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Anthony Sassano @sassal0x
, 9 tweets, 3 min read Read on Twitter
1/ $WBTC is a great initiative that opens up a world of possibilities for $BTC on Ethereum. I’ve been wondering lately - is $WBTC more bullish for Ethereum or Bitcoin? Where does the value actually accrue?

Let's explore 👇

2/ Firstly, for the uninitiated, $WBTC is simply a 1:1 peg of $BTC on Ethereum. $WBTC will be governed by a group of Ethereum-based teams. Custody of the $BTC is handled by BitGo. Make no mistake - the current iteration of $WBTC isn't decentralized (which may affect its value).
3/ Now that we’re on the same page, we can go over where the value creation of $WBTC could accrue. $WBTC isn’t just any ERC20 token - it’s a representation of the most highly valued and liquid cryptoasset currently in existence.
4/ I believe that $WBTC is bullish for the Ethereum *network*, as bringing $WBTC to Ethereum unlocks utility for $BTC & reinforces Ethereums dominance as an open finance platform. What about $BTCs value? Does demand for $BTC increase because of the utility that Ethereum offers?
5/ As @cryptodiario points out, $WBTC could be bullish for $BTC due to decreasing the velocity of $BTC on Bitcoin as its locked up to be converted into $WBTC. What $BTC accrues value in this case? Do people simply stay in $WBTC and never redeem for $BTC?

6/ Does $WBTC replace $ETH as the UoA/MoE for Ethereum? Probably not due to the two core components of Ethereum (gas and eventually staking) requiring $ETH. See @econoar's thread on economic abstraction as to why this is unlikely to ever change.

7/ Companies/projects doing ICOs are likely to add $WBTC as a funding option. Does this mean they raise more $WBTC than $ETH? I’d wager the projects would rather raise $ETH as it will eventually have a core complimentary use - earning interest via staking under Shasper.
8/ What does $WBTC mean for $ETHs value? Well, $WBTC is transacted on the Ethereum network which means you need a little bit of $ETH for gas fees. $WBTC further augments $ETH by bringing extra activity/value to Ethereum (which will be secured by $ETH under Shasper).
9/ I’m excited to see how the market reacts to $WBTC once it launches in 2019 but I don’t think any of the questions I’ve asked in this thread will be answered for quite some time.

I’d love to hear everyones thoughts on this topic 🦄
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