541–550 of 1001 posts
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Is this the kind of solution where you aren't actually using the blockchain, and are just ending up trusting a 3rd party that acts like a bank but is not regulated?
The majority of people don't want to touch the blockchain.
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If people want to say “I’m a bitcoin fanboy” to justify it that’d be one thing, but there’s always this insinuation that any day it’s going to find its killer use case that isn’t already solved better by a centralized system instead of only existing to buy in hopes of the price goes up
For one, a bitcoin wallet can't be seized by fiat by any 3-letter agency of any country. A fair amount of it is speculative, but unlike a pure-speculative ponzi scheme it's rooted in some appreciation of intrinsic value.
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Weird how the price went to 48k on fake news, with the potential to go even higher until revealed to be fake, but only 47k on the real news?
I think a lot of people didn't buy the "hacked" explanation for the tweet that went out. Much more likely to have been an early release.
That fake news cleaned up a lot of leveraged bets up and down.
In the hypothetical case that a Bitcoin ETF gets hacked and its wallet(s) emptied, what happens? Is it any different from, say, a gold ETF having its physical gold stolen?
You would hope they have good security practises + purchase insurance. But I have a feeling like it will take an incident like the one you describe to happen first before that becomes mandatory.
Expect a shitstorm in case of hack (or lost keys) with these clowns.
Looks like these are the 11 tickers? Bitwise (BITB) ARK Invest/21Shares (ARKB) Invesco Galaxy Bitcoin ETF (BTCO) iShares Bitcoin Trust (IBIT) VanEck Bitcoin Trust (HODL) Franklin Bitcoin ETF (EZBC) Fidelity Wise Origin Bitcoin Trust (FBTC) WisdomTree Bitcoin Trust (BTCW) Valkyrie Bitcoin Fund (BRRR) Hashdex Bitcoin Futures ETF (DEFI) Grayscale Bitcoin Trust (GBTC)
I wonder what happens when an unregulated market that can be easily manipulated is connected to a 'normal' stock exchange through instruments like Bitcoin ETF.
I can't help thinking that Bitcoin ETFs could mark "Peak Bitcoin". When lots of people are trading it at their high street broker in their regular account, Bitcoin becomes just a number in a box - a crypto currency without crypto - with nothing underlying it.
My prediction is that Bitcoin will become fully institutionalized within twenty years, to the point that the “Bitcoin” held by investors are entirely disconnected from the theoretical blockchain. A similar thing happened with stocks. Not so long ago they used to be physical pieces of paper. You could trade shares peer-to-peer and even anonymously by handing over the share certificate to someone in person. For dividen…
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This is a valid concern, the actual value of BTC and ETF might diverge wildly. Never a better time to actually own some
If they diverge, an arbitrage opportunity will appear which market participants will jump on.
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You sign a message with your private key. This has been solved since day 1 of bitcoin's existence.
You can prove presence of assets, you can't prove absence of liabilities, and you can't audit the balance sheet without seeing both sides.
If we ignore that:
Dumbest version: You give everyone a list of all the liabilities. They make sure they are in there themselves. Anyone left out isn't entitled to the assets in an insolvency, so there is an incentive to check.
This isn't very efficient, giving everyone the whole list. But make a hash tree with each node carrying a hash and the sum of liabilities below it. Show each user their log2() sized proof. Much more efficient.
This leaks information about the distribution of ownership. Replace the values with pedersen commitment (and range proofs on their sums), and only open the top and bottom ones.
There is a fine writeup on the subject here: https://web.archive.org/web/20170928054354/https://iwilcox.m...
(Archive.org link because Zak died a couple years ago stomach cancer at age 40 due to an undetected chronic H. pylori infection, and his website didn't out survive him for long)