Well-known Bitcoin custodian Bitgo Trust is on board for backing a new wrapped Bitcoin using the TRC-20 protocol. This means that gamblers will be able to use Tron’s blockchain to gamble using a cryptocurrency tied to the value of Bitcoin without having to hold actual bitcoin in their Tron wallets. This is big news for gamblers for a variety of reasons. Let’s uncover what this really means.
What Is a Wrapped Bitcoin?
A wrapped Bitcoin (or wrapped Ethereum token, or any other wrapped token for that matter) is simply a derivative or copy of the original version of the cryptocurrency tied it to a different protocol. Purchasing a wrapped Bitcoin programmed for the ERC-20 protocol means your value is tied to the value of the original Bitcoin, but you can use the wrapped Bitcoin to interact with Ethereum-based projects.
The fact that Bitgo Trust is partnering with the founder of Tron, Justin Sun, to create Tron’s own wrapped version of Bitcoin means you don’t need to go to an exchange to trade Bitcoin for Tron tokens, then trade your Tron tokens back into Bitcoin in order to cash out your cryptocurrency or trade it for a stablecoin that doesn’t fluctuate.
This allows you to gamble on any number of the crypto projects that exist on the Tron blockchain without losing out on any potential price appreciation associated with Bitcoin. In short, you get the best of both worlds. You get to engage in gambling on the Tron blockchain, which features a lot of popular projects, but you don’t lose the benefit of gaining from Bitcoin’s increase in value, which is more likely than an increase in the value of the Tron token.
Why the Move Makes Sense for Tron
Decentralized finance is all the rage in the crypto world these days. Decentralized finance projects involve concepts related to investing such as lending, liquidity pools, derivatives and other investing instruments. The average gambler probably knows nothing about these opportunities, but decentralized finance applications are also a gamble themselves. Either way you split it; both are a high risk/high reward game.
Wrapping coins into other formats also accomplishes one other key outcome for gamblers who like to spot the best opportunities in the same way that crypto investors do. Wrapping coins allows you to save money on fees and benefit from higher transaction speeds. Transacting on the Ethereum blockchain for example is both faster and cheaper than doing so with Bitcoin. Tron is faster than Ethereum.
The drawback to using Tron is that it’s not as popular as Bitcoin or Ethereum, so at the end of the day, you’ll have to weigh the pros and cons of using Tron yourself.
The Crypto Gambler That Will Benefit the Most from Tron’s Wrapped
From a technical standpoint, Tron’s protocol features a lot of the same characteristics as Ethereum. It’s one of the reasons founder Justin Sun isn’t well-liked by many people in the crypto community. To say the least, most people have mixed feelings about him. That being said, the project itself has proven time and time again that developers and gamblers alike love its features as far as how easy it is to create a cool gambling project and interact with it on the blockchain.
If you’re well aware of what Tron is, understand how to use crypto wallets tied to your browser and enjoy the many different kinds of gambling opportunities available in the crypto space, you’ll likely love the idea of tying your Tron gambling expedition to the price of Bitcoin.
It’s a good long-term strategy for making money aside from being a savvy gambler and actually winning your wagers. Tron’s version of Bitcoin allows you to benefit from the rewards of both your wagers and your overarching decision to invest in crypto in the first place.