There are many different ways for people to access Bitcoin these days. One completely different trend is how there are tokenized versions of Bitcoin, with Tezos being added to this list this week.
Tokenizing Bitcoin on a different blockchain is an interesting option.
Bitcoin is now Tokenized on Tezos
Whether there is any specific use for such tokens, is a different manner altogether.
The Tezos team seems to think that there is some value to tokenizing BTC.
As of this week, the tzBTC token has been announced.
It is a new token on the Tezos blockchain, but pegged to Bitcoin.
This project has been developed in association with Bitcoin Association Switzerland.
It serves as an interesting experiment to show how Bitcoin can work as a reserve currency.
Especially in the cryptocurrency space, Bitcoin should be the go-to peg at all times.
A second benefit of this tokenized approach is how all Tezos blockchain features can now be accessed with Bitcoin.
Cross-compatibility between different ecosystems is something many people want to be exposed to.
For now, this is primarily a niche market, however, albeit that situation may come to change.
Giving users more choices as to how they can use Bitcoin is never a bad development.
Bringing more use cases to the table for the world’s leading cryptocurrency will eventually ignite broader adoption.