My point being there will be a motive to short the SC token.
great point. the shorts will do this b/c they will recognize that the SC is less secure and more prone to failure.
as they drive the price of scBTC down, all those here who think the 1:1 peg demands that the price of 1 BTC= 1 scBTC will sell their BTC to follow.
No one will try to short scBTC. If someone tried, people will buy the lower priced scBTC, transfer them to BTC and sell them for the real price.
let me put it in simple terms w/o numbers.
you're taking a chunk of coin off a very secure ledger and moving them over to a less secure ledger. it's to be expected those coins moved will be worth less b/c they are now less secure.
b/c of arbitrage, you can expect the moved coin to drag down the price of the not moved coin to a lower equilibrium.
you're taking a chunk of coin off a very secure ledger and moving them over to a less secure ledger. it's to be expected those coins moved will be worth less b/c they are now less secure.
b/c of arbitrage, you can expect the moved coin to drag down the price of the not moved coin to a lower equilibrium.
I'll take your arguments only if you sell me your bitcoins for $100 or at least you find me somebody who sell. :-)
you can try to personalize this but it doesn't negate my generalized market based argument.
