I think KYC is a far bigger potential issue for fungibility. Imagine there being 100 million ordinals.. still an absolute drop in the ocean.

I’m no particular fan of them but just think the market will decide whether they are worth the block space or not over time.

I don't understand the problem. To the code, they are fungible. If people want to hoard some, it just drives up the value of the remaining sats in circulation.

Is it possible that it could eventually move down a layer or two depending on what is eventually built? I've always believed Bitcoin would eat the rest of crypto and their products/services would eventually make its way into the BTC ecosystem but will be built down the stack.

Breez and other building SDK’s to easy non- custodial. Fedi, Fedimint and others building layer 3 solutions that interface with layer one and 2 moving some transaction volume off of lightning and also making it more secure, private, and scaleable.

Right, but a lack of regulation is one of the only appeals Bitcoin actually has. Once it's regulated its dead as it is now controlled by the "bad guys".

Just look at every other shitcoins attempt at regulation and you will see abuse.

If they make it illegal people will be forced to buy, sell, and transact outside of kyc services. This is why building circular economies and supporting/using services like bisq, robosats, peach, and hodlhodl is so important.

I don’t know that you can make any other txn look like a collaborative txn, BUT we can make all or most txn look like a collaborative txn. If a jurisdiction makes collaborative txns illegal then people can move to a friendlier jurisdiction. But enforcing these these types of laws is impractical at best.

In Roman’s case I don’t think they arrested him because he was using bitcoin fog to mixi his coins, but because authorities think he was laundering money.

Taproot adoption should help with this?

I think what's most likely is that the governments will ban accepting BTC if it didn't come from KYC. So all the people currently coinjoining for privacy will be locked out of legally spending, and their mixed coins will not be accepted at fiat offramps. They are locked into the circular economy, for good or bad.

I think all bitcoiners should brace themselves mentally for this possibility on a very personal level. The assumption must be that no-one will be there for you if this happens. The principles of privacy and self-sovereignty are meaningful enough to go to prison for if push comes to shove.

A couple decades. But it's still the least speculative of all crypto. All other coins and NFTs are exclusively speculation. Maybe they are used in real-world applications (hbar, etc), but people still hold them for NGU.

people who are buying Bitcoin right now for NGU will soon sell it and rally into alt coins.

Agreed, but it's mostly about convenience. Many people pay MORE for convenience. That's basically modern society.

But even if it's cheaper, if it's even slightly difficult to use, adoption will be very limited.

I'm among the most tech savvy people I know personally. I've tried lightning many times in the last couple years, and I kept giving up on it. Not until the last few months has it become easy enough to use. And I've never used Bitcoin to pay for something besides filling my lightning wallet.

I think a big problem is that "crypto" is a universe. If you think you have to understand it to do anything, you'll get frustrated and not do anything (or worse).

In-person Bitcoin-only, lightning-focused does work. I've seen people teach someone by just getting them to download WoS, then sending them Sats. In minutes.

Cbdc and fedcoin will probably be easier than Bitcoin currently is, but not any easier than lightning will be.

Also, the West doesn't have to lead adoption.

Also, people might adopt Bitcoin out of desperation to get out of their inflationary currency, not caring about how to spend it (so, store of value).

Fascinating read. I'll have to watch the video. I would like to find some *valid* critique of this, as they flippantly dismiss criticism ( maybe justifiably).

Every time I read about another crypto (Solana, algorand, monero, hedera, others) I really want to know how and if Bitcoin could implement those technologies.

As for privacy, I think lightning is generally "private enough". I know there was an article about it around here a few weeks ago.

Fedimint privacy comes at a trade-off. You lost custody.

Seems like with any L2 you lose custody, decentralization, and/or final settlement. All core value props of bitcoin.

Someone on Nostr got me taking about #Monero . I'm amazed by everything about Bitcoin, and I was stunned again to learn about the genius of privacy in Monero. Seriously, if you've loved learning about the history and tech and cryptography of Bitcoin, check it out. It's like they found ways to make everything invisible to everybody, spooky.

I do wonder if those features could be implemented in Bitcoin.

is there any proof that this is working? cash app specifically? and can you ever lower your theshold?

Don't you think the fees will go up on the primary layer, since almost all transactions will happen on layers 2 and 3? Even if on chain fees go up quite a lot, it won't have much impact on lightning fees, as the lightning nodes compete for lower fees.

I think it will take a way longer time for this to become an issue than you might think. Like a margin of decades and decades.