Quote from: ABCbits on Today at 09:08:43 AM

Bitcoin protocol doesn't have staking mechanics. So the custodial wallet/exchange do something else with the Bitcoin, such as lending it to other people that comes with loss risk.

Fundamentally and technically, Bitcoin blockchain is a Proof of Work blockchain, hence staking on this blockchain is impossible.

When people want to stake and earn staking rewards, they will fall to shitcoins that are named as Wrapped Bitcoins while they are not bitcoins, but only tokens. They are even not altcoins with own blockchains like Ethereum or BNB or Dogecoin but only tokens that parasite on available blockchains.

So those Wrapped Bitcoin tokens have multiple risks like depeg, effects from security issues of blockchains like ERC20, BRC20, TRC20 and so on. Altcoins with own blockchains are risky and tokens are more dangerous as they can die not only by their own project developments but also by uncontrolled problems from blockchains on which they were deployed.