TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Bitcoin Week of 2021.03.15

Starting point is 00:00:00 What's up freaks, it's your boy Marty Bent, here to introduce this episode of Rabbit Hole Recap. Matt and I just ripped it! Still recovering from my fall. Huge gash down my arm. Head's a bit foggy. Messed up some acronyms on the rip this week, so please forgive your boomer Uncle Marty as he attempts to recover from his stair fall. Back hurts. Head's a little Foggy. Scratched out my arm.

Starting point is 00:00:33 Fighting through. Producing content. Trying to bring it to you freaks. Every day. I gotta go write a bent after this. It's almost 6pm. I got a dinner date. Starting at 7pm. So I gotta record this. Post this.

Starting point is 00:00:48 Write a bent. Post that. And then get ready for dinner. And say Uncle Marty didn't ever do anything for you freaks, okay? This episode is brought to you by our good friends at the motherfucking cash app cash apps don't you stack sats send sats receive sats and sell sats if you so please not recommended here saying sats sats sats sats because sats are the standard you guys know the spiel there's 100 million sats in a whole bitcoin you don't have to buy a whole

Starting point is 00:01:12 bitcoin you buy it's a little there's one cuck buck worth of sats on the cash app i guess an important thing cash app came out a really cool piece today looks like they're doing a series on bitcoin misinformation and debunking the bad misinformation about bitcoin chapter one topic very near and dear to my heart bitcoin mining and he did an incredible job of making the subject approachable and fun for the freaks out there so i'll actually link to that in the show notes so if i can remember that between now and then again cash out so you stack sats send sats you can now send sats via the cash tag and just if you're sending to somebody within the cash app We can send Bitcoin directly using their cash tag.

Starting point is 00:01:54 But check out all this dope shit. If you haven't downloaded the Cash App yet, use the code STACKINGSTATS. That's S-T-A-C-K-I-N-G-S-A-T-S. You're going to get $10, and $10 is going to go to our good friends at Owl's Lacrosse. That's Owl's Lacrosse. Owl's Lacrosse. This riff was also brought to you by our very, very, very, very, very good friends at Unchained Capital. Unchained Capital is doing incredible stuff across the board, but what we're here to talk

Starting point is 00:02:24 about right now is their white glove concierge service that's going to take you from zero to having $1,000 worth of Bitcoin in a multi-sig vault in no time, okay? You need to take care of your Bitcoin custody. You need to possess your keys. A two or three multi-sig is a good way to control your Bitcoin, and when you do a multi-sig Volt with Unchained. You hold two keys, they hold one. So you always have the ability to move your UTXOs out of your multi-sig address. But if you're ever in a pinch and you lose one of your wallets or you just only have one of them on you physically and you need Unchained to be that

Starting point is 00:03:02 second in the two or three signatures, they are there for you. If all this was gibberish to you, don't worry. This is what the White Glove Concierge Service is for. They're going to walk you through what a multi-sig is. They're going to get you comfortable with it. They're going to walk you through their vault product they're going to do multiple video conference calls with you they're going to get you hardware wallets they're going to teach you how to produce private public key pairs using those hardware wallets how to secure your seed phrase that's produced with those hardware wallets they're going to wipe your ass in between with that white glove it's going to be a brown glove by the end of this experience okay and then when it's all set up you have your

Starting point is 00:03:35 multi-sig you have your hardware wallets you have the private public key pair set up you have your your multi-sig vault set up they're going to dump a thousand dollars with the bitcoin into the vault tell them uncle marty sent you tell them tftc sent you're going to get fifty dollars off that white glove that white to brown glove concierge service go to www.unchained-capital.com to check out everything else they have beyond that incredible blog they have their collateral program uh excuse me program uh products they have uh they have an otc desk if you're high net worth individuals listening to this you can you can in certain states you can you can leverage on chain two to buy some bitcoin go go check it all out link in the show notes hodl hodl

Starting point is 00:04:18 real cool product our good friends at hodl hodl very good friends as well max and roman have been on the podcast in the past they they have launched their lend platform and it is available to u.s citizens you can use your bitcoin as collateral to get liquidity using lend.hodlhodl.com their platform and this is really cool they too are leveraging bitcoin's native multi-sig properties there's no kyc there's no aml you don't know who your counterparty is you hold your your collateral on a multi-sig escrow you you make sure it's never being rehypothecated you hold one key you have a bit of control over it and you don't need to sell your bitcoin you put your bitcoin up as collateral you get stable coins you're able to go spend those however you see fit uh and you're

Starting point is 00:05:05 doing it in anonymous non-custodial no kyc aml fashion it's available to u.s citizens go check it out lend.hodlhodl.com on top of that if you sorry i hit stop recording there if you have stable coins and you want to get yield on that you can go on the other side of that that marketplace and put your stable coins up to people looking to borrow stable coins so they don't have to sell their bitcoin get get some yield on that again you meet in this open platform that len.hoddlehoddle.com is providing and you get to do all this dope stuff last but not least i gotta give a shout out to our good friends at brains brains is doing incredible things b-r-a-i-i-n-s.com i've been around for a while

Starting point is 00:05:55 jan and pavel two co-founders been on the podcast way back number number 73 go check that out edward evenson edward evenson has been on the podcast as well number 199 go check out that episode brains very bitcoin focused company building dope products most famously slush pool they took over all of slush pool they bought slush's remaining stake in slush pool last summer announced that earlier this year they're providing their brains os plus software their firmware excuse me to miners so if you're a miner that wants to get a little bit more efficiency out of your miner brains is working on firmware that allows you to stack more sats with your mining hardware they have incredible profitability calculators as well

Starting point is 00:06:41 if you're a miner and you want to see how profitable your equipment may be with your electricity cost of mine you can do that using their their calculator tool they've always been bitcoin focused they never mined a shit coin they discovered amp lead patched it they've always just been had bitcoin in mind they're working on a hash rate futures platform as well and when what's minor that's all i gotta say to my slush brains os friends my brains os friends when's when what's minor i'm kidding i'm not gonna i'm not gonna do that in ad rate they're putting out incredible content about the mining space about bitcoin in general we've got an incredible team it's dedicated to bitcoin let's go check them out at brains.com

Starting point is 00:07:24 b-r-a-i-i-n-s.com leverage their products if you're a miner and you have the ability to use brains os plus and you're not you're doing it wrong love all y'all freaks enjoy this rip you've had a dynamic where money's become freer than free when you talk about a fed just gone nuts all 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.

Starting point is 00:08:10 If you're not paying attention, you probably should be. That's for yours. What is up, freaks? Welcome back to Rabbit Hole Recap. I'm coming to you live from some South Beach. It's cold down here. That's why I've got a hoodie on. We're going to try to live stream.

Starting point is 00:08:27 Freaks, Matt, stay on top of the chat just in case my audio goes my audio goes i'm just going to unplug you just asked me you just asked me to keep an eye on the chat for the for the quality of the audio yeah i think it's necessary noted what's going on what's going on i wanted to keep the conversation going but we're not we're not going to be doing that what what we were talking about um yeah i mean uh let's let's why don't we start with the fact that uh you dropped three three podcasts on the freaks yesterday i had to do it to him i had to fucking do it to him too much bullish bullishness citadel dispatch he got that file to me a little too late tuesday night i was like already in bed and i was

Starting point is 00:09:15 like i don't feel like going out to actually upload it so i did that first thing wednesday morning i cross-posted an episode of gamcast uh to tftc because i thought it was important alex epstein who wrote the the moral case for fossil fuels really interesting perspective if you want to check it out go check it out i mean you should check it out to get this perspective very very different approach to the debate around energy consumption and its effect on climate and then i recorded with paul a toy from sphinx chat and i had the every intention before we hit record of actually dropping this monday morning next monday uh and after recording and then immediately after recording i listened to it like right away i was just like this has to go up it's too bullish

Starting point is 00:10:09 there's too much going on here fucking love it so sorry for the the content flood freaks i hope you i hope you enjoyed it um if you're listening now if you're listening youtube periscope wherever it baby smash that that like that subscribe that retweet let's get it out there matt you're just saying you're looking forward to the weekend i'm as well this week feels like it's dragging yeah i'm ready i'm ready for the weekend let's fucking go yeah so it's been a good it's been a good week though it's been uh one of the crazy things uh that happened this week that i i was we broke we went from 55k on friday then we broke all-time highs we we broke 60k we went to 61 right and then when the markets opened up again on monday morning we were like 800 away from the

Starting point is 00:11:02 friday close it was like 55 again which i just thought is like a weird thing it's like there's like this whole group of traders um there's like a whole group of traders now that have entered the market that didn't don't even realize really what like happens during the the weekend yeah very odd price movement and there was that whole debate about the coins that moved on gemini whose they were was it a whale dumping was an internal uh movement of utxs from gemini was a block fi who cares like but people are gonna move bitcoin like like don't try to like you think oh the price is gonna dump don't try and time it just stay humble stack stats Well, it's interesting, right? Because it was actually CryptoQuant that they have a Telegram channel that has 30,000 traders in it. So as soon as they send out a notification saying 18,000 Bitcoin have deposited in Gemini, all of a sudden, all these traders all market sell at the same time and close out their positions, right?

Starting point is 00:12:04 so there's a there's a there's two things to take away from and then after that a competing um analysis provider glass node said that that was an internal transfer they don't think that was an actual whale deposit so they've been arguing back and forth over that but there's like two interesting takeaways there right the first takeaway is uh because bitcoin's ledger is transparent like these whales can can do a lot of things uh to manipulate to manipulate the markets if they just uh by just moving moving their funds around right uh and then the second thing is like is there i know it's a it's a free market we can't stop anyone right but there's there should be i guess um at least at those companies there should be some introspective here uh like a post-mortem

Starting point is 00:12:51 where they they think about like their role in in the industry right like they they they should take it's not just sending out a telegram message right you you you cause and if you get it wrong you can cause your clients your traders the people that are receiving your messages you can cause them a lot a lot of money loss so like you should probably be pretty responsible about that yeah i'm happy i'm not in the world trading if any of you are new to bitcoin and i think you're going to trade your way to wealth it's highly unlikely there are certainly successful traders out there um it's just easier i i love that i don't have to pay attention to that i'm not in that crypto quant telegram like what the hell are these whales do who cares who cares just keep

Starting point is 00:13:35 stacking there's going to be whales coming in and out they're going to try and move the price you just stay steadfast just keep stacking that don't worry about the price worry about your stack but speaking of price the current price of bitcoin is fifty seven thousand nine hundred According to Clark Moody's dashboard, one CUC buck is going to get you 1,726 sats. Current market capitalization of the Bitcoin network is $1,800,000,000. I had to think in my head. I was like, what is 1.1? It's 1,800,000,000. $1,800,000,000 currently. uh we are block height 675 203 88.85 percent of all the bitcoin that will ever be distributed to the market have been distributed via the protocol uh we got a difficulty adjustment coming tomorrow 157 blocks away again we had a 1.3 downward adjustment a couple of weeks ago right now as of this point between difficulty adjustment epochs or between difficulty

Starting point is 00:14:46 adjustments it's 1 trillion 80 million not 800 million are the freaks confirming this the the freaks brought it up but then i checked and it's 1.08 right yeah yeah it's 80 million are you sure freaks yeah shout out to the freaks wait it's a 1.09 that's 900 90 million then 1.1 would be 1 trillion 100 million no it's trillion it'd be billion i think i'm right i think you freaks are wrong oh yeah yeah what yeah yeah 80 billion correct yeah but you said 800 billion right no i said 800 million okay well the freaks confused me god damn it yeah it's 1 trillion 80 billion it's above a trillion dollars 80 billion 80 billion i think yeah because it'll get to 100 billion and then from there 800 right yeah yeah i said 800 million i was wrong i

Starting point is 00:15:46 i was too too decimal the important thing is it's 1 trillion and 80 billion oh i love you guys i hope you like it good you're boomer uncle marty you can't do math i fell down the stairs earlier this week man my head's a little groggy i'm sorry everyone was wrong everyone was wrong but the important thing is that bitcoin passed a trillion dollars everyone was wrong we can we can find solace in that uh difficulty adjustment coming in 157 blocks estimated right now to be a 1.7 upward adjustment that's because blocks are currently coming in uh nine seconds faster than the 10 minute block target nine minutes 51 seconds there are 40 364 transactions in clark's mempool mempool has been pretty pretty thin last few days during the week i wouldn't be surprised

Starting point is 00:16:37 if it fully clears this weekend you want to bet i'll bet there's no way it's not going to clear this weekend marty yeah it's going to clear this fake out okay well the fee estimates there's there's a seven sat per byte for a week on clark's dashboard so i think it clears yet this year marty samurai whirlpool liquidity right now again hovering in the same spot it has been the last few weeks 1983.9 btc or 114.9 million dollars or cuck bucks worth of liquidity whatever whatever's tickling your fancy ain't nothing is right ain't nothing is right i'm not gonna bring it up you asked me not to i'm not gonna bring it up

Starting point is 00:17:29 uh what should we start with today big list big list should we start bullish i mean should we should we route back to what we were talking about why i posted three episodes like i think what's going on in the sphinx chat once they figure it like once they flesh out all the ux onboarding issues and the implementation for different phone carriers the idea is extremely solid one of the most solid app ideas built on bitcoin that i've come across to date so fucking bullish um i it would behoove me to say that it is a beta product still like i it's not very stable on on android so i haven't really if the freaks are wondering why i haven't been participating that much there i am i'm lurking um but like drop i lose messages

Starting point is 00:18:23 and stuff uh so i don't even receive sometimes i won't even receive a message i don't even know so i haven't been using it as much as i would like um but super cool super cool concept very cool and having had the pleasure to sit down and chat with paul for for an hour and 20 minutes this dude's a visionary he gets it you can do all this really cool stuff on bitcoin and people are i think uh one of my favorite tweets of today uh came from uh i don't want to get a name at least killing which said folks pumping non-fungible screen savers while bitcoiners are over here decentralized telecoms which is essentially what sphinx is they're rebuilding wechat wechat is a robust app in china but without the surveillance

Starting point is 00:19:12 without the centralization the utilities that's going to be provided from this is going to be massive i don't think that's i get i get the i get the play and i saw you tweet that out too but i i don't think that's as big of a branding win of a motto as you think it is i mean obviously we don't want the social credit score or like the cutting off of people what about what about censorship resistance signal with payments it's so much more than that though it's a podcast player you can't play podcast and signal i mean you can send an you can send an mp3 and signal it's true it's true actually this is a good debate here too is paul and i were talking about it this morning a lot of freaks being like why do we do this why like there's other free

Starting point is 00:20:00 privacy apps out there they're not really free right like signal depends on donations they just started accepting bitcoin donation i'm sure you have that on the list somewhere cross it off the list you cross it off the list uh yeah no no it's on the list but now we've covered it so they have to monetize you like hoping people donate um and then telegram big article in the wall street journal yesterday like they they're in a shit ton of debt if you don't remember they did an ico like a ton token that had to shut down because the sec was like they were funded this whole token yeah um now they're going to investors like jared leto uh and they have to go like raise a bunch of debt i believe between one well they already raised from leto yeah leto or leto leto jared

Starting point is 00:20:45 leto the thing is derove telegrams weird because they just never they just haven't implemented a business model yet there is did you did you read the wall street journal article no i kind of like insert ads and public channels and then i have apple and google no no okay so first of all first of all i have a love-hate relationship with telegram okay um i think it's a really fantastic app and and and key but it's obviously centralized right and it's and the encryption is questionable on the secret chats and they don't have encryption by default um all that said it's a very interesting situation he finds himself in because he made a lot of money darod made a lot of money on russian facebook right and the russian version of facebook and then got into a fight with putin

Starting point is 00:21:34 and was forced to sell his shares and then when he left russia he created telegram which is why like uh one of my favorite theories my favorite pet theories is that was just all a manufactured uh fight between him and putin and really it's just a it's a russian state operation but anyway that's besides the point up until this point they've never implemented a business model right but they have all of these public channels like we said earlier like crypto quant and stuff where they have hundreds of thousands of of of viewers right of of viewers of that of those channels And Durov has explicitly said multiple times that he doesn't want to do like what Facebook does and like troll people's messages and give them targeted ads. He doesn't want to monetize user attention and monetize user information. so what their path to monetization is is he wants to give those public channel creators right now

Starting point is 00:22:27 if you if you look at some of these public channels they serve ads in the as a post they'll do like a sponsored post that pops up in the feed in the middle of the feed and they'll say this you know use our sponsor here the robe he wants to include it he wants to build it in and then take a cut so that any of those channels can add in ads if they want to and then he takes a cut which is a different business model than something like a facebook chat or like a google yeah you're still adding ads a lot of times but it's optional and it's the creator that's deciding yeah it's like what youtube does right here and but obviously youtube does way more tracking than darab says he's gonna do

Starting point is 00:23:11 yeah yeah if you're on youtube smash that subscribe button like we need to get I'm kidding I guess the point I'm trying to get to is these apps aren't free these are free apps at the end of the day as is evident in the amount of debt

Starting point is 00:23:34 that comes in and the need for to raise money to develop the app many models competing here now sphinx is you know camera done where's my yep you started breaking up for the first time god damn it all right well we're gonna still live i guess it's just it's just audio now

Starting point is 00:24:04 but it's highlighting the fact that i guess sphinx is hopping in here now as a as a competitor with a new different model, a value for value model. So we'll see. We'll see what wins the day. I'm very bullish, very, very bullish. No, yeah. I mean, I think that's the future regardless, right? And I wouldn't be surprised if you see these centralized platforms move to a similar monetization model, at least, right? So you could easily see lightning paywalls and streaming value built into something like Telegram as well, even if you don't get the censorship-resistant benefits. like in like their jitsi integration i tested it out for the first time today with a couple people great american mining and it's like flawless like i wish if jitsi had

Starting point is 00:24:52 the ability to record the audio we would not be using zoom it's a much better experience what what jitsi integration in sphinx like you could technically do like a clubhouse like application in sphinx oh i didn't even realize that yeah yeah so you could have everybody in our tribe and you just start a jitsi call it's basically like a clubhouse room in the browser interesting right and it's not agor is not about you haven't been on there it's i i you know i the freaks might not realize because i have a twitter addiction but i really don't like social media period so um and clubhouse is just a massive sink it's just a massive time sink yeah it uh it's a massive time sink and it's a lot of circular

Starting point is 00:25:53 conversations that's why like i've made it an effort to only like participate in very focused rooms like today i got asked to do one with a buddy who i did a digital design boot camp with like many many moons ago we we just talked specifically one-on-one in the chat about about designing products for bitcoin how designers can can help out building out products on top of bitcoin that was a very interesting conversation and it's good i love that designers are beginning to think about creating ux and ui um design processes for with bitcoin in mind because different, right? You're building on a distributed network that has many layers with different conditions from which you need to approach it. It still kind of rubs me as like a new normal

Starting point is 00:26:44 kind of thing, you know? Like our governments condition us and tell us that we have to stay home, right? And then all conversations move over to like Zoom and Clubhouse. And you're having these conversations that you you used to have in a bar or something and instead it's like the whole world has a wiretap on your conversation while you're having it yeah right that's why i need things like jitsy speaking of bars and meeting people in person how was the new york bitcoiners meet up dude it was so bullish did you give everybody a hug uh i did there was lots of hugs lots of hugs and uh and and we had beer and we had whiskey we had pizza it was like uh it was like kind of bit devs um new faces as well like we i saw a bunch of new faces there which

Starting point is 00:27:40 was good to see i mean i hadn't been i hadn't i hadn't seen these guys in a minute um but uh yeah it was super bullish and and to be honest it was the first time i was like kind of optimistic about the state of new york city uh the weather was warm and you know people were were out and about and and it was bustling i'm i'm heavy in the new yorker camp right now heavy i don't know if i could ever go back yeah i mean that's fair enough i mean i think you know i don't plan on on staying in the city either uh but that's also part of where i am in life right now um but it did feel uh it felt more like the new york we left than it has uh

Starting point is 00:28:32 since we left i'm gonna go that way i can get down with that get down with that that's good to see i hope everybody in new york is doing well i miss you guys even though i'm a new yorker now i do miss the people that i knew and developed relationships with in the city no of course i'll be back to visit but yeah we got a bullish list here and i gotta i gotta rag on you for a little bit literally the first thing we have on the list is behind like a huge paywall like i can't even read the article and i'm not buying yeah but you don't need to read everything's in the headline i know i'm not buying a subscription to the miami herald i know you're very big dying business ftx is negotiating naming rights the miami heat arena so we're at this part of the cycle

Starting point is 00:29:22 uh we had i don't know we had the never been at this part of the cycle but we had the doge nascar car we had the uh the bitcoin bowl this is this is like in line with that definitely to another degree a higher degree naming a whole stadium for for at least a year i imagine it's a multi-year contract uh it used to be american airlines i don't think i i i guess i guess you know the corporatism of selling out the names of our stadiums is is relatively recent right because i don't feel like you don't see them change that often no i feel like well philadelphia it was depending like once i went like from the first union center to walk or to wachovia to wells fargo so those banks consolidated

Starting point is 00:30:12 they like bought the bank and then just changed the name of the bank a lincoln financial center yeah i think that like the big like first like naming bid was the the arizona cardinals newest stadium if i remember correctly um what the that's the first corporate stadium you said i mean that's the first stadium i remember in which uh there being like a big uh conversation around the naming rights and a bidding war for it yeah it's a it's a relatively uh so i feel like it's a relatively new phenomenon i know in new york like i we used to take a lot of pride that none of our stadiums were um sold their names uh because it's like i don't know like i i feel like especially when your your franchise is worth so much it's kind of uh

Starting point is 00:31:04 it's a really cheap thing it cheapens your it cheapens your audience yeah it's a sellout by naming the arena but like we had you know the giants for the longest time wasn't a sponsored arena and then they sold and shea stadium wasn't for the longest time our madison square garden still isn't uh and yankee stadium still isn't like imagine if they called yankee stadium like morgan stanley field yeah yeah what is metal ants and now what met life yeah it's fucking horrible they got like fucking every time i like go to a game i think it's like snoopy right yeah we had uh it's interesting it's lincoln financial field for the eagles they just called the link but before that

Starting point is 00:31:50 it was just veteran stadium um and then they knocked that down and when they built the link it's always been lincoln financial stadium or the link so if they ever get a new sponsor it's gonna be hard not to call it the link talking about sports on a bitcoin podcast i'm hoping i'm hoping uh and i'm not gonna hold my breath but i'm hoping that if ftx does get it they they do it right and they put bitcoin front and center um one can only hope we'll see it's gonna be uniswap there's gonna right it's just gonna be like a fucking uniswap unicorn shitting out a rainbow or they'll be like advertising their like 3x long shit token that gets you exposure to shit coins yeah or like their

Starting point is 00:32:37 their hash rate token which doesn't make a lot of sense to me uh we'll see though speaking of hash rate minor revenue hit an all-time high priced in cuck bucks this week 52.3 million dollars a day um is the new minor usd revenue all-time high which was hit earlier this week it's interesting because not as many bitcoin are being produced as there were this time last year and the time before that and even at the last all-time high there's significantly less bitcoin being produced per block um so the mining death spiral will bitcoin be able to to survive on a market number keeps going up things are looking good yeah our boy checkmate over from glass node uh put a chart together of it it's pretty uh it really hits you like a like a i assume it

Starting point is 00:33:32 hits people like a bag of bricks uh that that don't realize you know um like it's it's it's so beautiful it's so beautiful how number go up works into it you know how how we actually you know the amount of bitcoin subsidy is going down um but it's purchasing power is at an all-time high um is like the craziest uh adoption hack um and it's so interesting because you have these people who well first of all i think it's important for the new freaks to realize two years ago we literally had people that were were saying that fees were too low and they were going to stay too low and miners weren't going to be able to secure the network um which seems like crazy to think about now when we're dealing with a a mempool that hasn't cleared since since the beginning of the

Starting point is 00:34:24 year and then the second thing that's interesting is like you have all these like highly technical people that think the fact that every four years um the subsidy just cuts in half is like too abrupt they think like if when you when if you just think from like a code first perspective you kind of end up in a situation like decred has where they do like they do like a perfect curve every day the reward cuts you know because that's that's the way it should have been the the the supply cutting in half so abruptly doing that supply shock every four years is inefficient but meanwhile i it worked it worked out it's almost like you need that supply shock to to really like get people into these like FOMO periods to to to create this adoption right i think it's twofold

Starting point is 00:35:11 too that's one of the like probably like a stronger factor but then like i think i have no problem with the aggressive front-loaded supply schedule i think it was important to get that many bitcoin into people's hands so that they felt incentivized to like propagate the message and get bitcoin adopted right i mean things like faucets people just giving bitcoin away people spending 10 000 bitcoin on on pizzas like would that have happened if uh they weren't so bountiful at the beginning of the protocol i'm not so sure i'm not so sure yeah i do go back and forth on the front loading thing but it kind of it makes sense to me uh i mean like look who's to argue it worked it is what it is right yeah uh but but um it almost doesn't even matter right

Starting point is 00:36:05 because it's it's it's who posted it someone posted uh it was i think it was a tweet but someone posted like 2011 uh there was like 25 million dollars worth of bitcoin left to be mined um and then fast forward to 2021 and it's you know billions of dollars of bitcoin are left to be mined um so it's so it's almost like if you measure if you measured in purchasing power we have more bitcoin left to be mined than have been mined previously yeah that's um that's a heady conversation that goes on in some of the mining circles right it's like arguably the mad dash for the last million bitcoin to ever be mined will be more worth it than the first 18 million from a mining yeah which is a an interesting thought experiment to think through

Starting point is 00:36:58 yeah the value keeps going up the way it has been and it can certainly be true right think about it like when Bitcoin price is significantly lower than it is today when it was significantly lower in the early years when

Starting point is 00:37:15 mass amounts of Bitcoin were being distributed to the market people had to liquidate those to pay their USD and native currency energy cost even though there's less Bitcoin like the significant increase in value makes you have to liquidate less um and then you you also have the combination of mining being a bit more palatable from an investment standpoint so you

Starting point is 00:37:39 have easier access to capital and you can you can play some capital market games to to make sure you don't have to liquidate as much bitcoin anymore it's very very nuanced discussion hit your bingo boards marty we have some freaks in the chat that are asking about i believe it was for gamcast uh you asked people to make intros and you offered up a reward do you want to give it the freaks an update on where you stand there yeah the so we need an intro for gamcast so i put it out there a couple days ago hard deadline five o'clock eastern tomorrow um submissions to come in and we'll pick the best one we've gotten four submissions so far um all really good i offered 100 000 sats um and then austin uh austin storms our head of product engineering he he quote tweeted

Starting point is 00:38:35 me and he upped the ante to a million sats if if any freaks make a an intro to gamcast that we like that includes greta um screaming how dare you uh and so he upped the ante there is a contingent with that ante being upped you need to include that that little sound sound bite in the in the intro if you want the million cents so yeah we'll find out so where should they submit that the dmu or something yeah just dm me um marty at gam.ai everybody already knows this email so i'm not worried about giving it sign them up for all the the porn subscriptions freaks please don't do that please please please don't do that um just send an mp3 there's there's there's a leader in the clubhouse and uh i mean i don't want to dissuade anybody from from attempting to get

Starting point is 00:39:29 the million sat bounty but i think there's a strong leader in the clubhouse right now i'm not going to say who who but um there's one that we all like and he would win the million sat bounty too if if nobody in the field uh catches up to him that's some golf terminology you there free freaks uh sticking on mining well well i want to stick on the the checkmate thing before we get to the next topic boom uh this is really interesting like since the having transaction fees have consistently sustained more than 75 to 100 bitcoin a day which is pretty surprising just in fees just in fees that's pretty high that's bullish yeah it's very high 75 to 100 bitcoin per day yep which is per 144 five million dollars

Starting point is 00:40:22 uh yeah it's like six million dollars yeah around there ain't nothing right something something guess what the the mining race is heating up next thing on the list is the fact that uh kentucky state of kentucky the government of kentucky has passed a a tax break specifically for bitcoin miners that come and mine bitcoin within kentucky's borders there we talked about this last week briefly touched on it and at that point it was a bill making its way through the house it made it through the house and i believe today or yesterday the the governor signed it um governor andy bashar basheer technically hasn't signed it yet but but uh the senate voted in favor he's going to it's his party it's his party anyway he's gonna he's gonna

Starting point is 00:41:13 on it yeah and so yeah again if you guys were listening last week you already know this but if you weren't just refresh they're gonna waive um sales tax on the electricity used to to mine the bitcoin up to a certain point for miners so this is a state incentivizing bitcoin companies particularly bitcoin miners to come in and and participate in kentucky's economy which is a beautiful thing to see and it's something i wrote about in the newsletter two days ago so i think in the conversation of regulatory crackdowns and whether or not the US federal government is going to ban Bitcoin or severely limit individual Americans' ability to use it, I think we're overlooking states' rights and the states posturing towards Bitcoin.

Starting point is 00:42:05 And I think we're, especially after 2020, when states' rights sort of made a comeback back where you had different states making different policies and how they were going to react to COVID and the lockdowns. And you had some competition there, most notably in Texas, Florida, South Dakota, posturing like, hey, we're going to be freedom forward and everybody else taking the opposite side of that bet. But you had some optionality there. A lot of people have moved to Florida, Texas.

Starting point is 00:42:33 I don't know about South Dakota, but they're certainly leaving California and New York as the taxes stay high and freedom deteriorates. And so I think a lot of people are overlooking the power of the 10th Amendment and the competition we could see among states, particularly if Bitcoin, and even more particularly Bitcoin mining, becomes a significant revenue driver

Starting point is 00:42:55 within particular state borders. The regulatory arbitrage is going to be absolutely gorgeous, whether that's between individual states in America or if that's between states on a global scale between different countries. I mean, on this topic, we had, you know, this rumored India ban happen. And then at the same time, like a couple of days later,

Starting point is 00:43:23 we have news coming out through Reuters that there's a Pakistani province that is exploring Bitcoin mining in their hydro mix. So it's going to be pretty crazy to watch this kind of thing play out, right? yeah no the pakistani article from reuters is really interesting it was illuminating and i didn't realize how big the bitcoin community or how much penetration there was in pakistan like the quote at the end of the reuters article is really just our government that

Starting point is 00:43:53 is not participating right now people all over pakistan are already working on this either mining or trading in cryptocurrencies and they are earning it in income from it um the person the interview had said bengosh we're hoping to bring this to the government level so things can be controlled and online fraud and other scams can be prevented so the citizens are already adopting in pakistan apparently according to this one pakistani citizen but that was interesting um yeah i mean i want to talk i think the pakistani the pakistan news is great uh i want to talk more about this indian news but before i do uh marty can you give me uh permission to screen share yeah go ahead i i mean oh oh like i would ask i know if i didn't need it i know i know

Starting point is 00:44:42 here you go but the indian news like it's interesting um first of all i don't think we dumped on the indian news the indian news happened before uh like it it happened some hours before the crypto quant thing happened and it was that gemini it was that it was that bullshit gemini or allegedly bullshit gemini thing where they said that 18k bitcoin had been deposited and then because of that there was like a a cascading uh like a bunch of leverage longs got fucked and we just went down it just cascaded margin call um which is like people just don't learn right it's like stay humble stack stats like why are you going like insane leverage on bitcoin but with the india news it's like interesting because people say oh it's a fud um you know

Starting point is 00:45:32 it's it's we've heard like india bans bitcoin is just like china bans bitcoin yada yada yada i mean india actually enforced a bitcoin ban i you know it's the exchange level effective it was but they did and it was struck down as unconstitutional and now they're attempting to do it through a different path so this idea that like uh it's bullshit is is probably incredibly misguided like there's going to be more and more restrictions on bitcoin in india um and it is what it is like we should expect authoritarian governments to you know restrict usage to freedom money yeah i mean in india particularly modi wants to implement like the the wow that's a crazy arb um he wants to implement the for those listening at home

Starting point is 00:46:21 match has put the uh the bisque price of bitcoin up against the coinbase pro on top and then you have bisque uh below yeah um but yeah modi wants to implement like this draconian uh like surveilled digital monetary system i mean he started that a few years ago or a couple years ago when they started banning large denominations of cash um and move towards this so yeah it wouldn't surprise me if they they get pretty harsh around this and again like matt mentioned they've had they had an exchange ban for quite some time uh finally got uplifted um last year but it seems like they're they're coming back to limit it again so shout out to our our indian freaks out there who may be listening um it's a shame it's a shame what your government's doing you and preventing you

Starting point is 00:47:12 from uh accessing this freedom technology but keep trucking keep fighting 1.3 billion people they're neck and neck with china china is technically more populous we have 350 million people someone someone said uh like like 40 percent of the indian population does not have toilets that that's there's more people in india without toilets than live in america significantly more that's insane wow that's an insane stat right oh my god man wow so you know we we should watch those developments closely and we should do everything in our power to make it easier for people in adversarial environments to use bitcoin there's this idea that permeates through bitcoin's technical community that we just have the liberty

Starting point is 00:48:13 of waiting for things forever um and that's fine like if you can wait for bitcoin privacy if you can wait for using bitcoin privately in a more easy and you know less way to shoot yourself on the fucking foot then wait but there's a ton of people that can't wait and like we need them they need to have tools now they have to have tools today and there needs to be people talking about these tools and there needs to be people building these tools and there needs to be people using these tools and this idea that we can just wait forever is is fucking misguided yeah but it's also like necessity breeds innovation right like a hundred percent you think these tools will get expedited once it's like all right that's actually pretty pressing

Starting point is 00:49:00 we should we should move our focus on this more and more intently well i mean we have a government of one point we have the two most populous governments uh you know the two most populous countries governments making hard moves at at stopping their citizens from freely using bitcoin um so if that's not necessity then you know i don't know what is that's that's three billion people that's half the fucking world almost right solid portion of it damn well you need to identify a problem first in order to fix it that's what we're trying to do here at rhr is identify where we believe these problems are and what we believe the solutions are um so we can get some support behind building solutions to this this is what we aim to do with this podcast and again like while

Starting point is 00:49:52 we're just on the the topic of jurisdictional arbitrage and bringing it back to the states here again it's something um i really think people in america are discount like i think the states moves to make bitcoin policies whether that be restrictive like new york state or very open arms like Wyoming and Florida, Miami, particularly Kentucky now added to that list. Similar bill going through the legislator in North Dakota we mentioned last week. I've had an update on that recently, but I should look into that after this rip. It's going to heat up. And I think it's making me bullish, especially when you consider the amount of stranded energy resources

Starting point is 00:50:44 a lot of these states have and and how conservative a lot of the states with the energy resources are and how how scrappy they are if especially with this federal ban on on fracking on federal land a lot of these states that have been pushed into a corner particularly wyoming new mexico uh and you can throw colorado doesn't really care but like wyoming specifically in new mexico right behind them like they need to get creative because a lot of their economy particularly wyoming is driven by oil revenues and so oil and gas revenues and so they're going to need to get really creative to help replenish those state funds that are now being decimated because they're not able to to bring oil gas to market like they were in the past bitcoin does fix that

Starting point is 00:51:34 for them and if it does begin uh providing a lot of revenue that funds things like education health care and infrastructure buildouts in the state it's going to be hard for the federal government to tell wyoming that they can't mine bitcoin or that wyomingites wyomingites wyomingites wyoming citizens wyomians wyomians can't use bitcoin um so yeah that it's coming will the 10th amendment be be brought to the fore will states start asserting their rights against the federal government we'll see that's part of the beauty of the united states at least in its initial construction a republic a union of of sovereign states um it definitely does feel like states rights are um i i feel like a lot a curtain has been pulled on the federal government

Starting point is 00:52:29 um and people are starting to wake up and states are flexing themselves more uh you know the the the recent crisis really the the recent um coronavirus in response to corona really uh i think elevated it and and sped up the process right and we're seeing we're seeing this happen. And just on the energy side, right? I mean, we now have a government that is historically, the party has historically, at least over the last two decades, been anti-pipeline and anti-energy expansion, right? So this idea that states can harness whatever resources they have without having to worry about crossing state lines and getting all regulatory approval and all this different stuff can be extremely extremely advantageous for them right yeah yes and again

Starting point is 00:53:28 freaks i highly recommend you go listen to the interview i i did with alex epstein earlier this week and if anything just to understand the trade-offs that come with with these policies and the attempt to force renewables on the market? Does it really solve the problem? Does it really produce enough energy? Does it push the externalities just outside the border and increase emissions in places like China? I think he makes a good argument that yes,

Starting point is 00:54:01 there's a lot of trade-offs that probably aren't worth it. There's ways we can be more efficient. Bitcoin helps us be more efficient with this stuff. She had Jim Cramer recommending that Exxon use their flare gas to mine Bitcoin. Shout out to Pomp for accepting that in his brain. And then he asked the Exxon spokesperson or whatever if they were planning on doing it

Starting point is 00:54:24 and she said they were considering it, right? Yeah, yeah. That's what I love is like all of these reporters, all these anchors and shit, they won't let people come on their shows anymore without asking them the Bitcoin question. you know she had no intention of mentioning it and then he put her on the fucking spot and here we are it was like there was like 50 articles written about it after the fact it's happening

Starting point is 00:54:48 freaks it's happening and yeah like the bullish news just keeps rolling jp morgan uh came out with an interesting data point in one of their i guess it was a report research report uh and this is good good for the small guy good for the common man good for the freak out there listening to this podcast humble sad stacker the humble sad stacker out there you guys are pulling your weight in terms of flows into bitcoin um so the they they have this one particular slide deck that has the bitcoin purchase of facility by square it bit volume which is a proxy for uh paypal because they're using it. Bitcoin funds flows,

Starting point is 00:55:32 which is probably more institutional. CME, which is institutional and institutional announcements of purchases and retail is holding their way. Retail, Q3 2020, blowing out institutional by 5 million Bitcoin or excuse me, not 5 million Bitcoin. Can't do my math.

Starting point is 00:55:51 That's a lot of Bitcoin, Marty. 50,000 Bitcoin. institutional took over in q4 2020 but retail climbed back q1 2021 so far beating institutions by uh almost 10 000 15 uh excuse me 1500 ptc i mean they're using so so they're using rough measurements right they're basically looking at futures markets to gauge institutions and they're including paypal in the retail side and and on paypal even though yes it is obviously the most retail user it's like robin hood they won't let you take self they won't let you take custody so it's an iou um and god help the person who decides to have their bitcoin be

Starting point is 00:56:39 in the hands of paypal uh given all the account closures that have happened all throughout the years so um all that said regardless of how comparable they are which is pretty cool to see JP Morgan acknowledge that fact. The thing that's hard to quantify that makes the humble stat stackers so fucking powerful is that we continue to educate ourselves and improve our skill set. And we're taking this Bitcoin and we're pulling it off of exchanges and we're keeping it in our own self-custody and we're using our own nodes. That is wholly different than someone like michael saylor having you know his his regulated public company hold 90 000 bitcoin in some regulated custodian somewhere right and and and the power of that just pulling that bitcoin off

Starting point is 00:57:34 the market forever you're just pulling it off and and most of this bitcoin will never see a regulated exchange ever again it just gets pulled off hopefully it goes through coin join and it goes into self-custody and that user is going to use their own node and they're going to be a sovereign Bitcoin for the rest of their lives. And they're going to pass it down to their kid who's going to be a sovereign Bitcoiner. And that kid is going to pass it down to their kid who's going to be a sovereign Bitcoiner. And that Bitcoin will never hit a regulated exchange again. That reality has not hit these finance pros yet. They do not realize this. It is not something that is priced in yet. And that effect cannot be understated. It's massive. The liquidity crunch, the sat

Starting point is 00:58:17 squeeze is upon you banker bros finance bros be aware be aware be aware but again like to go back i want to throw some shade at paypal too i mean they're one of the reasons that bitcoin became like famous and probably one of the reasons that satoshi left at some point or people surmise actually we can't actually know why satoshi left but he left not too long after wiki leaks almost turned to bitcoin because paypal cut their donations off so it's like we're coming full circle like wiki leaks had to turn to bitcoin because they couldn't get money sent to them because paypal shut down their account and bitcoin was the only way that's the famous satoshi quote is uh about the hornet's nest you've kicked the hornet's nest and now the uh the horde is upon us

Starting point is 00:59:08 or something like that yeah i mean fuck paypal i it it literally blows my mind that uh we we've i guess to borrow your words we've reached the point of the cycle where paypal is holding people's bitcoin for them right god i gotta look up the hornet's nest because now it's gonna it's eating at me the quote wikileaks has kicked the hornet nest and the swarm is headed toward us okay i just had to make sure i got that and this was in um december 2010 i believe satoshi left the project in april of 2011 that's when he was last seen there's a little bitcoin history for you there and like going back to robin hood gotta get props where props are due and the robin hood's a shitty app and they're it's the middle of that wall street bet saga and this is

Starting point is 01:00:02 probably virtue signaling so let's not give them uh props but let's just say just state that their ceo publicly was looking for a developer to make it so they could give their users access to their their bitcoin so they can set them off robin hood i'll believe it when i see it marty i agree i agree i don't even think robin hood is holding fucking bitcoin let alone being able to enable withdrawals yeah i'd be interested to see like how they're getting that exposure it's probably derivative exposure they probably have like massive cme fucking position to to hedge themselves uh um okay back to sports this was actually really cool back to sports with marty bent just talking about stats sat stacking the oakland a's are trying to stack as many sats as possible

Starting point is 01:00:56 they're offering full season suites for the 2021 regular season are available for one bitcoin not a static usd price just just straight up if you give us a bitcoin you'll get a corporate suite for the full season that's pretty crazy is it worth it don't realize the cool part is that it's priced in bitcoin right the question is though is like i mean we really don't get to see their conviction here unless bitcoin dumps because if bitcoin goes up in value of course they're going to maintain that price right they're like right you know when they announced it bitcoin was at like 54 000 right now it's at 57 you know if it goes to like 65 70 they're going to keep the deal the real question is if we fall down to like 35 000 are they going to keep the deal or not are

Starting point is 01:01:46 they going to honor that price if i were the okra's front management if you're listening right now i would hold that price because people would be more willing i would imagine to part with one bitcoin you'd probably be able to stack more bitcoin at that price level um yeah i mean if the price is higher right like aren't why would someone pay the bitcoin when they can just sell it and then use the dollars to to buy the suite yeah like what is the price in u.s dollars i guess that's the question that you have to play that arb game and i think you got a slight discount i think if i recall correctly it was it was slightly more expensive in uh usd at the time of announcement which was like 54k yeah here's the uh the announcement from the oakland a's

Starting point is 01:02:37 pr team we invite our fans to become the first bitcoin suite holders in sports we're excited to be one of the handful of teams to accept cryptocurrency for payment and the first to price tickets in crypto instead of u.s currency the price of a season suite may fluctuate depending on when it's purchased which adds to the excitement sweets are the perfect way for groups who want to safely socially distance themselves from other from the other disgusting oakland a fan so they don't get sick you get your sweet spend your bitcoin you're dirty corona filled baseball lovers but it's like interesting yeah and again this is like one of another data point in the cultural tipping point cultural trend the social movement price tickets and bitcoin instead of u.s

Starting point is 01:03:23 currency so do we know how much does their announcement say how much the suite is in usd not seeing it i think you may only be able to do it in bitcoin no no no there's usd if you go to the actual website it shows the usd because i remember i checked it was like the first thing i checked um i mean on that topic right like pricing things at bitcoin when we talk about the evolution of or the adoption of a new money uh you might have heard bitcoiners in the past uh say store value then medium of exchange so store value is number go up and then medium of exchange is like people actually using it to transfer and then unit of account which is you know if you're talking about the richest person in the world you don't say they're worth uh billions

Starting point is 01:04:05 of u.s dollars you say they're worth you know millions of of bitcoin or really it's probably going to be billions of sats but anyway um the another thing that got priced in bitcoin that i don't have on the list was this event out of the hong kong yacht club uh which i had the great pleasure of visiting the hong kong yacht club when i was there right before everything all the shit hit the fan because hong kong the shit hit the fan before covid happened and then covid just was like the nail in the coffin um and they're running a a youth regatta a three-part regatta where these sailors are sailing in these super expensive you know state-of-the-art sailboats uh and they're racing for a coin they're racing for 100 million sats a single bitcoin

Starting point is 01:04:59 uh that's pretty cool the grand prize and no one knows what the grand prize worth will the worth will be like the finals haven't happened yet so by the time the finals happen in a couple months the prize could be significantly more purchasing power than it is today yeah that was i didn't believe it when i thought you were like photoshopping a video i'm just like trying to make a cool meme um when you posted the the tweet about it you were just like making like a boating accident joke but i had to go to the website right i was like holy shit this is real again another cultural data point is happening freaks and again i was i don't even know if i mentioned this before we hit record but right before we hopped on to record rhr today i did a clubhouse

Starting point is 01:05:42 with a buddy of mine who i did a digital design boot camp with in chicago in like 2013 2014 2014 um and he's like he's like a big ux designer and like focus on design and product stuff and just being in that clubhouse with him and a bunch of designers like the the interest around building on bitcoin from a designer's perspective is really interesting to see and i think the the blank slate nature of building on bitcoin is starting to really entice uh the designing community which is which is very very interesting to see again just like from all angles culturally uh interest is rising you have boat races having bitcoin prizes the oakland a's pricing suites in one bitcoin it's happening freaks slowly like this is like it's like frogs boiling in water but in a good

Starting point is 01:06:37 way in terms of like bitcoin slowly matriculating its way through the psyche of the masses you're just going to wake up and the frogs can be fully boiled and we're going to be hyper bitcoinized like oh shit it happened we're here yeah i mean i could i could smell the frog burning yeah and again we've got we've got good people attempting to defend bitcoin on capital hill particularly against the fincen move to to make very stringent kyc aml compliance laws for exchanges and their users so coin center and a bunch of bitcoiners outside of coin center sent enough comments earlier in the year to extend the deadline of commenting

Starting point is 01:07:27 so that the the people in fincen made educated decisions and coin center this week announced that they they entered a third comment just clarifying a few things again just saying how unlawful it would be to force this type of data gathering on exchanges and users, considering the very low amount, the very low threshold for the amount being transacted, which is like $2,000 right now. Yeah, I mean, I appreciated the heavy wording of this recent Coin Center letter. My screen is being shared to all the freaks that are watching live, so i can't pull it up um i've got it right i think they straight up called it like you know so so

Starting point is 01:08:16 this proposal uh was from uh munching butts right so our previous treasury secretary before we got yelling trump was still president they tried to rush this through when they when after the the election when they they realized the time was up and they wanted to rush it through they wanted to be the last thing it got halted the general premise you know the tldr is enhanced kyc let's make kyc even more strict than it was before um and the coin center guys they pulled no fucking punches they they called it surveillance data collection you know they you they they hit all the good points that you want them to hit and they fucking did it hard so um that's what we want to see we don't want to see you know i i don't i don't want to see like pussyfooting around here

Starting point is 01:09:03 I think it's important that it's clear that America, the most important thing for American citizens is to not be vulnerable to outside external malicious actors. And these type of surveillance regulations do the exact opposite of that. They make us vulnerable and they will be exploited. yeah and here's like the money three sentences they really cut to the chase as we discuss in depth in our comment currency transaction reports are anything but non-controversial they are by definition automated mass surveillance of innocent transactions any transaction over two thousand dollars that is merely relevant to a possible violation of law or regulation will trigger a suspicious activity report requirement,

Starting point is 01:09:55 which already applies to crypto transactions today. Therefore, any CTR report filed without any accompanying suspicious activity report is by definition a report about an American residence entirely innocent and otherwise private financial activities. These reports are a brazen offense to our fourth amendment rights

Starting point is 01:10:14 against warrantless search and seizure. A warrant, of course, requires specific reasonable suspicion of a crime. so that was very strong potent and to the point language from the team at quinn center and pulling in the fourth amendment is is actually very very good tactic i think too it is unlawful search and seizure you know i don't agree with everything they do i think their priorities have been a little bit misplaced uh they focused a little bit too much on securities regulation but uh there comes a time every year where they earn my donation my my annual donation to them and

Starting point is 01:10:48 this letter was that. Yeah. Shout out to Coin Center. Just focus on getting Bitcoin labeled as free speech. Just put all your efforts on that, please. Yeah. And privacy. I mean, the both things would accomplish a similar goal, right? But I support all of our privacy-focused lobbyists. And I think the reason we have so little substantive discussion about bitcoin privacy um and internet privacy in general is because so much of this fucking country um so much of our fellow citizens have been conditioned to just believe that privacy is inherently suspicious um and it really should be the exact opposite like the the privacy is the most american fucking thing ever um when i say american i mean

Starting point is 01:11:44 from the from the creation of this country uh it's not something that we've embraced recently that's for sure and and and that needs to change we need to go back to our roots in that regard completely agree let's get back to our roots freaks the she new american freaks out there again a long dick of the the u.s government and this time the long dick of the cftc the commodities futures trading commission specifically is probing finance over whether or not u.s residents traded derivatives on their exchange. To be clear, Binance has not been accused of any wrongdoing. The CFTC is just probing to see whether or not Americans are unlawfully trading derivatives, taking risk in derivatives markets. You can't make trading decisions for yourself.

Starting point is 01:12:32 You can't put your capital at risk. You need to make sure the CFTC is there to protect you. and they're they're gonna they're gonna shake down binance and make sure that none of you none of you poor plebs out there will take in risk with your own money and trying to try to make money from your own money okay they're here to protect you so something uh something that we've discussed in the past on this podcast um is this idea that the long arm of the u.s government will make you KYC all your users and collect all this sensitive personal information on all of your users to ensure

Starting point is 01:13:14 that no Americans are using the product. And this is what they did to BitMEX, right? They said to BitMEX, IP filtering alone is not enough. You need to KYC everybody. And if you're not KYC-ing everybody, then there's no way for you to be absolutely sure that no Americans are using your platform. And then you're breaking our laws

Starting point is 01:13:31 and we will fucking throw the book at you. And BitMEX actually fought back against that. So there's a lot of people that are equating the two, and I don't think they should be equated. CZ, the CEO and founder of Binance, has already bent the fucking knee to the US government. he they're already owned by the u.s government he he is shotgun kyc people left and right we've had so many freaks reach out and tell us about this this is a constant thing he pretends it's for your own good um and when i say shotgun kyc what i mean is he holds your funds hostage in an otherwise account that's under two bitcoin on on on binance is supposed to be no kyc that's their official ruling but after you put money in he will not let you withdraw unless you upload sensitive personal information um so that's that's where the difference lies here um that is

Starting point is 01:14:26 absolutely abhorrent policy the shotgun kyc it's way worse than just regular kyc like be up front with your users about what they should expect do not hold funds hostage um bitmex on the other hand literally had to have one of the three co-founders arrested before they implemented kyc they pushed back until that fucking happened so it's a completely different situation uh maybe the cftc does slap him with some fines makes him you know do a little bit more shotgun kyc than he's doing maybe remove that account altogether that that two bitcoin um little zone he has where he pretends there's no kyc um but but don't be mistaken here like binance is already captured by the u.s government they will do anything the u.s government asks um and and that that that is what it is

Starting point is 01:15:18 yeah i completely agree i don't think cz has the same character metal that arthur hayes and crew sam reed and ben how you say his last name dello dello yes bendello benjamin dello um speaking of which we're gonna talk about this bitmex news for a bit and then we're gonna get the shout outs reminder that we have to read shout outs out of this before i forget yeah i have it in full caps on my scratch pad um yeah so bendello he got extradited from uk right and he went in front of no no no no one got extradited no he voluntarily surrendered himself in new york okay they gave him 20 million dollars with a bail and then he went back to the uk yeah and with arthur the rumor is is that he's

Starting point is 01:16:16 going to go back to new york he negotiated his surrender he's going to go back to new york next month he's going to surrender for 10 million dollar bail and then he's going to return back to singapore so this is the we're watching sovereign individuals negotiate with the most powerful country in the world. I love it. I'm on team BitMEX. I'm sorry. Any of our federal agents are listening to this. I'm sorry. The product was too good. Again, they built a product that allowed people to just take risk. I think people should be allowed to take risk if they want to. They want to burn sats by trading on high leverage. They should be able to do that. They never touched the US dollar banking system. So to throw all these accusations

Starting point is 01:17:04 at them using the Bank Secrecy Act, I don't think Bitcoin falls under the purview of the Bank Secrecy Act if it never touches US dollar rails. Yeah, their terms and conditions said no Americans and they blocked American IP addresses. And if someone like Tone Vays posted screenshots of his referral rewards on Twitter, they would restrict his account. And this idea that they should KYC every single global user just to enforce quite clearly overbearing U.S. regulations is absolutely absurd. Not that logic dictates these kinds of things anyway. Really absurd. It's very un-American, if you ask me. i think we need i wonder marty i wonder how many how many uh i lost my train of thought a little

Starting point is 01:17:58 bit there but and i just remembered uh how many fbi agents do you think that we orange are proper freaks now like do you think we have like like six or seven that have a story for us and they just had to keep replacing them because if they spend too much time listening to to rhr they just automatically get orange pilled shout out to josh i hope you're listening to this after our discussion is our fbi agent he's not an fbi agent so i was in a i was in a again i only go in the clubhouse for very focused discussions these days and the focused discussion i was in last thursday while you were meeting up with new york bitcoiners with the brains team talking about bitcoin mining and we had a gentleman i believe i'm sorry if i'm misremembering your name sir

Starting point is 01:18:45 but it was josh and he came up on stage and he actually he was a local law enforcement i forget exactly what state but he worked in conjunction with the dea to help like unwind like he worked with an informant for the dea uh that like in the informant in the in the case there was a lot of bitcoin involved and the informant was teaching him like how they use bitcoin like how they coin joined and all that stuff and he became like infinitely fascinated in this like three years ago when this case was going on they found the criminal uh they were he got his bitcoin and all that but again like local law enforcement working with dea he's a freak now he listens to all the episodes and he loves what we're doing and he said on stage on clubhouse like he has no problem

Starting point is 01:19:31 with coin join um and said like other law enforcement agents that he works with probably wouldn't have a problem either like as long as you're just using it for privacy not doing anything illegal well guys freaks you heard it here first josh said uh random police officer josh also a freak said coin join completely cool i was like i was like josh i'm sorry if i was a bit like abrasive when you first came up i was like oh so you're my de agent he was like he's like no uh no law enforcement working with the de agent in that particular case but it was don't worry marty your your your de agent was was also listening to that conversation at the same time good i hope so i hope so no but it's a very interesting perspective that maybe we shy

Starting point is 01:20:15 away from too much but uh it was more bullish and i expected it to be more um more accepting of bitcoin and what we're doing here than than i would have expected it was like a surprise i i personally have a lot of good friends that work in law enforcement and i think uh i think law enforcement uh these these these police officers are in situations where they have to think for themselves all the fucking time and and they're thrown to the wolves like if they they don't have um you know it's it's very much a personal responsibility profession so they're they're predetermined to be bitcoiners it's way easier for them to become bitcoiners than the average you know western individual who has learned uh that that they just should not have

Starting point is 01:21:10 any personal responsibility in their day-to-day lives they just go through their lives blaming everyone else for every bad thing that ever fucking happens and never say they're wrong never admit fault uh and just let their ego just like dig themselves into this massive fucking hole um with police officers they have to you know law enforcement they have to fucking deal on day-to-day they have to deal with really significant shit agreed agreed i know it's a bad rap i mean it's such like a like everything in nuanced conversation and that's actually one thing josh said on stage too is like at the end of the day like cops get in most cops most police officers get into the line of business law enforcement because they believe in protecting

Starting point is 01:21:55 people and and the validity of the laws so i mean we could debate the validity you can debate the validity of some laws in some states but i the gist of what i'm trying to get at here is that they're good people just want to protect people i mean i i we should i i guess we should shy away from gross generalizations um yeah but i mean there's not very shitty cops out there as well look look i love i love my boys that are that are that are cops but um probably the overwhelming majority of them became cops for the power trip uh that's true it is it is that is you know power trip is a personal responsibility type of thing with great power comes great responsibility i think that's the quote actually uh shout outs before i forget first shout out i forgot to read

Starting point is 01:22:45 this last week um there's a website bitcoin and i checked it's not an ad there's no way to make money i'm pretty sure but i think it's a pretty good idea so it's called bitcoin at berkshire.com the age of a new monetary asset ascending is upon us friday april 30th and saturday may 1st 2021 bitcoin at berkshire is a hosting the first annual bitcoin only event in conjunction with berkshire hathaway's annual shareholder meeting this is a free two-day virtual event with the most brilliant minds in the bitcoin only space our goal is to continue the conversation of how berkshire hathaway its subsidiaries and shareholders alike can utilize this monetary tool improving underlying business operations and strengthening the balance sheet for several hundred years to

Starting point is 01:23:33 come so i mean you just advertised a virtual conference free it's free so is that where we draw the line if it was if it was a uh like where do we draw the line between a shout out versus an ad if if they charge for the conference then they have to they have to get a proper ad spot in the beginning or you know what bitcoin at berkshire you got away with this one okay i think it's a new one i think it's i think it's a play it by ear take them as they come look i you know i'm it sounds like it's run by a freak so cheers to the freaks out there love all of your initiative fuck yes let's go bitcoin at berkshire uh what's the 18th last week was the 11th this one came in on the 12th

Starting point is 01:24:24 there's two that i think somebody somebody paid twice i think they may have thought it didn't go through first time but it's not doesn't have anything to do with this one i like this one too Marty, I'm being told in the chat that Berkshire at Hathaway is no longer free and they're charging money for it now. God damn it, Berkshire. Are they really? Yeah.

Starting point is 01:24:47 God, I'm about to read. I'm about to read this one too. Just for the record, freaks, if you couldn't tell from over two years of joining us every week, I get surprised by the shout outs as you get surprised at the same time. marty does not tell me ahead of time about the shout outs oh no the guy who runs it is just

Starting point is 01:25:08 trolling us in the live chat and you said he's not charging so so we know it is run by a freak because only a freak only a freak would troll us live on the chat thank you freak all right this is very similar since i read that one i feel like i have to read this one cue the pump freaks aussie bitcoiners are off to the first regional bitcoin bush bash of 2021 in beechworth victoria this weekend, a continuation of low-key regional meetups where we spend a weekend sharing ideas, learning, building bonds, the infinitely yielding type of bonds, eating steaks and talking about the corn. Presentations and discussion panels this weekend include Bitcoin security, lightning, living off Bitcoin, compliance, Bitcoin DeFi, and setting up your own Bitcoin satellite.

Starting point is 01:25:54 An endless stream of stories, advice, learning, and help. When our great overlords allow international visitors again we hope some of you european and north american pigeons will make it over is that what you think of us aussie freaks we're just pigeons i thought we had a very like owl type vibe to us well no this is what marty's owl always talks about he he's always using pigeons as an insult is marty's owl an australian so it's a it's a it's a but it's an in-group it's an in-group uh signaling mechanism okay i like this i like this all right i'm a pigeon i'm a pigeon okay we're not pigeons we're owls but continue two more bitcoin bashes in the pipeline this year for july november follow at bitcoin bush bash or take a gander at bitcoin bush bash

Starting point is 01:26:36 dot info marty please break your winning streak of audio fuck ups i'm hoping i'm doing that right now for you we literally had one today and matt uh it was very temporary matt all caps here remain humble despite the unending stream of winning thanks for all you two do love aussie freaks as he pops the bottle love you freaks i hope you guys i'm sorry i think this actually may have happened last week oh so we were late i mean the bashing i think i mean this was sent last friday so i think i mean katan didn't tell me about it the bash may have already happened hopefully it's this week maybe they bought it last friday knowing we'd read it today yeah i i don't think it i doubt it happened yet i think we would have known it happened

Starting point is 01:27:26 because katan would have posted about it wizard of oz would have posted about it stefan would have posted about it um you know the aussies they all all our aussie boys would have would have posted about it aussie aussie aussie yeah you guys are in a prison over there i feel bad it's still a strong citadel though i mean it is an island in the middle of the pacific so i've told i've told all our aussie boys that that i'm happy to employ them for a work visa if they want to come over to the free states yeah we need some work done we need to bitcoinize uh this this whole operation so and we need you on site in my mother-in-law's house um hello marty and matt this is an interesting one i uh remember reading this earlier this week i'm like ah

Starting point is 01:28:13 and it's very similar to the next one it'd be very interesting if it's coming from two separate people how many do we have we have four we have we have two more left we got three or four yeah you read too much your math is horrible i fell down the stairs dude i fell down the stairs my stair fall was pretty pretty bad too i'm still recovering my back is fucked. Hello, Marty and Matt. Thank you for all that you do. Seriously. Thank you. I confess that I still own quite a bit of some shit coins. Ethereum, Litecoin, Cardano, Decred, Monero, and Bitcoin Cash. What the fuck are you doing, freak? Here we go. All right, Matt, this is why you reached out to us. I listen to Bitcoin maximalist, quote unquote, and it makes sense

Starting point is 01:28:58 that I should dump these altcoins for BTC. Yet, whenever I sit down to simplify my portfolio and put it all into Bitcoin, I always bail and put it off for another day. I always wonder if for some unforeseen quote unquote use case could eventually make one of these altcoins become something legitimate. I don't know why I can't confidently and joyfully just let them go. I just somehow need an extra little push. Are you able to provide this little push? I know you can't get financial advice, but I just know you guys can throw a few words together that will cause me to remove all doubt if you were so willing my head does not work best when left alone thank you again and my head does not work best after falling down the flight of stairs but i think it works good

Starting point is 01:29:41 enough to give you the advice to just dump them dump them here's the push i'm gonna shove you off the fucking shit coin cavern dump it into bitcoin and forget about it don't don't shove just fucking do it freak you'll feel way better less stress and like oh what what is some unforeseen use case one of these shit coins pops up that makes it like flipping bitcoin like it's just it's not gonna happen i mean let's go through them ethereum objectively failed needs to transition to e2.0 like crumbling crumbling right now the the war between the miners and the developers is one of the funniest things i've ever seen litecoin do i even have to say anything cardano just look at charles hawkinson look at that scammer look at the way he treats himself he's the he's like the

Starting point is 01:30:27 the the poster boy that decred governance is an inherent attack vector they've literally built it into their protocol monero monero can't scale you never know if there's inflation bugs like there could be inflation bugs i think it's proven in the past that there have been inflation bugs and they're always fucking with the mining algorithm and i think bitcoin's privacy assurances are going to be better the way i went to like because i wanted to start with like bitcoin's privacy assurances are getting better but you already yelled at people for saying that earlier in the

Starting point is 01:31:01 episode so i know i never talked about bitcoin privacy bitcoin privacy is great we just no one has to ever concern themselves with it we shouldn't talk about it because if we talked about it that'd be likely illegal and you should just i just assume that other people are working on it and we have all these magic words that are going to make it better in the future so magic abracadabra bitcoin cash i mean bitcoin cash come on dude what a fucking joke man what do you do get your shit together get your shit together and fucking just do it man or don't if either way your portfolio is going to be 99 bitcoin it's either going to be less bitcoin or more bitcoin that's that's what it comes down to because if you don't fucking do it it's all going to trend

Starting point is 01:31:45 to zero eventually anyway um so that's up to you bro you you don't don't don't look at the everything marty said is is is fine and dandy but but go to trading view and look at the charts yeah run the numbers look at look at the five-year charts of every single coin you hold against bitcoin you know use bitcoin as a denominator price every price your life in sats and then go do it with the whole s&p 500 and then tell me that you can outperform staying humble and stacking sats and if you say yes good fucking luck you're probably full of shit most definitely bullshit i'm pretty sure this dude just didn't think the first transaction went through and redid it with another transaction so he paid for two shout outs

Starting point is 01:32:32 secondly so i can read both of them this is the way it works it's true it's technically it's it's in our terms and conditions it is i'm still sitting on a pile of shit going it's funny how to reword it i'm still shit it sit it i'm still sitting on a pile of quote-unquote shit coins darian cardano litecoin decrib minero i know i should trade them for bitcoin but whenever i sit down to do so i always bail and put it off for another day i'm always thinking quote-unquote what if i need a nudge i know you don't give financial advice but are you willing to drop a quick nugget of wisdom i'm open to being shamed or scolded i just want to be able to confidently and gleefully let go of these coins any input is appreciated thank you for tftc and all you do

Starting point is 01:33:12 seriously yeah i'm just going to co-sign what we just said can we give this this new freak different advice yeah go for it hold your shit coins just hold them it's going to outperform just hold on yeah yeah just hold on whatever i love it that he he submitted it twice but yes we have to give him a hundred dollars with their advice uh one thing i didn't notice on the second read um i mean when did we say we don't give financial advice i thought this whole this whole yeah this whole operation is one big financial advice you know bitcoiners are the only ones who don't have to lie about it being financial advice because bitcoin is not a security um so we're allowed to talk about it without violating securities regulations um all everyone else

Starting point is 01:33:59 talking about shit coins and talking about tesla and talking about all this shit uh they they can't they can't do that they have to do that big disclaimer that's why pomp has a big disclaimer in the beginning it's because it's a shit coin podcast hey hey pom's been been helping us spin the narrative let's not let's not dump on him too hard okay love you pump nobody great yeah buy bitcoin i would literally say it in the ad read like stack sats stay humble stack sats the stack sats part of stay humble literally means buy bitcoin i guess when i when i when i say that every every company in the sap 500 will trend to zero in bitcoin that is not financial advice but when i say bitcoin's designed to pump forever that is financial advice

Starting point is 01:34:43 no i think that's good sound financial advice the the former there because you're just saying buy bitcoin you're not saying short a stock saying buy bitcoin those aren't going to appreciate as fast as bitcoin maybe that is advice no i'm being clever it's bullshit yeah obviously i'm saying the same thing it's the same thing marty i'm saying the same fucking thing in two different ways of saying it yeah well this freak said the same thing in two different ways of saying in the shout outs no he said it in the same exact way the second time it wasn't afraid to be scolded so maybe oh was it slightly different he like edited it in between yeah it was completely different i love it it's like you forgot what he wrote or she could be a she yeah because it

Starting point is 01:35:28 doesn't tell you what you wrote like once you submit it goes yeah we run a very confirmation there should be like some kind of yeah we just wait for six confirmations then we read it So if you send a low fee and you're confident that that will get included in a block, like you can know that it went through. And just keep in mind that if you try and game the system, Matt will shit on you live on air because Marty will read it anyway. That is the, the RHR difference freaks. We transition away from shout outs to the software update section of the

Starting point is 01:36:06 podcast. There's a big one. um block clock mini got a new firmware release anybody running a block clock mini out there uh download the firmware i think it's fix some stuff with the open dime reader what else did it do did add a digit i saw you ask for dolpha that earlier no he didn't add a digit i don't know what he's going to do about that and i do know i mean everyone should just use per dollar and the number number go down and we're good yeah the reason i got confused here is because you put the cold card version update

Starting point is 01:36:46 with the block clock mini announcement and the block clock mini announcement with the cold card version update. So if you're running cold card version 4.0.0 has been released, some major internal improvements. Is this like Libsec P256K1 is now not in beta anymore? Yeah.

Starting point is 01:37:05 I was going to make a tweet where I pretended I lost all my Bitcoin because I used the cold card beta and i just it would have went over so many people's heads there would have been like articles about it and stuff like so i just didn't make the joke are you trying to ban the flame wars i mean this is just like where we are right this is like where we are in in in bitcoin land i guess i guess it it's it's it's like i actually question the repercussions of the shit post now yeah but this is a massive update to be clear this is fucking huge

Starting point is 01:37:38 it's the first hardware wallet that uses um bitcoin cores the same p256k1 the same cryptography library that bitcoin core uses uh which is massive that that's a that's a big thing yeah secure cold card cloning reproducible builds that's pretty big as well um being able to reproduce the builds from source it's a good way to get certainty that you're you're running the right code and to verify hardware wallet integration version zero or excuse me 2.0.0 andrew chow's been working on this that's been added they added bitbox to multi-sig signing um support for python 3.9 documenting some stuff shout out to andrew chow and everybody contributing to that,

Starting point is 01:38:33 trying to make hardware wallets interaction a core standard to make it easier and create less chances of there being some fuck-ups on the user side by creating a standardization process. You called it hardware.

Starting point is 01:38:51 You said HWI. You said the I is integration. Isn't it interface? Interface, yes. Thanks for keeping me on my toes. Blaming the stairs on that one as well. noddle dojo version 0.1.2c has been released you don't have uh you don't have a link to that he doesn't provide links but if you own a noddle dojo it just shows up with the change log and you

Starting point is 01:39:18 can press upgrade if you want and it has a link in there um yeah i mean uh it's a big upgrade it added it just it brought everything up to to to recent now all the pack all the all the internal packages that he that he has that keto miner has on now um got updated so whirlpool got updated rtl got updated lnd got updated um and dojo got updated and uh the big thing with rtl is it added a loop and it added the bump uh fee bump support uh to do replaced by fee so so that the this was a big upgrade it was good to see the noddle dojo continues to be a fucking beast of a node uh i fucking love it it's it it was it was a very good i'm very happy with my purchase i'm still very happy with my purchase i feel very secure in using it um and just as far as turnkey

Starting point is 01:40:16 nodes go um it is definitely on the premium side no fucking doubt but you know you get you get that hands-on you get that hands-on key to minor french touch to it and it's uh it's hard to price that you clawed it back from the from the robber oh no no the robber stole the noddle the original noddle uh i personally own a noddle dojo the the the the the thief in 2019 stole the official tales from the crypt lightning node and is still operating it with nice low fees tour only it's amazing it's amazing that that thief is just so it's such a dedicated freak like even the people who steal from us are just so so aligned with the cause it's great to see giving back to the network you love to see it you hate to see i heard i heard recently the thief had to change

Starting point is 01:41:10 the noddle uh og to um from 500 gig ssd to one terabyte ssd and keto miners video that showed how to do it was just really very useful for him yeah i'm glad to hear i'm glad to hear that there's some resources out there so that you can you can keep this node up and running and providing liquidity to the lightning network it's it's a beautiful thing to see you don't like to see people engage in thievery but maybe he's trying to atone for a sense by running a good node so uh before we move on the next shout out to the noddle team not only for the noddle dojo and everything they do but i mean they were escuedo specifically very pivotal on getting us on board in the sphinx chat and like literally probing me and matt to pay attention to it and uh getting us

Starting point is 01:42:02 onboarded on that the podcast specifically uh or late summer early fall last year and i just want to thank him specifically for for pushing me down this rabbit hole because i think it's going to be a very important one to keep falling down moving forward and then on top of that they're providing cloud services for for sphinx users as well yeah they provide the whole back end the whole back end uh if you're not running your own node you're not using your own node uh is not a cloud uh so technically you're using your own node on their servers yes which is uh a trade-off balance um you can still use your own node but if you don't have your node ready to go you can do it not cloud good yep shout out to taquito and escuado you guys are fucking crushing it rude foxborough

Starting point is 01:42:52 version 0.1.1 it's a pretty big upgrade as well correct the big thing here is added support for a regular die so like you can just use a d6 which is just a traditional dice you don't need the casino quality oh no casino quality there's obviously casino quality is d6 casino quality um i i have um all the dungeon and dragon dungeons and dragons freaks are shaking their head at you marty uh the i he he used like a d d20 i think uh originally so you needed the special dice that was like 20 sided and now you can use a d6 which is the normal dice and in dungeons of dragons there's like six different dice or something like that okay right okay i know it's the number of sides on the dice does that make sense like d6 is a six-sided dice it's your usual

Starting point is 01:43:56 dice you go to the casino they roll the dice it could be one through six right oh that's how it that's a d6 right and then so you have like d4s you have d10s you have d20 no but this is like a thing the freaks don't realize this i didn't realize that they just i never knew it was called d6 what are uh the fud dice where they d what the fud the fud dice are d12 are d infinite right logically um or theoretically anthony towns i didn't read this you're gonna have to run with this one i read the one after this but not this one it was all right what do you think like i'm i love anthony i love anthony and i think uh look you know this this is this is what's nice

Starting point is 01:44:49 about bitcoin governance right it's like i have ryan gentry's um ryan gentry's uh blog post on bitcoin governance i have anthony towns blog post on bitcoin governance we recently had the irc chat um about the taproot activation using speedy trial um this idea of a three-month signaling period and if miners just go with it then we're good and we don't have to fucking deal with any kind of complication um all of these things they all meld together right and it's very important i think that every time we hit like a pivotal bitcoin upgrade point and and i know we talk about ossification a lot on this podcast this idea that bitcoin will hit a point where like basically no changes will go forward unless they're like typo fixes um but i think it's

Starting point is 01:45:38 important that every time we have like any kind of major soft fork uh that we re-evaluate for the newcomers the especially we have all these new freaks here on how bitcoin governance works right and and we all have different opinions on how it works you know anthony towns kind of wanted to push back on the idea of uasf uh user activated soft fork the influence that that it had and that it was like a special situation that it had um i think i think ryan really hit the nail on the head and i mean look you don't have to agree with me i want you to do all your research i expect the freaks to go out do all their research i i i've been wrong plenty of times and if i'm wrong i'll admit i'm wrong when when it's obvious that i'm fucking wrong

Starting point is 01:46:27 i will admit it a lot of people won't in this space um so i don't want you to just blindly trust me but but my take on bitcoin governance is similar to ryan's take more similar to ryan's take than anthony's take and we have both linked in the show notes um in that you know you have three stakeholders you have three sets of stakeholders well before you go forward you have devs before you go forward you have minor go on it's ryan gentry and buck pearly it's not just right it's two people right but ryan okay apologies ryan posted on his blog um both from the austin citadel so shout out to both of them um this idea that you have three stakeholders right and you have you have this idea of you have you have developers you have

Starting point is 01:47:13 miners and then you have users that are neither of those two um and all three sets basically have veto power in my opinion it's a mexican standoff right yeah it's this idea that that it's just really hard to change the the one concept that we all should agree on is that bitcoin is insanely difficult to change uh so any change that happens needs to be of the utmost uh necessity it has to be as efficient as possible otherwise that change will not happen it's my take and i think that lines up with gentry and and and bucks i agree and they i mean we talked about this weeks ago and when you convince me like lot equals false we go down that lot verse true there's lot verse false path makes the most sense and that's what ryan and and buck that's the conclusion that they

Starting point is 01:48:06 came to as well but it was interesting reading that i wrote about it last week last friday it was that i mean not it's not they didn't write that in vain but it seems like the speedy trial activation is gaining more traction now was the first attempt lot equals false with the three month timeline okay that's what it is but they don't want to say it but it's the same thing it's this idea that you will let the miner signal and if they just signal over 90 percent in the next three months then we don't have to deal with anything else and then like let's make that our first step for every soft fork going forward you just provide the miners this option if they if they want to hit 90 they hit 90 if you're if you're an economic full node and you disagree

Starting point is 01:48:54 with it then you just don't run the new software um so you still have your veto power your veto power isn't removed from the equation um but at the same time you have the ability that you know uh a large percent of the network is in consensus in terms of of any kind of movement yes great piece go check it out they tie in the the federalist papers throughout the the piece and and how the founding fathers of the united states thought about setting up the republic and who how the checks and balances between the stakeholders should work in the united states it's it's eerily similar conversations were going on back then um that are going on now um why are you hiding yourself somebody's probably coming in

Starting point is 01:49:45 no one else can see that except for you marty are you sure yep so were you just like palming my face yep okay i was i was doing something over here but now that you called out my spot i'm sorry this seems like a pretty pretty pretty massive fuck up or flaw in sms uh you need like so we talk about sim swaps a lot in this podcast throughout the history it's like a huge attack vector um people who know or criminals that know certain individuals own cryptocurrency and are likely to keep it on exchange will go to a mobile phone provider pretend to be that person that they're attacking and get a new sim sim card to swap out and then they'll go to the exchange and say hey i need to reset my password and they

Starting point is 01:50:42 get sms two two-factor uh authentication or authorization god i'm messing up all the acronyms today they get 2fa using the cell phone number and then they're able to get access to the exchange account and drain it of of all the bitcoin um becoming apparent this article in vice is saying that like there's a way to hack sms without even getting sim swapped what the hell's going on here dude um first of all hilarious oh you corrected yourself you were you were correct the first time it's two-factor authentication um yeah i mean this is just it's a perfect example of a fuck up that involves a centralized system and the centralized system is our sms networks our phone networks uh this idea that the mobile providers are trusted uh

Starting point is 01:51:39 third parties and we can rely on them to secure ourselves. They had a back door and they still have this back door that's set up for the corporates to basically move numbers, move the authorization of who sends a text from different people. And the idea was so that they could spam us with a bunch of mass marketing. So if you hire one of these marketing companies, you can give them very limited information to verify this is my phone number and then you can use that mass marketing company to basically exploit a large amount of individuals at the same time um and and if you know they're a bit corner and you know their phone number then obviously they're an even easier target um and this is why exchanges any kind of service really shouldn't rely on sms being

Starting point is 01:52:32 secure because it's not rely on phone numbers as an authentication mechanism they should not do that and they should at least at the very least allow people to turn off that capability there's a large amount of services unfortunately and a lot of them being banks uh which is even worse uh that don't even allow you to turn it off like they'll it'll always be able to use a phone number and the single easiest way for you to figure this out is pretend you forgot your password right um and try and sign into your service only knowing your phone number any service that is important you should go and you should try and sign in go through the forget password button click the forget password go through the fucking hoops and try and access it

Starting point is 01:53:17 with just your phone number if you can't access it with just your phone number you should be good um then i guess before you even do this go back to your email address that most people let's be honest, or using a single email that you really shouldn't be having multiple segregated email addresses. But let's say you're just using a single email, like the majority of people, it's your master email, it's your main one. A lot of people, it's for Gmail, go try and access that with just your cell phone. If you can access that with just your cell phone number, go through the forget password stuff and access it with just your cell phone number, then all of a sudden, any account that's also linked to that email is also vulnerable. So you want to make sure

Starting point is 01:53:56 you close those holes um and and literally the only way you can do that is if you go and practice personal responsibility and and go check everything um unfortunately hopefully in the future they just remove this horribly insecure authentication method yeah get your coins off exchanges don't use sms trying to use two-factor authentication authentification god damn it the goddamn head to fa and maybe use a ubk if you can where you can um yeah big attack vector hopefully we figure it out which we ended on here matt sorry i had to send a tweet to dunk on on the ethereum nerds somebody somebody highlighted the fact that they're

Starting point is 01:54:45 you're dunking on someone live i'm trying to we'll see if it works out i think it's a good i think it's funny because the youth guys are trying one more we had one more news story i know let's let's divert here for a second like the ultrasound money narrative because they're gonna like kill fees and burn fees more sound than bitcoin is this true is ethereum ultrasound money in your opinion no i mean it's fucking ridiculous god forbid they have their own memes instead of fucking trying to take all of our memes and um i mean i know it's i know it's a very sensitive topic in america um but there's like some kind of ultrasound e abortion joke in there somewhere and i'm not gonna make the joke well i i mine was a little bit more pc

Starting point is 01:55:37 it's ultrasound money because you're seeing it before birth you know no ultrasound money like it's like because an ultrasound what you're doing you're searching for the baby so like yeah ultrasound money you're searching for a narrative that will stick since 2015 i mean here's here you want me to say you're gonna make me say it marty it's ultrasound money it's ultrasound money because it can still be killed uh but uh i just it's ridiculous that this is coming from david hoffman who you know has a he has a decent pod he has two podcasts one is horrible uh and then he has one that's good pretty good pov crypto with our boy ck he's got a redeeming supposed to be like bitcoin plus e and like this guy like

Starting point is 01:56:24 he virtual signaled about not owning any bitcoin which like good luck bro uh i'm glad at least your money is where your mouth is but it's you know not gonna work out great for you and then the second thing is he goes laser eyes he puts laser eyes on you know after after we like god forbid they come up with their own fucking means they just have to try and use all of our means it's fucking insane um but i will say one thing is you can make a shit coin with the most deflationary fixed supply ever and it doesn't fucking matter because it goes back to what we said earlier and shit is hard to change on bitcoin that that's what it comes down to it doesn't come down to whatever number we came up with you know satoshi just randomly decided 21 million he

Starting point is 01:57:18 randomly decided that every four years we're just going to split the supply in half like this was a decision that he just came up with i like to think like he like came home like a little bit tipsy from the bar and like turned to his wife and was like what do you think like four years six years like how we're going to fucking do this and and they just decided that number it is what it is the thing that matters is that it's fucking ridiculously hard to change and meanwhile ethereum thinks they can emulate what bitcoin is doing while to get to that point vitalik and co you know these these small this small set of stakeholders are literally forcing through this change that them being able to force through the change is the proof that the change doesn't fucking matter

Starting point is 01:58:01 yeah i mean it's laughable at this point like the fact that like they've changed it so many times at this point like there's an exchange there's like nothing surprising but it's like hilarious they don't realize the it's hilarious they don't realize like the like once you set the precedent like even if you make it quote unquote ultrasound money like you can always change it in the future the president has always already been set there's no turning back like it will never be sound money because the monetary policy will never be set in stone because the precedents have been set already so it's just hilarious to see them see them try this sorry for sorry for uh

Starting point is 01:58:47 for derailing the conversation the last topic is pretty important well i just want to before we get to the last topic i just want to briefly bring up the fact that i had two individuals that i have always had pretty i've always had a great deal of respect for um decide to come at me in a way that was just personal attacks and they just decided that they were going to come at me with personal attacks we're going to talk about it that that that is not substantive that is not something that we can make progress on that is not something that is productive um and i refuse i refuse to enable people to fucking decide they want to attack me and attack my fucking principles um and give them give them any kind of press so i

Starting point is 01:59:37 will not discuss that any further on this fucking podcast um and if you want to talk about specific coin joint implementations i will fucking come on your show you can go and look back over a year ago i went on block digest with the fucking lead maintainer and founder of wasabi uh and i fucking talked about it and and and it's all there go back look at it go through twitter search look at it i have a thread talking about these different thread vectors go look at that um but i will not give people press if they just fucking shoot and go go for my principles because that's fucking bullshit it all speaks for itself you can go back and look and if you don't agree then fuck off whatever i don't care hey i'm i mean i think your principles have been very steadfast and

Starting point is 02:00:28 speak for themselves that's why i brought you that's why i approached you to do this show and bring you anywhere i approached you said hey you want to do rabbit hole recap you named it rabbit hole recap today you want to do a weekly new show i like your principles like the way you approach the space i like the way you think about bitcoin and have a nuanced feel so yeah i mean i stay out of it i stay out of it i try to but i did see that last night i was like what the hell is going on why is everybody why is everybody flaming stop flaming everybody your principles are sound matt and you're very consistent so i don't think you should i want to be clear here marty like i want people to discuss things i think open discussion is important

Starting point is 02:01:09 i do not think and and i know exactly where this is going like the samurai guys i'm the first one to admit that that that the samurai maintainers and a lot of their community act in bad faith on twitter they do not they do not come into to the discussion and decide to discuss substantive arguments they decide to resort to personal attacks and it's fucking exhausting but the thing is is the other side is so fucking guilty of this as well and they will not admit it they will never talk about the fact that they just they exaggerate every fucking claim they do not act in good faith no one talks about the actual implementations anymore they just decide that they're going to just personally attack fucking everybody anyone who wants to talk about it and

Starting point is 02:02:00 on this show we we have talked about wasabi so much i've given them so much press wasabi 2.0 comes out eventually whenever they fucking say it's going to come out they right now they're saying it's going to come out in 14 months or like fucking 10 to 14 months they give like a little fucking the iq curve the same curve you know the bell curve they give you the fucking bell curve on on when wasabi 2.0 comes out you know if it comes out and it's good i'm gonna fucking chill it on the podcast because that's who the fuck i am because i care about fucking privacy but if you're gonna fucking come at me and you're gonna pretend that that that you're gonna make it about personal attacks you can go fuck yourself i'm just not i can't i it's it's

Starting point is 02:02:44 it's a marketing scheme you know it's it's ridiculous it's absolutely fucking ridiculous i'm sorry you know if you have a show whoever you are go talk about on your show fuck you hey go sign that i agree like just talk ideas not people here uh yeah and i last night i mean i noticed that was going on a little bit i thought it was like an interesting juxtaposition you were you were caught in the middle of that flame war and i'm just like the most bullish person on the internet after the conversation about sphinx and i did not want to dive into that flame more so again matt i don't think anybody particularly anybody listens to this podcast question your principles pretty steadfast very steadfast no one's defending

Starting point is 02:03:33 wasabi anymore it's all hand wavy bullshit it's like hand wavy bullshit and then you just attack you just you personally attack people that that's that's that's basically where we're at right now and people will say oh just use join market but meanwhile we had a massive vulnerability in join market last week and it was like me and six other people were talking about it and we just goes to show that no one fucking gives a shit and did any other show like there's like maybe two shows that fucking discuss the joint market vulnerability um so don't fucking give me this fucking shit yeah i agree yeah last topic maybe the creepiest mugshot i've seen in quite a while like this dude this kid looked like he wanted to fuck the person taking the picture um but that twitter hacker what

Starting point is 02:04:25 was this last year he was 17 at the time now he's 18 uh he packed he got into twitter's what they're they're like god mode they're admin tools and he started hacking a bunch of people and asking for bitcoin and he got some bitcoin i'm pretty sure but he got caught pretty quickly and he fucked up on wasabi he fucked up on wasabi that was a year ago and the developers still to this day have made no changes based off of his fuck up and said that users uh were using it wrong and they should just not do that mistake even though it's the defaults yeah so he agreed to three years of prison his mugshot looks terrible from when he initially got brought in and then like the the zoom court case it's like the twitter hacker they're like making him out to be like this

Starting point is 02:05:13 mastermind hacker like he got credentials to their god mode backdoor that allowed anyone to access any account including the most powerful people in the world and i remember he got biden didn't he or obama and you remember well before biden won and you remember our our boy um our boy nick carter was like oh it could have started a global nuclear war he could have if he wanted to instead he did like the worst bitcoin scam ever he did like the easiest bitcoin scam ever uh it was like very low effort and it was because he had these credentials so my question to the u.s government is and specifically this judge who decided to give him three years is if if this is such a severe issue if this is such a severe concern maybe we should hold uh you know some of the most valuable

Starting point is 02:06:06 companies in the world that reside in america like twitter we should hold them accountable for providing this access uh with very little user access control and i understand that mostly it was because of corona i imagine pre-corona the only way you can access this god mode is if you're in the office right and they switched to remote um so these credentials were being passed around like users you know different employees computers and one of those employees probably pressed the wrong link in an email um and then all of a sudden that access credential got got leaked out right um and i'm not saying that developers in general should be held liable because that's a fucking slippery fucking slope but i'm saying like if you are one of the largest broadcast

Starting point is 02:06:56 platforms in the world and you build a back door that you allow your employees to easily access and then people freak out because a teenager that was 17 years old was able to gain access and send out any broadcast he wants to send out and then you give that teenager three years in fucking prison so he's 20 years old when he comes out that's a pivotal fucking part of your childhood after he basically he did minimal he did minimal damage i mean if anyone who sent bitcoin to those addresses they get their bitcoin back presumably um if if that is so severe then let's make backdoors illegal let's let's make it so that these companies should inherently make access to different user accounts to broadcast more difficult like why why why is that not the

Starting point is 02:07:47 conversation instead of pretending that this guy is some mastermind hacker who couldn't even use wasabi correctly and supposedly wasabi is leading edge cutting edge so like if he couldn't use wasabi correctly he must be a fucking idiot i like this framing in this pivot yeah no i completely agree like maybe you should be hiring this kid if he was able to get these credentials to get in there like 17 makes a mistake but he does look very very nefarious maybe maybe this is like a a media framing thing um yeah three years 18 to 21 could you imagine being in prison between those years in your life it would have fucking destroyed me i mean and shout out to the 17 year olds that i've have you know i have had to stay in their parents home for the last year

Starting point is 02:08:40 as well right right it's a different form of prison destroyed me it's fucking ridiculous I hope you young young freaks who may be listening to this podcast looking at the distribution of of age and demographics of who who tunes in there's not many of you I know there are some of you enjoy enjoy your youth don't stay locked in your parents house go meet up go sneak out your friends drink beers I'm gonna say drink beers have fun learn talk don't let this you need to be separated because of corona stop you from enjoying your youth this i mean that's another thing that we'll probably have to do a retrospect

Starting point is 02:09:25 perspective on in three or four years as these kids get into their early 20s is like the amount of damage psychologically all this stuff had on the youths of the world especially those who who fell on the line and just did everything they were told if you're especially when you're young you should have a bit of a rebellious rebellious tilt it's it's the time when you can mess up this kid messed up now he's in a prison for three years i mean don't get as rebellious as like taking over god mode and twitter and having people send you bitcoin be a little smarter stack sats matt you're you look defeated over there what's going on

Starting point is 02:10:07 um you're the only one who can see me um i look this idea that you can just like just scare people into submission man you know people don't want to talk about these things no one wants to talk about any of this shit no one's gonna there's gonna be so few people who there's so few people to talk about ross right there's so few people that are going to talk about this twitter hacker in a positive light why because they've been fucking crushed into submission they don't want they don't want we have like our four fbi handlers are listening to this episode right now we want them to know that we agree with their uh we agree with their policies you know we

Starting point is 02:10:53 agree with everything they're fucking doing and that's that's what that's how people think you know they turn in their neighbors they just fucking won't talk about privacy because privacy is likely illegal likely illegal it's exhausting it's exhausting as someone who has spent the last fucking however many years talking publicly about all of this shit when really i shouldn't have if i just cared about you know if not you then who if not you then who don't say you shouldn't have and it's just yeah it's just time it's exhausting and i'm hopeful i see the freak stepping the fuck up and it's fucking fuels me um but it's just it's just exhausting that's all i know i know it is exhausting but it's going to be worthwhile in the long run matthew

Starting point is 02:11:45 if not you then who seriously if not you then who you're gonna have like a spartacus moment somebody's got to say stand up and say i am spartacus if not you then who thank you for doing what you do thank you freaks for listening we're gonna win we are winning that's the other thing matt you seem very defeated right now we're winning we're winning it's not oh no no we're fucking kicking ass boys we're we're you're absolutely fucking winning we continue to win we continue to win haters in disbelief don't get me fucking wrong um and i love you marty i appreciate everything you do i think uh i think everything that's happened here at tales from the crypt um between us between the freaks um between all the the

Starting point is 02:12:36 maybe it's not easy to to objectively quantify all the different side things that have happened as a result of freaks meeting freaks uh maybe our future golf tournament to all that shit like fuck yes like i'm super optimistic it's amazing and this is why i do what i do right this is why we do what we do uh there are so many of our peers that are so depressed that are so scared that i have no idea what the fuck is going on and here i am and i'm just beaming i'm beaming in terms of future prospects and that's because of all of you people it's because all the freaks and it's because of you, Marty. So cheers to fucking that.

Starting point is 02:13:19 We do what we do because of you, freaks. Thank you guys for tuning in. Keep fighting the good fight. We're winning. Enjoy it. Be on the lookout for an episode with David Bailey tomorrow. There may be a special announcement about Bitcoin 2021. We're going to see you down there.

Starting point is 02:13:41 That's all we got this week, freaks. Stay humble. Stack sass. I love you all. Peace and love.

TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Bitcoin Week of 2021.03.15

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