Thread

Liquid is still bitcoin.

Liquid is trust required altcoin. a.k.a #Bitcoin IOU. Even Adam back says this. You can ask him directly.

We could say in the same way that #Lightning is a trust deposit of #Bitcoin because it requires a commission to return to layer 1. Beautiful discussions. All #Bitcoin 🫂🧡

LN is exactly the #Bitcoin. You can hold your own keys. but Liquid is not.

I don’t know what Adam Back said, but as I perceive it, any layer 2 that requires an anchor to the bitcoin chain is still more bitcoin than a completely separate fork, even if Liquid has its own chain. Bitcoin was always destined to be the base layer which more features and functionality would be build on top of. That’s the beauty of permissionless systems.

Every single Liquid advocator says the tRaDeoFf. But as you know, Not your keys, not your Bitcoin. You are telling me Liquid is not #Bitcoin without saying this. Is it Bitcoin? is simple yes or no question.

You said “your” bitcoin. Bitcoin is still bitcoin even if you don’t hold it. That’s like saying sats on @Wallet of Satoshi aren’t bitcoin. I don’t particularly like the tradeoff myself, and I don’t have a use for Liquid at the moment. @Blockstream sent me 20,000 sats to try it out, and I haven’t touched it since. It might provide some utility in the future, but the only way to HODL is on the base layer.

We call that Bitcoin IOU.

Why do you care so much about something you clearly don’t use? Liquid is never going to be adopted by the plebs. It’s mainly going to be a utility for institutions. I know where I stand and where every one of my sats is.

Even institutions just need to own real #bitcoin not alternatives… If they cannot because of accounting problem, they would rather buy ETF not liquid even tho they are both IOU. Why? At least ETF would have strict regulations applied rather than liquid.

Thank you for moving on next phase. As far as I know, Adam Back claims that plebs will need Liquid because of lack of Bitcoin's scaliability. By the way, why not Bitcoin for institutions? I worry about Bitcoin becoming the past gold. Only few held their own physical gold, because it has physical limitation. I believe you know what EO6102 and Nixon shock are. Liquid reminds me these. I'm not talking about fractional reserve system. And also Liquid is fragile. The more Liquid grown the more return for compromising Liquid. More distributed Liquid Fed is not an answer. I believe that we MUST find the real solution.