⛏️Is it time to be concerned about Bitcoin mining pool centralization?
I sat down recently with @General Kenobi from @DEMAND to discuss 👇
The Cure For Bitcoin Mining Centralization?
Big news today!! Tether announces USDT will be returning to Bitcoin as a Taproot Asset.
Next step: make it usable and accessible for all 🫡
Joltz links here:
The good news is that better self-custodial UX is coming. At Joltz we’re making novel use of Musig2 to create a Muun-like experience for users that can also scale well during periods of high fees 🫡
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“TRUST IN 3RD PARTIES BAD!”
“WOOO CASHU IS THE GREATEST”
What am I missing here? I get that Cashu is great for privacy and has nice UX (and I get the nuance around bearer tokens), but why are we championing it so hard without (at least from what I’ve seen) talking about the obvious trade-off?
Genuine question. More payments solutions on Bitcoin is ultimately a good thing to give users more choice but just seems to be some cognitive dissonance on this one.
GM, here is what's going to happen:
(1) Global merchant acceptance of stablecoins.
--> 2-3% immediately back to their bottom-line while preserving their need to denominate value in their preferred unit of account (for the time being).
(2) Smart merchants invest that 2-3% cost saving to establish a BTC treasury.
(3) Other chains fail to adequately scale payments to a global level. Extinction-level cope event as everyone realizes with horror that payment channels were right all along.
(4) All stablecoin payment activity migrates to the Lightning Network via Taproot Assets. No bridges, no sidechains, no fake "L2s", just native Bitcoin.
(5) A covenants upgrade goes live on Bitcoin mainnet. Channel factories and various other approaches like what we're building at Joltz scale self-custodial usage of the Lightning Network. Cope levels are now unbearable. Broader crypto community rage-quits hit all-time high.
(6) By now, those smart merchants are reaping the benefits of their decision and as a result are systematically destroying their less smart competitors in the marketplace.
(7) Survival of the fittest prevails; merchants become increasingly averse to accepting fiat units of account for payment, and this progresses until BTC is the only accepted payment method.
(8) Hyperbitcoinization. Humanity experiences unprecedented flourishing.
The end.
As a Bitcoin startup founder, some days are euphoric and you think it’s all going to come together. Other days it feels like it’s all going to fall apart.
Either way, keep building…
Painfully true. We wade through the muck of regulatory uncertainty at Joltz every day. There is so much gray area with Lightning in particular and that only increases with Taproot Assets. The show must go on, but I do hope we see more clarity soon.
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