Quote from: cypherdoc on November 09, 2014, 08:25:24 PM

Quote from: NewLiberty on November 09, 2014, 08:19:34 PM

It may be time to throw ~~a new~~ another risk into the mix for consideration.
An economic attack. Lets call this one the side coin peg in a fiat hole.

If there is a peg and scBTC and BTC have the same price in fiat in the minds of people. What happens when we use altcoin economics for the classic pump scenario.
This is where you use a third asset to do a circular round trip.

For example:
Say I have 10 BTC and they are worth 100 each, I convert to scBTC, then sell the scBTC for $100USD each, then buy more BTC with the $1000, but there were no sellers so maybe I pay 101 each. No problem, I will be able to sell the scBTC at 101 now too, so I do it and do this repeatedly.

In this scheme, there will be only BTC buying with the fiat at exchanges. No BTC is sold to the market. Only scBTC is sold to the market but people believe the notion of the peg so they pay the same for them as they would for BTC (because after all they can be redeemed for BTC with only a 100 block delay in spend-ability).

Endgame is there are a lot of the scBTC created, reducing BTC liquidity and pumping the BTC fiat price... until it unwinds.

There is no peg.
There is no spoon.

i've already went thru that one early on in the 200 pgs +. but i lol'd at the name Cheesy

reminded me of a billiard shot.

but i here ya and i expect you to be trolled hard as i was for that one.

True, apologies for taking some of your well deserved heat from this. Cheesy

I went for the meme-combo of billiards, and square peg round hole to resurrect this one because I didn't think it was adequately resolved.
And the recently revisited topic of the misuse of economic terms in the new whitepaper was brought up. That is bound to create more confusion than it resolves.