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223 sats \ 8 replies \ @optimism 10h \ on: Why people are cheering up for El Salvador BTC reserve ? bitcoin
Does anyone know of a model for what hoarding does to the hoarder? Remember the "Ver trying to sell his coins" drama, where he allegedly could not do it without destroying the market? This would mean that was no buyer of last resort for his coin, or at least not at an exchange rate he was comfortable with. Will there be a buyer for El Salvador, or Saylor's stash, for that matter, without a 90% OTC discount? Tether just making the printer go brr?
The thing is that these hoarders will never sell and will "buy" all they can get because they are backed by the guys with the printer.
The important question is: what are you going to use if all these scammers are hoarding let's say 90% of all BTC? You are forced (again) to use their IOUs and crap tethers... we are back in the same shit.
When I see people cheering up for this crap, I see them cheering up for their own slavery.
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That's been a narrative already - "just use Solana/Tron USDT because we've priced you out of Bitcoin." This was probably the worst narrative we've encountered thus far and I disliked the narrative change on Bitcoin Twitter where suddenly "USDT is ok" even though it's the worst possible mirage of freedom.
With LN, there is an inverse mechanic where more usage makes transacting less costly rather than more as on L1, which means we should be able to defeat the cost narrative as users.
Hoarding still doesn't help though, but ultimately, hoarded riches will cost money; just have to be hawkish on not falling into their traps.
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This may not quite align with what you are asking, but it made me think of this line from Cryptoeconomics Reservation Principle
The purpose of a reserve currency is to tax.
If countries like ES buy bitcoin with fiat money (even if in ES's case, they don't actually control the printer), it would seem like the reason to do so is to later issue a new money against it? The playbook already happened with gold: states mostly hold it, while people hold paper.
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Yeah that part largely underlines what Darth said about "90% hoarded" too above.
However, unlike gold, Bitcoin's definition is in the hands of those who accept it in trade.
I like this principle from Voskuil. The question I have: at what % liquid Bitcoin does this fail? It could be lower than 10%, because I suspect that we're probably close to that already 1. LN is also operating with < 5k BTC in routable capacity.
Footnotes
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I expect to have more data later when cloudflare isn't being the single point of failure we've talked about for years; I was hoping to get a glance at https://studio.glassnode.com/dashboards/cointime-economics - but no, lol. ↩
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<ot>imagine finally getting your link served only to find that you need a premium account to access it</ot>Best one without being paywalled I could find quickly was from
chainexposed.comDoes anyone have a good script? If not exist, I'll put it on my todo.
Either way, I was wrong about how much utxo are hoarded... almost 40% is younger than a year.
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they don't actually control the printer
wrong... they are backed by the Tether guy not the USD guy...
In fact ES is not buying any BTC, not with USD, not with USDT. they are just puppets to show the world how nice they move BTC from one wallet to another, owned by Bittfinex.
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they are backed by the Tether guy not the USD guy
This is the real bottom line issue, isn't it? "fake fiat possibly backed by fiat and 100% censorable by the admin key".
You'll own nothing, and you'll be happy. Eat zhe bugs.
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LOL you start making good memes
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