TFTC: A Bitcoin Podcast - Rabbit Hole Recap #185: Currency crises, cold weather, and good bitcoin mining tax news

Episode Date: February 3, 2022

This week Marty and Matt discuss: - canadian truckers gofundme suspended "under review" - sparrow, bluewallet, and trezor remove AOPP support - why AOPP is a risk - Biden considering executive order against bitcoin - Congressman Davidson supports financial privacy - bill introduced to make bitcoin a legal tender in arizona - IRS signals retreat on block reward taxation - Kraken launches proof of reserves tool - Fulcrum electrum server much more performant than electrs or electrumx - Saylor and Dorsey keynote - BTCPay Server v1.4.2 - Mempool v2.3.1 - Sparrow Wallet v1.5.6 - Specter Desktop v1.8.1 - BlueWallet v6.2.18 - Eclair v0.7.0 - Umbrel v0.4.13 - Mercury Wallet v0.6.0 - Zap Android v0.5.5-beta - Nix bitcoin v0.0.64 - proposal to remove memo's from lightning invoices - ben's bytes dev mommy blog - trezor has disabled web wallet, users must now use trezor suite - FTX valued at $32B - Shopify founder joins coinbase board - surveillance firm ciphertrace uses honeypots - impervious browser to launch at bitcoin 2022 Shoutout to our sponsors: Unchained Capital Braiins HodlHodl Bitcoin 2022 - use the code TFTC for 10% off

What is up, freaks? It's your boy, Marty Ben. Here to introduce this Rip a Rabbit Hole Recap Dance. Good amount of time. Cold, where I am. Warm, where Matt is. This video is brought to you by our good friends at Unchained Capital. Unchained Capital is here to help you eliminate single points of failure in your custody model. The way they do this is their Unchained Vault, which is a two-in-three collaborative custody multisig vault where you hold two keys, Unchained holds one. So you always have control over the Bitcoin

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10% off. Enjoy this rep. It was a high quality rep, if I do say so myself. You've had a dynamic where money's become freer than free. If you talk about a Fed just gone nuts, all the central banks going nuts. so it's all acting like safe haven i believe that in a world where central bankers are tripping over themselves to devalue their currency bitcoin wins in the world of fiat currencies bitcoin is the victor i mean that's part of the bull case for bitcoin if you're not paying attention you probably should be probably should be i mean 5g works it's it's up to you uh if you want to keep using the 5g it's your phone plan your data plan okay i'll stay on 5g i'll build car for the data i don't i

don't know what happened there freaks we lost internet at the commons i was just making fun of everybody not showing up for work at the commons because it's snowing here in austin it looks like the it guy is working from home today too can't keep the wi-fi up hopefully it's the only time we have that problem today meanwhile meanwhile i'm finally like getting the finishing touches on my new home studio getting the finishing touches on the actual studio and the first thing i do after that is of course going to family vacation so i'm back on a mobile setup and as soon as the internet cut i thought for sure it was me so i started troubleshooting on my side couldn't connect back but it was it was marty and car the whole time hey it was our end

we're at the commons anybody anybody at the commons listening right now we got to get the wi-fi down we've got an ethernet cord set up too apparently it's not working though uh we are it might not be it might not be the commons internet i mean you guys are getting like when when ice hits the south like all infrastructure falls apart yeah yeah it's uh it's crazy how people freak out down here it's a little bit of snow i thought again i thought texas was filled with a bunch of hard-nosed cowboys everybody becomes a pansy when a little bit of snow hits the ground a little bit of ice oh my god i have to get the ice off my car suck it up people i guess twitter blocked us we don't have a new tweet out no new tweet no new tweet i set it up it should have

gone out let me see that's why i was looking at my phone i wasn't being i was going to click retweet can we blame the bitcoin miners for your lack of internet it didn't go out hot well you didn't have that on on the list card i had to throw it on the list after we will put it the link in the show notes what all the texas miners uh patting themselves on the back for shutting down their asics yeah that's funny parker and i were just talking about that um like don't they get paid to shut them down like isn't that part of the plan yes exactly so this is i mean really noble super noble let's say exactly that's what i was like parker's like we're combating narratives here like we should be noble like yeah great it is so let's we'll start with that before we even

get the clark's dashboard we'll just start with the topic of the day it's very uh very cold here in texas obviously it's raining or excuse me snowing and now it's raining but it's like icy rain and obviously we know that last year the texas grade was stressed uh exorbitantly because of a hundred year storm and you actually had grid failure people lost power all throughout the state many people died as well unfortunately and it became a big meme over the last year like all right we need to stabilize grids not only in texas but all over obviously you have rolling brownouts and blackouts in california new york city has electricity problems now after they shut down the indian point nuclear power plant and bitcoin miners fitting into this conversation and is

becoming more and more of a meme and a narrative that the bitcoin world is pushing and it's a good narrative too and it does make sense and what it basically what bitcoin miners are able to do is via capitalism and economic incentives they can go to grid operators and utilities companies energy companies and say hey if you build out this capacity a lot of the problems that people who want to expand grid capacity have is like all right we're not always going to have consumers you have x amount of capacity but peak demand is only buying electricity up to that capacity for a very few days of the year, one of which is today.

And so what Bitcoin miners can do is like, all right, build out that capacity. You can build out your grid capacity. You can extend it so you have an abundance of electricity on your grid that far surpasses what will ever be your peak demand when it's extremely cold or extremely hot out in the middle of winter or the middle of summer.

And in between those peak demand periods, we will purchase that electricity that is overabundant for the necessary amount of demand in non-peak times. And we'll give you revenue for that. So you're not just producing it and not making any money for it and having a loss on your balance sheet. And so Bitcoin does incentivize this overproduction of capacity and abundance of capacity on grids. And Bitcoin is uniquely suited to do this due to the fact that you can interrupt Bitcoin miners

and you won't affect the Bitcoin network materially as a result. You're going to do it like AWS or a chip foundry or something like that because if you have to shut down AWS servers or a chip foundry, you're losing millions,

potentially hundreds of millions of dollars worth of economic activity due to that. And conversely, like if you if you plug in miners and turn them on at any time you can instantly be generating revenue you don't have to like have you know uh purchase orders or something set up in that way yeah you don't have to you know to re-oil a supply chain or anything like that and and so yeah and so bitcoin miners are uniquely suited to do this and in the state of texas specifically a bunch of

large miners, riots, rhodium, and others have engaged in what is known as a demand response program within ERCOT, which is the entity that controls the electricity markets in the state of Texas. So they basically have created this demand response program within ERCOT where if the demand for electricity from the grid hits a certain point miners will at a certain price per kilowatt hour miners will shut down

and stop using and converting energy to electricity for their services and then they'll divert that electricity to the grid so the residents are able to heat their homes or cool their homes when it's very cold or very hot out

but Bitcoin miners get paid for that as part of the demand response program is okay. Absolutely, part of the contract. Yes, you enter this contract, you say, all right, if we have to shut down, we will shut down, but we're also selling the electricity we otherwise would have used to mine Bitcoin.

We're going to sell that to market. And last year, Bitcoin miners engaged in that program made out like bandits, and they're probably doing pretty well today as well. So there's been a huge media blitz in Bloomberg and others, and i don't blame any of the miners for doing this obviously we're being much maligned

by politicians and the mainstream media for being a drag it's a good pr campaign it is it is but we should be up for like like you said like actor acting holier than now or like noble it's like it is noble in the sense that yes the the economic incentives and the capitalist driven uh companies that are creating the conditions where you're never not going to have electricity as a residential consumer because Bitcoin miners have incentivized the build-out of excess capacity,

but it's not like they're just giving the electricity away and saving cold people. Yeah, it's a beneficial business arrangement. It's not charity. Yes. That's way more apt than the long-winded explanation but no it is a beautiful thing it is beautiful

I 100% agree on that it's absolutely beautiful but it is also creating a lot of confusion too like I had a bunch of people who responded to my newsletter which Cara just had up on the screen yesterday like yes this incentivizes the production of renewable energy it's like no that's

exactly like right now it's freezing rain there's literally ice coming out of the sky so I imagine wind turbines across the state are having problem spinning or picking up wind even doesn't seem that windy out and obviously but solar is definitely not producing yeah solar is not producing and so what the problem with the grid has and steve barbara had a good thread about this last night too there's a very nuanced discussion the grid the grid problem that exists right now is that it's it's dependent on too much

intermittent unreliable electricity generation sources mainly wind and solar so when we talk about bitcoin miners incentivizing the build out of of more great capacity what i hope to see as an individual is that great capacity is backed up by natural gas nuclear even coal to an extent because that's more reliable base load where you know when it's cold out it's freezing rain the sun's not shining wind turbines aren't turning you're going to you're going to have electricity you build out as much capacity as you want wind and solar but when you have days like this they're they're not going to produce. It doesn't matter if you build out 100 gigawatts of capacity of wind and solar and Bitcoin miners are consuming that. Bitcoin miners would probably have to shut

off anyway if they were utilizing those resources only because they wouldn't have any electricity in the first place. So it's a nuanced discussion. Bitcoin certainly does help. The network has created the economic incentives to build out this excess capacity. But again, as with many things that are discussed on the show there's a lot of nuance to all of it but it is helping you know the grid hasn't failed yet today and bitcoin miners have shut down but there's been a major media blitz was good it is a good thing but all right that's a it's parker sorry if you're listening to this i'm just like airing out our personal conversation but that's like back and forth he's like yeah like i think we should just be up front like hey it's just pure

economic incentives driving this we're not doing any charity work yeah yeah and it felt like all miners like all like came together on it they all released their own press releases and tweets and stuff and yeah i don't know where this fits in but like as far as like renewable energy on cold days like fireplaces for the wind i know i want a fireplace so bad and that's i we count that as renewable right because like trees grow now that's like the least renewable why you can plant new trees and then you cut them down and you burn them in terms of energy density and the amount of carbon created math it's terrible well fireplaces are good i'm i love fire i'm pro fi pro fireplaces i'm rather the whole recap i'm a fireplace maximus myself yeah my brother texted me yesterday he's

like get wood put under the tarp i'm like what so i can put it in the outside fire pit i'm like you're gonna stand outside it's like stealing out i wish we don't bring the fire pit inside no no do not do that that's how you die yes that is how you either burn your house down or get carbon monoxide poisoning. While we're on the bandwagon, I thought it's fascinating what's going on in the world right now. You have this happening in Texas.

I believe BitFarms in Canada is doing the same thing. I had somebody respond to a newsletter last night saying that there's Bitcoin mining operations in Pennsylvania doing a similar demand response thing. So this is happening not only here in Texas, but around the US and even up north in Canada. And so while that's going on, Bitcoin's helping cold people.

It's helping incentivize the secure delivery of electricity. Did you say cold people? Yes, it's helping cold people. The group of people known as cold people. There's many of us. Different skin color, sex, gender, religion. All cold.

Ages, all cold. That's happening. And then across the world in Lebanon, it's pretty fucked up what's going on. I don't even think you had this on the list, but it's a pretty big story. lebanon has decided so we've been talking about lebanon for years now because in 2019 the central bank in conjunction with the government unilaterally just froze bank accounts

they've been for a lot of them have been frozen uh ever since and so going on three years now i believe that happened like the summer of 2019 and lebanese government and central bank basically came out and said they have the plan to tackle the financial crisis which the world bank is calling one of the world worst depressions in world history uh and they're they're just going to do a overt 93 percent devaluation of the lebanese pound uh which will wipe out i believe 69 billion dollars worth of wealth um and so those frozen bank accounts that have a lot of them have u.s dollars in them uh are just going to be confiscated and converted into pounds and this is all in an to appease the imf so they can get a bridge loan to try to get their their footing um and so

this is just a a very strong case study that proves like why bitcoin is important you can never have a government or central bank just unilaterally lock you out of your of your account and stable coins don't fix this either like you need an actually censorship resistant immutable chain yeah well then they do in the short term yes they can help mitigate it in the short term but long term you just end up in the same exact situation where you have a central point of failure that can get frozen well yeah so this was added to the discussion yesterday lebanon uh is doing this turkey's doing something similar uh but apparently there's a lot of turks that have uh leveraged tether to skirt this because what they'll do a lot of in lebanon

turkey like i just mentioned a lot of the money in their bank accounts would be u.s dollars uh they can have their local currencies lear lebanese pounds or they have dollars as well um and what they attack is the dollar because it's obviously the stronger currency and so there's there's been stories coming out of turkey specifically that a lot of turks have turned to tether um and are storing their dollars and tether instead of bank accounts to avoid 100 percent confiscation like this the reason i bring up stable coins is because in this particular situation it seems kind of analogous to what we might see going forward which is this idea that uh their their national currency is failing right so people go to seek refuge in a u.s

denominated dollar asset right a u.s dollar go to get u.s dollars but held with a regular regulated party right a regulated centralized party in this case it was a local lebanese banks right but it could be circle or it could be yes yeah it was like it serves the same purpose as a stable coin in a lot of ways did you uh did you see eric for his grandstanding about usdc and thor chain trying to say it was like like and then the neck yeah then the next day the wormhole hack happened or whatever right yeah i don't know i've been i've been trying to use twitter less i've been like taking a little bit of a break hey how's it been i haven't caught this stuff it was like it's a little bit of a twitter force break because my tweets still show is unavailable

um but your shadow band dude i emailed twitter they're like no you're not we would never shadow band users without telling them or something i was like okay i mean it's pretty obvious yeah like the only thing more frustrating than censorship is when the censor tells you like we're not doing it

they're just like fucking fly straight to your face like at least own it yeah Parag come on man come on dude we all know

he's being shadow banned and they didn't they even like shut down that MI shadow banned site there's other ones but yeah the original one's down

it says I'm not shadow banned on that site for what it's worth there's varying definitions of what shadow banning is yeah that's interesting because you can see

your first sweep then if you click on like a response it says then it says unavailable yeah tweet unavailable and i think they're they must be like de-ranking me and and like the algorithm as a result i don't know it's all we'll see what happens but yeah i've just been i've been taking a little bit of break and not paying attention i did see uh a freak tagged us did we kill paxatani phil or was that a different groundhog like did you see that yeah i don't i believe paxatani was the The original. He's been dead for decades. They had another one. I think his name was

Milton or something. He died two days ago. Right after we ripped on him, we jinxed it. He died on the 31st. And then they scrambled. They apparently got a new one. And he saw a shadow, so it's six more. Or he didn't

see a shadow. I forget how it works. Somebody was making fun of me for calling it Groundhog's Days. I was saying it's about groundhogs, plural. It's groundhogs possessive. okay but it is ground high day he couldn't

deal with the shame he couldn't deal with the shame of us not hitting 200k god bless him crazy world I hope you're doing okay up there buddy I mean he dies we get a winter storm down here

in Austin no 200k it's dark times right now dark times speaking of dark times uh while i have it up let's turn to clark's dashboard before we forget the price of bitcoin according to clark's dashboard it's 36 710 cuck bucks one cuck buck's going to get you 207 024 sets bitcoin market cap is currently 695.6 billion dollars if you like that we are currently 46.8 away from the previous all-time high of 69 010 dollars we're getting pretty close

to the next retarget which is 49 blocks away that'll be is it the third today? Yeah it'll be later today and it's looking to be relatively flat at a negative 0.2% blocks are coming in at 10 minutes and 1 second

on average so we'll have an adjustment but it'll be a very small downward adjustment as of right now unless blocks come in. That's with all the Texas miners turned off too yeah but But yeah, last week it was estimated to be like a negative 2% to 4% adjustment. So more hash rate.

They may not have come on the network. Over the last week, Clark's mempool is pretty sparse right now. There's 1,845 transactions sitting in that. Samurai unspec capacity is 4,387.63 bitcoins, or 160.8 million cuck bucks. Why are you throwing your hands up? You knew I was going to do it. Bitcoin.

You knew I was going to do it. I will correct you every time. Have you gone to the beach? No, I just got here. I got here last night. So let's hop into the list. Canadian truckers GoFundMe suspended and under review. Yeah.

Pretty fucked up, GoFundMe. Well, first of all, shout out to all the protesters in Canada. TFTC stands with you. love to see it um go i phrased it specifically because people are like the clickbait headline is that gofundme has blocked them and like taken their money and returned the money or whatnot but it's technically they're sitting there and it's like pending process um and it should be really interesting to see how they proceed here because i mean if they do end up blocking them and they do end up stopping them from getting the money that

they've raised um i i really do think this is the you know single biggest advertisement for bitcoin since wiki leaks yeah it's what does the justification go fuck me i mean these people are peacefully protesting they're trying to raise money to enable them to protest because they're obviously not working for an extended period of time in a number of weeks and there's many people involved in the rally they're all congregating in ottawa which is the the capital of canada and it's been incredible to watch over the last week as Justin Trudeau

flees the city and then has these press conferences. Where the fuck is he? Apparently he's in the US somewhere. And now he's pretending he has COVID too. Pretending he has COVID? He said he's in quarantine. He tested positive for COVID. And then he's calling everybody racist. He's calling them transphobic. He's calling them Nazis. And then if you see

videos... The guy who did blackface like three times on picture. Fuck this dude. If you're on picture three times doing blackface, it's gotta be more than that right yeah there's no way there's a hundred percent picture rate on his blackface attempts well it's you got to give him credit where credit is due he is a soulless sociopath the way he is uh the way he's like these press conferences are so he's just completely ignoring what's going on the unity that is being uh being displayed in canada right now you have you have

sikhs you have natives you have obviously christians muslims like blacks whites cold people every every one of them is cold is a cold person uh and they're gathering together say we want to be free and not only are they having great success up in canada like shaking the foundations of the the kleptocratic regime in charge but they're emboldening people around in the world. You see truckers rallies popping up in Germany, the Netherlands, and rumblings of one starting here in the United States. Haven't seen anything materialize yet. Apparently the Biden administration is worried about that happening. But yeah, they're holding strong and they're holding Justin Trudeau's feet to the fire. And he just turns around and says,

oh you're all you're all homophobic racist nazis and i'm not going to confront the crux of the issue that they're just driving you to do literally pun intended driving you to do all this so we have a bunch of freaks in the comments saying that uh the gofundme is all right and the truckers said it's it's getting processed um so we'll see what happens obviously that is good news i've seen a Yeah, the beautiful thing is, I mean, regardless of what happens there, anyone in the world can crowdfund money using Bitcoin. They don't have to rely on a centralized company to actually pay them out at the end of the day. They don't have to give up their privacy to that centralized company. And they don't have to give a cut, a financial cut to that company.

They don't have to wait for it to settle. so bitcoin provides a very unique exit for people that are blocked from traditional crowdfunding methods and as marty said uh btc sessions ben sessions and a couple other canadians along with dj booth um have been using tally coin to raise money and tally coin's been around for a while as a non-custodial easy way to raise bitcoin crowdfunding but the biggest limitation was it was hard to do lightning donations because you need an always on node tally coin recently released an umbral app so ben is literally just running the umbral app on his on his node uh on his umbral and uh this you know this little raspberry pie in his closet or something and it's accepting

lightning donations from around the world um through tally coin it's pretty crazy cool i mean think about that I donated all the freaks should donate as well donate I'll donate after this maybe if we can get

a QR code up on the up on the screen car we'll donate while we're doing this but think about that like Ben BTC Sessions just one individual

at his house he's got a node running on a raspberry pi running on Brawl download the TallyCoin app and is enabling individuals the world over

to contribute to this fundraising effort. There's one dude that didn't need to go to GoFundMe. It's pretty insane. And it's just happening.

Powerful as fuck. Right? This is happening. This is the beauty of Bitcoin and what it enables. It is power to the people. GoFundMe shut it down and you have the government

ignoring you. I can see Justin Trudeau getting vindictive and trying to shut down people's bank accounts. They could easily turn to Ben's Raspberry Pi.

Ben, I don't want to put spotlight on you but it seems like you've done that already uh yourself but like if it's not ben it could be somebody else you're gonna have uh yeah i mean the name of his note is literally btc session so when you go to pay on tally coin it's like pay node btc sessions so like he didn't exactly try to hide it i mean also with this type of thing right like there's an element of trust on on who is who is taking the donations and who is going to actually pay them out to to the truckers to the protesters make sure the money actually gets where it's supposed to go um so like you really can't do this fully anonymously like you need to have someone

that has some kind of some kind of strong public reputation that is behind it so that you know you you have some kind of faith that the money is going to get where it's going lightning yeah you've got it i mean you got it i mean it's again there is trust involved with this like is it gonna is i don't think ben's gonna run away with the money but you could have like you could have like a nim you could have like nim reputations do it so like you could have like 6102 could raise money for something and i would feel comfortable trusting him with you know 200 300 you know million sats going to the right cause um but like no matter what who's ever running it needs to have some kind of reputation otherwise you're not going to really get much donations boom

it's the beauty of bitcoin right there i just donated a live how cool is that peer-to-peer from my did you see how it popped up when you scanned it it said bt paying btc sessions right yeah and so from my node that i'm running straight to ben's peer-to-peer money transfer instant settlement over the lightning network hey baby let's go which which app did you use uh i don't want to disclose because it's been deprecated for a while and it proves that i'm like a lazy bitcoiner but the zap app did you oh okay you actually you actually did use your own node yeah yeah okay um thanks for i'm gonna move to zeus eventually but i was just i

was trying to call i thought you i thought you used blue wallet custodial and i was gonna no no i used i was like yeah marty it does sound good when you say from my node to your node It came from Arnaud. It came from Arnaud. There you go. Yeah. So to all of our Canadian friends up north, keep fighting a good fight.

You guys are emboldening people around the world. It's beautiful to see. And it truly is peaceful. Just all the videos I've seen have been peaceful. And like the Confederate flags and the Nazi flags would not be a surprise at all

if that's just some, what's it called? Not a false flag. Provocateurs. Provocateurs, yes. And I've only seen one or two. uh pop up on my twitter feed so like to for justin trudeau to take those potential provocateurs and and use them to paint a broad brush on everybody involved in these protests is pretty sickening

actually and it highlights just send a government agent with some hate flags and boom you're done yeah the whole thing is racist yeah fuck justin trudeau maybe he went to cuba the homeland of his father and we talked about the cuban nipple crisis quite a bit here if you freaks don't know justin judeau is the son of fidel castro's mom was a whore uh who has been known to to get be close with fidel castro and he looks nothing like what they claim his father to be sparrow blue wall and trezor removed the aopp support this is big so this popped on lots of outrage on twitter yeah if you guys listened uh last week this hopped on our radar i believe some a freak asked us in the comments i believe all the news about aoop was dropped aopp

was dropping as we were recording yep and so this and this has to do with the swiss regulators attempting to force bitcoin service providers to comport with not comport to to comply with the travel rule by FATF. And basically AOPP is asking wallets to add a feature which enables users of those wallets to sign and confirm that they possess an address. And so a few of these wallets were complying with the request from the Swiss government.

And for very good reason, people stood up on Twitter and say this is fucked up if you're a wallet supporting this we're not going to support you and but to be clear it wasn't it wasn't the swiss company swiss government asking these these projects to support it it was a group of swiss companies led by shift crypto makers of the bitbox that were they developed this product so all these wallets can already every pretty much every good bitcoin wallet including bitcoin core can sign using one of addresses to prove that you own the address right this is what we always tell csw to do to prove that he's satoshi and he's never done it right it's a native

very awesome powerful feature of the bitcoin network of the bitcoin protocol yeah the um we asked craig to do it uh and he had a list of addresses that he claimed with his and somebody who actually owned one of the addresses signed it was like you don't own this right yeah um so so basically what happened was so so this went into effect in like 2019 right so if you're using a swiss exchange you're already you've been doing this since 2019 if you're using a swiss kyc exchange you're mostly manually doing it but shift was the first ones to integrate this like more fluid interface where you just like click a button and it just like automatically like makes it fucking happen um and then they submitted pull requests to popular

open source wallets which is what they did with sparrow and blue wallet and they were like oh it's just an easier way to sign like they didn't really think about it they just so it wasn't like the swiss government like i feel like it's an important distinction it wasn't like the swiss government like reached out to craig raw and was like comply with this you cuck um there was like a pull request that like looked kind of benign that was like you're already off for signing just can you can you support this uri scheme when you click it uh that it automatically goes to the signing dialogue and puts you through that process or whatever um but anyway there's a lot of pushback all these wallets pulled uh they pulled support um and the pushback it was like people noticed it

because trezor added support and trezor like released a press release about how like now they're very easy to use in switzerland so that's what caused all the um exposure to it existing in the first place but this is exactly you know this is the type of things that is going to happen yeah it's just i mean it's the slippery slopes happening regardless of aopp gets implemented into the individual wallets like the exchanges are going to still require signing probably more exchanges are going to start doing it around the world address signing then after that it's going to be you know you're not allowed to do certain types of transactions we're going to actively change the value which we already see in most of the places and then the real fear right which

we've talked about many times is like you just won't even be able to withdraw from kyc services or you'll be able to withdraw but you can only send to addresses that you've signed and from there you can only send from addresses you signed right and it's and and that seems to kind of be where we're going and the real the the the real threat here is kyc it's it's kyc it's not signing addresses but i do completely agree with the idea that we shouldn't be having having non-custodial open source private bitcoin wallets sovereign bitcoin wallets making it easier to comply with burdensome regulation it should be that friction should exist because that friction makes it harder for them to actually uh run a business in that kind of state of affairs it's a um

but i guess at the same point arguments for aopp would be that more people were likely to just keep it custodial in the kyc service um because they can't figure out how to sign so they're not even going to withdraw and let's be honest even if they don't have to sign most noobs come in and they just keep it on the custodial exchange anyway so any little friction you add there from withdrawal it's going to be harder it's going to be less likely people actually withdraw yeah like we said last week it's a bit odd this is coming from the swiss government that they're forcing exchanges to have their customers sign before withdrawing or shortly after

considering they've been held up as a bastion of financial privacy for decades. I mean, that was the famous Barack Obama quote when he talked about a hardware wallet and he was like, you have a Swiss bank account in your pocket which is supposed to be highly private and secure. Yeah, I mean, but that's more of a meme at this point.

During World War II, they were great at hiding Nazi wealth. But it's been a long time since then. So we talked about this a little bit on Dispatch this week, and I'm curious on your opinion. I mean, we have them on the list anyway. So Spectre just updated their wallet, and one of the features they added was Swan support. And Swan is obviously a KYC-regulated exchange, and they have two main features that basically their whole product revolves around. and that is um auto auto stacking right so stack every day every week every month or whatever you set the amount and auto withdrawals right and so you're constantly stacking constantly stacking

obviously you've already given them all your kyc information um and then it's going to auto withdraw to your wallet now uh the way most people use that is they put in a static address where they're reusing an address right they're not signing the address but they're reusing the address right um that address is obviously theirs and it's obviously connected to the kyc information even without signing it's very very obvious it's theirs and if they don't take any forward privacy uh precautions going forward like collaborative transactions such as coin join maybe using their own node holding their own keys using lightning um they're going to be tracked in the future forever using that same information now to mitigate that to a degree

well not to mitigate that but the reused address also has another issue right because when you look on chain if you see an address that is you know adding to it a hundred dollars every week or something you can pretty much you can assume that it's someone auto stacking the same person is auto stacking to that address right um it's like a relatively easy heuristic to spot right it's just someone that's going through the auto withdrawal process they're constantly sending so how do you mitigate that you mitigate that by not reusing addresses but that breaks the auto withdrawal flow so they have a tool where you can put an x pub in and it generates like the next 10 20 addresses uploads up to swan and then swan uses a new address every time but

was kind of difficult for users to do because you know peter mccormick doesn't even know what an xpub is most people don't know what an xpub is so spectre integrated swan's new api and with spectre you can create a new wallet or you can use one of your existing wallets that could be single sig or multi-sig you can link it to swan and spectre automatically uploads 10 addresses to swan the next 10 addresses and on spectre it doesn't let you use those addresses because they're reserved for swan so because you don't want to reuse those addresses so upload the 10 addresses when those 10 addresses end it uploads another 10 addresses and you can just auto stack and auto withdraw directly into your own wallet whether that's multi-sig or single sig using

your own node through spectre those 10 addresses are obviously yours you're basically going through the same process i mean they're not signed but there's a there's a heuristic there that if you're You're uploading 10 addresses. It's coming from Spectre. They know those are your addresses. This KYC company knows they are your addresses. Is that more dangerous or less dangerous than AOPP? Is that okay because it has good user flow?

Where do we draw the line there? Where is the... Yeah, I mean, it's probably the same, right? Because my first thought went to, all right obviously you're up i mean i just think cash app nice and bitcoin off i mean they know it's an address i'm associated with where they assume it is i assume you could be paying me a car or something yeah i could be doing yeah so like that's probably not with this too i think what if somebody tried to hack like the swan flow and they just had a friend set up a kyc account

and they were paying them to stack on behalf of them i mean yeah you could do that with aopp too exactly so like yes it's indifferent yeah maybe it's not that it's not different at all really aopp is just an extra signing step my point is is that the issue isn't the signing of addresses as much as it is kyc kyc regulation in the first place the idea that we just have every bitcoin company keeping lists of bitcoiners our personal information and our withdrawal history and that can be used to track our full financial uh future going forward right another example that i brought up on dispatch casa with casa you can onboard directly in casa casa has a closed source app they know your balances you use their own node

they know your transactions and they have your kyc information when you buy through them is that worse or better than AOPP again it's the same right in some ways it could be worse because they actually control the wallet you're sending to as well yeah

closed source app you don't know it's all fucked I mean we talk about this all the time on this podcast KYC AML is dangerous it's completely ineffective and it's pervasive Robert Hamilton yeah sorry robert hamilton made a good point which i did forget to mention and i think this

is the key distinction for the slipper is that aopp well aopp is being done uh for compliance regulators are asking for aopp is being done for regulators for compliance why like that's why it exists the swan flow or the casa flow is being done primarily for users to make their experience better rather than actually complying with regulators but i don't know if that distinction matters all that much when the end result is kind of the same well again going back to the slippery slope it's like you just slowly the normalization of like forced activity on the user's part with the the signing i think is a bad precedent to set it's It's like, oh, you guys were willing to sign the AOPP thing.

Now, why don't you give us the rest of your addresses from your non-KYC stuff? If you're willing to do that, why wouldn't you be willing to do this? Yeah, I agree with Rob there. The forced action on behalf of the user is a conditioning tool, I would argue. But it does get you to the same place at the end of the day.

but maybe the aopp path can add additional paths in the future in terms of forced action the fucking conditioning tool is that every almost every new person that comes into bitcoin is taking a selfie uploading their id putting in all their personal information and very few people complain about that or talk about that but we talk about it all the time we We get an easy win on a dumb addition to KYC, which is the address signing. Yes. The Bank Secrecy Act should be abolished. Again, the criminals are going to criminal.

People at the highest echelon of these institutions, the banking institutions, and the political institutions, are some of the biggest criminals. And they don't follow any of the rules that they're forcing on the rest of us. when it comes to kyc aml particularly compliance on an international level between users in different countries you have an unelected regulatory body just putting out guidelines that just so happen to get adopted with little pushback and the financial action task force leading all this nobody asked for them nobody voted for them nobody really knows who they are how they get to the positions that they hold it's all fucked we need to really push back against kyc AML. And I think a future in which Bitcoin becomes the dominant money on the planet

is going to make that happen. Once you get to the circular economy, but you do need to get to the circular economy. And so what you need to do to get there is take control of your Bitcoin. You have a private key. And so Matt mentioned XPUB. Most people don't understand XPUBs. I think learning experience we should always try to explain fundamentals when we can so the way many bitcoin wallets uh when you when you create a bitcoin wallet what a wallet is is it's a it's a pair you have a private key and then you have uh a slew of public addresses connected with that and the most common way that these these pairs are created now which is hd while it's just hierarchical

deterministic, correct? Yeah. Which means you can have many different XPUBs that have... But you have one XPUB and then that XPUB is... You have one private key and you can have many XPUBs with it.

That's what an account is. You have the master private key and you have the XPUB, which is the master public key. And from that, you're generating a bunch of addresses from those two pieces of secret. Yes.

But you can have multiple XPUBs associated with the master key. That's like what accounts are. Like if you use a treasure wallet. I guess, but now you're just going to the weeds a little bit. Yeah. So the point is,

you don't want to reuse addresses. Thank you, XFrog. You don't want to reuse addresses. Too far into the weeds. It makes it easy. You have a private key and you have an XPUB that has hundreds of public keys associated with it.

Every time you send Bitcoin off an exchange or you receive Bitcoin from somebody who's paying you in Bitcoin, you should create a new address, which a lot of wallet softwares make it extremely easy to do these days. So that it's just good practice too, because you don't want somebody sending your Bitcoin

and you don't want them to see every other UTXO that's been sent to you, which would happen if you're reusing an address. That's just weird. And that's actually something matt and i are talking about on the mining side of things like we're trying to think of ways in which you can have more privacy once you move your rewards off a pool like it would be cool to have like a paynim type yeah slush should just add paynim support and then there goes that

conversation right and so should swan like if swan just had paynim support you could just put in your paynim and then they could just send it every time to your paynim you wouldn't have to uploading the addresses. Yeah, which would be incredible for privacy for

people stacking on SWAN or stacking via mining and using Slush Pool or any other pool for that matter for

payouts. Is that BIP 47 support? Support BIP 47 at the pool level? Yeah, BIP 47.

Well, I don't really care if other pools do it. Just Slush do it. Disclaimer. Sponsor the

podcast. Biden, considering an executive order against Bitcoin. It's been very vague. The White House wants crypto rules as a matter of national security. I agree, Joe Biden. I don't think you're saying any of this because you're mentally incapacitated, but Bitcoin is a matter of national security. We need to get Bitcoin in the hands of as many individuals, American citizens as possible. We need to make sure they're holding their own private keys and securing their own Bitcoin. We need to get Bitcoin mining infrastructure integrated throughout the whole energy

sector. It is a matter of national security. This needs to happen. Apparently, Biden's going to come out with an executive order. Nobody really knows what it's going to be. Do you have any inklings? I don't even think Biden knows what it's going to be yet. He doesn't even know what day it is.

Look, I keep... I mean, look, I hope that we're wrong and that the on-ramps don't get closed. But I've been operating for six years now, maybe longer, on the expectation that we might not be able to buy Bitcoin through regulated services. You could buy exposure to Bitcoin, but not actually withdraw it. Or if you did withdraw it, there'd be severe limitations on it. So, I mean, I think that's how everyone, regardless of what jurisdiction you're on, you know, Bitcoin is such a, is the best money we've ever had.

Like, if you want you and your family to have it, like, you should probably be trying to accumulate it sooner rather than later because I expect the on-ramps to get cut. Yes. Accumulate it to all its due control. Right. don't be complacent with this it could happen at any moment and you will regret it uh supremely if we get to a point where biden's handlers wake up and they're like executive order you can't move your bitcoin off exchanges you'll be like fuck i wish i could order 2106 right could happen i look and once again i hope this is one of the predictions that i get completely wrong so that'd be nice would be nice but prepare prepare with the assumption that it's

it's going to be a correct prediction better better to be safe than sorry that's what i would argue and who knows i've heard some whispers it's probably going to be a nothing burger of an executive order but could be wrong there too i think the first one will probably be a nothing burger they just you know they just keep going they keep going right we just we were talking last week about the treasury like you know the treasury now is trying to get more power and they put it in a big omnibus bill or whatever i to all large bills we call them omnibus or i don't know they're all very large bills now so i think they're like right in the middle of a long ass bill with like very vague wording and they're just going to keep on picking away picking away

um yeah and it's important to highlight that it's lobbyists to write write these bills so What is the intent and who are the lobbyists? I wouldn't be surprised if it's entrenched financial institutions who are severely threatened by the thought of Bitcoin and the industry growing around Bitcoin succeeding and replacing them. So the regulatory moat is something that many large banks benefit from immensely at the moment. and they want to keep that moat and will pass laws via lobbyists.

The politicians don't write the bills, it's the lobbyists. They'll pass laws via lobbyists that restrict Bitcoin companies' upstarts from competing, or at least attempt to, as we're seeing. It's going to be hard to stop Bitcoin.

I just fucking sent a Canadian friend Bitcoin node-to-node and somebody would have to go to my house and unplug my node. node to node sounds kinky yeah it's like docking don't look up what docking is you're all going to now

it's a funny term it's a funny most of the freaks already know what it is I would assume yeah considering we got someone in the comments that goes by USD cock I just feel like

yeah yeah it's just got just got a text from my wife the babysitter bailed tonight because conditions are just not that bad. People in Texas can't drive as soon as there's a little bit

ice on the road. Yeah, it's fucking crazy, man. Good progression of this conversation. Congress and Davidson were talking a lot about KYC, AML, privacy. It's like HDMI, but for penises. Sorry for interrupting it. It's a very it's a very apt description braj thank you braj appreciate it the uh congressman davidson

warren davidson up uh up from the great state of ohio this is great supports financial privacy it's time to preserve our right to transact privately privately excuse me uh i feel like you didn't get enough credit for this article this is like this is straight fire i mean he's a sitting he's a sitting fucking congressman um and like you could tweet this shit out of the samurai wallet account and people wouldn't even notice right so go up car go up to the headline i'll read the uh description under never mind um yeah it was just uh yeah so i haven't read this yet what what are your highlights he makes the full it's like everything we talk about on here and dispatch all the time like financial privacy like people need financial privacy the importance

financial privacy uh the chilling effect that happens when people don't have financial privacy how cash is private and how we're losing cash and how we can't trust uh the us government to basically come up with a digital cash alternative that actually respects privacy i mean this dude like he was warren was on point here congressman davidson was on point here he's a great ally i'd love to see it we had the uh we had the pleasure of meeting him down here here in Austin, I believe in the fall, he was at Unchained's offices at Bitcoin 2022, or excuse me, 2021, last year too,

and he was up on stage with Senator Lomas. He was making good points about this as well. So again, maybe we just need more people talking about this. I think there's a, I don't want to say complacency, but maybe complacency is the right word, or one of the right words, as well as just inaction in terms of actually getting these ideas out there on that stage and i don't know i mean

it's still definitely the minority right i like i completely agree with you that i mean look we're lucky in america that there is some separation of powers and that we're lucky you know we also have on the thing but the arizona bill that we're lucky that we have states that are flexing their own rights. And we'll talk about that in a second. But ultimately, the Bitcoin caucus is still very small. There's not that many of us on the Hill, I guess us, I'm going to say us, I guess. There's like five of them, right? There's like five congresspeople, whether Senate or congressmen that are pro bitcoin and then the financial privacy niche of the bitcoin niche is going to be even smaller because you already see on bitcoin twitter is small right like what is the privacy

niche of of bitcoin twitter like 10 max if that and that's if i'm not even trying i'm not including like the crypto twitter types too right if you include crypto twitter types it's like one percent Yeah, everybody's number go up. Number go up. Number doesn't go up. So like, even if we have the states flex, even if we have the states flex, they're still going to be like,

yeah, well, you know, just hold it in Coinbase or, you know, you can hold it in your own address, but reuse that address and sign it for us, you know? And if you want to spend it, just make sure you just ask us if it's illicit activity first and whether or not you can spend it and then you get to

see your purchasing power increase yeah what's up yeah we were talking about you earlier Ben make sure you have a UPS connected to that umbral node yeah well

again Rep Davidson going out there putting these ideas forward is a good sign it's something you want to see more of this is what i would say not not from you particularly warren but from others who who believe this again we talk about like financial privacy is should be a human right it's not a crime the whole oh if you have nothing to hide then what are you worried about is a terrible argument it's the the number one argument that these people go to but i don't fucking want you

to know what i'm doing with my money it's my money my money my choice okay i'll do what i want with it as long i'm not as i'm not harming others leave me the fuck alone i think and i don't it's like creepy that you want to know exactly how much money i'm making where it's going and it's in it's indicative of the state of the the empire if you will the american empire this is typically what happens at the end of empires is they get so bankrupt they're so indebted someone bought it in 2020 what are you saying i was trying i went to namecheap to try and buy my money my choice see you're talking to the comments I can't even see them the freaks at home

listening to the podcast app have no idea what you're mentioning I wasn't looking at the comments you said my money my choice I said I thought that was a very good comment I went to buy the domain while you continued to talk and it was purchased in 2020 I'm sorry continue I'm sorry my money my choice it is a good thing my money

my choice someone owns it I don't own it I lost where I was going that's on me I thought you were talking no it's on me I thought I used it as an opportunity to lash out at the comment conversation. But it's a human right. Financial privacy is not a bad thing.

It's a human fight. And it's a human fight as well. Yeah. God, I had something to say. Look, I think private Bitcoin usage is protected by the Fourth Amendment of the Constitution. If you believe in that shit coin, it should protect it. But we'll see how much that means.

i think the first amendment too i think it's free speech bitcoin is just 100 bitcoin is just speech at the end of the day it is letters and numbers shout out it is code beauty on will die on this hill but fourth is unreasonable search and seizure yes so i mean the actual privacy of it it's not using it privately that's not respected anymore we have no knock raids well no no so the way they got around with like the bank secrecy act or whatever is because they have something called the third party doctrine where if you share that information with the third party then you don't have an expectation of privacy but if you're using your own node and holding your own keys you're not sharing that information with the third party so it should be protected by

the fourth amendment yeah yeah that's why you run your own node that's why you control your keys freaks it will protect you from the long arm of the u.s government which is always coming after you oh that's where i was going the end of empires these nations are so indebted they increase their their efforts to tax collect because they need to pay back what they can't pay in in a typical tax revenue because they've overextended themselves and this is this is why you see the encroachment or part of the reason why they want to control you they hate you they want you to act in certain ways because they don't like you actually being free but on top of that they they have racked up so much debt that they need to squeeze out every satoshi from you because

they need to pay back the debts they've accrued. And this is, if you read Roman history, I mean, obviously tax collectors were a big part of their society towards the end of the Catholic church. The Thais, the Catholic church was a quasi nation state ruler leading up to the 16th century

and the taxes that they put on their constituents got exorbitant towards the end. That's why Martin Luther stood up and said, enough is enough. Here's the 95 theses. you have no control over the bible anymore we're gonna we're gonna translate it for the masses so they can read it themselves and they'll find that these tithes that you've been thrusting on them are actually not justified by the bible at all um the indulgences are not necessarily tithes you

pay your tithe to god the indulgences where people were paying to get into heaven where we're essentially just exorbitant taxes on the people living in the 15th 16th century so this happens at the end of every empire it's happening now be aware of it and fight back maybe maybe this we have this opportunity living in 2022 in the digital age we have communication tools and information services like this podcast where we can get the word out quicker and identify the problem first which is we have these flailing governments around the world trying to clamp down and control and just say hey you guys fucked up you overextended yourselves let's just recognize that. Let's cut our losses

and we're going to go build this parallel economy with Bitcoin and distributed systems. Sorry. I'm sorry. Sorry. What is it like the South Park BP? That's what I thought of. Sorry. Sorry.

Matt mentioned it in passing, but yes, last week big news out of Arizona. Is this big news? No, I don't I mean, I think it's just a publicity stunt. I don't get it. Bill introduced to make Bitcoin legal tender in Arizona.

Carr and I were talking about this before. It's not like El Salvador legal tender, right? No, well, it's not going to pass. I think Wyoming tried to do this. It's technically unconstitutional to actually do this. But their senator introduced it, though. Yes. Yeah.

So Wendy Rogers. It's like their real senator, right? It's like one of two national senators. Yes, and she's been trying. It's not like some random state representative or something. Yeah, but it seems like she's engaged in an effort to court the Bitcoin constituency. The shit corners, too. Did you see she was tweeting about ADA?

Where am I, Cardano? She's like, is Cardano the future or am I just missing something or something like that? Yeah. So here's the bill. And there was another one, too. I think they're allowed to. it's just it just it doesn't mean it's tax free which is like probably the number one benefit of legal tender no i mean if this bill passes in arizona the federal government's gonna

give them a tongue lashing and potentially but don't a bunch of states have the ability to to basically make their own gold coins yeah this is what i was my understanding was yeah so how is this any different it has to be gold or silver because it's defined as literally gold or silver bitcoin's digital gold so hey don't don't put bitcoin in a box okay you you got to read between the lines so constitution would say so the word i think the most important word in all this is specie so you can see a bullet two there specie issued at any time by the united states government and specie as defined by uh any other specie uh that a quarter competency rules by final there's something in the constitution um so this is if you go to the constitution you're not gonna

we don't have to pull it up now but in the constitution it defines specific species the constitution car specific specie being uh gold and silver i believe if anybody in the comments wants to um having pre yeah it's at the bottom there the very bottom literally says on the bottom she put the definition points having precious metal content and i believe gold and silver are the the only precious metals under that definition. Besides Bitcoin. Yeah.

She's trying to, who knows, maybe she can get something pushed through and then it starts a conversation. If anything, it's a conversation starter. Like, I believe Bitcoin

should be legal tender. I believe you do as well. And I do think, I mean, again, going back to El Salvador, I do want somebody to do a deep dive

on the nature of the international trade agreements and what happens when a country defines a certain currency as legal tender. I think that

does every counterpart in that trade agreement have to recognize that currency as legal tender They haven't yet. Yeah.

But do they like technically like can somebody Bitcoin Magazine Coindesk Wall Street Journal somebody like do some good

journalistic research into this and dive into those trade agreements and give us a definitive answer like is is it the case that these

counterparts in these trade agreements should be obviously they are not right now but should they by definitionally under the law have to recognize bitcoin as legal tender because of el salvador's move well not legal tender legal tenders are wrong word but like foreign currency right and then it's treated like foreign currency yes rather than like a commodity which would have massive tax implications yeah but even if it did even if it did like somehow like we won a court case and like we got it treated as foreign currency like they would close that loophole so fucking quickly but again it's mimetics narrative

game it like proves like why are they doing that no but this is like so like another thing we have on the list is like uh a group of congressmen put forward this a new bill which has been attempted multiple times which is this idea that uh for smaller bitcoin transactions you don't pay capital gains tax for $200. What is this transaction? First of all, wait, no, it's $200. I agree that it's ridiculously low, but it's $200 worth of gains. So it could actually be a transaction that's larger than $200, depending on when you purchase the Bitcoin, but in $200 worth of realized gains as part of the transaction, it's exempt. So it's actually a bit more than $200. For instance, if you bought Bitcoin yesterday at $37K and today it's at $37,200, you can do a significantly high transaction where you're not realizing $200 gain.

But anyway, my point is, because that's how it's worded. I'm not a lawyer. That's my understanding. Gains of $200 or less. But, like, some people are like, oh, I'm just going to structure all my transactions so that I do, like, 20 payments of $199. Like, you know, these guys professionally take our money for a living. Like, that's all they do. Like, they're not going to just let our whole industry just, like, restructure our shit so it's, like, right underneath whatever the limit ends up being.

it's like there's an element of naivety there or naivete there that that exists on bitcoin twitter where it's like some of it is yeah just joking i understand that's cool but some of it is actually like people actually believe it you know like boating accidents uh structuring transactions like all these different like you can't be cheeky with them like that's how you end up in jail like they'll just fucking put a gun to your head. Yeah, they don't care. They do not care. Pay your taxes, Freaks.

Cara, you just had it up. I mean, that was not what we were just talking about. But that would be a great bill, regardless. Yeah, it would be. But this is different. Go ahead. Okay, this is different. Yeah, this is the wrong one.

This is a different one. I think I put it in the list. Yeah, this is in the list. Maybe I didn't. No, you did. IRS signals retreat on block reward taxation. Oh, no, I put this in the list, but the $200 de minimis thing, it's really important because people like we talk all day, every day about, when I say we, Bitcoiners, about how we need these different protocol improvements to make Bitcoin more likely to be spent so people spend it instead of holding it. Like we have lightning now. It's easier to spend it. And like we need wallets that support it.

So it's easier to spend the single biggest thing holding back a Bitcoin bid. The Bitcoin economy in terms of actually earning Bitcoin and spending Bitcoin is burdensome tax tax regulation. It is the number one reason by far. Like it's not even fucking close. um so if we get if we start to see governments like el salvador right where they come in and they basically i mean fucking de minimis uh uh exception they're like if you're an el salvador uh resident like and you're not a u.s citizen because u.s just taxes everyone no matter what if you're a u.s citizen wherever you live uh you have no capital gains tax when you when you when you send bitcoin um and as a result we can actually start to see a bitcoin economy

grow there that's the main whole thing holding everything back yeah yeah like that twenty dollars i just sent the canadian truckers i should just be able to send that right no tax implications it's fucked up it's fucked up hey it was government do you want us to be free I don't think so. But props for props are due to Joshua Jarrett, who sued the IRS for a refund in 2019. He reported proof of stake gains or staking rewards as income on his tax statement that year. and he asked for a refund for that income because he didn't sell it yet and he wanted it to be defined as something like a crop that you grow.

So you're not actually working for it. It's not income. You're not technically getting paid by anybody, but you're producing a good, which is the tokens produced by that staking activity. I'm not sure what chain he was staking on, but he sued the IRS. It was an ETH.

For not giving him, it was an ETH, for not giving me his refund on that staking income and so that's going to court and basically what happened this week or last week is the irs it seems as though they believe they're going to lose the case so they are attempting to give joshua his refund back and he's did not he's refusing to take the refund back because he thinks they're trying to settle yeah they're trying to settle and he's saying no i don't want to settle i'm going to follow through with the case so that everybody in my position can benefit from the ability to not have to pay income tax on the gains he wants to set a precedent yes uh which is massive shout out to joshua for fighting this

battle uh and so his particular case about proof of stake gains but if he wins the battle it seems that this will be very beneficial for bitcoin miners as well yeah that's the important part Yeah. And so you'll be able to... the tax liability can outweigh the amount of Bitcoin they have or make up a significant portion of it. So to be a prudent, tax-compliant miner, you basically have to constantly sell Bitcoin to just keep it on the side,

to keep your tax liabilities on the side. If this actually sets precedent, then you won't have to do that. Yeah. The precedent would be it's not taxed as income, it's taxed as something that is produced like a crop or some other good. A cow,

right? Isn't it like, he's just arguing it's like a cow. Yes, and then you would only be taxed at the point of sale if you were to sell the Bitcoin. And then it's like, do you pay capital gains tax or sales tax on that? I think you pay income and

cap gains on that at that point. Yeah. Maybe just income, though. I don't know. I have no idea. I haven't owned a cow yet. Looking forward to it. Not a tax accountant or a tax lawyer, but this seems... Consult your local accountant. Yes, but this would be massive. And it seems like the IRS is backing up if they're trying to settle.

So here's to bringing attention to this case and encouraging Joshua as he embarks on actually setting a precedent, which would benefit a massive amount of people in the United States. I would argue it's a bigger deal for proof of stake chains um but uh but you know obviously it could be a massive benefit for proof of work the reason i argue it's a it's a um it's a bigger deal for proof of stake chains is because uh so proof of stake chains usually incorporate some kind of inflationary element right and they say the inflation isn't as bad even though bitcoin is a fixed supply the forever inflation isn't so bad

because if you stake you can you can get a piece of that inflation so you don't get diluted right but what that's a that's a that's a poor tax strategy in the current regime because that portion that you're trying to make up for not being diluted is then taxed and taken by the government so you end up giving a significant portion of your forever inflation to the local governments um and that's what's really cool about bitcoin being fixed supply as opposed to um inflation a situation where like oh because they'll say it's the same right like the argument is oftentimes made that it's the same but it's a it's a non-tax beneficial setup compared to a fixed supply currency does that make sense did i explain that all right yes yes i believe you did

staking staking you're right Ethereum definitely wasn't staking on that chain they're not proof

of stake yet and they completely chained it's not ETH 2.0 anymore they

threw out ETH 2.0 did you see what is that like the surge did you see that stuff

shout out to the simple or simply bitcoin podcast eco and coin charis

they uh they had a great rip on this like just looking at the the road map for the transition to uh to eth 2.0 the splurge yeah they have i don't think it's like it's that's the joke is this it's actually the surge or something yeah like the surge the merge the verge it's like completely idiotic like you're all getting fooled it's never gonna happen it's never gonna happen keeps getting pushback this is the year. I mean, they're putting all their eggs

in 2022. They put it, they put their eggs in 2021, 2020, many years past, but it seems like everybody

in the Ethereum world is like 2022 is the year it's happening. Like, if it doesn't happen this year. They do that every year,

though. I know. The hopium. Hopium. If it doesn't happen this year, they'll just plan on next year. Yes. we don't have to get

into the wormhole stuff it's just like it's hilarious whatever there's a bunch of money was lost in the Solana Ethereum thing

yeah you can not even gonna get into it Kraken proof of reserves we didn't have it on the list I didn't put it wormhole on the list

I know it was just on top of my mind and somebody like texted me about it what is this see if you don't use Solana or ETH

you it's actually pretty it's pretty disconcerting not disconcerting it's just like the shitcoiners have so much money like they lost 200 million dollars

within a day and they just paid for it yeah like users didn't lose actually users didn't lose any money they just like took a portion of the pre-mine

and just paid for it yeah it's which is both commendable and also fucked yeah exactly I mean

we won't get it let's focus on good things like Kraken on Proof of Reserves so if you're a Kraken user customer you can now confirm that they they hold as much bitcoin as they they say they do this is pretty cool yeah proof of reserves an idea that's been around for quite a while nick carter is a big champion of proof reserves and obviously yeah that was pre tungsten cubes he was

pro proof reserves yes uh shout out shout out to coin floor in the uk they've been proof of reserves since 2014 i believe uh they've set the precedent kraken's join their ranks uh i believe Bitstamp has it? Does Bitstamp have it? Or Bitfinex? I have no idea. I don't either. All these exchanges have proof of reserves. They just usually send it to chain surveillance firms and don't let you get to see it.

Where are you throwing stuff at? Sorry, I was throwing a rubber band at the screen. Interesting. But due to the nature of Bitcoin and the ability to validate that Bitcoin is in certain places that

people say it is exchanges have the ability if they're running an operation that is actually above board and doing what they say they do, they should be able to prove that they have all the Bitcoin that their

customers, that they're claiming that their customers own on exchange if they haven't taken it into possession yet. And so what you can do is use cryptography to basically validate that the exchange has a certain amount of Bitcoin. Wait, how do they do that? What do you mean?

They sign addresses. Yes. Right. Yeah, it's a double-edged sword. Come full circle. It's a benefit and a negative depending on the context of the address signing. So yeah, if you're a Kraken user,

you can verify that the Bitcoin they say that you own or that they owe you, they actually have. And you will be able to receive when and if you decide to take it into your own possession. Shout out to Kraken. This is a big move. Definitely good to see. Props where props are due.

Chill with the shit coins and the staking. Seeing Jeremy Welch out there pumping staking. Come on, dude. Come on. They love the shit coins. Say Kraken. I know. I have not dove into this topic, so I'll let you take this one.

What topic? The Fulcrum Electrum server being much more performant. Oh, this is fucking awesome. So when you use a lot of wallets, the back end is an Electrum server. That Electrum server can either be a public Electrum server where you're trusting someone else to run it. A lot of people theorize that it's changed surveillance companies that are running them because they can track your transactions and your balances. Or it could be your own Electrum server. So over the last few years, we've seen these full node projects, these full node implementations where you can run on a single board computer, a bunch of different, you can run your own node on them, right?

And a key element of that is you can run your own Electrum server. Most of them are running Electris. Some of them are running Electrum X. Some people are running Electrum X manually, but most of them are running Electris, which is Electrum Rust server. Then you take that server, you can connect it over to Sparrow. You can connect it over to BlueWallet. you can connect it over to Spectre, you can connect it to whatever the hell you want to connect it to. Now, most people reuse addresses, buy and hold. So they don't actually go through,

we were talking earlier about HD wallets. And with HD wallets, you have something considered an address step, which is you get an address number zero, address number one, address number two, address number three, and you're generating addresses. The more addresses you use, the deeper your wallet is, the more stress that goes on the Electrum server. So Sparrow uses Electrum server as a backend, right? Sparrow recently integrated Whirlpool. And as a result, what that meant was people were using more addresses than the typical Electrum user usually was because they were doing a bunch of coin joins, they were doing

a bunch of collaborative transactions. And what was happening was Electris and Electromex were both really struggling, specifically on these single board computers these raspberry pies these rock pros um so craig looked around and he actually found a different more lightweight performant uh electrum server that's called fulcrum and i don't know if it has the exact can you pull up the the number what was the number you said it's fucking insane it's uh i can pull it up real quick uh i wish i just had this number go down the fulcrum car on this page keep going it's like fucking crazy no not there um yeah there there it is initial load fulcrum is

22 times faster than Electrum X and 300 times faster than Electris. And on Wallet Refresh, Focum is 8 times faster than Electrum X and 1.5 times faster than Electris. So it's way, way, way faster than Electris.

Super lightweight. Compatible with all Electrum server type of wallets that connect to Electrum servers. Now, there's one caveat. uh a fully open source software mit license anyone can fork it anyone can use it the one caveat is that it is it is uh it's paid for by a bcash company like the main developer is paid by a

bcash company props for props or do but i mean i think that makes complete electromechs is done by a bitcoin sv guy but you know and it like kind of makes sense that like the developers on the chains that have like unreasonably large data constraints would make more performant servers, right? Because they're getting fucking stressed all the time. Yeah.

Look at this. Look at these numbers right here. Initial load. Look how crazy that difference is. It's an order of magnitude. Maybe two. It's 300x quicker than Electris on initial load. That's insane. Shout out to the

Fulcrum team. props for do well shout out to Craig and Craig I guess got the Craig for finding this and implementing it into sparrow wallet that being said I mean you brought up a good point again going back to X pubs and all

that stuff another area where we can help educate here it's something I went through personally and scared the shit out of me like so if you use something like a BTC pay server like we do a TFTC and for shout outs or something like that, donations

and what you do is you upload an Xpub so they're not reusing addresses but what you'll come to find is that a lot of users will come and they'll create an invoice and they just won't pay it. So if you don't pay an invoice, it goes to the next address in the Xpub and if you haven't... It gets deep as fuck real quick.

It gets deep as fuck real quick but on top of that since people aren't paying two addresses created in every invoice and you have multiple invoices created without somebody paying to that address, is like if in typical wallet software sparrow does this very well actually um but like typical like if you plug your trezor in or your cold card uh it won't find the addresses that have

been paid to um so it'll look like in your account that you don't have any bitcoin but you can see on your btc pay server that invoices are being paid to certain addresses when you go to check your actual wallet if you're using a hardware wallet it will look like there's no bitcoin in the the hd account that is associated with that btc pay server so what you have to do is connect that hardware while to a wallet like sparrow and what it's called jump forward and try to find uh the addresses it's called gap limit right yeah there's a gap limit so like after 100 addresses it'll just stop showing up in you'll stop checking if there's more than a gap of i think the standard one is 20 like if you have 20 addresses that are generated that don't have

of balance it just won't even look at address 21 after that yes unless you manually change the gap limit so don't fret if you run into this problem your bitcoin's most likely there you just have to connect your hardware wallet to a software that'll allow you to jump forward and increase the gap limit to to look for that bitcoin your bitcoin is most likely there yes i echo that statement yes not your bitcoins your bitcoin wow you had a great list this week I'm loving this is a very dense episode

we had it was a very big week we had Michael Saylor had Jack Dorsey and Lynn Alden on for his bitcoin for corporations 2022 symposium

she was on it right before Jack so they did double keynotes yeah two keynotes so it was Saylor and Lynn and then Saylor and Dorsey yes yes Lynn's was incredible I only saw like a little bit and I only saw the part where Dorsey was like

I have a miner and I'm mining no KYC sats through slash pool and then I'm sending it to moon wallet and then I'm buying tacos with it it's the beauty of bitcoin again self sovereign you can plug a miner in in a permissionless fashion VTC Pins has said Lynn was at the end.

Dorsey was the beginning and ended it. My bad. I got mixed up. But yeah, I mean, that's the beauty, especially from a mining perspective. You want to talk about the beauty of Bitcoin, like completely permissionless. You can permissionlessly plug in a machine,

point your hash at a pool or solo mine as if you want to. It seems to be very hot these days. There was another solo miner that mined a block earlier today, I believe. You get Bitcoin to a wallet you control. yeah it's definitely some shadow hash rate like pool gaming thing but it's not i mean i think it's wrong to call it solo miner because it's a pool miner with a different payout structure yes like that's the number one distinction that should be made yes but by the way that one is allegedly a

freak he uh i got messaged about it boss congrats to you free yeah it was a single s9 he had been mining for 24 hours on solo CK pool what he just moved his hash to CK single S9 he moved to single S9 because he like he like heard us talking about in the rabbit hole and stuff and he saw the hype about it and he moved to single

S9 24 hours later he hit the lottery just fucking hit 220k cuck bucks richer or more importantly at least 625 million sats richer I don't know what the fees were associated with that so it's more than that

congrats to you freak i'm pumped for you uh if you want to i mean if you cheers if you want to pay us a finder's fee for pushing you towards that that pool uh well i don't want to take full credit for it you said the hype the hype got him into it i'm fucking with him i'm fucking with you yes uh go check out the the sailor interview with dorsey with jack dorsey and uh wow i just pull to you there just call him dorsey uh with jack and it's so much more convenient incredible conversations uh it's really good just to peek at the mind of jack specifically i think about how uh businesses don't call sailor michael i do michael i call mikey michael and jack having a conversation

yeah well they go by their their twitter handles he's at sailor and jack is at jack right and i think that's he wasn't always at sailor they got him at sailor it was like michael under dash sailor or something for a while yeah he had that that weak ass handle um go watch it it's incredible yeah and then lens too as well uh bitcoin from a macro perspective bitcoin is money yeah i gotta watch it lightning network all that jazz all all covered uh i appreciated that sailor and micro strategy just put it up on youtube and didn't like make us like go to one of those like harvest email websites where you have to like put in your email to see the live stream yeah shout out to you michael uh yeah which one the uh i mean and they just bought a shit ton more

Bitcoin this week too I believe I mean not that much 600 more oh not that much I mean not in their scheme they have like

122,000 right now I believe which is insane like do you even do we even consider a news anymore when they buy like another

amount well I think we should bring it up because we should try to induce FOMO and other corporations are you going to let

MicroStrategy buy all the Bitcoins they don't self custody it yet not yet somebody somebody I like what have we we refer to

Bitcoin held by custodians can be bitcoins and then like real Bitcoin is Bitcoin you can sidebar that we'll sidebar that coins they just don't

own Bitcoin yes and then like that's it the importance of Bitcoin some plural the well aware somebody hopped in my menchies this week

it was like whatever you talk about like corporations not holding their keys you have to mention like sec rules like they're legally not allowed to after a certain base fucking does it yeah going base holds way more than micro strategy holds they do it all themselves they don't outsource it to like another company yeah i don't want i don't like uh an appeal to sec laws we're changing the game here if you can take control of your keys take control of your money and prove that you can do that uh coinbase figured out how to do it ftx figured out how to do it binance figured out how to do it bitmex figured out how to do it bitfinex figured out how to do it bitstamp figured out how to do it like come on man yeah but the exchange is gonna pass

it's all bullshit uh and they have to do withdrawals too in this case like micro strategy just is hodling they just have to do a cold storage setup they don't even have to handle a hot wallet where they're doing withdrawals to random people on the internet. So it's much easier than a Coinbase implementation or a Binance implementation or an FTX

implementation. Yeah, it's certainly less risky for somebody who's just hodling. We have no shoutouts this week, so we're going to go straight to software updates. If you freaks want to get a shoutout in before the end of the show, I will refresh

our BTC Pay server. and Freak if one of you Freak sent in a shout out that Marty's not reading right now feel free to reach out to me and I can promise you I'm not seeing any shout outs are you censoring the Benz?

no did they send me one? I don't know I'm just fucking around looking at it right now I'm just keeping you honest I have no view into the server so I have no view I made peace with the Benz this week you tried to block the ShoeGate article

from being talked about last week no i didn't i just think i'm done talking about you yeah car car pulled it up you you didn't want it on the list and we read it we read it we read it we did it did oh shoot yeah you i i saw you tweeted out ben's new mommy blog yes it's a good blog should we jump to that let's just jump to that and we'll get back to software updates it's a great blog dark mode only that is an incredible ben the car man a little attention to detail that you just have to respect he's a he's a dark mode maximalist would you see what happens when you do it in light mode he's just like all white right the yeah it's white on white text so you can't see shit um so ben started a bi-weekly

semi-monthly newsletter it'll be interchanging every two weeks yeah bi-weekly semi-monthly

newsletter it's very technical he's working for the Bitcoin company but the Bitcoin company

has another newsletter too it's like more beginner focused I think they have like yeah exactly this is like

the more complicated one and then they have like a mainstream one yes and so So Ben's first edition of his mommy blog, Ben's Bites,

dove into Taproot and a bunch of other technical sort of topics, Moosig and Frost and how these will affect Bitcoin or could potentially affect Bitcoin or what they will enable moving forward. So go check out his mommy blog. You can check it out at www.benbites.io. dot io that's b-e-n-b-y-t-e-s dot io fucking bears mug bears mug what are these bears doing they're all weird they're fucking it's a bear orgy yeah it's disgusting it's disgusting of course marty's it's disgusting i want to see bestiality on my on my wavelength it's not

bestiality if bears are fucking each other that's a good point that's just normal sex well yeah it's an orgy but it's it's not bestiality yeah beast beast or i had is it bestiality if you jerk off to it maybe yeah probably um that's interspecies but not like gold or silver like species okay um i had we i did a lot i did an in-person rip with uh ben and tony on dispatch this week yeah i know it was really good check that out we talked about the mommy blog a little bit there too i had a chance to tune in for like 45 minutes it was a very good conversation i thought what happened to jolly was just like hanging out in the background like didn't want to what moon yeah yeah he was just fucking sitting there on the couch and wouldn't

participate yeah i was like listen i was like i thought justin was gonna be on there he was like heckling me off mic and no one could hear him yeah yeah yeah but i put him in the description i was like i'm gonna still put you in the description because he told me like last minute he didn't feel like doing it he said he'll come on when he has something to say he doesn't have something to say but as soon as we stopped pressing recording he didn't stop talking

that's typically how it works that's what always happens on to software updates BTC pay server version 1.4.2 has been released I gotta say I upgraded to this I missed the old UI that's all I'm gonna say

and that's probably just a user tendency I haven't gotten used to it yet mempool version 2.3.1 has been released sparrow wallet version 1.5.6 has been released spectre desktop version 1.8.1 has been released blue wallet version 6.2.18 has been released declare version 0.7.0 has been released umbrella version 0.4.13 has been released mercury wallet version 0.6.0 has been released zap android version 0.5.5 beta has been released and mixed bitcoin version 0.0.64 has been released as always i don't think there's any critical vulnerabilities in any of these updates uh if you're running these softwares these updates are available you don't

have to rush to to update if you don't want to but be aware of them and there's a lot of development going on in the space that was a long software update segment there shout out love to see it you really do bitcoin is not stagnant as the haters lead you to believe it is it is not at all there's a proposal to remove memos from lightning invoices which is probably a very good idea yeah i support this proposal from a privacy perspective yeah so what's interesting is a memo is actually signed uh by your by your lightning node so it is actually very similar to aopp in that you can sign any piece of information in the memo field and it's cryptographically verifiable and attached to your non-rotating public key of your node

so there's another case where a lot of these things are already happening but we don't really have the pushback that we'd like to see there um and to the people that say oh well memos are nice because when i open my wallet i can see what i spent things on or receive things on we can still have memos that are locally done where yeah the receiver labels it the sender labels it it's optional you keep it locally but it doesn't have to actually be transferred with the invoice and be cryptographically signed i mean we saw this be a nightmare of a privacy situation in the el salvador rollout right when everyone they were literally putting people's legal names in the memo yes and then matt alborg's name got stuck in it for like a week well matt like matt like

exposed the situation so they changed the mem everyone's memo to thanks matt alborg after that every chivo wallet fucking memo was thanks matt alborg that's matt if you're matt alborg if you're listening just think about it you're gonna be down in history of el salvador for a week fucking hilarious you're just thanking matt alborg alborg as we rolled out uh the bitcoin capabilities to our citizens it's a beautiful thing you're part of history matt in el salvador at alborg i must be more descriptive since i'm talking to him at uh we're gonna just call him alborg alborg yeah we need to get back on the show soon i need to catch up with you i always love our conversations uh alborg i need to catch up with you trezor

has disabled like i'm right here right now trezor has disabled their web wallet they will be uh the only way to access and interact with your trezor hardware wallet moving forward will be via their treasure suite which is a desktop app um i've used it it's pretty slick but again i would like if they would allow you to connect it to your own full node i mean you could just use it with specter or sparrow and then you're good yeah exactly i'm not like i kind of i kind of respect i i mean this this desktop app the first party apps are to make it very easy to use for new users would it be ideal if they had it like in in the drop down in the advanced menu that allowed you to connect it to your own node yeah i agree but you know you can use it with blue wallet or

specter or sparrow or electrum and use with your own node agreed agreed be aware freaks be aware and it would also be like nice like yeah trezor your sweet product allow people to connect to their own formats well you know what the problem is right like the real reason they have this is because it makes it really easy to use shit coins yes yes and like what they're not going to give you a solana node they're not going to give you an eth node they're not like what they're going to have to go down the whole list and they're just like they look at their analytics or whatever and like the overwhelm because they can see your transactions and your balances and like the overwhelming majority of their users are just shit coining left and right um so that that's

why the priority is not there to shame to shame ftx is valued at 32 billion dollars what are your thoughts on this very impressive very impressive that that video i don't know it's just a big number i felt like it should be on the list that video that spf did this week gotta hit the gym bro i didn't see it this tits flopping around everywhere um this is interesting shopify founder that dude's worth so much money i know he's like one of the few founders that's like i i think i mean i wonder what his actual net worth is do we know what his net worth is it might be more than ftx no i think it's like 10 billion i don't think it's over 32 well i mean he owns a shit ton of tokens right which is what changes i think

dynamic like usually these guys usually these guys like they the majority of their wealth is the company they started right and he does have a significant you know amount of wealth from ftx in terms of equity but also he's got a shit ton of you know bitcoin and tokens and shit yeah i mean i think he was like you know it's a shit ton of solana yeah exactly so like when Solana was pumping like he probably like he might not be outperforming FTX right now but he was

probably outperforming FTX at some point yeah I think Solana crashed this week they had like 72 hours where the network just wasn't working it's hilarious Shopify founder joins Coinbase's board is this Toby

I mean Coinbase yeah Coinbase go fuck itself but it felt like it uh no this toby guy can go fuck himself too like i showed him tftc on our website uh vr website and our shopify store when we had one we were the first integrated btc pay server as an alternative payment method to coinbase or bitpay i believe they only two like out of the box uh like bitcoin service providers that they have on shopify we built a btc pay server shout dj dj built it um after i directed him to and uh and i like tried to like show toby on twitter and he like tried to shit on me like no like nobody wants this like people want it we're using it

every day like you don't need coinbase and for forbes richardson 2021 rated sbf as uh 22 and a half billion net worth good for him good for him uh yeah that's insane shopify and coinbase teaming up i'm not sure i feel because i'm pretty sure toby's a bit of a social justice warrior too yeah and then last but not least on the list be waiting for bated breath for this at

Bitcoin 2022 I believe on the 7th April 7th the impervious team this is the wrong link oh yeah it's not it's not the last oh yeah we have two more topics we'll go back to that one but impervious is going to be launching their browser at Bitcoin

2022 um and they're touting a lot of features we were talking about this yesterday uh it'll be a lot of hype hope they can deliver we're actually gonna have chase uh and uh anthony in the studio zoom without zoom google without google medium without medium whatsapp without whatsapp payments without banks identity without the state all the payments without banks is the easy one yeah the other ones are more difficult we just did one earlier

yeah like if they just release like a like a fork of Firefox or just Firefox or Chrome with just

a lightning wallet built into it like a very good lightning wallet built into it and all the privacy default set like I'd be a happy

camper agreed like they don't have to reinvent the wheel disclaimer 1031 is an investor in Pervious

um are we in the are we in the most recent round i'm not sure um the so that would come out the seventh one we're not part of and that was their investment impervious full disclosure we're not we're not part of fun one one two low time preference one this up bitcoin only builders uh yeah the uh chase and antony are gonna be in the studio in a couple weeks i believe yes on the 16th the 16th so a little less than two weeks from today a week from next

Wednesday so we'll describe that and he was he was on dispatch yesterday yeah Tony Tony going back to what we had on the list before surveillance firm Cypher Trace

is using honeypots which is not surprising at all And do you think they're Honeypot's Electrum servers? No, they talk about it. One was one we already knew, which is, well, first of all, Cypher Chase is owned by MasterCard. Surveillance firm bought my MasterCard. What is it? Scroll down.

Car, I think it's walletexplorer.com. Which is a, obviously don't use that site. But it's a block explorer, like mempool.space or blockstream.info that's been around for a while. and they basically use it to collect ip addresses and address information as people go and search their transactions um which is one of the reasons why people say to use your own node because you can use like mempool open source project you can use that with your own node um you can use it

you can use it with the raspi blitz you can use it with the ronin dojo um there's also there's a couple other i forget the name of the other block explorer fuck i'm gonna get shit on for not remembering that but you can use a block explorer with your own node you can also use a vpn you can use tor and this is the reason because when you start putting intimate information into web services um a lot of times they can be monetizing that by collecting that data and that's that's what a honeypot is and that's what's going on here yeah if you want to throw off the honeypots just go search random addresses

on on these clear net block explorers yeah everybody should actually you should go to wallet discovery what's the site called

wallet explorer everybody go to wallet explorer dot com and just search random addresses and make them think that you own them or actually is that bad

nah it's probably bad cause then they'll be like you own this you'll be like I don't I was fucking with you and they'll be like prove it and you can't prove it

negative and it's like ah be aware just don't go to that site use your own node use your own node that's all we have for the list you want to riff on anything you got family time

down there I don't want to keep you from your family from too long there was something I wanted to talk about but I I think I put it in the list so if you covered everything on the list um covered everything on the list because i can't see the list maybe my mobile setup there's a lot of op ctv check template verify talk going on on the mailing list right now there's a lot of debate back and forth whether or not uh it is a pressing need for the protocol i have honestly just been

watching the mailing list at a glance and just skimming i need to do a deep dive on what the the state of that conversation is OpCTV for any of you freaks who are unaware is BIP-119 I believe and it would bring covenants to Bitcoin which will allow you to create

very complex transaction structures that are conditional and Jeremy Rubin is behind that one of the coolest things that Liquid has ever done is no one really uses it

so it makes complete sense to implement controversial things into Liquid and they implemented BIP-119 into Liquid so now people can fuck around do the things they want to do with it on Liquid and see if it breaks anything

that was one of the funnier parts of the Citadel dispatch this week was Tony you said somebody paid some invoice on liquid and you can probably know because there's less than 300 people in the world that are yeah it is like yeah he was like there's more federation members which that actually was news um there was like six new federation members were added but i didn't put

it on the list because i don't think anyone really gives a shit um but notably one was specter who recently added liquid support and one is mempool which also um is gonna have like like wiz and and simon the maintainers of mempool.space they're going to have a separate liquid portal that can look up like all the liquid tokens and stuff uh from mempool.space so they're a federation member also um i have a report here that uh it seems like brains might have a what's minor release this month which could be pretty fucking

that could be pretty that that'd be fucking insane who knows what happens to the hash rate in that situation it's gonna go way up edward if you're listening i finally get to stop asking when what's minor i believe uh i think i could say this I think it's public. M20s will be first and M31s and then we'll move up to M30s from there I believe.

The message I got said that if you get into one you get into them all. Let's go! So it could be very rapid fire. Hey. Rumors.

Rumors at this point. I'll believe it when I fucking see it i've been asking when what's minor for like three years now okay yeah see it's what neil said that's what i heard jailbreak once you once you break it you can all of them and 30s plus plus putting out 105 tar hash right now you get that up to like 130 140 that's a pretty big pretty big jump i'm just assuming they're gonna have like a 30 25 to 30 percent jump in efficiency that's what we've seen historically right yeah we were so wrong about i'm glad we walked that back so quickly yeah i mean and there's rumors floating around twitter too that uh intel's chips are legit and people have been using them behind the scenes for

for more than uh for longer than people know i think kevin from foundry was tweeting about that earlier this week yeah like supposedly like grid fucked that up right like they weren't they like released it too far ahead of time or whatever like intel was still gonna hide it i didn't know about that it's a big plane is that an army plane or air force you're saying it was under on 252 because that is fuck i don't know i can't see it there's a there's a ceiling above me see oh yeah I see it I see it

I thought you were just getting your sun I thought you were getting your vitamin D and sitting by the pool yeah brains they're actually

having a conference in in the Czech Republic in Prague this summer too Bitcoin mining conference June 11th

the 15th I want to say could be wrong what does that say In Prague. In Prague, yeah. I love Prague. Prague's a great city.

Such a good city. Yeah. June 14th through the 16th, I believe the 15th is going to be the meat of the conference. Matt, they wanted us to do a live rabbit hole recap on a boat in Prague at this conference. And were you told them now?

Fortunately, my second child will be arriving. It's due to arrive. Because you never asked me, so i just assumed you said no i said i would i mean i would have said yes of my child oh that would have been fucking awesome i know we'll do it next year what your wife your wife can't give birth on the boat uh technically you're not supposed to fly like after seven months or something like that of being pregnant so we'd have to go like go to prague and in may and just did you ask them if they can move the conference i did

they said uh they thought about it i think for a second they said no i fucking love prague prague is such a dope i've never been i want to go so bad i've been a couple i've been a couple times the beer is so cheap and good people are nice cost of living is super fucking cheap it's one of my favorite cities yeah i mean this is if i wasn't having a child i'd be there in a second and I will definitely be there next year unless there's a third child behind that one

that messes up the plan. And then Riga's happening again this year. Yes. Looks like. And then BitBlockBoom is he's already like

half sold out. I guess he's got all the speaker slots filled. It's going to be in Austin. Did you see how nice the lobby is? Oh yeah. It's going to be a great

huge upgrade to LobbyCon. I was talking to Gary at Houston last year too I think he might even charge for LobbyCon like a hundred bucks if we just want to come hang out in the lobby I mean he shouldn't do that that's stupid

I think what will break LobbyCon is like the reason LobbyCon was a thing was because like like the Dallas Addison or the hotel was in the middle of fucking nowhere if we can actually walk somewhere because it's in Austin

you know like we're actually close to somewhere that's like nicer than a hotel lobby like will lobby con actually happen i don't know but the bit blog uh lobby con in dallas is had some incredible times there incredible stories uh at that lobby late night at that lobby con three years ago breaking into the bar after it was closed at the 100 like re-tapping the kegs for everybody and the best i mean the best one was the 2021 uh yeah the 2020 yeah 2020 conference where it was like in the middle of all the covid bullshit and a bunch of us came out and it was a really great time like to me that was that'll always be the 100k party um you're either there or you weren't but anyway we have three discount codes to this that are all the same which is we

have rhr tftc and dispatch and we don't get anything from those cuts but you should come because how many times have we done rabbit hole recap now there was this our fourth this will be our third third this will be our third because the first year i went we didn't do it i didn't go the first year i've been 2019 2020 2021 i've been 20 no no no no you were 2018 yeah i've been 2019 2020 21 so this is the fourth time yeah this will be our fourth yeah and this will be my fifth bit block the first time the first time was 2018 the first conference yes that was an incredible the first one ever yeah but it's a little bit shit coiny right and then he found his way right and there were yeah there was some shit going over like it was high quality bitcoin because

like pierre and bitstein like brought him pierre and bitstein brought him over to the dark side yeah i said to the light they brought him from the dark side to the light i sat with kevin fam at that dinner the first night uh of the first bit block boom kevin if you're out there i hope you're doing well sir kevin fam i forgot about that dude yeah i haven't heard that name in quite a while damn what uh what else is going on is that it yeah i mean i think it's uh maybe this is a pretty good rip the freaks are not really saying anything in the comments quiet ass motherfuckers um all right i guess we'll end it there you gotta get to your family i've gotta go figure out if we can find a replacement babysitter for dinner tonight

i gotta write a bed um yeah this was a great rep back i hope you enjoy your time with your family this weekend much love brother much love car much love freaks stay humble stack sets Peace and love.