Replying to Avatar LogicallyMinded

The arguments I can see against #BIP300 so far:

1) #Drivechain will strongly be associated with the #Bitcoin brand. Something bad happening in a drivechain (hack, scam) would reflect poorly on the #BTC brand.

2) Drivechains could siphon liquidity from the base layer. A drivechain’s token may attract more liquidity than BTC.

3) Drivechains could introduce regulatory risks. If a drivechain isn’t decentralized or is deemed non-compliant, it could help authorities to make the case for regulating Bitcoin.

4) Drivechains haven’t been properly reviewed and tested yet. There is no rush to deploy them.

#Blockchain #Crypto
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Cyber Seagull 2y ago

2) Liquidity being taken from bitcoin L1

This is already happening. Tether is a downward pressure on bitcoin. Eth and other altcoins are siphoning hash that could be in bitcoin. DC allows those technologies to be on L2 .

DC is OPT-IN. A successful DC L2 means there is a consumer need for it, meeting that need is a good thing. To argue you don't want DC because it might be too good is like saying other people should not be allowed to try on new pants.

Also, L1 will always be there because anything on L2 supports L1 through fees which support the network L1

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