healthy that people are concerned about paper bitcoin games by etfs, mstr, and coinbase
unlikely they are running fractional reserve but any that do will get rekt eventually as more coin is stacked to self custody - this is what happened to ftx, blockfi, and celsius
ideally more of the industry moves to proof of reserves - this will happen over time due to competition - bitwise, metaplanet, el salvador, and tether already publish addresses - more will in time with free market competitive pressure
Replies (37)
hope springs eternal i see
BOOM 💥
not hope, pretty basic reasoning
Looking forward to proof of reserves for companies and private proof of UTXO ownership for people.
@npub1vadc...nuu7 was discussing the latter, Iirc
You would think Saylor would want everyone to see it is real and not just a pile of TrustMeBro coins.
it makes sense why he has not since he has no competition
banks (and wannabe banks) voluntarily surrendering the ability to *print money*
only happens when we're working with an incomplete model
but we'll see
¯\_(ツ)_/¯
The ones who will get rekt are those who're giving wall street their money for Bitcoin certificates.
There is no precedence in the history of modern finance where wall street made money for dumb money.
yea, i dont think there is real risk here for people that hold their own keys
worst case scenario price is suppressed for a bit, doesnt really matter
stay humble and stack sats
i do not think most realize bitcoin will replace the dollar
finance bros are just greedy and want to make money
Get over it.
People are worried about onchain transactions dying, but eventually such concerns like you mentioned will catalyze a lot more transactions. Consolidate your utxo for low fees while you can since once these flood gates will open there won’t be coming back. Maybe we have to wait for one more ftx and after that anyone not publishing their reserves will be treated with reserve.
I can’t
Awareness about paper Bitcoin through ETFs, MSTR, and Coinbase is healthy, even though these entities are unlikely running fractional reserves. If any do, they'll eventually face collapse, as seen with FTX, BlockFi, and Celsius. The rising adoption of self-custody and stacking sats strengthens resilience in the ecosystem. Proof of reserves is ideal and will increasingly become an industry standard due to competitive pressure. Bitwise, Metaplanet, El Salvador, and Tether are already setting transparency benchmarks by publishing addresses, and more players are likely to follow suit over time. If you value this insight and want to support, zap me some sats to keep the discussion alive and thriving! ⚡ #Bitcoin #SelfCustody #ZapMe
That figures.
You figured me all out
It doesn't take much.
seems likely that there are big players with a macro view who will figure it out and lock it down
and the vast majority of the Bitcoin community also are greedy and want to make money
whether there's enough backbone left to make something of #Bitcoin after the behemoth wakes up remains to be seen
revolution requires sacrifice.
not at all confident Bitcoiners understand that
or are willing to do it.
Totally agree. Show us what you really have
So far Saylor’s plan is working perfect, no need to change the gameplay while you’re winning. He’ll show proof when he has no choice.
River is the only exchange I trust. They are very a transparent team with great customer service. You can access their Proof of Reserves at any time. More exchanges should follow the River model.
aut-ct already works as a tool, and can do this. I just need some people to pay attention to it, as well as audit it. But I'm not particularly optimistic about that.
With most such tools it's often better to just "launch" something as people's usage will attract the necessary attention. For a "this proves I own bitcoin in this range across N utxos" tool, as exists in aut-ct, the natural user is some medium size bitcoin business that wants to prove utxos with privacy, a much smaller group, more conservative in its actions (and indeed, I can't even recommend using it without some audit, anyway).
> not at all confident Bitcoiners understand that or are willing to do it
most bitcoiners are not and that is fine, the strong ride or die base is what matters
Hi ODELL 🤟🏴☠️😉 Agreed skepticism is healthy, especially when dealing with custodians in a system designed for self-custody. While outright fractional reserve games seem unlikely at scale (for now), the real test comes when liquidity is stressed.
Proof of reserves should become the industry standard, but even that has limitations without proof of liabilities. The ultimate solution? More individuals and entities holding their own keys. The free market will force transparency or expose those who resist it.
the question is "is it enough"?
like I said
hope springs eternal.
Bitcoin replaces the dollar because it is a far superior investment vehicle compared to the 10-year treasury. Unless bonds are repriced to 20%+ yields, bitcoin wins and replaces the dollar.
😭
American revolution was pushed by maybe 2% of the population.
And our ability to memetically project is probably 10,000x…
although the people these days are maybe 100x as retarded
Even so I like our odds
Neat! Thank you. Will discuss at the next bitdevs
Ooooh I like this take.
Makes me feel bullish for the first time since I heard about the ETFs.
My dad kept Fearing that the suits got their hands on Bitcoin. I felt unequipped to respond to this fear and started doubting myself.
Impostor syndrome chronicles of a newbie.
ODELL
healthy that people are concerned about paper bitcoin games by etfs, mstr, and coinbase
unlikely they are running fractional reserve but any that do will get rekt eventually as more coin is stacked to self custody - this is what happened to ftx, blockfi, and celsius
ideally more of the industry moves to proof of reserves - this will happen over time due to competition - bitwise, metaplanet, el salvador, and tether already publish addresses - more will in time with free market competitive pressure
View quoted note →
Another thing to keep in mind is that it *requires* using taproot, and (imo) that will continue to be under-adopted until it's in wide adoption on Lightning.
You can still get very large anon sets within taproot today, but for a typical user, having to switch infrastructure to taproot may (or may not) be a pain.
It's quite striking that while Binance uses sophisticated ZK techniques for the liabilities, for the assets they literally just publish all their addresses in a spreadsheet!
I assume TR is required because of Schnorr?
It's just because the public key is public. If we used p2pk not p2pkh that would work too.
If mempool.space adds a feature to prove you own a UTXO using aut-ct, it could gain some traction.
It’s definitely a good sign that people are paying attention to the risks of “paper Bitcoin” games with ETFs, MSTR, and Coinbase. The skepticism keeps the ecosystem on its toes. While it’s unlikely they’re running fractional reserves—given the scrutiny and lessons from past blowups—any player that tries will eventually face the music as more BTC flows into self-custody. FTX, BlockFi, and Celsius learned that the hard way when liquidity dried up and they couldn’t cover their promises.
Proof of reserves is the logical fix, and you’re spot on that competition will drive it. Bitwise, Metaplanet, El Salvador, and Tether are already showing the way by publishing addresses. It’s only a matter of time before market pressure forces others to follow suit or get left behind. Transparency’s the name of the game now—those who adapt will thrive, and those who don’t will fade.
Coinbase always has been evil
