Could use some help with a game theory question I haven't seen discussed in #bitcoin posts/podcasts. It has to do with what I refer to as fiat sats - fake bitcoin held on fiat rails (think ETFs, treasury company equities, etc.).
Looking long term, I see bitcoin dismantling fiat. Inevitably. But in the near/mid term, I can easily imagine bitcoin being viewed as a threat and coming under assault by a dying fiat system. In that timeline, we have to survive 6102 attacks; Operations: Chokepoint N.0; attacks on self custody, etc... In such a scenario, does it make sense to have some fiat sats as insulation? If for no other reason, holding fiat sats diverts attention from one's real stack and allows obscuring those coins from a hostile tradfi regime. This gives individuals the breathing room to wait out a dying fiat system without potentially doxing their UTXOs. Face it, BTC circular economies are promising, but interacting with the Leviathan is unavoidable if one is to buy a house, pay for medical bills, or pay tuition.
This approach seems to me an effective way to be antifragile. This also explains why some OGs have been selling massive amounts of bitcoin. If you are going to be a multibillionaire regardless, doesn't it make sense - much as it pains me to say this - to sell half your stack? In so doing, a massive holder essentially locks in extraordinary wealth in both the fiat world AND the BTC world and plays both sides of the war to come. This assures that regardless of what timeline plays out over the next decade or two, you and your family are set.
I know the goal is to never have to sell your bitcoin, but I do see this as a scenario that rarely gets fully gamed out. I'd imagine maybe 10% of a person's sats being kept in the sanctioned sandboxes of brokerage accounts, 401Ks, or whatever else, with the remainder essentially airgapped from prying fiat eyes in deep cold storage.
Another way of putting it is keeping some fraction of your hard earned value in Ceasar's currency, while the family jewels are buried out back. Thoughts?
#asknostr
