jfeldis on Nostr: Yes it course we can know if we receive a coin that has a covenant impairment. And I ...
Yes it course we can know if we receive a coin that has a covenant impairment. And I also understand the potential benefits..That is not the concern.
The problem is that covenants will hurt fungibility by creating classes of coins that have or do not have covenants. This can be much easier to enforce than a multisig scheme. Ultimately exchanges, custodian's and merchants can be forced to only accept coin with approved covenants.. while the captured institutions will have he power to add approved conenants. I can foresee price fragmentation between coins with or without various convenient impairments. Ultimately you will have no choice but to use the approved coins for nearly transactions.
If Bitcoin loses it's special qualities as an uncensorable bearer asset, it i
Will be no different that USDC, JP Morgan coin, or a CBDC, and therefore no more valuable.
The problem is that covenants will hurt fungibility by creating classes of coins that have or do not have covenants. This can be much easier to enforce than a multisig scheme. Ultimately exchanges, custodian's and merchants can be forced to only accept coin with approved covenants.. while the captured institutions will have he power to add approved conenants. I can foresee price fragmentation between coins with or without various convenient impairments. Ultimately you will have no choice but to use the approved coins for nearly transactions.
If Bitcoin loses it's special qualities as an uncensorable bearer asset, it i
Will be no different that USDC, JP Morgan coin, or a CBDC, and therefore no more valuable.