The ultimate proof of reserves only exists with spot bitcoin or in-kind redeption:
when the custodian allows 24x7x365 FULL withdrawl of all bitcoin into self custody
✅ proof is in the policy, no need for any other *proof*
Discussion
agreed, i still think proof of reserves will become the standard for public companies with bitcoin treasuries
Maybe it will but I don't think it's wise. Not wise for security of the btc, for the investors, for the employees, and not even wise for us "not your keys, not your coins" humbly stacking privacy-advocating plebs. But maybe that's the way it'll go.
Zero Knowledge proofs. Saylor was correct that doxxing every address is IRL dangerous, and it's all moot anyway if you self custody.
Disagree, it's not enough. Just because there is enough to process the first 50% of withdrawals says nothing about whether the next 50% exists.
Sure, they then would "freeze withdrawls" during the run, which is the same as lying/faking their *proof of reserves* - ie hiding liabilities.
Leaving themselves open to withdrawls ungaurded - to me is a purer signal to the market that they could cover.
I mean, anything's better than nothing I guess! "We don't promise to honor withdrawals in less than 1 month" would be pretty bad. Some hedge funds do stuff like that.