Why BTC can't be used for staking?

[Bobcrypto]

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.

[bhadz]

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.

[ABCbits]

--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.

[omori]

--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.

[Mia Chloe]

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.

[LogitechMouse]

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.

[segmadis]

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.

[Faisal2202]

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.

[Hisbullah]

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.

[Mia Chloe]

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.

[NotATether]

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.