Quote from: molecular on November 01, 2014, 06:10:14 PM

Quote from: Adrian-x on November 01, 2014, 04:10:52 PM

Quote from: inca on November 01, 2014, 03:22:56 PM

Quote from: cypherdoc on November 01, 2014, 03:20:01 PM

Quote from: molecular on November 01, 2014, 03:17:54 PM

Quote from: cypherdoc on November 01, 2014, 02:59:14 PM

simple theory question for all SC proponents. so simple in fact what am i missing?

we have 13M BTC @ around $325. SC comes along and lets say 3M BTC --> scBTC (just for illustration). we know that the price of scBTC has to be lower given MM, newness, being unproven, risk of failure, etc. let's say price starts off @ $100.

why don't arb bots circle back around and drive BTC price down to say $250-270 or whatever the equilibrium is btwn BTC and scBTC, which we know is lower? multiply this by 1000 SC's.

Btc price would go up first, because lower monetary base in the proven old bitcoin block chain (13m -> 10m)

no, the BTC have just been transformed to lower value units, scBTC, b/c they have been moved to a less secure, unproven ledger. this will drag down the BTC price to an equilibrium price btwn the two.

In order for the arb to work, the coins have to move back to the bitcoin blockchain.

The first app is a mixing service for stolen coins it is likely there will be arb opportunities and likely Bitcoin price will drop.

Why? People will just move dirty BTC to mixSCBTC, stirr well, and then move them back to mainchain, no?

The mix is better if new virgin players pull the BTC out. So sell the SC token at a discount in fiat. Then the speculators to take advantage of the arb and now you have clean BTC to pull out (exchange)