Thread by @BitcoinMormon

Thoughts on @Stacks as it relates to #bitcoin:

Proof of transfer (PoX): Stacks sees #bitcoin as the necessary ultimate proof of work, and doesn't care to duplicate it or use human-perverted PoS. Stacks uses $BTC itself as the proof of work, the skin in the game to mine blocks.

Stacks miners pay high fees to bitcoin miners. As part of the mining process, @Stacks miners compete to mine Stacks blocks by spending more bitcoin and paying high fees to bitcoin miners to anchor Stacks data on #bitcoin timechain. This helps support #bitcoin miner fee market.

@Stacks blockchain anchors/timestamps it's data onto the #bitcoin blockchain. Stacks sees #bitcoin as the most immutable data structure on earth and uses it. In fact, Stacks, by design, can't exist without bitcoin. Think about those incentives. Stacks is a friend of #bitcoin.

Stacks holders can lock up $STX, the native gas token in Stacking contracts and earn REAL $BTC ON BITCOIN BLOCKCHAIN, the best money ever to exist. APY is variable depending on the demand the network, but currently 10-12% APY. Your Stacks wallet is also a $BTC wallet.

@Stacks is a smart contract platform. It competes with Ethereum. It's language, Clarity is non-Turing-complete, decidable, uncompiled, making it superior to solidity in terms of security and transparency.

@Stacks was SEC approved. Ethereum and pretty much every other unregistered security offering 💩coin... not so much. Hold those at your own risk. This mitigates regulatory risk, compared to Ethereum and all other smart contract platforms.

Stacks developers continue to work on native #bitcoin -functional smart contracts. This is a goal of the project, and some functionality incl. catamaran trustless $BTC swaps already exist.

Devs looking into integrating Lightning network, utilize all of #bitcoin functionality.

Some @Stacks folks share same self-sovereign ethic as bitcoiners. Running your own node is apparently doable.

Challenges: Lots of work on scaling to do. The unique mining economics and the technical plans (subnets and app-chains) sound promising.

Cut-throat environment. Lots of competition out there.

My investment thesis: Stacks will take a chunk of ETH market cap in upcoming years based on security, fees, regulatory, being bitcoin-adjacent. Stacks is currently $2.5B, ETH $520B. Ethereum moving to human corruptible PoS. If @Stacks goes to just $50B, ETH to zero, I'm okay👌.

Don't forget, I'll get actual #bitcoin yield to stack the $STX token which partially mitigates the risk.

A few projects on Stacks that IMHO have value: @ArkadikoFinance and @alexgoBtc . In Arkadiko, you can take an $STX overcollateralized USDA (fiat stablecoin) self-repaying (via $BTC yield) loan. As long as the USD value of BTC yield exceeds payback, it's free fiat (==> $BTC)

Alex is in testing but will offer a spectrum of DeFi functions including an innovative no-liquidation collateralized lending function. Smart quants building this platform.

Who am I? A bitcoin-centrist. Everything will revolve around #bitcoin in the future. My net worth is almost exclusively #bitcoin. I hold my private keys. I don't trade. I have enough #bitcoin to not have to work.

I dabble in #bitcoin-adjacent and bitcoin-yielding investments like @Stacks and @SovrynBTC with about 1% of my wealth.

I like Liquid. Love the folks at Blockstream, ultra-low time preference. I think a lot of functionality will probably be built on 3rd or 4th layers on #bitcoin / LN. I think Stacks economic incentives (see above) and its other unique features make it an interesting speculation.

The @Stacks hate from a tiny fraction of scared hyperdefensive, but fellow bitcoiners is just a little bit crazy if you ask me. I get arguing the tech and econ differences, but some of it is just overly emotional. A tiny % of every group is a little crazy. It's okay.

To the extent @Stacks keeps trying to find bridges to #bitcoin and building useful tools for bitcoiners, and continues to yield $BTC, I think it's gonna do just fine. Don't lower your standards and get dirty slinging mud. Just build.

To my fellow @Stacks stackers, if you're just trading a bunch of 💩, and don't have the majority of your long term savings in #bitcoin, you need to read The Bitcoin Standard and start to understand monetary history. Modern techies have a huge monetary economics blind spot.

I am retired and only have enough time in the day to study bitcoin, LN, Stacks and a few protocols on Stacks to any reasonable degree. The #bitcoin rabbit hole is very very deep. But I think bitcoin is THE MOST IMPORTANT thing going on in generations. #Priorities