WBTCUSD
Wrapped Bitcoin / United States dollar
crypto Composite

This guy is right. I've been using WBTC for 5 years now and it works pretty nice, especially as Collateral. However I always have a different bad feeling about it. Not only because it relies on Dinosaur Blockchain Tech, but also because of the WBTC Custodian. Worth to mention that Justin Sun bought a big stake last year.

If you just want to hold it long term you should probably hold BTC on its own network. Otherwise you're needlessly adding smart contract and custodial risk. However, if you want to diversify into BTC while still retaining it as collateral in DeFi then it's probably the safest alternative. The biggest alternatives I'm aware of would be LBTC (lombard BTC), cbBTC (coinbase BTC) and tBTC (threshold BTC). Of these the last one is the most "on-chain" and afaik the only one that allows switching between chains without a centralized actor, but I wouldn't say it's lower risk. You could of course diversify between several wrapped BTCs to reduce your risk somewhat.
To judge risk let's look at the failure of WBTC. This would be the case if the BTC reserves don't match the floating WBTC in a significant way and it loses its peg. That would lead to a bank run and likely a collapse in WBTC value. To profit from that scenario you could borrow WBTC now, exchange it for "real" BTC and just wait. If it ever collapses you can cheaply repay your debt. If it doesn't you can continue waiting or repay it plus some interest. How much interest would that cost you? Currently on AAVE you can borrow WBTC at 0.33%. Basically nothing. To me that shows that crypto investors judge the above scenario as very unlikely to happen. Make of that what you will.

BTC relies on the security of the bitcoin blockchain. ETH relies on the security of the Ethereum blockchain. WBTC relies on the security of both, plus the security of the WBTC contract and the custodian of the backing BTC. None of those are inherently causes for concern, but it's still notably more vectors for failure than holding a native coin.

How safe is WBTC?

Yeah, my friends and I have talked about this a bunch. You can’t move BTC directly onto Ethereum like it’s native, but there are wrapped versions like WBTC that let you use BTC on Ethereum. You usually have to go through a bridge or a service that mints it on-chain, but it’s not super complicated once you follow a guide.
Just make sure you double-check the contract or platform you use, some of the bridges have fees or limits, and you don’t want to accidentally send your BTC somewhere it can’t come back.