Quote from: cypherdoc on November 01, 2014, 04:44:11 PM

Quote from: Odalv on November 01, 2014, 04:40:42 PM

Quote from: cypherdoc on November 01, 2014, 04:27:17 PM

Quote from: Odalv on November 01, 2014, 04:08:46 PM

Quote from: cypherdoc on November 01, 2014, 04:05:07 PM

Quote from: Kupsi on November 01, 2014, 04:00:32 PM

Quote from: cypherdoc on November 01, 2014, 03:58:23 PM

Quote from: Kupsi on November 01, 2014, 03:57:05 PM

Quote from: cypherdoc on November 01, 2014, 03:55:25 PM

Quote from: Kupsi on November 01, 2014, 03:52:23 PM

Quote from: cypherdoc on November 01, 2014, 03:50:31 PM

let me put it in simple terms w/o numbers.

you're taking a chunk of coin off a very secure ledger and moving them over to a less secure ledger. it's too be expected those coins moved will be worth less b/c they are now less secure.

b/c of arbitrage, you can expect the moved coin to drag down the price of the not moved coin to a lower equilibrium.

But why will you move the coins in the first place???

for experimentation, speculation, stupidity, pump and dump, who knows? we know it will occur.

But why will you sell them for a lower price instead of transfering them back to BTC?

you don't have to do anything. the arb bots will take care of it for you.

What??? Someone have to sell the cheap coins?

do you seriously think that when a SC is first established on Day 1, 1 scBTC = 1 BTC in fiat terms?. it can't be b/c of newness, less security, chance of failure, etc. with time, as it proves itself, the arb bots will equilibrate the price but at a lower level b/c of the always present risk of failure of the SC. the SC is not Bitcoin.

"newness, less security, chance of failure, etc." is compensated with "increased utility" so yes on Day 1, 1 scBTC = 1 BTC in is fiat terms and forever until SC crash.

another way to address your point is that a "theoretical" will never trump a "known".

we know MM is less secure than direct mining. we don't know that a new untested "innovation" will counter weigh the value of less security.

MM is only one type of SC (it is good only for world wide use). It is possible to use "oracle" for mining or ... group of people at an island can use private SC with fixed difficulity (b/c they know each others) ... they can use their virtual currency, and this currency can be exchanged 1:1 bitcoin. They do not have to pay transaction fees if they agree and use only 1 confirmation (every 2 min).

any SC that employs security any less than MM is even less secure. therefore, its scBTC will be valued even less. the feedback thru arb bots will be to drag down BTC even more.

Alot of scBTC will be only valuable inside community what creates(and secure) them. But inside this community it will have value exactly 1 BTC. No matter what is your value. It is win : win strategy
a) they do not spam bitcoin network.
b) they do not pay transaction fees.

And it can be more secure than Bitcoin -> b/c those members can met in personally and build safe "oracle (timestamp server)" what will sign every transaction.