Proof of reserves is a good start, but there can still be paper Bitcoin if we don't also prove liabilities right? 🤔
Discussion
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Liabilities cannot be proven.
PoR is necessary and insufficient.
Can you ELI5… why can’t you “prove” liabilities as well?
Correct, but proof of assets without proof of liabilities would have still made scandals like FTX and Prime Trust come out much sooner before they further escalated.
Prevent paper ₿itcoin, move sats to self custody often🤙🏻
No.
Do you have the bitcoin you claim to have? And, what are your liabilities are two separate issues.
Yes, a company could go bankrupt and you wouldn’t know id they don’t post their liabilities….but knowing their stack is legit is a good start.
For example, FTX had 0 Bitcoin and were supposed to have 53k
Doesn’t paper 📄 #btc defeat the purpose of magic 🪄 internet money 💰
Side quests can print paper ledgers to verify what’s changed monthly
Or run scripts on it but that would require the dorks to care enough to educate the masses on how to do so.
Otherwise it’s just another way of maintaining a false sense of security of illusion of control
Maybe I’m going off topic but this seems odd