i'm missing something here.
why can't the scBTC develop an independent value in USD on their own on an exchange? and if that value starts going up relative to the BTC value b/c the SC turns out to be better functionally, then why wouldn't every BTC owner be forced to transfer their BTC over to scBTC along with a migration of direct mining hashpower to the SC? if the SC is better, the difference in value btwn BTC and scBTC can't be arbitraged away.
the end result being a destroyed Bitcoin and a "new" Sidechain dominance.
Why "forced" to transfer?
Nobody is forced. But if BTC owners could sell their BTC for $400 (say) and scBTC for $425, then arbitragers would naturally buy BTC, convert it to scBTC and sell it, making $25 (or the opposite). So the price will never diverge significantly.
forced b/c the SC has developed a better functionality that the market prefers.
the arbitrage works in theory except for this confirmation and contest period of waiting. that delay of a day or 2 could have unpredictable effects on pricing. maximal slippage.