The AI Winter Bull Case for Bitcoin:
1 Private Equity spends billions building massive data centers
2 AI demand cools; the bubble pops
3 Miners buy the distressed facilities for pennies on the dollar
Result: Wall St. unwittingly subsidizes the next era of Bitcoin hashrate
@samczsun i.e. You don’t need one single risk model, but the system so people can bet / pay the insurance premium in a capital efficient way
Big numbers will figure it out
@samczsun Not an expert in cat bonds either but I believe in capital markets and letting them figuring it out
It’s probably possible to “model” risk with history, other security measures…
It would only work with long track record, big honeypots, but that’s probably a good 80-20
@samczsun To clarify: accepting a certain loss in advance is useful to ensure white hats can get legal and certain access to the typical “keep 10% and we won’t sue”
@samczsun Agree re Seal enforcing accountability
Re TVL != treasury, 2 options;
- this insurance might look like real world catastrophe insurance?
- as a user, at some point you are fine accepting beforehand you can lose a % of the principal for the peace of mind of never losing 100%
@smiliebg@mfts0 A matter of when (and how frequently) you predetermine it.
Traditional buses do it once and maybe review every some years
This could be done daily, hourly, or in real-time (other customers are going this way, you are in the way, walk 5 mins and hop in)