Learn the differences between Bitcoin and GBTC, and which cryptocurrency coin you should choose for 2022.
What is Bitcoin (BTC), exactly?
Bitcoin is the oldest cryptocurrency and also the most expensive. Everyone knows this. We need to focus on specific features.
Satoshi Nakamoto, a person who is now known as the founder of Bitcoin, launched it in 2009. We know very little about the founder. It is not clear whether it was one person or several people.
Bitcoin can be decentralized. This makes it unique from other fiat currencies.
There are no actual coins. The code for a coin is stored on a public ledger called blockchain. Blockchain can be compared to a collection or blocks. Each block is made up of transactions. Bitcoin’s blockchain is stored on multiple computers, or nodes. Every computer has the same transactions and blocks. All blockchain changes can be seen by all computers. This makes the system extremely secure.
Public and private keys are used to keep the coins safe. These are long strings of numbers that have been encrypted. Public keys can be compared to bank accounts. All blockchain participants can see them and use them to receive funds. To prove that the coins in the blockchain are yours, private keys are needed. Private keys are similar to your card’s PIN code. To access your money, you need to provide a PIN number. You will need to provide your private key in order to access the Bitcoin blockchain.
mining produces new coins. Mining is energy-intensive and requires the ability to solve complex computational puzzles.
What is Grayscale Bitcoin Trust Tokenized Share FTX (GBTC).
We need to be clear that we are referring to two phenomena: GBTC (or Grayscale Bitcoin Trust) and its FTX tokenized share. Let’s see what they all mean and how they relate.
Grayscale Bitcoin Trust offers investors the opportunity to invest in Bitcoin. It is not what you would expect. Stocks are held by investors in a trust. Stocks can be described as shares in a company. Trusts are held physical commodities like gold. Grayscale Bitcoin trust only holds Bitcoin.
It is however registered with the Securities and Exchange Commission (SEC), and reports to the Commission.
The second part of crypto is now – “tokenized Stock FTX”. Stocks are not crypto. Stocks can be tokenized and then they can be traded like any other cryptocurrency.
Tokenization refers to the creation of digital tokens using a distributed ledger, or blockchain. Any physical or digital asset can be represented by tokens.
Stocks that are tokenized on FTX, one of the largest and most innovative trading platforms, are referred as tokenized stock FTX.
GBTC vs BTC – Price
Many believe that GBTC will be traded at a similar price to BTC. This is false. However, it is true that the GBTS price fluctuations are linked to the BTC price movements, even though they sometimes display them late.
The difference between BTC and GBTC is that GBTC can be traded 24/7 while BTC can only be traded during the standard market hours (6 a.m.-5 p.m.). This means that GBTC investors will not have the ability to sell their stocks in time to avoid losing some money if BTC prices fall at night.
GBTC vs Bitcoin – Technical Aspects
Bitcoin is a cryptocurrency. It is the first blockchain in the entire world. The BTC was created to replace fiat currency by offering fast, easy, and inexpensive transactions. Many online platforms use Bitcoin.
Bitcoin is a cryptocurrency with all of the characteristics. It is decentralized and runs on its own blockchain. Bitcoin also offers fast, cheap peer-to-peer transactions. Bitcoin works on the proof-of work consensus mechanism and new coins can be created through mining.
GBTC is a stock of Grayscale Bitcoin Trust. They are not cryptocurrency in themselves. They are cryptocurrency in tokenized form. The price of GBTC changes with the BTC price.
GBTC vs Bitcoin – Which Cryptocurrency Is More Expensive?
Bitcoin is currently much more expensive than GBTC. GBTC is trust stocks and its price won’t reach the same level as the asset. Many investors know that Bitcoin investing and making a direct profit from its price rise is more convenient than investing in stocks to earn some income. The income from BTC investing will only be a fraction of the benefits.
Bitcoin is both the most widely used and most expensive cryptocurrency. BTC’s price fluctuates a lot. However, the trend is bullish. The coin price has risen from less than 1 dollar to over 60,000 in a little more than 10 years (an all-time high at the end October 2002). The GTBC has never seen a coin price above 50 USD.
Is the GBTC ever going to surpass the BTC value? We doubt it.
Are GBTC and Bitcoin a good investment?
Everyone has their own method of investing. Some prefer to invest directly in cryptocurrency, while others prefer to invest in trusts.
Experts believe that GBTC investing has more downsides than benefits. You get % of the income and the trust manages your money. No income means no shares.
What is the GBTC worth in Bitcoins?
As of the writing, 1 GBTC costs 0.00789 BTC. In October 2013, the price of 1 GBTC was lower than 0.001 BTC. With the increase in Bitcoin value and the rise of investor interest in the stock, the GBTC price has been increasing.