As an MSTR shareholder I personally don’t care at all about proof of reserves because I think it gives a false sense of confidence. It’s theatre imo.
Discussion
Then we’re just back to trust…not verify.
No. It means we need more robust verification. Not go back to trust. Proof of reserves sucks.
Why does proof of reserves suck?
Because you can’t account for the liabilities
That’s an extra level of fraud. Let’s get the first step, first.
What good is the first step without the second step?
It makes the fraud more egregious.
(1) here is the bitcoin … you can see it is all there.
(2) I am going to take a step to compromise the bitcoin that is on the chain by collateralizing it as debt to do something different.
Step 1 is a duh step…why WOULDN’T he do it? It only derisks his strategy which would benefit his shareholders. It removes counterparty risk with Coinbase and Fidelity doing things with his btc that MSTR shareholders do not approve of.
Step 2 without explicit disclosure is likely illegal and would completely betray the trust of anyone who gives him the benefit of the doubt that he ISN’T actively undermining the bitcoin market.
I don’t understand the resistance. Bitcoiners should hold other Bitcoin accountable to the beneficial attributes of Bitcoin the technology. The verfiability of Bitcoin on the blockchain means I can expect that MSTR would provide proof of reserves.
The fact that they don’t - and the best argument being there are other mechanisms for them to cheat don’t doesn’t matter - is very disheartening. I expect you, nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a , nostr:npub1s5yq6wadwrxde4lhfs56gn64hwzuhnfa6r9mj476r5s4hkunzgzqrs6q7z , nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe and any and all others who have an audience with Saylor to push him to do the thing that a real bitcoin company would do … provide proof of reserves.
MSTR now holds ~3 years of global bitcoin issuance! Lots of funny business is possible just within their stack.
I thought one of the benefits of bitcoin is that everything is verifiable. With that comes the ability to claim proof of reserves. With no proof of reserves, aren’t we opening the door paper bitcoin?
Everything that happens on chain is verifiable yeah. But you can’t account for anything happening off chain.