Stacks

sBTC

2024

Light

<h4>This project is up 472% in the last 12 months. With the improving market conditions, many projects are now looking good. Many are in profit esp if you bought within the last 6-12 months.</h4> 
And one thing is happening now that hasn’t happened in a while, at least 3-4 years since the last time. That’s a focus on Bitcoin again. Bitcoin and all Bitcoin-related projects are benefitting hugely from recent goings on. Do you know which project this is in the charts? It’s Stacks (STX). And today, we give you 5 reasons why we are still bullish on Stacks and think this is only the beginning of their story. 
<h5>Bitcoin ETF</h5> 
You knew we couldn’t talk about Bitcoin and its related ecosystems without talking about the <a href="https://www.altcoinbuzz.io/?s=bitcoin+etf" target="_blank" rel="noopener">Bitcoin ETF</a>. The newest developments from mid-December allowing for cash-in and cash-out redemptions instead of “in kind” will help speed up the approval process. What this means is that BlackRock and whoever else gets approved will not have to redeem Bitcoin for each customer. They will be able to settle that in USD. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 SEC Gets Its Way: Revised BlackRock Spot Bitcoin ETF Allows Cash 
 Cash redemptions mean selling assets, possibly causing taxes for investors. This clashes with firms supporting in-kind redemptions, seen as more investor-friendly.<a href="https://t.co/b5kOFSwm0g">https://t.co/b5kOFSwm0g</a> 
 — Bitcoin News (@BitcoinNewsCom) <a href="https://twitter.com/BitcoinNewsCom/status/1737474361622200344?ref_src=twsrc%5Etfw">December 20, 2023</a>
</blockquote> 
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There’s good and bad about this decision. But the good is the chances of approval have increased from where we were on December 1st. And simply, more Bitcoin activity means more of it has to move through Layer 2’s like <a href="https://www.altcoinbuzz.io/?s=stacks" target="_blank" rel="noopener">Stacks</a> for transactions. 
Will there be a direct link between Stacks and these ETFs? Maybe, but probably not. But as institutions and their customers buy Bitcoin, other retail activity whether it’s p2p trading or Bitcoin DeFi will move to Stacks. It’s just the natural order. 
More Layer 1 activity —&gt; More transactions → More Layer 2 activity. Stacks will inevitably do more once the Bitcoin ETF approvals come in. 
<h5>Undisputed Leader in Bitcoin Layer 2</h5> 
Stacks is, without a doubt, the undisputed leader of Bitcoin Layer 2s.&nbsp;There will be more activity around Bitcoin even without an ETF. El Salvador was the first but won’t be the last nation to adopt Bitcoin as a form of legal tender. Institutions look like they are coming into Bitcoin. Some are already here. But even if not, nations are coming in and so is more retail. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 WHAT IS STACKS <a href="https://twitter.com/search?q=%24STX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$STX</a>? 
 And why is it trending today? 
 – Stacks is up over 30% in the last 24 hours and almost 65% in the last week 
 – Stacks is a layer 2 solution for <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a>, where you can earn Bitcoin by holding and temporarily locking your <a href="https://twitter.com/search?q=%24STX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$STX</a> 
 – This L2 is a Bitcoin layer that… <a href="https://t.co/S9bREyHLd1">pic.twitter.com/S9bREyHLd1</a> 
 — BSCN (@BSCNews) <a href="https://twitter.com/BSCNews/status/1737536819569340728?ref_src=twsrc%5Etfw">December 20, 2023</a>
</blockquote> 
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Especially in emerging market countries and the area known as the Global South. Bitcoin is growing huge there. And as interest in Bitcoin continues to grow, there will be more transactions from more people in more different places than ever. 
The <a href="https://www.altcoinbuzz.io/?s=bitcoin+blockchain" target="_blank" rel="noopener">Bitcoin blockchain</a> can only absorb so much of this activity. So that’s where the Layer 2’s come in. Some like Stacks have their on-ramps even for fiat money. But all of them alleviate some of the pressure on the Bitcoin chain to handle all these new transactions. 
Stacks is already the leader among L2s and that’s no accident. They’ve been way early on this trend. Now they are in a position to take the best advantage of increasing demand for Bitcoin and Bitcoin blockchain space. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 L2s are the single most important thing to grow Bitcoin <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f7e7.png" alt="🟧" class="wp-smiley" style="height: 1em; max-height: 1em;"> 
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/2b50.png" alt="⭐" class="wp-smiley" style="height: 1em; max-height: 1em;"> Stacks Creator <a href="https://twitter.com/muneeb?ref_src=twsrc%5Etfw">@muneeb</a> on the Bitcoin L1 &amp; L2s 
 Muneeb is speaking at the next free virtual Building on Bitcoin event. Register now <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"> (1/2) <a href="https://t.co/XMjiYccfFt">pic.twitter.com/XMjiYccfFt</a> 
 — stacks.btc (@Stacks) <a href="https://twitter.com/Stacks/status/1743382659412209741?ref_src=twsrc%5Etfw">January 5, 2024</a>
</blockquote> 
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<h5>Smart Contract Functionality</h5> 
You may have heard the words “<a href="https://academy.binance.com/en/glossary/turing-complete" target="_blank" rel="noopener">Turing complete</a>” before. And maybe you haven’t. In crypto, it’s used to describe Ethereum, whose system design is Turing complete. There are lots of ongoing arguments from techies about whether it’s smart to have the base layer be Turing complete or not. Ethereum is. Bitcoin is not. But a Turing complete system does have some advantages, especially for open-source computing. 
Stacks has it. That’s why Stacks can do smart contracts on Bitcoin but the Bitcoin blockchain itself cannot. Many computer scientists see this as the best combination of features. It brings open possibilities and security together. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f6e0.png" alt="🛠" class="wp-smiley" style="height: 1em; max-height: 1em;"> Layering Up <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>: Smart Contracts &amp; Fast Payments 
 2023 was a building year for Bitcoin layer-2s. Lightning for speed, <a href="https://twitter.com/Stacks?ref_src=twsrc%5Etfw">@Stacks</a> &amp; RSK for smart contracts – all building on Bitcoin's unshakeable base. 
 – Minimizing trust – Extending capabilities – Permissionless access <a href="https://t.co/f8ZSB29Mwe">pic.twitter.com/f8ZSB29Mwe</a> 
 — Thesis* (@thesis_co) <a href="https://twitter.com/thesis_co/status/1735388997457957374?ref_src=twsrc%5Etfw">December 14, 2023</a>
</blockquote> 
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Stacks isn’t the only one doing smart contract functionality. RSK better known as Rootstock is too. But Stacks has been doing it longer and has more adoption so far. 
<h5>Liquid Stacking</h5> 
In mid-December, Stacks started its <a href="https://twitter.com/StacksOrg/status/1743334555489128918" target="_blank" rel="noopener">liquid stacking</a> program. They can’t call it staking because there is no staking for Bitcoin. You can’t stake something that is Proof of Work and not Proof of Stake. But, here’s the important part, it does let you earn on your Bitcoin. 
Earning 6% on your Bitcoin is an amazing return. Then you have the liquid token of stSTX, which already has a market cap of $500 million. That’s a lot of volume floating around looking for ROI. Stacks is a leader in Bitcoin derivative tokens with this and sBTC. More on sBTC in a second. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 Liquid stacking just went live. 
 Stacks (STX) has the unique property of earning native BTC payouts from consensus (at approx 6%). This creates a black hole effect. Why would I do anything else if I can earn BTC? 
 Now, with liquid STX (stSTX), people can have liquidity while… 
 — muneeb.btc (@muneeb) <a href="https://twitter.com/muneeb/status/1736840127786135874?ref_src=twsrc%5Etfw">December 18, 2023</a>
</blockquote> 
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Stacks could easily become the Lido of Bitcoin. The liquid staking layer. 
<h5>sBTC</h5> 
<a href="https://twitter.com/Stacks/status/1741820073386385612" target="_blank" rel="noopener">Stacks sBTC</a> is a new version of wrapped Bitcoin. But it’s wrapped and managed in a completely different way from wBTC. wBTC is wrapped and managed by a custodian, BitGo. But sBTC, while created by Stacks, is decentralized. Both are 1 to 1 versions of Bitcoin for other use. But sBTC uses a 2-way peg. 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 DeFi is coming to Bitcoin. Here's how it will work 
 A summary of the sBTC white paper, a plan to unlock hundreds of billions of dollars of latent capital 
 What if Bitcoin could be more than a store of value? 
 What if the hundreds of billions of dollars worth of passive BTC were… <a href="https://t.co/vaEZiTA9ed">pic.twitter.com/vaEZiTA9ed</a> 
 — Grant Nissly (@grant_nissly) <a href="https://twitter.com/grant_nissly/status/1735653737316663784?ref_src=twsrc%5Etfw">December 15, 2023</a>
</blockquote> 
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Rootstock and Liquid already use 2-way pegs. And so does wBTC. But not decentralized due to its use of custodians. Stacks <a href="https://docs.stacks.co/docs/stacks-academy/proof-of-transfer" target="_blank" rel="noopener">Proof of Transfer (PoX)</a> allows for a decentralized peg mechanism. This is vital for developers who want to build apps without relying on custodians and their performance and behavior. 
This great 2-way tweet series goes into more detail about how this works to secure sBTC. But one thing you can be sure of is this. A decentralized derivative of Bitcoin will be more popular not only with Bitcoin users but with ALL users. Devs can build apps and Traders and other users can use sBTC with confidence. Confidence that there won’t be things like account freezes or other restrictions keeping you from using your coins how you want. 
<a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="alignnone size-large wp-image-123701" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1-1024x127.jpg" sizes="(max-width: 696px) 100vw, 696px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1-1068x132.jpg 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/Alpha_website_leaderboard-banner-1.jpg 1197w" alt="" width="696" height="86"></a> 
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The post <a href="https://www.altcoinbuzz.io/bitcoin-and-crypto-guide/stacks-stx-top-5-reasons-to-watch-this-altcoin-gem/">Stacks (STX): Top 5 Reasons to Watch This Altcoin Gem</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.

Stacks (STX): Top 5 Reasons to Watch This Altcoin Gem

Altcoin Buzz

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