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What's the point of this? I looks like it's some sort of token that represents bitcoin, on the etherum network? Why not just hold bitcoins directly?


It looks like an algorithmic stablecoin pegged to the price of Bitcoin instead of USD like most others.

Those are interesting because the economics are set up to turn greed into a stable value. If the price of the token gets too high or too low, people can make money bringing it back to the peg.


So some sort of bitcoin ETF with authorized participants[1]? That still doesn't explain why you'd use it rather than holding bitcoin directly.

[1] https://www.investopedia.com/terms/a/authorizedparticipant.a...


Well, you get to compound the scalability problems twice, that's not nothing!

/s


It's a pretty standard rebasing token. Essentially tries to manufacture a peg to some asset by aggressively controlling supply.




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