I see it the opposite way to Balaji. I think it's the set up for a 6102. They create this paper and say "see, you can hold it here. It's regulatory sound, tax efficient, and no need to mess about with complex nerdy stuff". Then they turn around and say, "well no need for self hosted wallets now. What are you, some kind of terrorist!?". And then they outlaw self custody and demand all coins are handed to exchanges in exchange for paper claims. Eventually there will be a "national emergency", and the paper claims will not be honored. I.e. exactly what happened with gold. History is not going backwards, imo, it's repeating itself.
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100%. I can't believe this guy, who seems pretty smart, can get this so wrong.
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10 sats \ 0 replies \ @jeff 11 Jan
I completely agree. But, I think if that happened, the network would be incentivize to go on the offense. I can think of many tactics.
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I see it the opposite way to Balaji. I think it's the set up for a 6102.
I see the same risk as you. In the long term, there's a big risk that the government will try to regain control by relying on these financial giants.
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1 sat \ 1 reply \ @Lux 11 Jan
People are retarded
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I still can't wrap my mind why on earth people would buy ETF but not the actual Bitcoin?!
and the most funny part is the last thing you need is someone's else approval in the Bitcoin land, yet it seems many people are so happy with the approval.
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Except this is different. You can't go door to door requesting people to surrender their secret numbers.
And good luck doing that in present day Texas.
Also, boating accidents exist.
Also, Twitter exists. (I refuse to call it any other name.)
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They didn't go door to door for gold, afaik. Just the threat will be enough to get most to comply. They have most holders on a list thanks to KYC. Just a threatening letter from the exchange and a few high profile prosecutions should be enough, like it was for gold.
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I'm sorry Your Honor, I sent all my bitcoins to a person that promised to double it, and never heard from him again.
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There is a carrot as well as a stick. Real bitcoin's value will be driven down while the price of paper bitcoin is propped up. Even core devs will vote to put food on the table.
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well said.
Best thing about this article are the links to references about 6102 and related cultural responses to it. Super interesting.
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I could be wrong, but now that bitcoin ETFs are a thing will it be easier for people to short bitcoin? I mean if you are a Wall St. guy you can now short bitcoin through the ETFs without resorting to some obscure crypto exchange, right?
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I guess the answer is yes.
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Nice read
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