Replying to Avatar StackSats.IO

I think the banks will offer bitcoin yield products too, but that wasn’t the point of disagreement.

Saif’s point was that without a BTC printer they will fail because the yield has to come from the fixed supply of 21M. There is no way around that.

You can’t just say “well the banks have the backing of the Government”. That doesn’t actually mean anything because no Government controls the Bitcoin ledger; the banks will be forced into default and no amount of IOUs will be accepted in lieu of UTXOs.

The fiat financial system isn’t going anywhere soon but Bitcoin has very specific rules and they apply for you, me, Saif, Saylor, Jamie Dimon, JPMC, and the US Gov all alike.

Sure some will touch the stove, but they’re going to get burned.
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BottleTeams 1y ago

The only way I see anyone being able to offer yield on corn is if the company/bank/govt issuing the yield has control of a sustainable energy source and are able to mine the corn for cheaper than the value of the corn.

That's a very high hurdle rate and I don't think any of the current public miners are achieving that now. It's possible but very difficult. A bank in metro New York definitely is not creating that value. It's going to be some stranded energy source in a desolate area generating electricity for basically free.

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