I'm sure 99% SCs will use 1:1 conversion rate and no new SCBTC will be generated ... you will still have your bitcoins, but few will be locked in "fast transfer" sidechain ... you will have some locked in "exchage" sidechain ... and some in your private business sidechains (not public sidechains)
You may be right. I was just thinking through various possibilities that side chains presents, such as whether they pose a risk to bitcoin, which I still think they may do.
Once this is enabled any side chain can be implemented without permission, of any kind whatsoever. Is it a bit naive perhaps to think that only a chain composed of locked bitcoins can exist?
Why don't we clone ethereum or counter party and simply run it centralised as a fast transfer side chain off bitcoin? We can give ourselves 50% of the ether initially and let the next 50% come from locked coins. A pre side mine if you like. As soon as a decent number of coins are locked into our chain we can just cash out. Or simply vary the number of SCBTC given per locked BTC so the first adopters get more of the pie.