0 sats \ 4 replies \ @HardMoney 17 Mar \ on: I'm losing my faith (II) bitcoin
Do you think it’s all or nothing for bitcoin to win (ie completely replace fiat and be the only money used. Governments are small or non-existent in comparison to today)?
I think the MSTR / ETFs etc are a deterministic step in bitcoins journey. As a non-permissioned network it was inevitable fiat products would come along.
Personally I think it’s better that a transition happens slowly as systems change and fiat investment instruments hopefully allow enough life boats for the world to gravitate towards a hard money standard.
I don’t think it’s realistic to believe everyone will hold their own keys and transact on base layer. Imo most important concept to protect is the optionality that a person can if desired. Having tradeoffs for spending with custodial lightning / Phoenix / Fedi / liquid seem like reasonable options that allow people to make tradeoffs.
Even if the end scenario is going to a bitcoin backed dollar I think this is infinitely better than where we are today. Main point being while it’s important to defend certain characteristics of bitcoin (21M / option to self custody) we shouldn’t let perfect become the enemy of good (or better)
Bitcoin was always going to scale via layers (with tradeoffs) and fees will increase greatly from 1 sat/vb in the future as adoption occurs
If you add "tradeoffs" to Bitcoin, then it's not Bitcoin. When I hear something like that, I propose that we use PayPal as a scaling solution, because it's fast and works very well. It's not Bitcoin, sadly, but it works fine :)
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Tradeoffs are inevitable in nature. They're all around us. They are the reason for adaptability and evolution.
I find it cringy that big-blockers think everything can be accomplished at the base-layer with zero tradeoffs. Many of the tradeoffs they make, they seem unaware of.... and they won't be made aware until maybe years down the road with stress testing and large-scale attacks.
That's why it's so important to work in layers.... ensuring the base layer does one thing really super duper well, better than others. That matters more than anything.
Then, we can start working our way up, making some tradeoffs in order to gain something, knowing that we will lose some things, but always have the base layer to fall back on.
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I agree with you. But one thing is to have Lightning as a layer 2, and another is having Cashu, which is a new token generated in a new server. If the server falls down or is taken down, you lose the money.
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Everything in bitcoin is really a tradeoff. Hence why there is no single best custody method etc.
Also would be a tradeoff to increase blocksize for more L1 throughput which was the reason for the blocksize wars
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