Nifty trick!

Unfortunately, it doesn't generalize to BTC / USD (or other fiat currency), which is probably the bigger exchange that most people use.

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The second issue is that BTC / ETH prices can change dramatically. Set your timer too long: and your opponent can use time to take advantage of the trade... only executing it when the BTC/ETH exchange floats towards their favor.

Because BTC / ETH prices vary dramatically on a day-to-day basis, "gaming" the exchange price is going to be trickier. With a traditional exchange, you either market order (always get a price, immediately), or limit-order (get the price as soon as the threshold is reached).

> Unfortunately, it doesn't generalize to BTC / USD (or other fiat currency)

The fact that it's impossible to implement trustless atomic swaps in USD is a USD problem, not a Bitcoin problem.

You asked how Bitcoin avoids litigation, you were given an example, and you dismissed it because it doesn't work on fiat. The reason Bitcoin had to be invented is precisely because these things aren't possible in fiat.

This is what stablecoins are for, such as USDT, TUSD, etc.

I'm sure you'll bring up the point that you still need exchanges for USD -> stablecoin. You can alternatively use crypto ATMs, or trade with someone you know.

Stablecoins rely on the trust of the company to float the value of the USD or whatever currency with the coin that is generated. USDT is owned and operated by a single, foreign company that hasn't had an audit yet and has no insurance protections what-so-ever. I'm not going to trust them with my money or business.

This about the worst of all cases: they pretend to be a blockchain, but they're really just a standard old bank operating without any regulatory behavior what-so-ever.

There is significant competition growing against Tether. The following three stablecoins have $500M+ in circulation all backed by US regulated companies: USDC, TUSD, and GUSD.

> all backed by US regulated companies

That means they aren't actually cryptocoins. That means those are banks, which are backed by the court system and the ability to sue those banks for your money if they mess up.

> That means they aren't actually cryptocoins.

That's not the argument here. I'm showing you that there are legitimate alternatives to USDT.

Trading with someone you know ruins the point of a trustless system.

If that person ends up duping you, then you need to sue them (litigation)

There’s no reality in which the scam commonly known as Tether is a stablecoin.