Covenants still don't sit right with me.
I've witnessed a couple discussions this week about covenants, and proponents seem really pushy to me. I'm fine with not being the smartest person in the room, and I like the idea of covenants. It doesn't appeal to me to be bowled over by bad arguments though.
TLDR - EXCHANGES COULD BE FORCED TO RECEIVE TO ENCUMBERED WALLETS
The Setup
One link from Seth for Privacy (a blog that's been around for a grand total of 2 years, and offers not much consistency in delivery) floats the idea that one simple article has collected, collates, and refutes all the most common FUD about covenants. (spoiler, not very well)
Should we just jump right into the BIP119 plan after two whole paragraphs completely dissuade us of our concerns about the next-wave-of-changes-we-don't-understand..
BIP119 promotors are talking about signaling adoption in January 2024... what's the fucking rush?
"Covenants could have unintended consequences"
part one of Seth's inconsistent blogging takes two main argumentative angles. first he presents the idea that doing nothing has unintended consequences, too. And since there's consequences either way, well, we should just go for it!
Wait a minute... consequences of not taking action are the same consequences we are already experiencing, and beginning to notice & carefully evaluating them. These are not changed consequences of a changing environment. What's happening is we just have a bit longer to think about what to do in our next step... assuming we don't go stumbling into new consequences of new behaviors that we don't really understand just yet.
"Exchanges could force encumbering covenants"
And then part two... Here Seth equates encumbered wallets with a ban on self-custody. Let's point out a few things...
- A. There are places in the world already with bans on self-custody. Fortunately, that's not something a bureaucrat can enforce at the protocol level.
- B. HARDWARE WALLET COMPANIES WILL NOT HESITATE TO SELL "COLD" WALLETS THAT WORK FINE WITH ENCUMBERED SEEDS.
- C. Why is this blog so full of monero news?
Wallet companies are gonna be happy to sell plastic trash to numb nut consoomers. It's just a matter of having the opportunity to sell them to swarms of individuals who are suddenly, surprisingly being led to the big corporate exchanges. Consider the view from an alternative future: they can buy all the coin they want and hold it in self storage, just like they saw in a cartoonish new Whitehouse video hosted by the next president's lying evil Press Secretary. In fact, it's amazing that users don't even have to KYC, any bum of the street can use these QR codes to panhandle. Such equality. Much Diversity & Inclusion. Wow.
Exchanges are easy to push around, because if they don't follow the rules they lose access to their bank accounts. Individuals have a much easier time avoiding enforcement.
EXCHANGES COULD BE FORCED TO RECEIVE TO ENCUMBERED WALLETS
One last point:
"We either get covenants or only rich people can do self custodial bitcoin"
The bitcoin-rich plebs already have their coin covenant free. Let's not introduce a hurried plan, at a socially tumultuous time, that could go very sideways if it's not thoroughly considered, just to take advantage of the rich kids unloading their sats in a bullrun.
What's the Rush?
Fine, let's find a type of covenant to implement. But BIP119 promotors are talking about signaling adoption in January 2024... what's the fucking rush?
Conclusion
I'll wait to get my authoritative opinions from around the
If you're going to make arguments in favor of BIP 119, please don't make porous ones.
Where's @ODELL at on this topic. I feel like he's more trustworthy because he doesn't own a business selling stuff to people with