Dave86ch

We need a protocol for scarcity as a base layer because every other form of currency will always be degraded and replaced.

Stablecoins are being used to export U.S. debt and cannot scale on 'blockchain solutions' unless Bitcoin is used as the settlement layer. This was pointed out by Ardoino from Tether—now among the top holders of U.S. debt—in one of his recent interviews. As I said, if you study the technology, it's crystal clear—and that's exactly where the arbitrage lies, not the speculation.

If you don't understand the technology, you'll rely solely on the price to determine the value of the underlying asset. As a result, you'll keep revisiting the topic, expressing disappointment and claiming it's just speculation because the asset has no real value. My suggestion is to start thinking of Bitcoin as a protocol. This is a humble suggestion, as I read every post here and notice that we too often fall into circular discussions that add little value to the pursuit of truth.

I'm not talking about stories (which, by the way, shape society). What I'm saying is that to truly understand what's going on, you need to make the effort to learn how the technology works and how to develop with this tool. Circular discussions on pages like "it's speculation" vs. "it's not speculation" feel a bit shallow to me—especially considering that the same people developing this have already grappled with the "speculation" aspect of the equation a long time ago.

Bitcoin isn't a rock; it's a protocol. Its growth depends on the growth of products built on top of it. Ardoino (Tether, the seventh-largest holder of US debt) states that Lightning is the only solution to scale stablecoins. Discussions tend to be circular until one starts digging into the technology itself and how its influence is growing. Bitcoin's underlying value lies in the growing technologies being built on it as a Layer 1. This is where value, adoption, and products emerge. It offers scarcity, transactions, timestamps, privacy (via Lightning channels), and portability (I can access a terminal on the other side of the world and access my wealth). It enables communication, leverages untapped energy sources, supports grid stabilization, and is not controlled by any single entity.

Related to my last comment. Ardoino on Lightning private channels and scaling stablecoins.

Thank you. An interesting take on stablecoins, Taproot Assets, and Lightning. https://njump.me/naddr1qqxnzde5xs6rjv3kxcer2vp3qgsgym5l39dcr26p53fzy69jf8ng6qk2s9sgmm6k9fynem34llzuwkgrqsqqqa289cdz6w It's fairly long, so I'll post an AI-generated summary. Stablecoins have demonstrated clear product-market fit by addressing the demand for dollar-denominated digital assets with efficient payment rails, despite criticisms from Bitcoiners about reinforcing dollar hegemony and relying on unnecessary blockchain infrastructure. While existing stablecoin models on non-Bitcoin blockchains face scalability limitations and centralization risks, Taproot Assets (TA) on Bitcoin’s Lightning Network offer a technically superior alternative by enabling atomic swaps and multi-issuer settlement without relying on a single dominant entity like Tether. Key Arguments and Evolution Current Stablecoin Limitations: Scalability Issues: Blockchains like Ethereum and Tron struggle with transaction throughput, leading to high fees and centralized "layer 2" workarounds that negate decentralization benefits. Market Dynamics: The dominance of Tether (80% market share) creates systemic risk, as users must trust a single issuer, mirroring centralized banking flaws. Taproot Assets and Lightning Network: Atomic Settlement: TA enables trustless routing of stablecoins over Lightning, bypassing centralized intermediaries and allowing interoperability between different issuers. Economic Incentives: Unlike fee-driven models on other chains, TA’s Bitcoin-based settlement leverages Lightning’s efficiency, reducing costs as adoption grows. Transition to eCash: Bearer Instruments: eCash could replace TA by offering private, cash-like stablecoins settled over Lightning, eliminating on-chain issuance costs while retaining atomic swaps. Hyperbitcoinization Pathway: As payment rails standardize around Lightning, switching from fiat-denominated eCash to Bitcoin becomes frictionless, accelerating Bitcoin’s adoption as global money. Addressing Bitcoiners’ Concerns Dollar Hegemony: While TA/eCash stablecoins initially use fiat, they create infrastructure that incentivizes eventual Bitcoin adoption by bitcoinizing payment rails. Blockchain Necessity: Bitcoin’s role is limited to neutral settlement, avoiding the "decentralization theater" of other chains. TA and eCash focus on pragmatic utility rather than ideological purity. Conclusion Stablecoins on Taproot Assets and Lightning represent a transitional phase, combining Bitcoin’s sound money with practical fiat interoperability. This setup not only addresses current stablecoin flaws but also lays the groundwork for a seamless shift to a Bitcoin-centric financial system as users gravitate toward superior monetary properties.

What is your take on a long-term perspective—say, 10 years?

It's difficult not to feel bullish about the opportunities that digital gold unlocks. Many interesting projects are emerging on top of this sovereign layer, especially as governments begin to open up and permit these innovations to thrive.

Almost one-third of my net worth.

Bitcoin

META

Let's be honest—if you're simply responsible, the trade-off is incredibly advantageous. You own and carry your wealth anywhere in the world by memorizing just 12 words. You can access it from any Bash terminal.

Bitcoin is simply a superior technology—portable, verifiable, and many open-source projects that thrives on top of it.

one year later

As an open-source project and native digital money, Bitcoin will always provide a solution, especially when the shit hits the fan. CoinJoins and other tools already exist to help users evade state control. I'm studying Lightning, and it's crazy how powerful it is and the level of privacy it unlocks.

Europe, HW wallet. Indeed, I also wrote an article (linked at the end) on UTXOs at the end of the article. In my opinion, holding Bitcoin in self-custody is essential.

I bought a small amount at 3,000, but I gained real confidence when it retraced to 20,000 because that’s when I started digging deeper into the topic. I still buy at this price because I understand that it's a monetary technology built on a protocol developed and maintained by countless smart people. The network's expansion—both physically and in terms of mindshare—is broad enough to give it resilience and traction. Yesterday, while reading Durant's books on history, I realized how new land creates new trade routes, and trade routes, in turn, demand new monetary systems. It’s fascinating how interconnected these things are. I also understand that Europe isn’t heading in the right direction, and owning a bearer asset with a strong network—difficult to seize and highly portable—can be not just an investment but also a defensive strategy in a changing world.

I wrote an article on the reasoning behind my long-term holdings. https://dscompounding.com/2025/03/13/esc/

Bitcoin clearly benefits from the Lollapalooza effect.

Mr 100 is buying.

It has happened many times throughout history, and history just rhymes. We now confront an inflection point characteristic of transitional eras: The Pax maintained by a dominant empire diminishes The monetary order undergoes structural transformation New frontiers (digital, rather than territorial) emerge Strategically minded individuals exploit these shifts The internet and digital technologies have fundamentally reconfigured power dynamics, enabling individuals to attain financial independence and autonomy unbound by traditional geographic or political constraints. For the technically adept, decentralized systems now offer tools to secure economic sovereignty. This does not necessarily imply surpassing nation-states in wealth accumulation, but rather achieving sufficient resilience to voice opinions without incurring financial reprisal.

+1 Now they're feeling cognitive dissonance and need to vent in this thread.