TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2019.05.13

Episode Date: May 16, 2019

This week Marty and Matt are joined by Bitcoin Sign Guy to discuss a bunch of stuff. Thank you to this week's sponsors. Unchained Capital. Head over to www.unchained-capital.com/vaults and checkout their 2-of-3 multisig vaults. You get 3-months free of Saifedean Ammous' The Bitcoin Standard Research Bulletin when you sign up. Cash App. Head over to the App Store or Google Play Store, download cash.app and start #stackingsats today.

this shipmates this is that other lesson and woe to that pilot of the living god who slights it woe to him whom this world charms from gospel duty woe to him who seeks to pour oil upon the waters when god has brewed them into a gale woe to him who seeks to please rather than to appall woe to him whose good name is more to him than his goodness woe to him who in this world courts not dishonor woe to him who would not be true even though to be false were salvation yea woe to him who as the great pilot paul has it while preaching to others is himself a castaway he dropped and fell away from himself for a moment then lifting his face to them again showed a deep joy in his eyes as he cried out with a heavenly enthusiasm but oh shipmates on the starboard hand of every woe

there is a sure delight and higher top of that delight than the bottom of the woe is deep is not the main truck higher than the kelson is low delight is to him a far far upward and inward delight who against the proud gods and commodores of this earth ever stands forth his own inexorable self. Delight is to him whose strong arms yet support him when the ship of this base treacherous world has gone down beneath him. Delight is to him who gives no quarter in the truth and kills, burns, and destroys all sin though he pluck it out from under the robes of senators and judges delight top gallant delight is to him who acknowledges no law or lord but the lord his god and is only a patriot to heaven delight is to him whom all the waves of the billows of the seas

of the boisterous mob can never shake from this sure keel of the ages and eternal delight and deliciousness will be his who coming to lay him down can say with his final breath oh father chiefly known to me by thy rod mortal or immortal here i die i have striven to be thine more than to be this world's or mine own yet this is nothing i leave eternity to thee for what is man that he should live out the lifetime of his god beautifully put incredible stuff from our friend bitcoin sign guy who's in the studio to join us this week for rabbit hole recap matt what are your thoughts bullish bullish on moby dick beautiful passage from obi dick thank you for your eloquent uh oration of that dedicated to

all the bitcoiners who toe the line for the bis for the bitcoin gospel every day on crypto twitter Well, this has been a very strong week for reinforcing that mission. Reinforce the narrative. We're renaming this highly cursed snake oil week Bitcoin week. Next year, it's Bitcoin week. Officially. We got slowly towards that goal this year. It was a step in the right direction one year at a time.

Yeah, this was our strongest Bitcoin week yet. Yeah, it's been fun. A lot of news. Like, I'm tired. I don't know about you two. I'm wiped out. Straight recovery mode. I'm hurting.

This motherfucker brought a bull to the MCC. This is ridiculous. What was acquiring the bull like? We'll say it was a lot of bullshit. Do you have your head on a swivel in case any PETA freaks are looking to throw blood on you? Oh, you know, I didn't consider PETA. Actually, truth be told, the bull shouldn't be a concern to them. it's an extremely well cared for animal hand fed from birth it's this guy's pet basically and it's

also it's a it's an actor it's a thespian it it is i acquired it through an animal talent agency so it's been in you know commercials and stuff like that it's definitely 99th percentile of animal treatment in america any movies we would uh we would recognize i don't know i don't know i i'll have to uh talk to his agent uh well thank you for bringing the bull it's it started off the week like hot i mean mcc started off the week last weekend there's been great there have been great talks at that conference in particular and then consensus uh more of the after parties and conversations uh outside the conference well it was truly my pleasure i did it to benefit the atmosphere of that conference and

just uh give bitcoiners uh a physical representation of uh the emotions that we're all feeling these days yes the bullish sentiments i'm speaking of bullish animal spirits i think we are we going to talk about topics pertaining to bitcoin are we going to talk about uh just do we have an ad read oh we do have an ad we have two ad reads uh this episode rabbit hole recap is brought to you by unchained capital you freaks know all about them uh check out their two what's going on drew what's going on drew parker joe going on parker shout out um yeah they're they're putting together an incredible product for you freaks to help you uh get more certainty with your custody specifically they're two or three uh multi-sig vault products which you can use with your trezor or ledger when

they're not connected you're 100 cold storage if you ever need uh unchained to come in inside that third key in that vault they can step in and do that for you another great thing they're open sourcing their whole solutions as well i think they're ideologically pure and aligned with bitcoin so go to unchained-capital.com slash vaults uh and check out their vault program today this episode of tales from the crypt slash rabbit hole recap is also brought to you by the cash app you freaks already know all about it it's been the number one finance app in the app stores for the last two years first p2p app to let you freaks buy bitcoin uh and they're also allowing you seamlessly to uh p2p payments app excuse me um they're also allowing you look they're also

allowing you freaks to to take your coins in your own custody simply uh withdraw your coins after you buy them uh on top of this they have the boost program i used it this morning for coffee dollar off at the coffee shop uh go to the app store or google play store and check out cash app today download it stack sats freaks simplest place in the u.s to stack sets it is people are liking better after a conversation with them in europe simplest place in europe to stack sats fact do they have the auto buy live yet uh no but soon speaking of stacking sats it would be hard to do that if you're trying to stack fresh b cash because uh they uh they had a hard fork yesterday or two days ago and it was a complete shit show the stacking shit stacking shit yeah they uh so

apparently they the scheduled hard fork uh it happened split into three chains i believe one went completely dead and then two zombied on but uh they were pretty haste they pretty hastily pushed this fork out and there was a consensus bug which didn't allow miners to like pick put transactions yeah it wasn't i don't think it was a consensus bug it was talking about corral last night you seem to believe it was a consensus but my understanding was that uh the rules for determining if a transaction was valid were based on the pre-fork rules so yes it was consensus But the nodes were in consensus, but they just weren't accepting new transactions into their own mempools because they thought they were not valid. No, the mempools were full.

They were just getting the Coinbase rewards. That's the only transactions that were happening on the network. Anyway, it's mostly a waste of time, but the key thing here is that if you have routine hard forks with minimal code review, then you have these kinds of bugs that you see in the wild, and it's just completely haphazard and reckless to do that on live systems that are, at least in Bitcoin's case, that are holding billions of dollars of value. Yeah, and this is why Bitcoiners ardently avoid hard forks at all costs. yeah and matt you should also talk about the bcash snore implementation the copy paste the copy paste yeah the control c control v i mean i think it's a little reckless since you sort of need a team to maintain a shift like that but they just kind of threw it in as like a marketing they just copy and pasted uh some basic snore implementation right without all the rest of the prerequisites

like everything else to be useful in any kind of way. Well, Bcash, we are flattered. They tried to copy and paste just the Schnorr implementation into their code. They did it. Interesting. Imitation is the sincerest form of flattery. Yeah, they're using it as like a marketing gimmick.

Yeah, so let's go down the checkbox of everything Bitcoin Cash has done since the hard fork. They added checkpointing. They've already had a consensus bug. They basically had a pre-mine in the beginning because of their fucked up difficulty algorithm adjustment mixed with like Bitmain controlling the whole process. So there was like a massive pre-mine in the beginning. So I'm going to say it. I'm going to be bold, loud and proud and say that I think Bitcoin Cash is economically dead.

It may zombie on, but I don't think it will ever threaten Bitcoin in any way. I officially, I mean, I've been saying it's trending to zero forever, but I officially called it dead when they implemented the checkpoint system. Yes. as it's some of their uh i would say that's the official time of death yeah the checkpointing yeah remember andres brecken's uh reaction to that yeah you should never checkpoint yeah at least he's uh ideologically uh pure when inconsistent when uh when bad things happen it was a tangent though um what's the price of bitcoin and what's the block height oh yeah we're off kilter today price of bitcoin is seven thousand nine hundred forty seven dollars and

according to the trade block xbx index when we were at block 5 000 excuse me 576 338 what's the debt clock at what's the what the debt clock at you should start reading that it's above 22 trillion because that's the uh that here comes that dollar demonetization we saw we saw the man the gangster uh you know shilling his ubi a consensus called the freedom dividend it's the freedom dividend uh thousand yang bucks a month i'll take that uh you know direct deposit into my crack in account right in the cash app and just stack stats with it it's like thank you for uh thank you for your uh accelerationist efforts mr yang uh i also like that he um he was asked about the pink vaporwave hats and he was like so we don't uh we don't produce them

ourselves because of vapor waves association with uh extreme ideologies so one as if the acceleration weren't ramping hard enough uh now every democratic candidate has to have an official stance on vapor wave the funniest part is that hat is so badass they should just embrace it it's sick i mean look i i can't get behind 99 of yang's uh platform but hey look he is an accelerant of bitcoin and for that i uh i uh i wouldn't say i'm in the yang gang but uh i i respect their work he's good for bitcoin in multiple ways because not only the freedom dividend but i feel like he wouldn't uh pass like any kind of like onerous regulation for americans yeah he seems open to it he definitely is uh completely confused of how this technology

will work he was talking about like community tokens and stuff like that yeah that's good to our benefit going to have some community service token yeah yeah a cst the longer they're confused the better for us yeah exactly that's what i'm saying um this is a good segue into more macro stuff the the price rise has been pretty rapid we don't like to talk about price too much around here but the price rise has been pretty rapid last week in particular 126 satoshis per penny now it's uh your penny's not going as far as it was a couple weeks ago freaks that's uh that's for damn sure um so we went up from let's say let's go back to let's say 16th back to the 9th the 9th we ended the day at 63 42 currently at around 8 000 so pretty pretty high appreciation

and there's a lot of speculation out there is bitcoin acting as a risk-off asset because a lot of people were looking at the trade war what's going on with china and the u.s uh the trade war is heating up there's been a lot of talk about tariffs and sanctions and whatnot and uh the yuan is depreciating as a result and there's also these these medallions and hong kong medallions that uses capital uh flight vehicles for the chinese the the price of those are growing up as well they're like they're gold they're gold medallions i don't know i don't think they're good i think it's some sort of bear asset that they're able to get it so i don't know i don't know if they're physically gold sounds like a shit coin yeah it does but uh people are fleeing to that so it seems

like there's a flight to safety and the narrative of bitcoin as a flight to safety uh is it uh a safe haven that is that why the price is going up was uh that discussion was going on this week gentlemen what do you think i like the narrative i'm cool with it i'm like super happy with going with this narrative um i think the first person who brought it up to me uh was my father and i said to him i was like yep we can go with that that works is that was he like does he believe that bitcoin's going up because of the trade war yeah yeah he asked me he was like do you think that's why like it kind of kind of lines up right um i think chinese people in general realize the value prop of bitcoin as a capital flight asset um to begin with so if you have a yuan devaluation

incoming right which is what it looks like um it makes sense that they would go into harder assets and they already a lot of them already know about bitcoin yes and uh then bitcoin is the best place to story about value especially if you're in a situation where you need to you have to flee with your capital like we always say you need you need to have it before you need it right you have to have it before you need it so i think that as bitcoin matures and we will see this happen more and more where there's going to be small short bursts where like the price gets a little bit ridiculous especially in certain regional areas bsg is this can we do like a little currency market education here for the freaks out there what's the difference between

the yuan and the renminbi uh it's their offshore and onshore currency yeah so if you freak there's a lot of interchanging between the chinese currency some people say renminbi some people say yuan they're pegged are they pegged to each other uh oh man uh i think there it's like there's a rate that gets fixed by the chinese central bank yeah so if you're confused about that it's it's two separate currencies yeah it's two yeah yeah fuck man yeah uh buys was don't know this that was super confusing and yeah no it is really is the onshore offshore thing it is confusing it confuses me so it's like the mechanism by which everyone always says oh trying to manipulate so which one is which one's the offshore one the most popular you'll look at the charts you'll

see is the yuan that's what you see all the time all the bitcoin charts yeah and renminbi is the offshore whatever yeah but we think they're pegged and they're worth the same um no i don't know if there's any dislocation in the renminbi yuan peg it's more u.s dollar yuan interesting yes but anyway if that shit's getting devalued if you're worried that's going to get devalued then you know you don't have that many options especially in a country like china like where you have offshore real estate and you have these medallions like you said right yeah um yeah so just be aware of the equities i guess so uh start observing and seeing how bitcoin price reacts to more macro events like this and when they're when they're a flight to safeties and the

the general markets let's see how bitcoin reacts i love the safe i think the safe haven uh asset is like really the true value prop of bitcoin it just it doesn't you know it's going to take a little time for it to become like truly the safe haven we just need it to mature and adoption to increase liquidity to increase and volatility to decrease and if the flight to safety ever gets too uh too accelerated and to a point where the government uh gets scared and try to shut down the internet service providers so people can't relay bitcoin within their borders uh over we'll roll through with the ham radios we'll roll through with the ham radios or uh what was announced over the weekend at mcc blockstream and gotenna have teamed up to connect their tx

tenet gotenna's tx tenet app and the blockstream satellite so people can propagate uh bitcoin transactions through the mesh network and then broadcast it to the satellite no you receive you receive through the satellite and then you broadcast through the mesh is the yes is the flow yes yeah so the the uh avenues through which transactions can be relayed is getting more robust and stronger this is something we've been covering here at rhr for months actually a year i wrote about tx10 for the first time like this week last year um but that's when it came on the scene and this is where it is now and it seems like it's progressed a lot over the last year and then if so like if you have like a if you have like a go 10 a relay you could you you receive

through the you receive through the satellite it's a passive process so no one knows you're even pulling bitcoin transactions um so you can run a full node through the satellite you receive then you tr you broadcast transaction into the gotenna network then let's say it hops off of like five different gotennas and then like the six gotenna is like connected to the internet and then it could broadcast out to the wider well it could be broadcast in there but i think it could also be broadcasted to somebody running block set and sending transactions via satellite from their node uh to the satellite in the sky as well i don't i'm pretty sure you can't like broadcast to the satellite like unless you go through the internet like you can use their api

okay to send it through the internet but i'm pretty sure you can't broadcast i think it's one way it's received all right uncle marty it's like passive it's like a radio it's like constantly just sending out data you're not actually requesting which data you get it just constantly sending you block data all right uncle marty with a little brain fart there sorry for I didn't even know China had two currencies. That's why they call it BlockStream. The conspiracy gets deeper. Yeah, so that's, again, that's a project we've been following.

It's a credible development that it seems to be, again, getting more robust, and this is what we look for. There's a huge privacy improvement there, too, yeah. Yes. You can run a full node basically fully private without internet. That's pretty crazy. Yeah. That's insane.

What else have we got next? You want to go to vulnerabilities in the world outside of Bitcoin? So Intel has a... We're at two this week. Two this week. First one is Intel. They have a vulnerability similar to Meltdown and Spectre. This one is called Zombieload, and it attacks the processor.

It is able to access data on websites and can find out your passwords and cryptographic tokens that are used to access websites. correct yes uh first of all they got great names they keep coming out with great names all the new vulnerabilities zombie load i like zombie no one wants a zombie load i don't want to take a load from a zombie i'll tell you that um all the different manufacturers have released patches uh like this is a pretty bad one just just another reminder that you should just any of your devices connect to the internet you should assume they can be compromised um and this is you know why hardware wallets are really important this is why you know proper multi-sig usage is

important yes and it seems as though uh whatsapp's uh claim to be fully encrypted is being questioned as well this week what was the specific specifics of that bug again you just if you call a whatsapp person you own their app yes if you like did a call and like uh you know in a buggy way you can compromise the app i'm not sure what information you could get from it it looked pretty bad they were i don't think they said what exactly information they got is it similar to like the uh facetime bug where you could facetime somebody yeah answer you could listen to their their phone i think so yeah i i wonder if they got mic access from it i'm gonna check right now um but uh yeah i mean this is pretty bad right like yeah and it just goes again you know once

again you should just if you use whatsapp that's fine it's probably not the best encrypted messenger it's not the worst you know you're probably better off using something like signal uh you know probably only the russians have owned telegram but you know you have keybase they use stellar or whatever which is fucking annoying uh but you should just assume that even if you're operating on these channels like assume that the encryption can be broken another issue with whatsapp is that either side they have these automatic backups that you can enable and it backs up to google drive and icloud and if the other side vulnerable if the other side does it like i don't back up any of my conversations but if anyone i'm talking to has auto backup set up like

all my conversations are in their fucking cloud like it's bullshit ah that is fucked yes think about this is like 23 of me don't think about how this just affects you think about how it affects the people close to you the people you're communicating with on these apps my girlfriend's mom took a dna test and so my kids are straight wow she docs your kids docs to my future kids see i think there should be like i wonder if we're going to see legislation about that because there's a you're almost giving you're giving up privacy of all your relatives at the same time horrific yeah there should be some kind of consent i mean uh they weren't they weren't joking when uh in peter seller's dr strange love when they said that they're coming for

your precious bodily fluids literally the last form of privacy you have so by all means preserve that can't even walk down the street without your face getting but it's gonna be yeah well that's i wrote about that in the bed today like that dude in the uk dude in the uk was walking down the street the police in the uk warned him that like hey we're surveilling faces up here just so you know and the dude put his sweatshirt above his face walked by and they stopped him and gave him fucking 90 pound ticket because he didn't comply the uk needs to be fixed oh the face tracking face fucking man but at least san francisco you see san francisco banned face tracking yes he did and like honestly i have no faith in like

legislation solving this issue um but it's still good to see and it means like people care and people are like fighting for this and i think we're just getting started so it's good it's really good to see well that brings up a good point like i don't think legislation is going to do anything either it's gonna be ephemeral at the end of the day and this stuff is already out there and it exists and we may have lost the facial recognition like companies want it because they want big data the NSA wants it because they want to surveil everything and then when you combine it with the fact that hardware is so cheap you just get cameras and microphones everywhere i mean i bet that there's at least like 30 in this room easily there's not 30 cameras anyway no

not cameras the thing the thing is like places that could like like microphones and cameras combined and they don't even have to like for all our devices they don't have to be inserting cameras like i was thinking like at the events you know that have gone over this week like all these people are taking pictures and if it goes to like icloud or google photos or whatever they could be doing you know you could be pulling up on all those facial recognition hits yeah yeah um i looked up the whatsapp vulnerability by the way and it was just like really bad like they could pull like any data from your phone yeah it's bad yeah and but that's like going back to the point about i wrote in the bet like this fate like maybe we lost this war and like we should fight for the

civil liberties that we can call back bitcoin being one of them with money and value and maybe if we're successful in that endeavor we'll be able to uh defund the states that are trying to spy on us i like that idea i think we'll have like you know surveillance free zone i i think in like a post bitcoin world uh like jurisdictions will be competing for uh i guess like privacy focused rich people and so i think we'll have like zones that are that are like surveillance free and hopefully and i'll live in one of those well hopefully the poor people are privacy conscious as well yeah yeah yeah i just you know that'd be great too right but i just i i think i think that when you talk about jurisdictions competing with each other poor people are

generally left out because they don't they can't move easily uh you know moving is costly especially like if you're going to like a completely different country or something like that this is a hypothetical i i frequently think of how uh when we think of say public surveillance we think of these gigantic surveillance cameras that are you know they're in a big black plastic hemisphere and they you know they announce their presence right but when you think about how small say a cell phone camera is and that that could be stuck you know nearly anywhere uh i think there's going to be an insidious period when uh survey easily observable surveillance tech disappears and you have no idea which way you're being viewed from it's scary because you you have like little

nano robots like little nano bee-like creatures that can spy on you they look like real bees they exist this stuff exists oh yeah and google aerostat aerostat aerostat e-r-o-stat a-e-r-o-s-t-a-t A-E-R-O-S-T-A-T. Not the best speller here. That's okay. Even though I write every day. Yeah, so... Be aware.

Be aware. Similarities are important. They're being taken from us every day. And you got to fight for them. You know, we can take back some privacy. Face tracking is going to be one of the hardest ones. Maybe impossible. Put stickers on your face.

uh buy uh buy some buy some uh designer stickers or just become a juggalo put them put them on your cheek a different one every day i guess if you live in like a cold place you can like get away with wearing one of those face masks a lot yeah well uh back to bitcoin news more positive news uh here's a cool chart from satiris paribus bitcoin dominance measured in transaction fees uh bitcoin uh has 92 percent dominance when you're when you're looking at the the amount of fees miners are accruing from the activity on the network i think this is a good dominance metric what do you guys think i'm amazed at all the ways that these data dudes can uh you know find bullish data for bitcoin nick carter ever never runs dry it seems the coin metrics team

he can he can spin up any type of data to discredit any shit coin is this an abusive data in any way first i know no it's not an abusive data it's just that because we have this new economic system we we forget that there's or we haven't found all of the interesting ratios comparisons trends etc is uh is cherry picking might have been a better uh phrase for that question is this cherry picking data i don't i don't think so i mean our fee is important um i think this is probably the hardest data to game um but it is gameable but pretty much all these numbers can be gamed in one way or the other is gameable um increase your trend yeah i could see i could well once you start using a metric like people get really creative

about gaming it but if you it seems like an expensive metric to get let's say you had like an eo style network but instead of doing no fees where the fees are socialized and you're paying it through inflation you did it so there were transaction fees and then you controlled all the nodes that got paid the transaction fees so then you sent a ton of high paying transaction fee transactions to pay like no one's gaming it right now but i'm saying like you could theoretically game it if you were collecting all the fees because then you're not paying for anything for it right you're just paying yourself right yeah you can't game it on bitcoin but you could game it on on on all chains if you so desired so they can all minor that seems like

an alt minor could probably pay themselves the fee what an alt minor could probably just yeah that's a fee and just mine mine a block just with one their one transaction right if they controlled enough miners they can make it like relatively cheap to pull off some kind of fee fee increase but for this one sudden moment in time when we realize this it i think it's valuable right now yeah and it looks like a really cool little like pac-man chart with bitcoin just eating everything else yeah ethereum is in second with eight percent to bitcoin's 92 percent it's uh people think uh somebody people have been clamoring that the flipping is going to happen this year dude 92 is frankly bearish so so no um so if you're if you're pushing a flippening

narrative out there we'll go look at these stats they uh they tell a different story um we did not talk about this yet just announced right before we hit record uh coinbase is an advanced talks to buy custody provider zappo for 50 million plus an earn out in order to boost its custody business. Sources tell The Block Zappo has 700,000 Bitcoin. Don't do it, Wences. Please don't do it. I think we need the U.S. government to step in

and stop this monopoly, this merger from happening. We don't need the U.S. government to step in. I'm kidding, I'm kidding, I'm kidding. This would be a serious concentration of Bitcoin on one custody provider. Well, hopefully most Zappo users would pull it once Coinbase bought Zappo. But as a Zappo user, I'd be pretty upset

that my privacy got leaked to Coinbase. do you think they have a as a zappo user do you think they have a a course of recourse um to try to stop this merger there's probably like terms and conditions or something or any shit what do you think about this bsg oh man i i don't know uh obviously i think zappo is a is a great product and i think uh wences is you know the man so i'm i'm sure he had his reasons but i well it's not official yet it's a rumor and it's anonymous um so we're speculating there's a chance they might not do it also what's interesting is it's for 50 million dollars supposedly and they're you know they're custodying 700 000 bitcoin which is 5.5 billion dollars right now about

which is and the reason it's such a low price for that is because they don't i never knew this they don't collect fees for just holding your bitcoin for you that they the way they make their money is facilitating otc trades between their clients yeah i can imagine queen base buying them implementing uh custody fees yeah custody fees all nine yards you know yeah i don't know how i feel i don't know how i i mean i know how i feel i bet this eeks me out i don't think what is big Doesn't Coinbase already have like 1.1 million Bitcoin? Yeah, I mean, I prefer if Wences didn't do it, you know? Wences, if you're listening, we know you are.

Just take a word of advice. This is just one little devil angel on your shoulder. Like, Bitcoin will be fine. You know, this would be extra bad if it was a proof-of-stake system, right? Yes. So, I think Bitcoin would be fine, but it would suck for the users. And, you know, it would just suck that we lost a company that's in good regard to, you know, probably like one of the you know most legitimate custodians um to coinbase who's obviously just

running around like a chicken without a head like i have no idea what's going on i do think that structurally we would see consolidation of bitcoin exchanges and large bitcoin services there's definitely a critical number of big institutions that will you know be the quote unquote banks of the future uh and so i don't know we could compare like the herfindahl market concentration index of banking to the herfindahl index of bitcoin exchanges now that would be an interesting case study if uh derrick sue or nick carter wants to hop on that nerd shit yeah that uh yeah that herfindahl index after 08 it consolidated into four banks but i think i think we need more of a an explosion i think we more need more options for us before we consolidate

like that do you think we're ready to consolidate only a decade in uh i mean i think it'll i there will probably be net consolidation but uh it doesn't mean that new services don't keep get don't uh you know keep being released i think i'll stop being released we have two things going for us we have um if you don't include the regulatory hurdle the cost of entrance to be a bitcoin custodian is much lower than traditional custodian and then the second thing is i think the biggest weapon we have here is is multi-sig um i think multi-sig gives a lot of people the same advantages they might might seek with a custodian um like extra you know they don't trust themselves completely so they want that custodian involved but at the same time it helps the custodian

because they're not a custodian they only have one key uh so so they they don't have that regulatory headache they don't they don't have that extra security burden for them as well so i think it's actually beneficial for the the actual business to to go a multi-sig route in addition to the consumer well i think unchained capital would agree with this yeah basically just describe their business model um no this is also a reminder to you freaks out there like vote with your dollars like if you don't want uh the exchange world to be consolidated around coinbase move off coinbase and support an exchange that you think will act ethically in bitcoin in the future definitely don't store your coins on coinbase like if you want to use a custodian

then i guess use one but just don't use coinbase and uh yeah not your keys not your coins all this shit's iou if you don't have the how many times have we said that on this podcast do you think so many times i never repeated enough yeah i do i i wonder if we'll see more custodian style like circle where we where they just don't allow you to self-custody they give you no withdrawal option um because from both the regulatory and security point of view it's a lot easier for them as well which would suck that i'm not really using bitcoin at that point though no you're not i mean you're yeah you're i mean you're you're using five percent of it yes you're getting exposure to the price increase yeah under most situations yeah so uh rumors rumors that there's talks going

on of consolidation in the custodian world don't do it when says just charge a management fee on your 5.5 billion dollars it's like like come on for 50 mil right um another thing that dropped this week was announced on monday consensus week's always a bitcoin week excuse me it's always a big uh big week for announcements people like to come to new york and pitch their new products one that was announced by microsoft was a decentralized identity um well yeah identity basically decentralized identity product that uh their marketing is going to be uh be anchoring data into the bitcoin block blockchain um and and ipfs and ipfs yes um from what i understand that's pretty blockchain agnostic they're choosing bitcoin because it's the

best most secure network but if you wanted to use this software to secure it to another chain you as well yeah i i haven't combed through exactly how the system works uh however one project that i am actually actively working on i wouldn't call it a competitor to microsoft did but it is a a reputation system that is uh rooted or it it accumulates attestations on bitcoin transactions so having a credible digital reputation is something that's very important in the future if we are to upgrade our you know the cybernetic makeup of our society from kyc aml based to you know uh future uh you know pseudonym pseudo anonymity permissive uh you know fully like private markets essentially it's it's highly required and more attention

should be on creating these uh you know digital credit scores because we see where we're going if we don't take the lead on this how do these uh digital credit scores that we envision differ from the social credit scores that the chinese citizens are getting that's what i mean we see that we're headed there if we let the state design it for us so if this must be built open source uh with you know the full full market uh mechanisms in place to weed out features and you know refine refine how it's built uh it it should be up to you know the people emergent order and certainly not some platonic fascist that's what's nice to see with this microsoft proposal is that it's it is open source um they want it to be anyone can interact with it uh it'll secure

into the the whatever the most secure public blockchain is which is bitcoin um and it doesn't require a token right like what vinnie told us that you can't do decentralized id without a token so here we are here we are we don't civic wrecked dump it time of death today oh five no monday monday the microsoft announcement uh but truly not to uh you know be a shameless promoter here but do stay tuned we will be announcing uh the name and details of our project in the coming months oh awesome oh i didn't realize it was that real that's badass it's real we got we got people and then you have a you had another project that you launched this week uh yeah it's been something that i've been working on for a while it's a credit card processor

that does a specialty underwriting for all all different industries but essentially particularly areas of interest to uh right now uh digital manufacture of firearms i i was i was talking about your that sounds badass but i was talking about your oh yeah so my third your wares so my third my my third project the art yeah uh i i was an art student in college and i was a bored so i decided to make uh 21 buy bitcoin signs and uh sell them because i was told that uh you know bitcoiners would uh appreciate them and be be willing to to buy them so i've been uh pretty shocked actually i've sold uh nearly all 21 i think i may be sold out i have uh i i might do a lottery because i have i think more more than 21 orders

congratulations you're not going to print anymore right no no so i you heard it here i time stamped them all on bitcoin uh with peter todd's fabulous open timestamps software and so basically all of the owners of these will be able to collectively get together and you know disprove uh anyone that claims to have you know a counterfeit one well do you need is it like a 21 to 21 multi-sig or would you be well just that they could all they could all present their keys and then there would be nobody they could all sign or however it is digital certificate of authenticity so like if there's 21 valid certificates do you need all 21 to be together to prove that the fake is a fake uh i suppose that would be the case though it's not it doesn't it's not like they're forming a

signature they it's just it's a meat space multi it's like a uh it's like musical chairs you know the all of the people have their chair and someone claiming uh to have a a false one would be left standing but how is the what if some what if uh what if uh uh endeavoring counterfeiter sees one of the open time stamps somehow maybe they go to some one of the owners if they steal the time stamp i don't know they copy it yeah that's uh that's a different threat model well the thing is like the the person who who has the um who has the certificate of authenticity like they could make another one and like there's no way to connect it directly however but you know that they own it but because it's time stamped you know the original time

right but you don't know that it connects it to the pad right uh no yeah i yeah i did you just know that person bought one i know the original 21 no well i put a photograph of each uh okay of each one okay yeah yeah yeah so what's the what's the website for that again you can go to buy bitcoin.art and help me uh stack some sats we're we're compound memeing over here man compound memes i mean uh people have been you know kind and said like oh buy bitcoin is such a great meme but honestly i think that you two have developed the next big meme for the next uh the next couple years of bitcoiner accumulation stacking sats man it's the evolution of buy bitcoin i love it it really was natural thank you for forging the path well i mean we used to uh

it it's also sort of interesting that we are now evolving from having when you spend bitcoin the numeraire used to be bitcoin in eight places to the right of the decimal but now we are moving into the hyper bitcoinized mode where we use sats as as the base unit like numeraire yeah when sat sent parody soon what is it 176 uh that'd be 1 million per bitcoin oh shit uh 127 127 sats per percent right now okay um yeah we have to 120 x my bad at least um no it is like it's it's the natural progression right you forged away stack sats And I think the normalization of pricing things in Satoshis is important because thinking in whole bitcoins is going to be completely impractical in the future if this becomes successful. Yeah, I mean, I think we should maybe we should say the price in Satoshis from now on at the beginning of the podcast.

Certainly do that. Gotta practice what we preach. Lightning really helps you. Dollars per Satoshis. Lightning really helps you think in sets. Yeah, it really drives it home. it's very natural that's what one thing i've been able to i i could tell the price is going up we're not even looking at a price chart i can look at our zap app of people buying dime bag yeah thinking

in sats taking in sats and the satcher's getting less and less this week so i i wouldn't even have to look at a price chart i said damn my uh the dime bet the dimes going uh not going as far as it was last week there you go um that's it we're 45 minutes in i think we should keep it light this week i'm uh that was all the topics we have is there anything else on the top of your head that you thought of did i miss anything um no oh yes we did it would be remiss of us if we did not shout out uh bitcoin rabbit hole.org adam tash tashay adam tashay has put together a great resource uh for anybody looking to push newbies into uh the direction of good information on bitcoin adam has uh aggregated uh an incredible amount of content from videos essays whatever it

may be white papers uh on cryptography uh incredible source bitcoin rabbit hole.org great name great name love the name incredible name it's uh yeah great name uh that's it that's all i got i don't know i'm dead i'm tired i can't speak i've done 10 i've done 10 uh podcasts this week i'm done um yeah so uh stay humble stack sets snake oil salesmen really wear you out they really do you know i i got kicked out of the uh the deloitte uh enterprise blockchain vip lounge with uh with pierre rochard on monday to start in trouble uh yeah the um their rep uh we were sort of needling him about enterprise blockchain and uh we said so like what what got you into the space and he was like yeah well uh

i was mining bitcoin in 2009 which i i gotta say that's a highly highly uh highly um dubious statement and then uh we asked if he had uh we we decided to sort of give him a like a pop quiz on bitcoin tech to see if he was legit or not and so he said so what's byzantine fault tolerance and he goes like i don't know uh and and pierre just says well have you heard of byzantium and i said do you happen to be a general and he's like uh what are you talking about i'm like or a special operator and then he says like yeah it's time for you gentlemen to to get out we're solving the byzantine general's problem freaks man if you're an enterprise blockchain uh snake oil salesman you should probably at least know the basics how we coordinate

the attack on the shit coiners man that's that's not even shit coinery that's just like stupid application of tech that will probably never work yeah truly but yes um it's definitely shit coinery they're not the enterprise blockchain they're not selling tokens to the public yeah but they're selling the chain to the private yeah to enterprises yeah good luck good luck enterprises yeah it's important to always troll the enterprise guys yeah they they have they have too much money deloitte please don't sue me do your part freaks um that's all we got this week thank you for ending on that story and thank you for for reading a passage in the beginning oh thank you everyone read moby dick man it's important peace and love freaks cheers