EthFinance

On the /r/ethfinance daily, very long discussion about BTC’s future security budget, the likelihood of the BTC community accepting tail issuance, and whether transaction fees could ever be enough to reward the miners appropriately.

What I don’t see mentioned anywhere is the possibility of all BTC migrating onto ETH as wrapped tokens and just continuing to trade in perpetuity, taking advantage of PoS security while Bitcoin mainnet could even be shut down.

I know this will irk some maxis who believe that Ethereum is centralized or some other FUD, but is there any technical reason why this can’t be a reasonable endgame for BTC?

Probably nothing

https://www.bitdegree.org/crypto/news/coinbase-introduces-cbbtc-wrapped-bitcoin-on-ethereum-and-base

PhD in aviation ∩ climate science | Aviator, diver, ETH maxi, nexialist | Host of /diving /ethfinance /eth-staker /geopolitics /science /singapore /thomas

EVM. ETHFinance. Home Staker. Believer in decentralisation. 

I see this move as a vampire attack on Bitcoin. And with enough of these, I don’t think it matters much what happens to the actual Bitcoin chain and miners.

Large trusted CEX like Coinbase have an economic incentive to become the main counterparties for buyers and sellers of BTC over Ethereum. Just like stablecoin issuers, but this time it’s BTC instead of USD.

And once a critical mass of the BTC supply has been wrapped and lives on Ethereum as IOUs, it becomes risky for those still holding BTC on the canonical chain not to send to Coinbase and receive their own IOU tokens, because they run the risk of being left behind on a dying chain. If the security budget collapse happens, then it’ll be too late to wrap.

So this initiative by Coinbase could actually have a snowball effect over time. I think it’s pretty clever

Coinbase announced this basically the day that wBTC announced the Justin Sun affiliation and potential custody changes, right? 

Obviously this was prepared well before that, but still the moment was right to go public with that idea. 

But I am not sure this is really changing BTCs general strategy and tbh I hope the rock will find a way to increase fees so that the chain survivces...

Great move by Coinbase, and the timing couldn't be better 🫡

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Transaction smoothing approach mentioned my Tim roughgarden may be a better option politically than tail issuance. I think changing the stable supply may be a non starter.

Read the article, interesting do basically increasing the use of btc indirectly 
Might be something Thomas