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Topic: Gold collapsing. Bitcoin UP. - page 753. (Read 2032266 times)

hero member
Activity: 644
Merit: 504
Bitcoin replaces central, not commercial, banks
November 06, 2014, 08:29:59 PM
the way i understand the github process is that while you may be able to put patches up there freely, nothing can be written to the source code w/o consensus from the core devs themselves.  b/c the vast majority of them now work in one company, there is a potential for them to possibly insert what they want and definitely to block what they don't want.

JR has asked the question about technology that might obsolete the need for SC's and how that might get blocked.  he doesn't think his question got answered satisfactorily.  it is a potential problem that the community needs to address and talk about as it does have real world implications if abused.  they're basically saying "trust us".  it's up to you.

this part is not true. 2 out of 5 is not the majority. Only Greg & Peter are at Blockstream and can write to the source code

i went back to a quote from gmax:

Blockstream's cofounders include 2 of 5 of the people with commit access to the bitcoin core github repo. Or, if you count people with non-trivial contributions to Bitcoin we have 5 people out of hundreds.

Which confirms what I was saying.

Contributions can be proposed by everyone. This only mean they have 3 other person with them who have made "non-trivial" contributions.
legendary
Activity: 1764
Merit: 1002
November 06, 2014, 08:28:07 PM
the way i understand the github process is that while you may be able to put patches up there freely, nothing can be written to the source code w/o consensus from the core devs themselves.  b/c the vast majority of them now work in one company, there is a potential for them to possibly insert what they want and definitely to block what they don't want.

JR has asked the question about technology that might obsolete the need for SC's and how that might get blocked.  he doesn't think his question got answered satisfactorily.  it is a potential problem that the community needs to address and talk about as it does have real world implications if abused.  they're basically saying "trust us".  it's up to you.

this part is not true. 2 out of 5 is not the majority. Only Greg & Peter are at Blockstream and can write to the source code

i went back to a quote from gmax:

Blockstream's cofounders include 2 of 5 of the people with commit access to the bitcoin core github repo. Or, if you count people with non-trivial contributions to Bitcoin we have 5 people out of hundreds.
legendary
Activity: 1153
Merit: 1000
November 06, 2014, 08:17:51 PM
OK, that makes sense. But isn't that still the same as Bitcoin in 2009/10/11 where Satoshi and later Gavin had control over commit privileges? The protocol change for sidechains is one time, after that the 5 guys in Blockstream have limited influence.

What this does is to decentralize implementation of new features. Today you have to go through a small number of people to get a commit accepted. With sidechains anyone can implement a new feature and the community can choose which to adopt. This puts the power to extend features directly in the hands of the community and out of the hands of the few commiters of today. This is decentralized implementation of features, which has tremendous potential benefits.

It seems if you are worried about today's situation where only a few people have commit privileges and have too much influence over new features, then sidechains address that worry by removing power from these few people.

It seems another fear is SC's causing the main Bitcoin chain to become stagnate and thus unused over time, damaging the network. I guess I just see this as an upgrade path. If everyone switches to a SC, that SC because the main chain. The 21M ledger is still intact.

And it's actually a better upgrade path from today. Again today those 5 guys with commit privileges can push us all to upgrade. With SC's the upgrade is completely voluntary for individuals to move, everyone can decide on their own when they feel ready to move.

the way i understand the github process is that while you may be able to put patches up there freely, nothing can be written to the source code w/o consensus from the core devs themselves.  b/c the vast majority of them now work in one company, there is a potential for them to possibly insert what they want and definitely to block what they don't want.

Your understanding of the process is the same as mine.

But again, isn't this the case today? What's different from today. At least with SC's you can implement new features outside of the centralized process we have currently (which I do not like).

JR has asked the question about technology that might obsolete the need for SC's and how that might get blocked.  he doesn't think his question got answered satisfactorily.  it is a potential problem that the community needs to address and talk about as it does have real world implications if abused.  they're basically saying "trust us".  it's up to you.

If there is strong demand, I don't think they can block SC alternatives. In Linux committers have a lot of control over their pieces, but it's not infinite by any means.

And again Blockstream does not have any control over sidechains where adoption of sidechains guarantees them money in any sort of way. We might find Blockstream has disappeared in a year and the 5 people mentioned above are now advocating for a SC alternative.

I think you bring up an important point which is "is this version of sidechains the best or are there potentially other solutions that are better". The reason this is important is once we have one version implemented, the preference will be to stick with the current version even if something better comes along later. So, we should make sure we implement the right technology first. That's a bigger sticking point for me.
hero member
Activity: 644
Merit: 504
Bitcoin replaces central, not commercial, banks
November 06, 2014, 08:14:11 PM
the way i understand the github process is that while you may be able to put patches up there freely, nothing can be written to the source code w/o consensus from the core devs themselves.  b/c the vast majority of them now work in one company, there is a potential for them to possibly insert what they want and definitely to block what they don't want.

JR has asked the question about technology that might obsolete the need for SC's and how that might get blocked.  he doesn't think his question got answered satisfactorily.  it is a potential problem that the community needs to address and talk about as it does have real world implications if abused.  they're basically saying "trust us".  it's up to you.

this part is not true. 2 out of 5 is not the majority. Only Greg & Peter are at Blockstream and can write to the source code
legendary
Activity: 1764
Merit: 1002
November 06, 2014, 08:05:02 PM
So I have a hypothetical situation, and I’m interested in this community’s input, this is the economic speculation thread after all.  

lets say someone has 1% of all Bitcoin.
lets say they create a Bitcoin ETF, and sell shares to that ETF on the NASDAQ. It takes off. Over time the holding in the ETF go up and down the total holdings never Drop below 1%
In this scenario the ETF Charter promise to back the ETF with Bitcoin it guarantees on redemption to pay in USD at market rate and only under special circumstances will it pay out in BTC.
---
In this hypothetical situation an SC-coin-it has been created, it is Open Source, it has proven utility and security,  faster transfer times, it is highly liquid, in fact it is the preferred transfer of value coin for salary’s and typical larger expenses like TV’s and high end consumer goods because of its faster confirmation times, People still use Bitcoin for purchases like cars and houses – and even pay their loans in BTC – yacht for BTC are selling will in this hypothetical scenario, in fact BTC is used for larger deals where instant transfer times are not a risk. But the SC-coin-it is the preferred means of exchange for anything of value that is relinquished at the point of sale.    

What happens when the ETF, knowing they have 1:1 2wp redemption capability with the SC-coin-it, and 1% of all bitcoins that are stagnant start to leverage their BTC, they are still in theory backed by BTC, but start lending out SC-coin-it to AAA rated entities, they haven't broken there charter due the technicality that the BTC is secure, and they are not lending their BTC ?  


owners Winkelvii go to jail for violating their charter b/c scBTC is essentially one in the same as BTC and they weren't supposed to lend them out.

so are Gold ETF charters written in such a way that the gold can not be lent out?

don't know for sure but you can bet on it.

this "paper gold" is it in effect just CB's that lend it out, or with fractional reserves, where does it come from?

GLD buys it and stores it in a vault.
I was under the impression that there was more paper gold in circulation than there is actual gold in vaults, is that not the case? is all paper gold a 1:1 ratio?

no it's not.  you're talking about futures/derivatives contract abuse.  way more than there is gold.
legendary
Activity: 1764
Merit: 1002
November 06, 2014, 08:03:51 PM
i personally don't think computer's can do everything.  there are going to be times when humans need to intervene.  in fact, computers do what humans tell them to do most of the time and if that is fraud, computers will commit fraud.

these are the things i worry about with Blockstream.  they stand to make alot of money on this.

I'm curious where the worry about Blockstream comes from.

Everything would be implemented in a completely open-source manner. Blockstream would have zero control to dictate anything.

The only thing Blockstream would have is domain expertise around sidechains. Expertise that anyone else can gain BTW. The only thing they could do with that expertise is to lend it out as consultants to help other entities implement their own sidechains. This is the Redhat model as stated before.

Other individuals or entities could easily replace Blockstream and Blockstream could entirely disappear with no effect. This is the same as Satoshi disappearing. We all agree Satoshi does not control Bitcoin and do not worry about him.

The situation between Satoshi & Bitcoin and Blockstream & sidechains seems the same to me, s so why worry about Blockstream? Is there something different missed?

it's b/c they have 5 (?) guys who have commit privileges, 3 of which are core devs and all of which could derail any upgrades to Bitcoin from SC innovations for Blockstream profit motives.  that's if you believe it's not critical that Bitcoin stays around while a SC takes over in the long run.

OK, that makes sense. But isn't that still the same as Bitcoin in 2009/10/11 where Satoshi and later Gavin had control over commit privileges? The protocol change for sidechains is one time, after that the 5 guys in Blockstream have limited influence.

What this does is to decentralize implementation of new features. Today you have to go through a small number of people to get a commit accepted. With sidechains anyone can implement a new feature and the community can choose which to adopt. This puts the power to extend features directly in the hands of the community and out of the hands of the few commiters of today. This is decentralized implementation of features, which has tremendous potential benefits.

It seems if you are worried about today's situation where only a few people have commit privileges and have too much influence over new features, then sidechains address that worry by removing power from these few people.

It seems another fear is SC's causing the main Bitcoin chain to become stagnate and thus unused over time, damaging the network. I guess I just see this as an upgrade path. If everyone switches to a SC, that SC because the main chain. The 21M ledger is still intact.

And it's actually a better upgrade path from today. Again today those 5 guys with commit privileges can push us all to upgrade. With SC's the upgrade is completely voluntary for individuals to move, everyone can decide on their own when they feel ready to move.

the way i understand the github process is that while you may be able to put patches up there freely, nothing can be written to the source code w/o consensus from the core devs themselves.  b/c the vast majority of them now work in one company, there is a potential for them to possibly insert what they want and definitely to block what they don't want.

JR has asked the question about technology that might obsolete the need for SC's and how that might get blocked.  he doesn't think his question got answered satisfactorily.  it is a potential problem that the community needs to address and talk about as it does have real world implications if abused.  they're basically saying "trust us".  it's up to you.
legendary
Activity: 1372
Merit: 1000
November 06, 2014, 07:52:40 PM
So I have a hypothetical situation, and I’m interested in this community’s input, this is the economic speculation thread after all.  

lets say someone has 1% of all Bitcoin.
lets say they create a Bitcoin ETF, and sell shares to that ETF on the NASDAQ. It takes off. Over time the holding in the ETF go up and down the total holdings never Drop below 1%
In this scenario the ETF Charter promise to back the ETF with Bitcoin it guarantees on redemption to pay in USD at market rate and only under special circumstances will it pay out in BTC.
---
In this hypothetical situation an SC-coin-it has been created, it is Open Source, it has proven utility and security,  faster transfer times, it is highly liquid, in fact it is the preferred transfer of value coin for salary’s and typical larger expenses like TV’s and high end consumer goods because of its faster confirmation times, People still use Bitcoin for purchases like cars and houses – and even pay their loans in BTC – yacht for BTC are selling will in this hypothetical scenario, in fact BTC is used for larger deals where instant transfer times are not a risk. But the SC-coin-it is the preferred means of exchange for anything of value that is relinquished at the point of sale.    

What happens when the ETF, knowing they have 1:1 2wp redemption capability with the SC-coin-it, and 1% of all bitcoins that are stagnant start to leverage their BTC, they are still in theory backed by BTC, but start lending out SC-coin-it to AAA rated entities, they haven't broken there charter due the technicality that the BTC is secure, and they are not lending their BTC ?  


owners Winkelvii go to jail for violating their charter b/c scBTC is essentially one in the same as BTC and they weren't supposed to lend them out.

so are Gold ETF charters written in such a way that the gold can not be lent out?

don't know for sure but you can bet on it.

this "paper gold" is it in effect just CB's that lend it out, or with fractional reserves, where does it come from?

GLD buys it and stores it in a vault.
I was under the impression that there was more paper gold in circulation than there is actual gold in vaults, is that not the case? is all paper gold a 1:1 ratio?
legendary
Activity: 1153
Merit: 1000
November 06, 2014, 07:52:04 PM
i personally don't think computer's can do everything.  there are going to be times when humans need to intervene.  in fact, computers do what humans tell them to do most of the time and if that is fraud, computers will commit fraud.

these are the things i worry about with Blockstream.  they stand to make alot of money on this.

I'm curious where the worry about Blockstream comes from.

Everything would be implemented in a completely open-source manner. Blockstream would have zero control to dictate anything.

The only thing Blockstream would have is domain expertise around sidechains. Expertise that anyone else can gain BTW. The only thing they could do with that expertise is to lend it out as consultants to help other entities implement their own sidechains. This is the Redhat model as stated before.

Other individuals or entities could easily replace Blockstream and Blockstream could entirely disappear with no effect. This is the same as Satoshi disappearing. We all agree Satoshi does not control Bitcoin and do not worry about him.

The situation between Satoshi & Bitcoin and Blockstream & sidechains seems the same to me, s so why worry about Blockstream? Is there something different missed?

it's b/c they have 5 (?) guys who have commit privileges, 3 of which are core devs and all of which could derail any upgrades to Bitcoin from SC innovations for Blockstream profit motives.  that's if you believe it's not critical that Bitcoin stays around while a SC takes over in the long run.

OK, that makes sense. But isn't that still the same as Bitcoin in 2009/10/11 where Satoshi and later Gavin had control over commit privileges? The protocol change for sidechains is one time, after that the 5 guys in Blockstream have limited influence.

What this does is to decentralize implementation of new features. Today you have to go through a small number of people to get a commit accepted. With sidechains anyone can implement a new feature and the community can choose which to adopt. This puts the power to extend features directly in the hands of the community and out of the hands of the few commiters of today. This is decentralized implementation of features, which has tremendous potential benefits.

It seems if you are worried about today's situation where only a few people have commit privileges and have too much influence over new features, then sidechains address that worry by removing power from these few people.

It seems another fear is SC's causing the main Bitcoin chain to become stagnate and thus unused over time, damaging the network. I guess I just see this as an upgrade path. If everyone switches to a SC, that SC because the main chain. The 21M ledger is still intact.

And it's actually a better upgrade path from today. Again today those 5 guys with commit privileges can push us all to upgrade. With SC's the upgrade is completely voluntary for individuals to move, everyone can decide on their own when they feel ready to move.
hero member
Activity: 644
Merit: 504
Bitcoin replaces central, not commercial, banks
November 06, 2014, 07:50:30 PM
it's b/c they have 5 (?) guys who have commit privileges, 3 of which are core devs and all of which could derail any upgrades to Bitcoin from SC innovations for Blockstream profit motives.  that's if you believe it's not critical that Bitcoin stays around while a SC takes over in the long run.

I'm not certain how exactly github commit work but given the hypothesis that an open source feature becomes so obviously valuable all of the community agrees it should be implemented into the mainchain I don't see how even the Blockstream devs could stop it from happening.

As far as I know they don't have veto power.

the pessimistic view would be they could all make alot of noise and deception to disrupt consensus if they had enough financial motivation to do so.

Two developer can only make so much noise over a community of others.

I don't see it. Remember also that they have ethics clauses in their Blockstream contract.

Bottom line is the Blockstream team is not there to invent altcoins that compete with Bitcoin's cryptomoney function. Unless you want to paint malicious intent on them without probable cause. This in itself is not very ethical if I might say.
legendary
Activity: 1764
Merit: 1002
November 06, 2014, 07:39:37 PM
it's b/c they have 5 (?) guys who have commit privileges, 3 of which are core devs and all of which could derail any upgrades to Bitcoin from SC innovations for Blockstream profit motives.  that's if you believe it's not critical that Bitcoin stays around while a SC takes over in the long run.

I'm not certain how exactly github commit work but given the hypothesis that an open source feature becomes so obviously valuable all of the community agrees it should be implemented into the mainchain I don't see how even the Blockstream devs could stop it from happening.

As far as I know they don't have veto power.

the pessimistic view would be they could all make alot of noise and deception to disrupt consensus if they had enough financial motivation to do so.
hero member
Activity: 644
Merit: 504
Bitcoin replaces central, not commercial, banks
November 06, 2014, 07:37:41 PM
it's b/c they have 5 (?) guys who have commit privileges, 3 of which are core devs and all of which could derail any upgrades to Bitcoin from SC innovations for Blockstream profit motives.  that's if you believe it's not critical that Bitcoin stays around while a SC takes over in the long run.

I'm not certain how exactly github commit work but given the hypothesis that an open source feature becomes so obviously valuable all of the community agrees it should be implemented into the mainchain I don't see how even the Blockstream devs could stop it from happening.

As far as I know they don't have veto power.
legendary
Activity: 1414
Merit: 1000
November 06, 2014, 07:36:46 PM

it's b/c they have 5 (?) guys who have commit privileges, 3 of which are core devs and all of which could derail any upgrades to Bitcoin from SC innovations for Blockstream profit motives.  that's if you believe it's not critical that Bitcoin stays around while a SC takes over in the long run.

You can create as many branches with as many commit privileges as you wish.
I can create one -> where no one will commit (core developer or not)
legendary
Activity: 1764
Merit: 1002
November 06, 2014, 07:32:19 PM
So I have a hypothetical situation, and I’m interested in this community’s input, this is the economic speculation thread after all.  

lets say someone has 1% of all Bitcoin.
lets say they create a Bitcoin ETF, and sell shares to that ETF on the NASDAQ. It takes off. Over time the holding in the ETF go up and down the total holdings never Drop below 1%
In this scenario the ETF Charter promise to back the ETF with Bitcoin it guarantees on redemption to pay in USD at market rate and only under special circumstances will it pay out in BTC.
---
In this hypothetical situation an SC-coin-it has been created, it is Open Source, it has proven utility and security,  faster transfer times, it is highly liquid, in fact it is the preferred transfer of value coin for salary’s and typical larger expenses like TV’s and high end consumer goods because of its faster confirmation times, People still use Bitcoin for purchases like cars and houses – and even pay their loans in BTC – yacht for BTC are selling will in this hypothetical scenario, in fact BTC is used for larger deals where instant transfer times are not a risk. But the SC-coin-it is the preferred means of exchange for anything of value that is relinquished at the point of sale.    

What happens when the ETF, knowing they have 1:1 2wp redemption capability with the SC-coin-it, and 1% of all bitcoins that are stagnant start to leverage their BTC, they are still in theory backed by BTC, but start lending out SC-coin-it to AAA rated entities, they haven't broken there charter due the technicality that the BTC is secure, and they are not lending their BTC ?  


owners Winkelvii go to jail for violating their charter b/c scBTC is essentially one in the same as BTC and they weren't supposed to lend them out.

so are Gold ETF charters written in such a way that the gold can not be lent out?

don't know for sure but you can bet on it.

this "paper gold" is it in effect just CB's that lend it out, or with fractional reserves, where does it come from?

GLD buys it and stores it in a vault.
legendary
Activity: 1372
Merit: 1000
November 06, 2014, 07:31:07 PM
So I have a hypothetical situation, and I’m interested in this community’s input, this is the economic speculation thread after all.  

lets say someone has 1% of all Bitcoin.
lets say they create a Bitcoin ETF, and sell shares to that ETF on the NASDAQ. It takes off. Over time the holding in the ETF go up and down the total holdings never Drop below 1%
In this scenario the ETF Charter promise to back the ETF with Bitcoin it guarantees on redemption to pay in USD at market rate and only under special circumstances will it pay out in BTC.
---
In this hypothetical situation an SC-coin-it has been created, it is Open Source, it has proven utility and security,  faster transfer times, it is highly liquid, in fact it is the preferred transfer of value coin for salary’s and typical larger expenses like TV’s and high end consumer goods because of its faster confirmation times, People still use Bitcoin for purchases like cars and houses – and even pay their loans in BTC – yacht for BTC are selling will in this hypothetical scenario, in fact BTC is used for larger deals where instant transfer times are not a risk. But the SC-coin-it is the preferred means of exchange for anything of value that is relinquished at the point of sale.    

What happens when the ETF, knowing they have 1:1 2wp redemption capability with the SC-coin-it, and 1% of all bitcoins that are stagnant start to leverage their BTC, they are still in theory backed by BTC, but start lending out SC-coin-it to AAA rated entities, they haven't broken there charter due the technicality that the BTC is secure, and they are not lending their BTC ?  


owners Winkelvii go to jail for violating their charter b/c scBTC is essentially one in the same as BTC and they weren't supposed to lend them out.

so are Gold ETF charters written in such a way that the gold can not be lent out?

don't know for sure but you can bet on it.

this "paper gold" is it in effect just CB's that lend it out, or with fractional reserves, where does it come from?
legendary
Activity: 1764
Merit: 1002
November 06, 2014, 07:29:59 PM
i personally don't think computer's can do everything.  there are going to be times when humans need to intervene.  in fact, computers do what humans tell them to do most of the time and if that is fraud, computers will commit fraud.

these are the things i worry about with Blockstream.  they stand to make alot of money on this.

I'm curious where the worry about Blockstream comes from.

Everything would be implemented in a completely open-source manner. Blockstream would have zero control to dictate anything.

The only thing Blockstream would have is domain expertise around sidechains. Expertise that anyone else can gain BTW. The only thing they could do with that expertise is to lend it out as consultants to help other entities implement their own sidechains. This is the Redhat model as stated before.

Other individuals or entities could easily replace Blockstream and Blockstream could entirely disappear with no effect. This is the same as Satoshi disappearing. We all agree Satoshi does not control Bitcoin and do not worry about him.

The situation between Satoshi & Bitcoin and Blockstream & sidechains seems the same to me, s so why worry about Blockstream? Is there something different missed?

it's b/c they have 5 (?) guys who have commit privileges, 3 of which are core devs and all of which could derail any upgrades to Bitcoin from SC innovations for Blockstream profit motives.  that's if you believe it's not critical that Bitcoin stays around while a SC takes over in the long run.
legendary
Activity: 1764
Merit: 1002
November 06, 2014, 07:26:50 PM
So I have a hypothetical situation, and I’m interested in this community’s input, this is the economic speculation thread after all.  

lets say someone has 1% of all Bitcoin.
lets say they create a Bitcoin ETF, and sell shares to that ETF on the NASDAQ. It takes off. Over time the holding in the ETF go up and down the total holdings never Drop below 1%
In this scenario the ETF Charter promise to back the ETF with Bitcoin it guarantees on redemption to pay in USD at market rate and only under special circumstances will it pay out in BTC.
---
In this hypothetical situation an SC-coin-it has been created, it is Open Source, it has proven utility and security,  faster transfer times, it is highly liquid, in fact it is the preferred transfer of value coin for salary’s and typical larger expenses like TV’s and high end consumer goods because of its faster confirmation times, People still use Bitcoin for purchases like cars and houses – and even pay their loans in BTC – yacht for BTC are selling will in this hypothetical scenario, in fact BTC is used for larger deals where instant transfer times are not a risk. But the SC-coin-it is the preferred means of exchange for anything of value that is relinquished at the point of sale.    

What happens when the ETF, knowing they have 1:1 2wp redemption capability with the SC-coin-it, and 1% of all bitcoins that are stagnant start to leverage their BTC, they are still in theory backed by BTC, but start lending out SC-coin-it to AAA rated entities, they haven't broken there charter due the technicality that the BTC is secure, and they are not lending their BTC ?  


owners Winkelvii go to jail for violating their charter b/c scBTC is essentially one in the same as BTC and they weren't supposed to lend them out.

so are Gold ETF charters written in such a way that the gold can not be lent out?

don't know for sure but you can bet on it.
legendary
Activity: 1153
Merit: 1000
November 06, 2014, 07:26:35 PM
i personally don't think computer's can do everything.  there are going to be times when humans need to intervene.  in fact, computers do what humans tell them to do most of the time and if that is fraud, computers will commit fraud.

these are the things i worry about with Blockstream.  they stand to make alot of money on this.

I'm curious where the worry about Blockstream comes from.

Everything would be implemented in a completely open-source manner. Blockstream would have zero control to dictate anything.

The only thing Blockstream would have is domain expertise around sidechains. Expertise that anyone else can gain BTW. The only thing they could do with that expertise is to lend it out as consultants to help other entities implement their own sidechains. This is the Redhat model as stated before.

Other individuals or entities could easily replace Blockstream and Blockstream could entirely disappear with no effect. This is the same as Satoshi disappearing. We all agree Satoshi does not control Bitcoin and do not worry about him.

The situation between Satoshi & Bitcoin and Blockstream & sidechains seems the same to me, so why worry about Blockstream? Is there something different missed?
legendary
Activity: 1372
Merit: 1000
November 06, 2014, 07:23:04 PM
So I have a hypothetical situation, and I’m interested in this community’s input, this is the economic speculation thread after all.  

lets say someone has 1% of all Bitcoin.
lets say they create a Bitcoin ETF, and sell shares to that ETF on the NASDAQ. It takes off. Over time the holding in the ETF go up and down the total holdings never Drop below 1%
In this scenario the ETF Charter promise to back the ETF with Bitcoin it guarantees on redemption to pay in USD at market rate and only under special circumstances will it pay out in BTC.
---
In this hypothetical situation an SC-coin-it has been created, it is Open Source, it has proven utility and security,  faster transfer times, it is highly liquid, in fact it is the preferred transfer of value coin for salary’s and typical larger expenses like TV’s and high end consumer goods because of its faster confirmation times, People still use Bitcoin for purchases like cars and houses – and even pay their loans in BTC – yacht for BTC are selling will in this hypothetical scenario, in fact BTC is used for larger deals where instant transfer times are not a risk. But the SC-coin-it is the preferred means of exchange for anything of value that is relinquished at the point of sale.    

What happens when the ETF, knowing they have 1:1 2wp redemption capability with the SC-coin-it, and 1% of all bitcoins that are stagnant start to leverage their BTC, they are still in theory backed by BTC, but start lending out SC-coin-it to AAA rated entities, they haven't broken there charter due the technicality that the BTC is secure, and they are not lending their BTC ?  


owners Winkelvii go to jail for violating their charter b/c scBTC is essentially one in the same as BTC and they weren't supposed to lend them out.

so are Gold ETF charters written in such a way that the gold can not be lent out?
hero member
Activity: 644
Merit: 504
Bitcoin replaces central, not commercial, banks
November 06, 2014, 07:19:28 PM
So I have a hypothetical situation, and I’m interested in this community’s input, this is the economic speculation thread after all.  

lets say someone has 1% of all Bitcoin.
lets say they create a Bitcoin ETF, and sell shares to that ETF on the NASDAQ. It takes off. Over time the holding in the ETF go up and down the total holdings never Drop below 1%
In this scenario the ETF Charter promise to back the ETF with Bitcoin it guarantees on redemption to pay in USD at market rate and only under special circumstances will it pay out in BTC.
---
In this hypothetical situation an SC-coin-it has been created, it is Open Source, it has proven utility and security,  faster transfer times, it is highly liquid, in fact it is the preferred transfer of value coin for salary’s and typical larger expenses like TV’s and high end consumer goods because of its faster confirmation times, People still use Bitcoin for purchases like cars and houses – and even pay their loans in BTC – yacht for BTC are selling will in this hypothetical scenario, in fact BTC is used for larger deals where instant transfer times are not a risk. But the SC-coin-it is the preferred means of exchange for anything of value that is relinquished at the point of sale.    

What happens when the ETF, knowing they have 1:1 2wp redemption capability with the SC-coin-it, and 1% of all bitcoins that are stagnant start to leverage their BTC, they are still in theory backed by BTC, but start lending out SC-coin-it to AAA rated entities, they haven't broken there charter due the technicality that the BTC is secure, and they are not lending their BTC ?  

Yes they have broken their charter because an investor cannot cash out his stake that has been lent and is being used by the borrower.

The BTC is not secure, it can be spent through the use of the SC coin.
legendary
Activity: 1764
Merit: 1002
November 06, 2014, 07:18:20 PM
So I have a hypothetical situation, and I’m interested in this community’s input, this is the economic speculation thread after all.  

lets say someone has 1% of all Bitcoin.
lets say they create a Bitcoin ETF, and sell shares to that ETF on the NASDAQ. It takes off. Over time the holding in the ETF go up and down the total holdings never Drop below 1%
In this scenario the ETF Charter promise to back the ETF with Bitcoin it guarantees on redemption to pay in USD at market rate and only under special circumstances will it pay out in BTC.
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In this hypothetical situation an SC-coin-it has been created, it is Open Source, it has proven utility and security,  faster transfer times, it is highly liquid, in fact it is the preferred transfer of value coin for salary’s and typical larger expenses like TV’s and high end consumer goods because of its faster confirmation times, People still use Bitcoin for purchases like cars and houses – and even pay their loans in BTC – yacht for BTC are selling will in this hypothetical scenario, in fact BTC is used for larger deals where instant transfer times are not a risk. But the SC-coin-it is the preferred means of exchange for anything of value that is relinquished at the point of sale.    

What happens when the ETF, knowing they have 1:1 2wp redemption capability with the SC-coin-it, and 1% of all bitcoins that are stagnant start to leverage their BTC, they are still in theory backed by BTC, but start lending out SC-coin-it to AAA rated entities, they haven't broken there charter due the technicality that the BTC is secure, and they are not lending their BTC ?  


owners Winkelvii go to jail for violating their charter b/c scBTC is essentially one in the same as BTC and they weren't supposed to lend them out.
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