I suspect that lightning fees (with people holding self custodial) will be the true risk free rate (see Breez) of the new system.
Which (as fees rise) in layer 1, will push more people to the interoperability layer of lightning, (and provide through supply and demand) a market for fees that is bounded by free market competition and protocols like Fedimint which would have lower fees.
But the real crux of your question comes down to the world we live in is one of financialization and many people will try to play that same game and people will fall for it (offering higher fees by not being fully reserved) - which will then blow up (with no one to save them)
Still lots of investments and funding of the free market. Our fund is a perfect example where we believe we can beat a 45% IRR (#Bitcoin rate of return in USD) by investing in entrepreneurs building the new system and as a byproduct…..building their balance sheets in bitcoin. (By offering 10x value to users)
The choice will always come down to an investor’s belief that they can beat the risk free rate by investing in something that outperforms it. (Against the risk of that investment)
Jeff Booth /
npub1s0…6eyhe
2024-08-20 19:35:52
in reply to nevent1q…w3dl
Author Public Key
npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhePublished at
2024-08-20 19:35:52Event JSON
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"content": "I suspect that lightning fees (with people holding self custodial) will be the true risk free rate (see Breez) of the new system. \nWhich (as fees rise) in layer 1, will push more people to the interoperability layer of lightning, (and provide through supply and demand) a market for fees that is bounded by free market competition and protocols like Fedimint which would have lower fees. \nBut the real crux of your question comes down to the world we live in is one of financialization and many people will try to play that same game and people will fall for it (offering higher fees by not being fully reserved) - which will then blow up (with no one to save them)\n\nStill lots of investments and funding of the free market. Our fund is a perfect example where we believe we can beat a 45% IRR (#Bitcoin rate of return in USD) by investing in entrepreneurs building the new system and as a byproduct…..building their balance sheets in bitcoin. (By offering 10x value to users) \nThe choice will always come down to an investor’s belief that they can beat the risk free rate by investing in something that outperforms it. (Against the risk of that investment)",
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