Altcoins Talks - Cryptocurrency Forum

Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: Zisanan on December 10, 2024, 01:05:25 PM

Title: Why BTC can't be used for staking?
Post by: Zisanan on December 10, 2024, 01:05:25 PM
Hello guys, how are you doing?? so, I was wondering about my holdings on BTC, and thinking why don't I stake it?

Now I know technically, you can’t “stake” BTC in the traditional sense because Bitcoin doesn’t use a PoS consensus mechanism as it relies on proof-of-work.

Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.

So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..
Title: Re: Why BTC can't be used for staking?
Post by: rdluffy on December 10, 2024, 03:03:29 PM
Know that you're not the only one hehehe
There are already some protocols that are working on this demand, but a simpler way that I found for this is:

Deposit BTC in Binance for example and withdraw BTCB, this is Bitcoin in BSC network, after that you are free to to "anything" in DeFi
You can stake in protocols like AAVE or Acryptos (https://app.acryptos.com/), or you can lend your BTC to borrow another coins and leverage your position, participate in another protocols etc

And another protocol is BOB
https://www.gobob.xyz/

You can stake your BTC sending your BTC and receiving Bitcoin LST in EVM wallet, but I didn't test this one yet (I will soon)

Title: Re: Why BTC can't be used for staking?
Post by: Gurujebs on December 10, 2024, 03:08:26 PM
Hello guys, how are you doing?? so, I was wondering about my holdings on BTC, and thinking why don't I stake it?

Now I know technically, you can’t “stake” BTC in the traditional sense because Bitcoin doesn’t use a PoS consensus mechanism as it relies on proof-of-work.

Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.

So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..

Staking is a concept of alts were valifators stake coins to support the network and it has nothing to do with Bitcoin. I'm not sure if you have look at the APY %, most of the platforms that offer staking services offer low yield, which means you wouldn't be making much when you stake with them because they know how valuable Bitcoin is to everyone.

The reason why you see some of platforms like centralized exchanges offer Bitcoin staking is because they offer loan to institutional investors with high interest rate while they collect this Bitcoin from you and pay you penny, is not worth it.
Title: Re: Why BTC can't be used for staking?
Post by: target on December 10, 2024, 03:20:09 PM
I have the same opinion back then when Defi was the thing. I wanted to try is because its an interesting idea. Until I read It from a post of someone who is much knowledgeable about it. He was also trying DEFI when the hype began and then he realized the value of the rBTC/wrappBTC are not the same as the real one.

He said he was only earNing tokens of the Defi platform.
Title: Re: Why BTC can't be used for staking?
Post by: _act_ on December 10, 2024, 03:56:46 PM
When we are talking of staking bitcoin, it depend on the kind of staking we are referring to, if we wanted to stake for profitable investment by using any crypto platform, then we may do that on our own and at our own risk base on the agreed rate on ROI, but when considering the Proof of Stake that is in mining altcoins to that of Proof of Work in mining bitcoin, then the two cant work together or inter changed as well, once we are using bitcoin.
Title: Re: Why BTC can't be used for staking?
Post by: rdluffy on December 10, 2024, 04:05:33 PM
I have the same opinion back then when Defi was the thing. I wanted to try is because its an interesting idea. Until I read It from a post of someone who is much knowledgeable about it. He was also trying DEFI when the hype began and then he realized the value of the rBTC/wrappBTC are not the same as the real one.

He said he was only earNing tokens of the Defi platform.

The price is generally the same, with small variations that may occur
I'm very familiar with WBTC and BTCB, and there aren't many deppeg situations, so I think they're good options and work well for their purpose

(https://i.ibb.co/dkL82GJ/1.png) (https://ibb.co/VMQfS2p)
(https://i.ibb.co/khYJzPq/2.png) (https://ibb.co/sFLCcXs)
Source (https://www.coingecko.com/en/compare-cryptocurrencies?coins=wrapped-bitcoin,bitcoin)
Title: Re: Why BTC can't be used for staking?
Post by: Mia Chloe on December 10, 2024, 06:06:56 PM
Hello guys, how are you doing?? so, I was wondering about my holdings on BTC, and thinking why don't I stake it?
Now I know technically, you can’t “stake” BTC in the traditional sense because Bitcoin doesn’t use a PoS consensus mechanism as it relies on proof-of-work.
Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.
So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..
Well I really don't think it's worth it. Yeah yeah we have a couple of tokens  on different networks that are pegged to bitcoin and yes they mimic bitcoins price up to ten cents of difference. The concept is like owning another token but one that is programmed to imitate bitcoin's price.  Personally I actually see it as owning fake bitcoins because you have no connection to the bitcoin network by owning pegged tokens.

I suggest that it's better you buy a decent amount of bitcoin secure it and just hodl. Besides a bitcoiner chooses bitcoin not only because of profit but also the advantages of the network like decentralisation.
Title: Re: Why BTC can't be used for staking?
Post by: Azharul on December 10, 2024, 06:30:12 PM
Hello guys, how are you doing?? so, I was wondering about my holdings on BTC, and thinking why don't I stake it?

Now I know technically, you can’t “stake” BTC in the traditional sense because Bitcoin doesn’t use a PoS consensus mechanism as it relies on proof-of-work.

Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.

So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..
Yes, i believe that you actually creating a best opinion in your post. So i am also agree with your best valuable comment. We also know that bitcoin is one of the best profitable crypto in cryptocurrency market. We also believe that gradually bitcoin price reach in best position in cryptocurrency market. So i think that we shouldn’t be staking bitcoin in this time. Because we believe that gradually bitcoin price is increase day by day. So i also believe that investment will be best decision for us.
Title: Re: Why BTC can't be used for staking?
Post by: Hisbullah on December 10, 2024, 10:13:09 PM
Hello guys, how are you doing?? so, I was wondering about my holdings on BTC, and thinking why don't I stake it?

Now I know technically, you can’t “stake” BTC in the traditional sense because Bitcoin doesn’t use a PoS consensus mechanism as it relies on proof-of-work.

Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.

So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..
Yes, i believe that you actually creating a best opinion in your post. So i am also agree with your best valuable comment. We also know that bitcoin is one of the best profitable crypto in cryptocurrency market. We also believe that gradually bitcoin price reach in best position in cryptocurrency market. So i think that we shouldn’t be staking bitcoin in this time. Because we believe that gradually bitcoin price is increase day by day. So i also believe that investment will be best decision for us.
As many people say bitcoin is the safest coin to hold because bitcoin is the king of crypto currency and the price of bitcoin is getting more and more expensive. so the decision to hold long term is the right decision.
but besides investing in bitcoin we should also invest in some of the top altcoins because diversification is very much needed in investing in crypto.
Title: Re: Why BTC can't be used for staking?
Post by: Cryptochamp1 on December 11, 2024, 05:13:49 AM
Hello guys, how are you doing?? so, I was wondering about my holdings on BTC, and thinking why don't I stake it?

Now I know technically, you can’t “stake” BTC in the traditional sense because Bitcoin doesn’t use a PoS consensus mechanism as it relies on proof-of-work.

Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.

So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..

Staking has always been a thing and before you venture into it you'll need read about this.. for wrapped btc, I believe you'll get your answer in this thread already as it's been talked about.. But for BGbtc, is this a new Defi product, cos I've not heard about it. Probably I'll check Google or you can send a link to read about it before making a suggestion.
Title: Re: Why BTC can't be used for staking?
Post by: bitterguy28 on December 11, 2024, 09:22:08 AM
So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..
like any other methods of earning in bitcoin it holds both benefits and risks

of course it is good because this is one more way of earning passively aside from just holding but take note of the risks first of all that is not really bitcoin it is just backed by it second these are governed by smart contracts which could be vulnerable and there is always risk of lost assets plus of course the volatility of the market is something you need to consider and be prepared of no matter what situation ends up happening
Title: Re: Why BTC can't be used for staking?
Post by: ABCbits on December 11, 2024, 11:14:09 AM
Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.

While it's called saving program, the company behind it actually loan your Bitcoin or do other financial activity to make profit and then share portion of the profit to you.

So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..

Personally i'm not interested, knowing history of company behind it may reduce APY rate, give you hard time withdraw (due to reason such as KYC or "suspicious" acitivty") or even going bankrupt. I'd rather doing actual staking with altcoin.
Title: Re: Why BTC can't be used for staking?
Post by: Mr. Magkaisa on December 11, 2024, 12:03:22 PM
        -      There are centralized exchanges where you can stake your bitcoin if you are the type who is lazy to trade and all you want to do is save and hold bitcoin, usually what others do is put their bitcoin on an exchange site platform and set it up for 3 months/90 days before it is unlocked.

Now if you ask me if I trade often, I would probably prefer to trade my bitcoin on the spot even if the profit is small every day, it is fine because we can get a bigger profit than putting it in the staking features of any cex platform.
Title: Re: Why BTC can't be used for staking?
Post by: TomPluz on December 26, 2024, 04:50:02 AM


Staking is one of the best ways we can experience passive income in the cryptocurrency industry but if you are holding BTC staking opportunities may not be as rampant as those in alts though now there are already programs for this and in my opinion the most important factor to look at this is the reputation of the platform you are dealing with so you are minimizing the risks involved. I understand that the use of Wrapped Bitcoin is the way to jump into many DeFi platforms where we can stake our assets while waiting for the price of Bitcoin to maybe reach $200K depending on our goals.
Title: Re: Why BTC can't be used for staking?
Post by: Findingnemo on December 27, 2024, 06:35:00 PM
Well, there were some lending platforms offered staking of BTC too and gave returns ranging from 4 to 8% which isn't technically staking but that's how it's referred. Basically it's running on PoW so no matter how much coins one hold it doesn't change anything on the network since verifying blocks done by miners.
Title: Re: Why BTC can't be used for staking?
Post by: BitMaxz on December 27, 2024, 06:54:12 PM
Know that you're not the only one hehehe
There are already some protocols that are working on this demand, but a simpler way that I found for this is:

Deposit BTC in Binance for example and withdraw BTCB, this is Bitcoin in BSC network, after that you are free to to "anything" in DeFi
You can stake in protocols like AAVE or Acryptos (https://app.acryptos.com/), or you can lend your BTC to borrow another coins and leverage your position, participate in another protocols etc

And another protocol is BOB
https://www.gobob.xyz/

You can stake your BTC sending your BTC and receiving Bitcoin LST in EVM wallet, but I didn't test this one yet (I will soon)

I don't think OP would love to exchange his BTC to other coins or token even it has some staking option.
What he wants is the safety way I guess that doesn't need to move and exchange it from BTC to tokens or any coins that has features to stake.

@OP, why not use the service from Binance? It looks similar to staking, but they offer flexible investment and dual investment with profits depends on how long you want it to invest. Dual investment is a bit risky if you set it to long period of time but flexible one anytime you can withdraw it but the only difference is the APY flexible offers less but the dual investment offers higher APY.
Title: Re: Why BTC can't be used for staking?
Post by: gunhell16 on December 27, 2024, 07:21:38 PM
I have a friend who can say if he is a true bitcoin lover, where when a bitcoin was only $200 at that time, he was really just saving. Then, when Binance rose up in this industry, since he was a long-term holder, when he saw that Binance had stake features, since he didn't like to trade, he just put his bitcoin on the exchange, so why not put it in stakes? At least there is interest added to his bitcoin.

In which, for me, he has a point and the chances of the price rising in the future are even higher, which the bank cannot do and provide, but for this occasion, I would rather allocate my allocation fund for trading to the trading activity that I will do. Because the fund turns over faster, as long as you make sure that you are capable and know what you are doing in trading.
Title: Re: Why BTC can't be used for staking?
Post by: rdluffy on December 27, 2024, 07:40:44 PM
...

I don't think OP would love to exchange his BTC to other coins or token even it has some staking option.
What he wants is the safety way I guess that doesn't need to move and exchange it from BTC to tokens or any coins that has features to stake.

[/quote]

Just to be clear, BTCB or WBTC are wrapped tokens of BTC created to solve the problem of people wanting to stake BTC
I don't know if I trust more Binance or AAVE for example, but of course an exchange feel more safe than a DeFi protocol

WBTC for example, you'll have the same value as BTC in your token

Title: Re: Why BTC can't be used for staking?
Post by: MrSpasybo on December 27, 2024, 08:15:12 PM
Well, there were some lending platforms offered staking of BTC too and gave returns ranging from 4 to 8% which isn't technically staking but that's how it's referred. Basically it's running on PoW so no matter how much coins one hold it doesn't change anything on the network since verifying blocks done by miners.
Layer-2 platforms on BTC are offering quite interesting staking options. Their mechanism requires BTC holders to lock their BTC into their protocol to receive rewards for contributing to the network. This provides BTC with additional interesting utilities that we have mentioned in the past when staking became a major trend after Ethereum switched to the POS consensus protocol.

I don't have many BTC, but I'm also not interested in staking on Layer-2. I would feel safer being able to self-custody my BTC instead of entrusting it to a protocol that could be attacked at any time. The price increase of BTC during the bull run has been enough to provide returns that meet my expectations.
Title: Re: Why BTC can't be used for staking?
Post by: examplens on December 28, 2024, 12:10:28 PM
As for Bitcoin staking, all the possibilities suggested here are nothing more than lending BTC to a third party with interest. Wrapped tokens and similar things are just a model that facilitates asset management, but the background of everything is always the same. Borrowed BTC will be used by an exchange or any other service to increase its liquidity, the reward is in the form of staking rewards.
The DeFi protocols you are talking about serve to give the user the illusion that they have complete control over their investment.
Title: Re: Why BTC can't be used for staking?
Post by: ZAINmalik75 on December 31, 2024, 11:18:16 PM
Hello guys, how are you doing?? so, I was wondering about my holdings on BTC, and thinking why don't I stake it?

Now I know technically, you can’t “stake” BTC in the traditional sense because Bitcoin doesn’t use a PoS consensus mechanism as it relies on proof-of-work.

Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.

So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..
WrappedBTC is not real because anything which is not on BTC blockchain is cannot be real BTC and anything can happen although anything can happen with BTC too but chances are low here. These WBTC and other versions are pegged on 1:1 ratio with the real BTC and to get them you have to give your real BTC or lock it for the time you want to stake the WBTC.

It means you have to giveaway your original BTC although we can stretch legs of this as long as we want but it can be risky but rewarding too. The choice is yours I suggest not to do this.
Title: Re: Why BTC can't be used for staking?
Post by: Faisal2202 on January 02, 2025, 08:22:12 PM
Hello guys, how are you doing?? so, I was wondering about my holdings on BTC, and thinking why don't I stake it?

Now I know technically, you can’t “stake” BTC in the traditional sense because Bitcoin doesn’t use a PoS consensus mechanism as it relies on proof-of-work.

Though I see there are ways to put your BTC to work that feel a lot like staking. Looking online, I saw things like savings programs, using wrapped BTC in DeFi like BGBTC, WBTC etc, and others etc can help you earn rewards for it.

So I'm curious, what do you guys think of these options? I believe a lot of you here hold substantial amounts of BTC and maybe less :D who knows..
Staking BTC is a good idea but I don't like it because we have to replace or swap our BTC with other tokens like the ones you mentioned, and these are not real BTC as we must consider them alts as I consider them alts so it does not mean everyone have to it is their own decision.

I think it's risky because the project can rugpull as to get their tokens like WBTC, or BGBTC which I don't know what it is but Wrapped BTC is not actual BTC although the ratio is pegged to 1 which is good but still it's your decision, overall there must be many people in crypto space staking their BTC.
Title: Re: Why BTC can't be used for staking?
Post by: bayu7adi on January 03, 2025, 03:33:35 AM
Yes, the consensus type used is PoW, so to be able to mine new BTC coins, you must use hardware with high computing power to get high results....

However, if your goal is staking and getting passive profits from it, then you can take advantage of DeFi services from several platforms... if I'm not mistaken, Binance provides this service under the name Binance Babylon BTC Staking... by staking, it is hoped that you can get two benefits at once, the first is the benefit of obtaining staking rewards and the second is the benefit of the increase in the price of BTC, which makes the value of your BTC increase...
Title: Re: Why BTC can't be used for staking?
Post by: joniboini on January 03, 2025, 04:31:09 AM
if I'm not mistaken, Binance provides this service under the name Binance Babylon BTC Staking... by staking, it is hoped that you can get two benefits at once, the first is the benefit of obtaining staking rewards and the second is the benefit of the increase in the price of BTC, which makes the value of your BTC increase...
Is this a new product or is it the same Bitcoin lending disguised as staking? I swear there are dozens of Bitcoin staking products launched by exchanges that refer to the same thing. If anyone is interested, make sure you properly research and understand the risk. It's as risky as using wrapped tokens, maybe more depending on how the platform uses your coins. You don't want to end up as a victim of another bust lending platform even though Binance is the one who offers you this. IIRC we have many companies that went bankrupt because of their aggressive loan policy, including loaning Bitcoin with a high interest. CMIIW.
Title: Re: Why BTC can't be used for staking?
Post by: Bobcrypto on January 04, 2025, 05:31:05 AM
        -      There are centralized exchanges where you can stake your bitcoin if you are the type who is lazy to trade and all you want to do is save and hold bitcoin, usually what others do is put their bitcoin on an exchange site platform and set it up for 3 months/90 days before it is unlocked.

Now if you ask me if I trade often, I would probably prefer to trade my bitcoin on the spot even if the profit is small every day, it is fine because we can get a bigger profit than putting it in the staking features of any cex platform.

I have personally done some analysis on staking and trading Bitcoin/altcoins, after some experiments on both, first, I have the same thoughts on your ideas. Now many people chose staking because they have know trading experiences, while some of them are emotional traders.
Now from my trading/staking experiments, i think that  trading is more profitable than staking even with an equal capital basis. Staking rewards are very little, some times it is based on the staking pool and number of participants that limit rewards. For example, if you stake a $100 worth of Bitcoin for one week, you are not likely to earn up to $2 on the week, but if you trade a $100 worth of Bitcoin on spot trade option, it is most likely that you will make a profit, at least, between $2 to $3 on the week. However, trading requires some experiences boost profit.
Title: Re: Why BTC can't be used for staking?
Post by: Crypto Library on January 04, 2025, 10:38:34 AM
If we look on the  security then bitcoin is best and reliable decentralised coin what makes this ecosystem independent. And if we want to stake our bitcoin then it wouldn't going to on it position after stakes.

Staking means we have to give our fund to another third party hand and that will broke up the decentralisation. In my opinion if you are looking  for investment and want profit then I don't think we need to stake because if we do hold for long term and we should also accept the profile as the staking.
Title: Re: Why BTC can't be used for staking?
Post by: bounceback on January 04, 2025, 04:01:18 PM
If we look on the  security then bitcoin is best and reliable decentralised coin what makes this ecosystem independent. And if we want to stake our bitcoin then it wouldn't going to on it position after stakes.

Staking means we have to give our fund to another third party hand and that will broke up the decentralisation. In my opinion if you are looking  for investment and want profit then I don't think we need to stake because if we do hold for long term and we should also accept the profile as the staking.
Staking bitcoin with higher reward looks difficult to find any third party promising high return, I agree with your opinion about keep holding bitcoin for long term and its the same way as staking due with exchange market not promising high return profitable or reward from staking or duel investment way in Binance exchange.
If you want take high risk and high return not bad ideas put in the future for bitcoin and take as long position, I believe if bitcoin price increasing have bigger profitable earn from bitcoin price up then from future long position profitable.
Title: Re: Why BTC can't be used for staking?
Post by: Stompix on January 04, 2025, 07:06:57 PM
Satoshi in 2009:
Be your own bank, not your keys, not your coins.
The crypto world in 2025:
Let me just deposit these coins I own in some centralized service so I can receive some tokens in exchange on which I can get interest, all based on the promise of payment.
Title: Re: Why BTC can't be used for staking?
Post by: Gurujebs on January 04, 2025, 07:26:35 PM
Staking BTC is a good idea but I don't like it because we have to replace or swap our BTC with other tokens like the ones you mentioned, and these are not real BTC as we must consider them alts as I consider them alts so it does not mean everyone have to it is their own decision.

I think it's risky because the project can rugpull as to get their tokens like WBTC, or BGBTC which I don't know what it is but Wrapped BTC is not actual BTC although the ratio is pegged to 1 which is good but still it's your decision, overall there must be many people in crypto space staking their BTC.

Even if one has to wrapped Bitcoin to stake, I don't like the idea because you have to lock your coins and then get another equivalent wrapped coins in another blockchain network, took much stress because you want a little yield on your Bitcoin and there has been many reported hack of wrapped Bitcoin where the hacker mints more coins on supply to redeem real Bitcoin and to date, the Bitcoins are gone because they were laundered through bad mixers.

If you are holding less than 1 Bitcoin, youndont have any reason to stake your Bitcoin, I'm talking about the reward because it's not worth the risk in the first place.
Title: Re: Why BTC can't be used for staking?
Post by: Mia Chloe on January 04, 2025, 08:37:48 PM
If we look on the  security then bitcoin is best and reliable decentralised coin what makes this ecosystem independent. And if we want to stake our bitcoin then it wouldn't going to on it position after stakes.
Bitcoin is not actually suitable for staking due to its underlying Proof of Work consensus mechanism In PoW miners  actually compete to solve complex mathematical puzzles to validate transactions and create new blocks and this particular mechanism is not compatible with staking because  staking requires a Proof of Stake (PoS) consensus mechanism.

Unlike pow In PoS validators are chosen to create new blocks based on the amount of cryptocurrency they "stake" or lock up as a kinda collateral Bitcoin's protocol does not have a built-in staking mechanism, and its reward mechanism is based on block rewards and transaction fees, which are not dependent on staking.
Title: Re: Why BTC can't be used for staking?
Post by: Bobcrypto on January 07, 2025, 08:04:59 AM
If we look on the  security then bitcoin is best and reliable decentralised coin what makes this ecosystem independent. And if we want to stake our bitcoin then it wouldn't going to on it position after stakes.
Bitcoin is not actually suitable for staking due to its underlying Proof of Work consensus mechanism In PoW miners  actually compete to solve complex mathematical puzzles to validate transactions and create new blocks and this particular mechanism is not compatible with staking because  staking requires a Proof of Stake (PoS) consensus mechanism.

Unlike pow In PoS validators are chosen to create new blocks based on the amount of cryptocurrency they "stake" or lock up as a kinda collateral Bitcoin's protocol does not have a built-in staking mechanism, and its reward mechanism is based on block rewards and transaction fees, which are not dependent on staking.

Bitcoin staking is staking are common on some CEX exchanges, despite your thoughts. I think staking Bitcoin is profitable but should be on a flexible options. A fixed Bitcoin staking may be unpopular because of price volatility, some of the CEX exchanges may encounter difficulty on rewards distribution if price continues to fluctuate. For example, if price dump or becomes very bearish, there is always the possibility of a lower APY rates or a reduction staking pool to accommodate rewards distributions due to market uncertainties.
Title: Re: Why BTC can't be used for staking?
Post by: bhadz on January 07, 2025, 08:39:05 AM
As long as it is not BTC then it is not BTC. Wrapped BTC or any other produced or imitated pegged on BTCs price are not BTC, they're altcoins as well and if they are able to be staked on some platforms then maybe that's it. But other than that, it's not really the BTC that we all want. So, even if someone wants to get hold of it and want to use their BTCs for staking, it's mostly on exchanges that have that feature but it is not staking but you're lending them your BTC for some percentage.
Title: Re: Why BTC can't be used for staking?
Post by: ABCbits on January 07, 2025, 09:38:34 AM
--snip--
Bitcoin staking is staking are common on some CEX exchanges, despite your thoughts. I think staking Bitcoin is profitable but should be on a flexible options. A fixed Bitcoin staking may be unpopular because of price volatility, some of the CEX exchanges may encounter difficulty on rewards distribution if price continues to fluctuate. For example, if price dump or becomes very bearish, there is always the possibility of a lower APY rates or a reduction staking pool to accommodate rewards distributions due to market uncertainties.

Some exchange and service may use word "Bitcoin staking", but usually they do something else (e.g. lending the Bitcoin) in order to make more money and share part of the profit with their user. It comes with risk, where their ToS may state they're not responsible for any losses.
Title: Re: Why BTC can't be used for staking?
Post by: omori on January 07, 2025, 11:17:01 AM
--snip--
Bitcoin staking is staking are common on some CEX exchanges, despite your thoughts. I think staking Bitcoin is profitable but should be on a flexible options. A fixed Bitcoin staking may be unpopular because of price volatility, some of the CEX exchanges may encounter difficulty on rewards distribution if price continues to fluctuate. For example, if price dump or becomes very bearish, there is always the possibility of a lower APY rates or a reduction staking pool to accommodate rewards distributions due to market uncertainties.

Some exchange and service may use word "Bitcoin staking", but usually they do something else (e.g. lending the Bitcoin) in order to make more money and share part of the profit with their user. It comes with risk, where their ToS may state they're not responsible for any losses.

CEXEs usually do that, but - the APRs on these are not good. And you don't have custody over your BTC, so that would be a no-no for me.
Title: Re: Why BTC can't be used for staking?
Post by: Mia Chloe on January 07, 2025, 06:52:16 PM
Some exchange and service may use word "Bitcoin staking", but usually they do something else (e.g. lending the Bitcoin) in order to make more money and share part of the profit with their user. It comes with risk, where their ToS may state they're not responsible for any losses.
Bitcoin uses a proof of work mechanism and as a result staking isn't part of the network directly. This is the more reason why the stakings you see on exchange are arranged by those exchanges and that is parts of the reason why the staking usually brings very little profit compared to other networks like ethereum that supports proof of stake as their base mechanism.

Just like you said sometimes these exchanges can either loan out those coins or leverage them for trading.
Title: Re: Why BTC can't be used for staking?
Post by: LogitechMouse on January 08, 2025, 08:37:08 AM
There's a project called Babylon which focuses on Staking Bitcoin. You can find their website here: https://babylonlabs.io/

I personally don't put my Bitcoin there and stake for some reasons, but mainly for safety and it's a new project as well. I've seen this project a few months ago already, but I don't want to engage on it and risk my Bitcoins. I'm not promoting it here but just sharing. Surprisingly, there are 56850.23 BTC that are being staked there with a commission on each node at around 3% to as high as 10% which is higher than other CEXes can give.

There are many ways though, but I can't find any safe one.
Title: Re: Why BTC can't be used for staking?
Post by: segmadis on January 08, 2025, 08:47:52 AM
IMO Stake is something that is inflational.
Bitcoin by design is not like that and once every 21m coins are mined there should not be anymore so staking will not be working with it because it will need to create new coins.
Title: Re: Why BTC can't be used for staking?
Post by: Faisal2202 on January 08, 2025, 07:56:16 PM
Even if one has to wrapped Bitcoin to stake, I don't like the idea because you have to lock your coins and then get another equivalent wrapped coins in another blockchain network, took much stress because you want a little yield on your Bitcoin and there has been many reported hack of wrapped Bitcoin where the hacker mints more coins on supply to redeem real Bitcoin and to date, the Bitcoins are gone because they were laundered through bad mixers.

If you are holding less than 1 Bitcoin, youndont have any reason to stake your Bitcoin, I'm talking about the reward because it's not worth the risk in the first place.
I can't agree more with you, as if we have that much BTC, then we really don't have to stake, as I did not looked into the rewards yet, but if you say the reward from staking is very low, then why risk our money to earn a low amount of money? While with just trading 1 BTC, we can make more profit.

Besides trading with investments, we can make more profit, and in all these two ways, we will be the sole owner of our funds and no one can rugpull them from us, so the security and safety of our funds will be in our hands.

We must avoid staking at all costs especially if the reward is not enough.
Title: Re: Why BTC can't be used for staking?
Post by: Hisbullah on January 08, 2025, 10:48:29 PM
Even if one has to wrapped Bitcoin to stake, I don't like the idea because you have to lock your coins and then get another equivalent wrapped coins in another blockchain network, took much stress because you want a little yield on your Bitcoin and there has been many reported hack of wrapped Bitcoin where the hacker mints more coins on supply to redeem real Bitcoin and to date, the Bitcoins are gone because they were laundered through bad mixers.

If you are holding less than 1 Bitcoin, youndont have any reason to stake your Bitcoin, I'm talking about the reward because it's not worth the risk in the first place.
I can't agree more with you, as if we have that much BTC, then we really don't have to stake, as I did not looked into the rewards yet, but if you say the reward from staking is very low, then why risk our money to earn a low amount of money? While with just trading 1 BTC, we can make more profit.

Besides trading with investments, we can make more profit, and in all these two ways, we will be the sole owner of our funds and no one can rugpull them from us, so the security and safety of our funds will be in our hands.

We must avoid staking at all costs especially if the reward is not enough.
the benefits of staking are indeed not big. but when we choose long-term hold we can do staking, because while waiting we can get benefits from staking. Because long-term hold takes a long time, while we can take advantage of the staking. Unless we do short and medium-term trading, we don't need staking.
Title: Re: Why BTC can't be used for staking?
Post by: Mia Chloe on January 08, 2025, 11:11:00 PM
There's a project called Babylon which focuses on Staking Bitcoin. You can find their website here: https://babylonlabs.io/
I personally don't put my Bitcoin there and stake for some reasons, but mainly for safety and it's a new project as well. I've seen this project a few months ago already, but I don't want to engage on it and risk my Bitcoins. I'm not promoting it here but just sharing. Surprisingly, there are 56850.23 BTC that are being staked there with a commission on each node at around 3% to as high as 10% which is higher than other CEXes can give.
There are many ways though, but I can't find any safe one.
Just like you also spotted out in one of your statements here safety is one of the major reasons why it's not actually worth it to make use of staking sites like this. The thing is there is a high chance that it could probably be a scam only for you to lose your coins in the end.

Also the volume they put up on sites ike this as their total and valuable Stakes by their customers could also just be fancy numbers to lure more people into putting their coins in their custody.  The whole thing goes back to the question how sure are you it isn't a scam.
Title: Re: Why BTC can't be used for staking?
Post by: NotATether on January 09, 2025, 09:47:58 AM
The issue is very simple - Bitcoins are made by solving a computational hash problem, and not by a probability-based model of choosing which wallet with a lot of staked coins gets the reward. It's that simple.

We're not going to do a computational overhaul like Ethereum did - nobody would agree on that.