I will have a video about this. It’s a complete inversion of the reality of why gold failed and we ended up on a fiat standard.
Everyone makes the very big error of thinking that it was no self custody of small transactions that led to issuing endless paper gold and debt backed by nothing. This is false. It was because gold sucks at BIG transactions and banks, merchants, businesses, land purchasers, international political entities, and everyone else who controlled the capital structures of the world, stopped taking settlement of gold and lost all monetary assurances.
Also, this section:
“It'll start with tx fees gng through the roof as banks, govts and big businesses start settling onchain.
All normies will have to deposit their btc in the banks, as all small utxo (ie. 99% of population's stash will become dust utxo, and self custody on L1 will become a luxury only top 0.0001% could afford)”
- is an absurd exaggeration of even the worst case scenario when it comes to fees. There would be a hierarchy based on how much value you were protecting, and even at $500 fees per standard TX most middle class would be able to secure their savings and/retirement very easily if risk was rising. Normal people have spent literally all last week losing or closing with multi thousand dollar losses or fees to exit positions or move their retirements to safety. Bitcoin in the worst case would give them such an unbelievably greater degree of security and sovereignty in that scenario that there’s virtually no way the extended effects of its attributes could create the same conditions as gold.
What it really means is that on chain ends up largely for retirements and savings protection, channels or pooled transaction L2s are for wage and important payments and provenance, L3 and custodians are for fun features and low value daily payments. And this explicitly means that all of the largest and most important value is easy to protect, and the stuff at risk is explicitly low value.
Bitcoin and gold scale in completely opposite ways. Gold and precious metals work great in small transactions and is complete trash for huge transactions. Bitcoin on-chain is uneconomical for small transactions but incomparable for large transactions and settlement.
This is not the threat it’s made out to be. And I think it’s because of how few people understand gold and why it failed.
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