- Roger Ver compared wrapped Bitcoin and the Lighting Network
- Based on his comparison, he tagged LN as a total failure
- Roger Ver’s tweet has started a discussion over the internet between Bitcoin maximalists, altcoins fans and Ethereum evangelists
The year 2020 is being called the year for Decentralized Finance (DeFi), and there is a massive increase in the tokenization of BTC for use in the DeFi. Roger Ver, an early investor in the bitcoin and known as ‘Bitcoin Jesus’ for his promotion of Bitcoins, has recently made a stern comment on the DeFi and the Lightning Network.
In his tweet, Roger Ver compared wrapped Bitcoin (Tokenized BTC for Ethereum platform) and the Lighting Network on the basis that Bitcoin is 100 times more tokenized for Ethereum than that for Lightning Network. Based on his comparison, he tagged LN as a total failure. As per Btconethreum.com, the current worth of wBTC or Wrapped Bitcoin is around $1.3 billion. Over 118,000 BTC has turned the total locked value chart of wBTC into a parabolic shape. The reason behind this is the DeFi yield cultivation that is emerging on a daily basis.
On the one hand, where wBTC is gaining exponential momentum, on the other hand, Lightning Network isn’t able to replicate the same results. As per Roger Ver, the number of Bitcoins tokenized for LN is 100 times less than that for Ethereum.
Shall wBTC and LN Tokenization be Compared?
Roger Ver’s tweet has started a discussion over the internet between Bitcoin maximalists, altcoins fans and Ethereum evangelists who are revolving around, whether the comparison on the two is even fair. And the ones in support of the tweet could be barely seen. According to a twitter user, Roger Ver wants a better entry price in the LN system and hence creating the fuss about it.
The momentum and rise in the wBTC are solely for the rise of the DeFi revolution and have no connection with the asset scaling up. It hs attracted users who prefer to access the mining liquidity without being forced to sell their bitcoins reserves. This provides them with a chance of experiencing the DeFi system while their assets ( bitcoins) are kept tied to the underlying asset.
On another end, Lightning Network aims to facilitate micropayments in the form of bitcoins between parties with their channel. And the sole reason that this feature is seldom used doesn’t qualify to define the concept as failed. Instead, it can be concluded that a majority of the people wants to invest in DeFi innovations rather than a payment system.
There are even a few who holds a different opinion that neither Bitcoin nor Bitcoin Cash is suitable for the payment system. They back their claim with the price volatility in the two. It can’t be concluded whether the comparison was correct, but tribalism still exists in crypto can be well concluded.