building systems  of subnetworks from the bitcoin blockchain is not difficult. bitcoin has the UTXO locking mechanism.. the issue. which also is a big issue for all tokens(IOU's) of subnetworks is the pegging side of the subnetwork

its for those sub networks to ensure that the locked coin of a mainnet which the subnetworks use as reference is actually a subnetwork of rule and protocol to correlate/peg/match and not be able to be abused/depegged.

take some flaws:
1. subnetworks that use multisig. may have a federated group of individuals that do a 2of 4 multisig on the subnetwork
however users AB sign funds of payment with a 500sat fee paying ABCD users fairly and evenly the remainder
yet users CD may make a tx of paying just CD with a 600sat fee. by with CD win a confirm when settling

2. subnetwork multisig partners co-sign all their subnetwork payments that match their token value presumption of a 1:1000 rate

however when seeing 100,000 tokens in the GUI thinking its 100sat owed to them upon settling.
the wallets of the subnetwork have been updated to change the peg to 1:100,000
where by the low level clients still see they have 100,000 tokens at GUI but are signing that they only get 1sat upon settling
and cant see it because the phone wallet GUI does not have any subnetwork consensus or peer review audit of internal payments of the subnetwork

most people in 20's are on minimum wage
$10/hour * 40 *4 = $1600
not $3k

so no a normal 20-30yo where 80% are on low wage dont have that spare $1400 of a $3k a month salary to save $1k

but yes if you earn $4k a month $2k is easy..
but so is if you earn $5k a month saving $3k
(where do you stop)

here is the thing
although statistics say the "median" income is 684 a week = 2736 a month
which equates to an ability to save $1k

whats not realised is
20% earn $7275k a month while 80% earn $1.6k a month

7275   
7275   
1600   
1600   
1600   
1600   
1600   
1600   
1600   
1600            
2735 average      

the new administrator of FTX (mr ray) is still investigating the inner workings of ftx. and trying to find all assets.

but so far Mr ray only has hands on about $1b of funds out of a possible $7-8b hole

there is the LedgerX platform which is solvent and can be sold.

as well
the 48 hours of filing bankruptcy. SBF and another employee moved out alot of FTT token and some other assets to a custody of the bahama authorities(and maybe his own wallet)

these FTT tokens are still being traded on other exchanges so they still have value. and SBF was 'hoping' it would be a nice collateral for the bahama authorities to hold as a possible repayment amount to victims should FTT go up in price enough to cover losses (of the FTX.com(international) customers)

though i doubt the ledgerX value + FTT bahama held tokens will amount to the missing $6-7b

forget using the market price or the market history of prices to find the "bottom"

the market is the speculative premium of sentiment that sits above the bottom

the source of finding a periodic bottom is in the methods of sourcing bitcoin at the cheapest way on the planet.
this is OTC and mining(most efficient industrial scale mining on the planet).

work out that price and then you have an idea
these efficient industrial mining sources of the lowest cost bitcoin this year do not play to daily market price whims. they set their average cost over a 6-24month contract of electric and mining hardware

so cost out the mining by a 6-124 month scales  to get a better underlying value where everyone on the planet would refuse to sell below(at a loss)

enjoy

good hint
these efficient industrial scale miners have electric purchase contracts of 6month-24 months. meaning they are still rated at the 2020-21 low rates. we all know electric in 2022 is raised so future contracts that are being renewed will come at a higher cost.
higher cost=higher base value which then pushes the speculative premium of he market sentiment above the value, up

remember one defining feature that puts sway towards value of one coin vs another

PoW has underlying costs for coin creation. this means coins are not "printed"(minted) for free

this puts an underlying value on pow coins
the most efficient cheapest way to acquire coins does not sit on the markets. but in the realms of OTC private trade and mining. with mining by the most efficient methods on the planet being the base.

calculating the cost over a 6-12 month scale of the most efficient industrial scale mining in the planet gives you the base cost. which sets the underlying value everyone on the planet will refuse to sell below

bitcoin has the best cost support for highest value of all coins. (warning unless bitcoin breaks and everyone jumps away from bitcoin mining pools)

other coins are more speculative with lower cost value where the market price above their bases are more sentimental rather than fundamental

here is the thing though
when it comes to any transaction. whether its a donation, a goods purchase, a loan, or a deposit into a membership/service

a transaction is just a transaction.. it then has to rely on evidence of the purpose of the transaction that then proves how to treat the funds received by the recipient(its why the taxman asks you to keep records)

this is why politicians, celebrities and tax avoiders do not just take funds. they draw up paperwork (of favoured terms) to show the purpose of the funds transfer, even when its paper wrote and then received by same person
(its no surprise SBF lacked paperwork of many transfers, but ensured he had paperwork for the 'personal loan' to himself)

this is also why exchanges need to categorically state that funds received by users are deposits and the service is acting as just a custodian/fund manager of user funds. where it has to state that funds remain the property of the customer (and include all the liability disclosures and disclaimers)

else.... not-your-key-not-your-coin

if there was a dispute. it can only truly be deemed theft, in a court. you still need to prove you are owed coins legally rather then presume they were always yours by right.

this is where exchanges need some honour and ethics and basic trust/loyalty alongside their clear user agreements of their customers, where they do the correct thing from the start without having to end up in court.


there are many many exchanges that do not state the coins handed to an exchange remain the customers property. thus the business can treat them as a donation

so always read the terms of service/user agreement. to find out how funds and customers will be treated

a regulated exchange by default has a assumed(but not guaranteed) 'customer property unless otherwise stated' prospective.
but do not take that as fully legal right. as you still need to prove that you gave those coins over for the purpose of the business to serve you as a custodian/fund manager. and it was not you just doing an airdrop/giveaway/donation/payment for something

for unregulated exchanges. its a free-for-all, again you need to prove purpose of the funds transfer to the business

always check the user agreement terms for how your funds will be treated. some exchanges may surprise you.

there are some important words.. such as "deposit" instead of "payment" address

EG
two people enter a gym. both wearing exercise clothing. there has to be a way to determine which person is an employee/trainer. vs which one is just a member/customer. where by different rules apply. such as a employment policy vs a customer policy. that changes how those two people are treated.
which is where 'uniforms'/name badges. employment contracts, membership agreements come into play

i think the hair in the tail that everyone is missing is that there are only 1.5b usernames of twitter and its a snipe piece of false media to suggest that elon is deleting everyone unless they perpetually use twitter often

BAIL DENIED - staying in jail until Feb 8th
https://www.youtube.com/watch?v=DefoS4hlJQ4

10 years ago
a mobile fast food vendor never accepted debit cards because the hassle of setting up a merchant account was not worth it.(also fee's were not worth it)

now
the same mobile food vendor only accepts debit cards because it does not trust its employee's to handle the cash(pocketing cash was a cost not worth continuing)

many exchanges already have trading pairs of

USD-BTC
EUR-BTC
GBP-BTC

if all btc is removed from an exchange. an exchange can still function. by becoming a forex

USD-EUR
USD-GBP
EUR-GBP

its not that difficult for them to offer fiat currency swaps

just saying

yes it seems biased.
but if we wave a magic wand and rationalise the bias..

(in light of FTX)
it could mean that the reserves for customer funds be segregated away from the exchange CEO control and prevented from any chance of co-mingling with the exchange services own corporate funds/liabilities.. and an an extreme put into a independent insurance trust reserve that an exchange CEO can make daily requests to refiill a hot wallet from the insurance trust cold wallet. thus not allowing a exchange ceo  just grabbing at the funds at his whim

.. but
then we run into the argument "what if the insurance trust then grabs at those funds"
and so on and so on.
(in light of coinbases lack of disclosing its vaults of greyscale reserves, nor even letting greyscale know that coinbase is taking care of funds)

at one point customers need to "trust" the service they use is looking after their funds and the service itself finds itself accountable for any shinanigans. rather than having funds shifted outside the service.

politicians do not have masters in economics. nor experience of banking. politicians mostly just care about their 4 year contract of being elected to represent citizens interests. which inevitably end up being the interests more so of the citizens banks and employers
so politicians are ending up as puppets of the corporate world.

corporations lobby and bribe politicians.
regulators are not former politicians or active politicians. they are actually regulators managed by ex bank managers.

again its mostly the corporate end pushing the policies of what politicians then sign into law

when it comes to quantifying the price of fixxil fuel for container ships. vs the cost per unit of product in a container.

you are talking about individual products of dollars vs the transport costr of micro pennies

you can store hundreds OF THOUSANDS of microchips in one 20ft container
the shipping cost for that one container is less than $1k
meaning the transport per unit is penny rated not dollar rated

you find that its the FOREX rate of trade deals that affect prices more. not fuel cost

but if fossil fuel was dropped
you would still find that the amount of battery store to drive the ships engines would take up less space than a fuel tank,

they can run more solar and wind energy generation than required.
so again its not a big deal
dont expect things to move back to wooden boats filled with slaves manning he sails or rowing the ores when the winds die down, just to transport what amounts to a quarter of a shipping container of goods at a time

inmate number 14372 also known as scam bankman fraud. hired the legal council that also worked for ghislaine maxwell (epstiens female side pimp).
things didnt go well for her.
she tried to plead stupidity and ignorance. and now she is locked up

its weird but no surprise that he hired a team that are not financial/technology experts of exchange/bankruptcy expertise and instead hired a celebrity defender team of celebrities whom supposedly claim mental or visual issues as cause for defence

bitcoin proves digitisation does not mean requirement of middleman authorisation  to permit payment

however with fiat (paper or digital) a paperless version of fiat means the disappearance of direct payment without middleman permission.

on the flip side. to dowse the flames of conspiracy nuts
a CBDC in the multiple forms available to review today, including china. are not where citizens are required to seek permission or individual supervision by politicians.
they are however managed by commercial payment services (corporate banks) who would do the permission and monitoring. and report suspicious activity to "government"

in regards to the $1b loan

many politicians and celebrities do "personal loans" with favoured terms of repayment of just 10cents every decade or have terms where the loan is to be written off upon death/after X years
by being the loan giver and recipient. writing your own terms means you give favour to yourself to not need to repay

this is done for LEGAL tax avoidance.
yep a loan is not taxable. so instead of doing a payment of income to oneself they would give a personal loan to oneself to not have to pay tax on that money received.
its very well known tax loophole which even politicians use

as for SBF current personal holdings
he spent over $300m on real estate for his colleagues and family

it appears the bahamas authorities froze SBF personal bank accounts over there. and us agencies froze accounts in the US. thus SBF only had access to about $100k + bank of his parents.
SBF could make small "expense" requests to bahamas authorities to release some funds to pay needed expenses. (lawyers+rents)
(having funds in bahamas allows SBF a bit of freedom/escapism from personal debt. which explains the "hack" theft after the bankruptcy. as explained at the 3rd hour of my previous post)

as for lifestyle stuff
its why he went on a "speaking tour" of interviews this month to get paid

 .. but right now in jail he only has access to the commissary account to buy noodles and potato chips

or there is
https://www.youtube.com/watch?v=1ObdFaUL7nc

some highlights as i watch
17:00 - SBF made a loan to himself of $1billion
by being both the issuer and the recipient, those funds (currently still investigating) have not been found to have then been passed to ftx.us ftx.com accounts
there were numerous "personal loans"

18:25 - alemeda operation was dependant on the use of customer funds of FTX.com(international)

19:15 FTX did not have significant risk management systems. there were virtually no internal controls or separations of funds whatsoever

22:53 FTX.us ftx.com and alemeda shared the same wallet. the hotwallet of those brands and also customers of those brands were co-mingled funds with no distinction of separation of capital

23:50 FTX.us ftx.com and alemeda as platforms were all stored/hosted on the same amazon AWS services with the hotwallet of co-mingled funds on same said amazon aws hosted service

27:28 the administrator(new ceo) has only been able to secure $1b of assets so far to cover .us and .com customers. 'it will take time to secure all assets

1:13:58 SBF parents gave legal advice and received payments which the committee is deeming to classify parents as employment

1:35:35 the main trigger/cause of the FTX collapse was the unlimited ability by those in control of the co-mingled funds to borrow, take or deploy those funds for their personal use. such as margin(gambling) or spending of funds(real estate & lifestyle)

3:00:43 after filing bankruptcy. employees (SBF & wang) moved funds out of FTX and they were not put into other FTX based accounts.

(ill take a break here and watch more and edit later)

"We cannot pay another human unless there is a corporation involved."

that is probably one of the better(best) ways to word the risks of a cashless society.

i have seen people shout "privacy" or shout "senator/minister watches my every mcdonalds purchases"

but the simple explanation of the requirement of corporate middleman authorisation and no longer any direct payment via sole control between individuals. is the better explanation i have seen lately

not so fast.....

spain is looking for developers and economics groups to develop a potential CBDC in the future for spain

they are seeking groups to provide proposals

in short they are not proposing a CBDC which they wish to trial
they are offering grants for companies to propose and do R&D to develop a CBDC


this is like the liquid/lightning devs that helped R&D hyperledger, all over again.. but this time just for spain

a reserves audit is different to what you describe

binance shows the bitcoin addresses it has coin control over
also shows the user balance total

the numbers align. to show that binance does have funds on hand to cover balance

however separate from that people are questioning a morals of ethics of "but would he use those reserves to give to customers"

which is a whole different story.. not about reserves or proof of reserves but about desire/demand to decide to honour requests

if you have a credit card balance of $500
and you have a bank savings account of $505

it shows you have the capacity/reserves to pay the credit card bill when it comes due

but.. separate from that simple audit..
it does not prove IF you will decide to pay a debt at the end of the month or not or use your $505 on other novelty items.

---

here is what i would like to see
a signed and notarised statement from CEO&CFO of exchanges, with a court clerk as witness that say something like:

"these X bitcoin addresses serve the sole purpose of funding reserves of customers balances. should these reserve funds be used for any other purpose i plead pre-emptively guilty of fraud and accept any and all penalties sentenced to me in court. should funds be used outside of meeting customers withdrawal balance requests"