BTC Sessions - TikTok Pumps Doge, $60M BTC Tokenized In June, Learn Coin Control EP078

Episode Date: July 8, 2020

SUPPORT THE SHOW: LEDN offers Bitcoin backed loans – Sign up and get $50 free https://bit.ly/3ebEFxJ Get Wasabi wallet and enjoy your privacy https://wasabiwallet.io/ MY ALL-ENCOMPASSING GUIDE TO GETTING STARTED WITH BITCOIN https://www.btcsessions.ca/post/how-to-buy-sell-and-use-bitcoin-in-canada Buy Bitcoin in Canada on Coinberry and get $20 after your first $50 purchase https://app.coinberry.com/invite/c5d52730857 Buy Bitcoin in Canada using Shakepay and get $10 for free after your first $100 purchase: https://shakepay.me/r/HUQFI60 Get the Ledger Backup Pack – Includes Ledger Nano X & S https://shop.ledger.com/products/ledger-backup-pack?r=faca NordVPN helps with your internet privacy – Get 70% off https://nordvpn.org/btcsessions If you value my work and would like to send me a tip, they are always appreciated! LIGHTNING tips: https://tippin.me/@BTCsessions Join my Telegram channel! https://t.me/btc_sessions SHOW RESOURCES: Dogecoin Pumps On TikTok Challenge https://markets.businessinsider.com/currencies/news/dogecoin-price-volumes-skyrocket-viral-tiktok-buying-spree-cryptocurrency-market-2020-7-1029377900# $60M of BTC tokenized on Ethereum in June alone https://www.coindesk.com/nearly-60m-in-bitcoin-moved-to-ethereum-in-june Coin Control: What is a UTXO? https://www.academy.btse.com/post/utxo-coin-control A new myNode update is out! Check out their website https://mynodebtc.com/ And my tutorial for how to set up your own https://www.youtube.com/watch?v=GMovZg_3ERs

Wasabi wallet and fairly private. What's up everyone? I'm Ben with the BTC sessions and this is your daily session. Before we dive in, I want to give a shout out to sponsors of the show, leaden.io. This is where you can use your Bitcoin for a variety of different services. I've been working with these guys for well over a year now and the first thing I ever used of theirs was their Bitcoin backed loans. So in my instance, I was in a pinch. I needed to get my hands on some dollars, but I didn't want to sell my Bitcoin for two reasons. Number one, that's a taxable event.

Number two was that I was where it was going to have to buy back at a higher price. So I was able to park my Bitcoin with Leden. I got a loan to my bank account within 24 hours. And when I paid that back, I got back all of my Bitcoin, the same amount of Bitcoin. Now, they do have a couple other offerings. They have their Bitcoin and USDC savings accounts. and they just up the interest rates on those to a maximum of 8.8% annually. And they've got their B2X offering, which allows you to effectively use the same Bitcoin

loan mechanism to buy more Bitcoin on the spot. More or less, it doubles your Bitcoin. So if you want to check them out, there is a link in these show notes down below. And if you click that link in opt to get a loan, they'll actually give you $50 worth of Bitcoin for free. So not too bad. Be sure to check them out. With that, let's dive into the news.

And I know this is a Bitcoin show, but obviously I was going to talk about Dogecoin today. So if you don't know why the hell I would be talking about Dogecoin, it's because of a viral TikTok challenge that basically saw its spike a ridiculous amount in a very short amount of time. Now this article is a tad late. What was this? Oh, God. Yeah, this article doesn't even really fully capture the price movements as of yet. But besides the fact, I'll just read a little bit from this business insider piece here. Dogecoin volumes spiked over the last two days amid a new TikTok trend aiming to get the meme-based cryptocurrency price

to $1. TikTok user James Galante began urging his followers to buy Dogecoin in June, claiming they could all get rich if enough viewers invested 25 bucks into the coin. Since then, one of his videos garnered more than 537,000 views, search interest skyrocketed, and the challenge began trending on Twitter, and the coin briefly hit the highest level since October of 2018. in quotes let's all get rich galante said in a july second video doge coin is practically worthless there are 800 million ticot users once it hits one dollar you'll have 10 grand tell everyone you know now volume spiked the price went up like crazy um and it's hilarious because of if you don't know the history of dogecoin of why it was created in the first place the creator of dogecoin the creator of dogecoin literally created it as a joke to show how stupid all of the shit coins that proliferating at the time were. It was basically a, hey, look, anybody can create a coin. And I'm going to create one based on this stupid Doge meme, which was a meme that was going around years ago. And it actually

caught on because of how stupid it was. I'm talking about the coin. And it actually garnered some support and like a diehard group of people that support it despite the fact that there's been no active development on it for years and the creator of it warned against people even bothering to buy it because again there's no active development on it um it's inflationary there's like there's really no reason to pick it up other than if it's just a stupid funny thing you wanted to do but uh yeah like i guess it's i i find it i i find it funny and it's nice that these people are only putting like 25 bucks at least i would hope they're only putting 25 bucks into it um i'm sure there's some idiots that put far more but this is literally a

pump and dump it's the guy said let's all put 25 dollars into this to pump the price and try to get it to go to one dollar because we'll all get rich it's a textbook pump and dump scheme because at the point when it hits whatever price somebody wants to sell. The whole point is that they want to sell it and then dump it on somebody else, right? Yeah, what else is there to say it? I mean, again, like previously, some Dogecoin fanatics actually sponsored a NASCAR

and got the Dogecoin logo put on it. There was some other crazy stuff that happened around Dogecoin. Elon Musk at one point said it might be his favorite cryptocurrency and claim to be the CEO of Doge. Of course there is none. But besides the fact, the whole thing is a giant joke. The fact that it's pumping again is a giant joke, but it will dump at some point. So please be cautious. I would at this point, given that it's in the news and I'm talking about it and it's on Business Insider, it's probably an indication that it's pretty close to the top of this particular bubble, but we'll see. I don't know. Maybe there'll be a whole

train of new idiots that dump some money into this, but whatever. Let's move on. Nearly 60 million dollars in Bitcoin has moved to Ethereum. And by move to Ethereum means it's been put in custody of somebody else and there's been tokens issued that are supposed to be pegged to Bitcoin that people now hold. So with that out of the way, let's just read a little bit of a little. little bit of this article from Zach Vol. Nearly $60 million worth of Bitcoin's moved to Ethereum during June according to data estimates from Dune Analytics. Rapp Bitcoin, the oldest token to the oldest tokenized Bitcoin protocol on Ethereum is responsible for roughly 75% of that growth after moving more than 4,800 Bitcoin to Ethereum last month. Demand has increased for using

Bitcoin in a variety of decentralized financial services as Ethereum continues. to be the most possible popular off-chain destination for Bitcoins. More specifically, yield farming and MakerDAO added tokenizing Bitcoin or tokenized Bitcoin as collateral. Their strong catalysts said Medio Demarko, hopefully I said that correctly, former associate at Deutsche Bank and co-founder of cryptocurrency research team Delphi Digital. The recent trend shouldn't come as a surprise and will probably continue, DeMarco told Coin Desk. It goes on to talk a little bit more about supply distribution across various pegged versions of Bitcoin. I want to touch on something here in regards to the counterparty risk

that is present. So Ethereum is no stranger to dumping loads of money into risky, relatively untested technologies. And one of the best throwbacks to this would have been the Dow in 2016, a decentralized autonomous organization where, depending on how much of it you owned, you could help and vote and dictate the holdings of this organization. And if you didn't like it, then you could cut a fork off into your own Dow and start dictating the direction of the holdings of that particular entity. Now, well, a fun idea in theory, in practice, it ended up terribly because as the first iteration of something like this, people funneled like $150 million into it. And at the time, that was a huge portion of the entire monetary base of Ethereum. What ended up

happening is somebody found a loophole. And by the way, they kept on saying code is law, code is law. Whatever we say in the documents don't matter. The code behind it is the hear-all and all of the law of this particular thing. And what ended up happening is somebody read the code, understood that there was a loophole where when splitting off to their own Dow, they could withdraw their own funds and then interrupt that process and then redo it. So essentially they'd be funneling whatever money they had initially put into the Dow out over and over again. which would be eating away at the underlying Ethereum that belonged to other people in the Dow. And so over time, he was able to, the individual was able to funnel out tens of millions of

dollars, which in the end resulted in the subsequent fork of Ethereum, where I would argue they gave up the illusion of immutability. And the subsequent creation of Ethereum Classic, which adhered to the original version of of Ethereum where the Dow hacker actually held all of the coins that were stolen. Their ethos was, hey, we shouldn't be undoing transactions because it ruins the whole point of a blockchain. Besides the fact, the lesson that was not learned there is if you put your money into a risky vehicle and something goes wrong, you lose your money. And the people that were using Ethereum at the time did not learn that lesson because they got to their money back with the fork of Ethereum that allowed the return of those funds to the users

that had placed them in the Dow. Well, now you've got an instance where you have individuals taking Bitcoin and plunking it into a system with third-party risk and playing around with tokenized Bitcoin, a token that's supposed to represent the Bitcoin that they deposited, with these risky kind of collateralized different loan mechanisms and all of these crazy DFI things that are happening, all of which is very, very new. And the difference here is the way that I see it anyways, if something goes wrong, Bitcoin's not going to fork to give those people their money back. And what I'm getting at is if the underlying.

asset itself, the Bitcoin that is held in third party custody is compromised. Those people are kind of shit out of luck. Bitcoin, there's no take-backsees. It's pretty much if you put your money somewhere that is in the custody of a third party, something goes wrong. You are, you're responsible for that. It was your prerogative to do so. Now, Bitcoins are very much used to this idea. And even in utilizing stuff that is somewhat risky, Bitcoiners know this. They accept those risks, I'd say, by and large, and are cautious with it. So you get something like liquid.

Yes, it is a representation of Bitcoin that is held somewhere. It's trust minimized, but there's still that counterparty risk in a way, shape, or form. Lightning, there are risks. with parking your Bitcoin in a lightning channel, although I'd say not as much as something like liquid, but it could be argued either way. Either way, people understand there are risks associated with these things when you're not dealing with holding your own keys and holding on-chain Bitcoin yourself specifically. And so they gauge for that and decide how much they're willing to put into these systems.

Ethereum I don't see as much of that ethos going around. are just willing to park money into whatever the fuck comes along because it's move fast and break things that's what I tend to see so again I agree with the quote here where it says the recent trend shouldn't come as a surprise and will probably continue I you better fucking believe it it will absolutely continue whether or not that's a good idea time will tell I'm guessing we'll see numerous failures in a lot of these different things whether it it be like a Bitcoin-specific protocol or this crazy shit happening on Ethereum. But again, the counterparty risk is there. It's real. You have to consider for it. And it may be a lesson

for Ethereum that risk is there. And it can't be undone this time around. We'll see. Let's move on. I wanted to draw attention to this article that we dropped on the Bitsy Academy today. So Vlad put this one together. Thank you, Vlad. Excellent article. He's talking about coin control. What are UTXOs? And so a lot of people, they'll have a wallet that just gives them a Bitcoin balance and that's it. But that doesn't really give you the full picture of what's going on under the hood. Your Bitcoin wallet is not like a bank account where there's just a balance. Your Bitcoin wallet is more like a physical wallet where you have. have you may have a total amount of money in your physical wallet, but there are individual bills

and they actually stay as an individual bill. You can combine them. You can get change out of them. It's much more like cash. So Vlad kind of paints this picture of how you can imagine interacting with those UTXOs, those chunks of Bitcoin that are actually sitting in your wallet and how utilizing a whole bunch of different addresses can help protect your privacy. there's some mention of coin join, things like that. So it's kind of an overall look at what UTXOs are, how you can take control of your coins. I've taken the liberty of throwing in a few different things here

as far as references of where to download Bitcoin Core if you want to do so. Vlad does a good job pointing out how to enable coin control in Bitcoin Core. And then I've also thrown a few. he mentioned Electrum Wasabi and Samurai and I've done videos on all of those so I decided to throw them in The one thing much to my embarrassment that I haven't done is a video on Bitcoin Core Which is now on my list so I'll do it but yeah so anyways I highly recommend you check this out

If you're not familiar with coin control if you don't know what a UTXO or an unspent Transaction output is it's worth diving into this to start to dip your your toes in and level up. Anyways, let's move on here. Oh, by the way, also if you find this type of content useful and educational for yourself, please do share it. My goal in working with Bitsy is to try

to get a lot of this Bitcoin-centric content out there so people can really start to see and understand the difference between Bitcoin and other cryptocurrencies. Why does Bitcoin set itself above and beyond other cryptocurrencies? what are the value propositions of it. So anyways, again, if you find it useful, please do share it around.

Shout out to BTC Shelling Point or Wizard of Oz for giving the heads up on a Mynode BTC new release. So I've done videos on My Node, which is a software stack where you can run your own, Bitcoin Node, Lightning Node, World Pool instance. There's just a whole, whole bunch of different services that you can run on this single piece of infrastructure. You can build your own node out of a little Raspberry Pi computer and link all of your wallets to it.

Anyways, new release today. They added Spector and LN bits. And they also added a few updates, I believe, that will help me get going on my caravan video, which is like a multi-sig video where I'm going to use a bunch of different ledger wallets so that you need multiple signatures to send off a transaction. So what I mean by that is if you wanted to spend coins, you don't need only need to use just one ledger device. You need to use two out of three or whatever number that you're looking to set up. And so by doing so, you could put your ledger devices or whatever hardware wallet you're using in multiple geographically diverse locations. So if somebody were to break into your home and steal your ledger, well,

tough shit, they've got to get at least one other one, probably in different locations. And unless they want to cart you around while doing so, it's probably not going to pan out for them. Anyways, besides the point, thanks for the heads up. We're very excited to see the constant updates to this Spector. I'm very interested to look at. He included a screenshot here. It's basically a new front end to Bitcoin Core allows you to do multi-sig and other cool

things like that. So, yeah, again, My Node BTC, they are. are just pumping out the updates and it's got to be one of my favorite things that I look forward to seeing what they put out next. I just did the upgrade or I'm doing the upgrade on mine right now as we speak as I record this. So if you haven't you checked out my node, be sure to take a look. It is excellent. And you can search my tutorial on how to do so on YouTube as well. With that, I'm going to wrap up. I'm going to keep it relatively short today. so much for watching and or listening.

If you're here on YouTube, do hit like, subscribe, and share. Also, be sure to check me out on any other platform because I don't want to rely specifically on just YouTube. So I stream live to Facebook Live to Twitter. I'm on Twitch. I'm on D-Live. But also, I'm audio only on the podcast here on Anchor. You can find me on Spotify, Apple Podcast, Google Podcasts,

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or a wonderful rest of the day, wherever you are, and you'll see you next time for your daily session.