM is a virtual machine made to join blockchains to make them interoperable.
Theoretically, it’s possible to perform operations in REN, which would affect more than one blockchain. This project is bringing Bitcoin to the world of Ethereum.
Bitcoin (BTC)
Bitcoin was created under the pseudonym Satoshi Nakamoto and was officially released in 2009. It’s the first cryptocurrency to achieve this kind of success and therefore has received renown as the first cryptocurrency released. This isn’t true.
In 1990, a company known as DigiCash released eCash, the first cryptocurrency. However, the idea was conceived as far back as 1983.
What Are They, And Why Were They Created?
Now that we’ve dug into the history of these two crypto coins let’s dig into the specifics of what they are and how they came to be.
renBTC (RENBTC)
renBTC is a unique token created by the Ren organization that allows for the decentralized representation of Bitcoin within Ethereum. It removes the need for middle steps, such as using a wrapped BTC.
RENBTC offers a lot of flexibility, such as transforming into any supported tokens with little issue. It’s also quite fast, thanks to its consensus protocol called Hyperdrive. However, as an ERC-20 token, it’s unfortunately constrained by the limitations that Ethereum has. Transaction fees can also be pretty high.
RENBTC is a decentralized way of having BTC on different blockchains, and the protocol decentralizes custody and makes minting and burning available to all. On the other hand, Wrapped Bitcoin requires an authorized merchant to mint.
Bitcoin (BTC)
Bitcoin is the world’s most successful cryptocurrency and was made in response to the financial crisis. Underlying BTC was a philosophy: it offered a way to escape the central bank and make completely decentralized finance transactions.
Bitcoin has attracted investors worldwide, who use the currency to generate wealth and store value. Many cryptocurrency exchanges were born as a result of the coin.
Price History
It’s time to look at how these cryptocurrencies have performed over the years (you might think the findings are pretty interesting).
renBTC (RENBTC)
renBTC is pegged to the price of Bitcoin and therefore experiences its highs and lows. This is unlike other derivatives, like Bitcoin Cash, which has its own value.
Bitcoin (BTC)
Despite being the most popular cryptocurrency in the world, Bitcoin is highly choppy and unpredictable. Its price has fluctuated so much over the years, and investors may still be trying to recuperate their losses.
For instance, if an investor bought Bitcoin in July 2021 for around $30,000, kept it until November, when the prices neared $70,000, and then presumed it would remain relatively steady, they would now be at a loss of more than $10,000 per coin they purchased.
However, investors who bought Bitcoin back when it was first released and was valued at just $0.0009 would have made a significant profit.
Market Cap
After this discussion on price, are you wondering how much market cap Bitcoin holds? Let’s explore this next.
renBTC (RENBTC)
renBTC currently holds a cap of $68,367,537, and while this may sound like quite a lot, put in the context of Bitcoin’s holdings, it’s relatively low. This cap puts the currency at 292 in the world’s crypto rankings.
Bitcoin (BTC)
At the time of writing, Bitcoin’s market cap is $375,679,633,351, which is more than double its competitor, and the second most popular currency, Ethereum, with a cap of $,162,081,788,015.
The currency maintains a dominant position in the market.
Daily Transactions
How often do Bitcoin transactions and renBTC transactions occur daily? We’ll be looking at this next.
renBTC (RENBTC)
Currently, renBTC boasts a 24-hour volume of $ 2,520,000. However, this is likely to vary drastically day-to-day.
Bitcoin (BTC)
Bitcoin had a 24 hr-trading volume of $ 49,926,834,932. Transaction fees have varied, but currently, it costs just under $1 for a Bitcoin transaction. In April 2021, average transaction fees were at an all-time high of over $60.
Block Size
The block size of crypto is the data that a single block in a blockchain can hold. The data in every block and the block generation speed of the chain provide the answer to how many transactions the network can carry out each second.
renBTC (RENBTC)
ERC-20 token blocks are usually quite smaller than Bitcoin, merely KBs in size.
Bitcoin (BTC)
Bitcoin blocks can be about 2 MBs and theoretically be as large as 4 MBs. However, the Bitcoin blockchain was set to 1 MB block sizes for some time.
Similarities
RenBTC tokens share the same price as Bitcoin, and you can even change your BTC to renBTC (but this is something we’ll cover later).
Differences
RenBTC is an ERC-2o token that runs on the Ethereum network. Bitcoin, of course, operates on the Bitcoin blockchain. RenBTC is Bitcoin that has been brought to the Ethereum network, and therefore, it works differently.
Risks
Are Bitcoin and its derivative, renBTTC, risky investments? Let’s investigate.
renBTC (RENBTC)
renBTC is a low-risk coin and quite a good investment option. Although, it’ll be subject to the issues experienced with BTC.
Bitcoin (BTC)
Bitcoin has risks in that it’s a volatile coin that has fluctuated drastically since last year. At one point, the coin was worth $64,000, but today only holds a value of just under $20,000.
Be careful not to put all your hope in the future of Bitcoin, but as is good practice with investments in general, diversify your portfolio.
Bitcoin also has a risk of network congestion due to its popularity and limited block sizes (particularly when compared to some of its derivatives), which can cause transaction fees to soar, possibly to the heights they’ve been at in the past.
Where to Buy
So, where can you buy renBTC and Bitcoin? This is what we’re going to be exploring next.
renBTC (RENBTC)
You can buy renBTC using a decentralized exchange (DEX). These web applications work on blockchains that allow users to trade assets with one another using smart contracts. Some popular choices include SushiSwap, and Uniswap.
You can purchase on any cryptocurrency exchange using a debit or credit card.
Bitcoin (BTC)
Bitcoin is available for purchase on various cryptocurrency trading platforms, including but not limited to Luno, Coinbase, Binance, Kraken, and Gemini.
Exchanging BTC for RENBTC
You can exchange BTC for RENBTC as the crypto mirrors the actual BTC price. You can do quick and easy conversions by connecting your wallet, such as MetaMask, to the RenBridge. Put in the amount you want to mint with BTC, and follow the prompts.
Future Plans
So, what does the future hold for renBTC and Bitcoin? We’re going to explore this question next.
renBTC (RENBTC)
As of right now, renBTC seems to be on an uncertain projection, although you could say this about most, if not all, cryptocurrencies. The projections are contradictory, and it’s difficult to say whether the crypto will succeed or fail in the future.
However, we’re sure the developers hope this token continues to do well and fulfills its mission to connect Bitcoin with the Ethereum blockchain. Remember that renBTC, like Wrapped Bitcoin, is still relatively new, so it’s hard to tell what the future holds for these coins in the whole crypto space.
Bitcoin (BTC)
Bitcoin continues to receive daily attention from media and business outlets everywhere, so it’s no wonder the crypto continues to grow in value. Predictions put the coin in upward projections, potentially even reaching the millions by the year 2030. Although, more pessimistic predictions would challenge this.
Sources:
https://hackernoon.com/tokenizing-bitcoin-on-ethereum-wbtc-vs-renbtc-vs-hbtc-vs-btcpx-44l3zn8
https://finematics.com/bitcoin-on-ethereum-renbtc-wbtc-tbtc-sbtc/
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