1043 sats \ 2 replies \ @ek 8 Feb freebie \ on: Bitcoin Bank ecash
I mentioned in @TonyGiorgio's Fedimint is Self-Custodial how I think that fedimints might be pretty much what Hal Finney described as Bitcoin Banks:
Cash from some banks may trade at a discount to that from others.
This is also exactly what you mentioned here:
One distinction I will stress here is that it will rarely be precisely 1:1. There should NOT be an expectation that an Ecash will ever redeem the exact amount of Bitcoin because of the fees involved. You can never go directly to the source to get the same amount of Bitcoin as you entered. The same concept can be applied to other layers, such as Lightning. A sat on LN is valued differently than a sat on-chain. This is important to understand the actual cost of Bitcoin ownership, the cost to control and manage capital in a blockchain, and how market rates will be determined.
-- me, #395818
Reading this again, it might not be "exactly" what was mentioned since it's more about difference between layers (fees involved), but I believe we can apply the same concept to different fedimints. Some fedimints might be more trusted and thus have a better peg than others.
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42 sats \ 0 replies \ @joda 8 Feb
You can have fees and still have a 1 to 1 peg.
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0 sats \ 0 replies \ @OriginalSize 8 Feb
There should NOT be an expectation that an Ecash will ever redeem the exact amount of Bitcoin because of the fees involved.
At the risk of getting into symantics, even Bitcoin doesn't allow spending of the exact amount of Bitcoin due to fees. In some cases, a utxo is worth nothing at all.
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