Even in Liquid there is a risk of hidden inflation, although less likely than in Monero because it is simpler, but still possible.
In that case, someone could create L-BTC and withdraw them through pegout, breaking the 1-1 ratio.
Would you use Liquid for your life savings?
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I don't use liquid at all ๐
Yes, I would.
Mainnet is also perpetually vulnerable to inflation bugs, **as has already happened in the past**.
It won't help my life savings when Bitcoin's price comes crashing down to a big fat **zero** if another inflation bug hits (and to be clear, obviously I prefer if that never happens, but it *is* a perpetual risk).
So my precious savings are not 100% safe onchain either.
With Liquid (setting aside that it's more centralized and federated etc, the argument was about risk from confidential transactions being a source of an inflation bug) I could transact more privately, an appealing property if one's moving large amounts, to keep it out of prying eyes.
Since neither option is 100% safe, and since I classify the added risk from confidential transactions as *low*, personally I find the tradeoff more than acceptable.
In fact, this is not a hypothetical for me. I've used Liquid like that for years.