#asknostr
Someone smart I know was arguing against #Bitcoin and said this. Not sure how to respond. Seems like a credible threat. Help me out..
"Lol...I'll tell you how bailouts will eventually happen even on a bitcoin standard.
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)
All normies now transact on L2's where banks provide their IoU's. Initially banks will happily provide proof of reserves to lure to in and make you trust them, but eventually they'll stop doing so, as they start inflating the IoU's.
At one point, the IoU's floating around will be too much and ppl will start questioning the banks, but even then what could you do, since you can't self custody on L1 due to high tx fees.
Even if ppl start withdrawing from banks somehow, the banks will stop withdrawals pretty quickly and central banks / govts instead of taking action on the banks for inflating the IoU's, will simply make fractional reserve legal for BTC too.
So now for each 1 BTC, banks would be allowed to issue 10 BTC IoU's on L2, that too legally (which they would already be doing for a long time, and even after getting caught it will just become a legal practice instead)
Welcome back to Gold 2.0 system, where Fiat was the L2 for gold, and we all know how. that turned out.
But you do you I guess, and continue to believe there'll be no bailouts, censorship, draconian level surveillance and taxation on L2."
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Pran ⚡
npub1ta…muhvx
2025-04-12 10:27:13
Author Public Key
npub1ta7csvs3ldkexvytxc6lpcvfu84xdf0usmkm996djgy6ssfh8whqnmuhvxSeen on
wss://relay.nostr.bandPublished at
2025-04-12 10:27:13Event JSON
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"content": "#asknostr\n \nSomeone smart I know was arguing against #Bitcoin and said this. Not sure how to respond. Seems like a credible threat. Help me out.. \n\n\n\"Lol...I'll tell you how bailouts will eventually happen even on a bitcoin standard.\n\nIt'll start with tx fees gng through the roof as banks, govts and big businesses start settling onchain.\nAll 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)\n\nAll normies now transact on L2's where banks provide their IoU's. Initially banks will happily provide proof of reserves to lure to in and make you trust them, but eventually they'll stop doing so, as they start inflating the IoU's.\nAt one point, the IoU's floating around will be too much and ppl will start questioning the banks, but even then what could you do, since you can't self custody on L1 due to high tx fees.\n\nEven if ppl start withdrawing from banks somehow, the banks will stop withdrawals pretty quickly and central banks / govts instead of taking action on the banks for inflating the IoU's, will simply make fractional reserve legal for BTC too.\nSo now for each 1 BTC, banks would be allowed to issue 10 BTC IoU's on L2, that too legally (which they would already be doing for a long time, and even after getting caught it will just become a legal practice instead)\n\nWelcome back to Gold 2.0 system, where Fiat was the L2 for gold, and we all know how. that turned out.\n\nBut you do you I guess, and continue to believe there'll be no bailouts, censorship, draconian level surveillance and taxation on L2.\"\n\nnostr:nprofile1qqsqj3hzes0tgpr30sz6q5526cxs2v80zzrv36se28kjhkztqv96v6gpz4mhxue69uhkummnw3ezummcw3ezuer9wchsw4h3xl nostr:nprofile1qqs80hcy8khtjsvn2k2zsdmqd97lrsp66nhw3hn4n3m8a6zr3clqcaqpzemhxue69uhk2er9dchxummnw3ezumrpdejz7qgcwaehxw309ahx7um5wghxvmt59emkj73wvf5h5tcpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsukyv66 nostr:nprofile1qqsyf8qsun6yp7jq2x6rj2l4cq3ezzrrl86ukxqj5u2hdsuupfm4suqpzpmhxue69uhkumewwd68ytnrwghszrnhwden5te0dehhxtnvdakz7qg7waehxw309ahx7um5wgkhqatz9emk2mrvdaexgetj9ehx2ap02d8vdn\nnostr:nprofile1qqsqq5xnfr3c4865qsh5g387ps6urkv5z7ksfvnxssfsjm6geqrguagpz4mhxue69uhkummnw3ezummcw3ezuer9wchsp6tjg9 nostr:nprofile1qqstnem9g6aqv3tw6vqaneftcj06frns56lj9q470gdww228vysz8hqpzdmhxue69uhkzmr8duh82arcduhx7mn9qy2hwumn8ghj7etyv4hzumn0wd68ytnvv9hxgqgdwaehxw309ahx7uewd3hkcam28zl nostr:nprofile1qqs044j5pj8jl54pdgjapkpdm9wnhttcjr2rt5tfppy2pfma9zp6g3cpyemhxue69uhkummnw3ez6un9d3shjtnsdp5kc6tsvdexjum5d9skumewvdhk6tcpzdmhxue69uhhqatjwpkx2urpvuhx2ue0qythwumn8ghj7un9d3shjtnswf5k6ctv9ehx2ap07g6h76 nostr:nprofile1qqsggcc8dz9qnmq399n7kp2yu79fazxy3ag8ztpea4y3lu4klgqe46qpzamhxue69uhhyetvv9ujuurjd9kkzmpwdejhgtcpzdmhxue69uhhqatjwpkx2urpvuhx2ue0qy2hwumn8ghj7un9d3shjtnyv9kh2uewd9hj7q977u4 nostr:nprofile1qqsxu35yyt0mwjjh8pcz4zprhxegz69t4wr9t74vk6zne58wzh0waycpz9mhxue69uhkummnw3ezuamfdejj7qg4waehxw309ahx7um5wghx77r5wghxgetk9uq3jamnwvaz7tmswfjk66t4d5h8qunfd4skctnwv46z7kjtacz nostr:nprofile1qqsfuy5na42z8u86rnxlednts36lnv43fqu7awqzlgcsds6c054c2cspzemhxue69uhhyetvv9ujum3sx5mhytnrd36kyqgswaehxw309ahx7um5wghxcctwvsq3jamnwvaz7tmjv4kxz7fwdehhxarj9e5xzcmg9eex2x853z3 nostr:nprofile1qqsqqqqp98w99wyhfjend38qal4th55uvuzdkv2hv0gaqqj04c7a0xspz4mhxue69uhkummnw3ezummcw3ezuer9wchsmkkld0 nostr:nprofile1qqs07z553jd0m74m38fzfvspudm32rfhgu673nxgahc0guwcescsjmspzpmhxue69uhkummnw3ezumt0d5hszrnhwden5te0dehhxtnvdakz7qgawaehxw309ahx7um5wghxy6t5vdhkjmn9wgh8xmmrd9skctc75yqay nostr:nprofile1qqsy7nuzs3nf3lmx4e06n7k5crzwk7pr47c8l204f65azhcjz7hfdnqpzemhxw309a6k6cnjv4kzumr0vdskcw358q6rsqg4waehxw309ajkgetw9ehx7um5wghxcctwvsq3samnwvaz7tmjv4kxz7fwwdhx7un59eek7cmfv9kqalf9qj",
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