mike on Nostr: GM This was a thought experiment. The comments I got back mostly missed the points I ...
GM
This was a thought experiment. The comments I got back mostly missed the points I was trying to make. So I'd like to give the "punch line" this morning.
The below example describes exactly how banks work. Except in a transparent blockchain which is not obfuscated, that internal mechanism is exposed.
The below shows that the money you borrow from a bank is the money you gave the bank in the first place.
This is hypothetical, but also real. For Bitcoin run honestly, this shouldn't be possible, but by obfuscating the transactions and showing your deposit as "paper Bitcoin" this can happen for Bitcoin as well.
The point I was hoping people would see is when the loan term ends and the bank returns your Bitcoin they are required to obtain your Bitcoin from somebody else, because they have already sold you your Bitcoin, which you bought from the fiat they loaned you.
This is a Ponzi
Hypothetical situation:
I deposit Bitcoin to borrow fiat against. I can’t see my deposited Bitcoin because it is mixed and sent to the relevant institution loaning me the fiat.
I then use that fiat to buy more Bitcoin.
The lending institution sell me more Bitcoin.
The Bitcoin I buy from them, I self custody.
When I inspect the Bitcoin I’ve bought, it turns out to be my original Bitcoin deposited in the institution in the first place.
Published at
2025-06-05 07:27:05Event JSON
{
"id": "7ae37e2c008b7e7caa5b51ae386097f4984f332899761439b9f2153428538446",
"pubkey": "e83b66a8ed2d37c07d1abea6e1b000a15549c69508fa4c5875556d52b0526c2b",
"created_at": 1749108425,
"kind": 1,
"tags": [
[
"e",
"38acd9736df1a33a9abda1646b301166c223230876befd48677673b68ef70c1f",
"",
"mention"
],
[
"r",
"wss://relay.getalby.com/v1"
],
[
"r",
"wss://relay.damus.io/"
],
[
"r",
"wss://filter.nostr.wine/"
],
[
"r",
"wss://nortis.nostr1.com/"
]
],
"content": "GM\n\nThis was a thought experiment. The comments I got back mostly missed the points I was trying to make. So I'd like to give the \"punch line\" this morning.\n\nThe below example describes exactly how banks work. Except in a transparent blockchain which is not obfuscated, that internal mechanism is exposed.\n\nThe below shows that the money you borrow from a bank is the money you gave the bank in the first place.\n\nThis is hypothetical, but also real. For Bitcoin run honestly, this shouldn't be possible, but by obfuscating the transactions and showing your deposit as \"paper Bitcoin\" this can happen for Bitcoin as well.\n\nThe point I was hoping people would see is when the loan term ends and the bank returns your Bitcoin they are required to obtain your Bitcoin from somebody else, because they have already sold you your Bitcoin, which you bought from the fiat they loaned you.\n\nThis is a Ponzi\n\n\nnostr:nevent1qvzqqqqqqypzp6pmv65w6tfhcp73404xuxcqpg24f8rf2z86f3v824td22c9ymptqqsr3txewdklrge6n276zertxqgkds3ryvy8d0hafpnhvuak3mmsc8c0txqtj ",
"sig": "ead422ed38236762feb9162cad71028f2d0e4ae42c3bdb7f69d014ca3dfe0d4ad1071d4ca7ccc1ade07f7f673d8aff90cb1d36cc44fd4de2b0549673f9eebe6b"
}
