TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2019.08.26

Episode Date: August 29, 2019

This week Marty and Matt discuss: - ColdCard MK3 announced: https://blog.coinkite.com/coldcard-mark3/ - https://ln.alhur.es/ by @fiatjf - UI for hardware wallet multisig using bitcoin core and HWI released for testing by @justinmoon - https://github.com/justinmoon/junction - Bitcoin realized cap hits ath of ~$100B - https://coinmetrics.substack.com/ - According to Chainalysis, less than 11% of mixed bitcoin are used for illicit purposes - https://bitcoinmagazine.com/articles/chainalysis-most-mixed-bitcoin-not-used-for-illicit-purposes - CSW rebuked hard in court, judge orders 50% of his bitcoin to be given to Kleinman's estate, unfortunately for them he probably doesn't own any - Bitcoin for safety by @jamesob - https://jameso.be/2019/08/24/bitcoin-is-for-this.html - WTF happened in 1971? https://wtfhappenedin1971.com/ - Janey + Cato - https://tftc.io/martys-bent/issue-559/ - Binance adds interest bearing accounts (BNB, ETC, Tether) - https://www.bloomberg.com/news/articles/2019-08-26/teaser-rates-come-to-crypto-as-binance-starts-lending-business - Opennode adds kyc and shopify integration - https://www.opennode.co/blog/how-to-accept-bitcoin-shopify-extension/ - EOS dumped almost 20 mins earlier first: https://twitter.com/hodlonaut/status/1167094577389604865?s=20 - Portugal tax exemption. Fake news? Let us know Shoutout to our sponsors: Cash App. Head over to the App Store or Google Play Store, download cash.app and start #stackingsats today. Use the promo code: "stackingsats" to receive $5 and contribute $5 to OWLS Lacrosse you download the app. 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. Subscribe to our YouTube channel: https://www.youtube.com/channel/UCtdbWsnfA08KhSUO4amVLaQ?view_as=subscriber

What is up, Freaks? Welcome back to Tales from the Crypt. It's your boy Marty Bent here for take two of this week's Rabbit Hole Recap. Yeah, had a brain fart there. Forgot to hit record on our first take and it was a great rip, Matt. I'm sorry. From the bottom of my heart, I feel terrible for wasting 35 minutes of your time this morning. The Freaks will never know how good of an episode they just missed. the lost tapes uh i did hit record this time triple quadruple checking we're 29 seconds in recording on both the uh the conferencing tool that we're using and my local uh the recording tool here we have we have three different recorders going right now so yeah there's no way set this will this will make it into the analysis of history

um speaking of the analysis of history bitcoin at 9400 which was when we first recorded it's now at uh the nine thousand five hundred eight dollars and one cent uh excuse me eight dollars and 81 cents according to the uh trade block xbx index do you have a block for us matt bullish uh yeah most recent block is 592 305 bang bang yeah we have to uh keep this tight this week i'm in a bit of a rush as i have a wedding in philadelphia that i have to go attend uh later this afternoon and then tomorrow uh so we got to keep it not tight not to mention it's the second time yeah now it's got to be really tight yeah but we'll make it fun we'll make it fun again man i'm sorry that was a a bush league

move on my part there no worries shit happens uh but this is an example that of something bitcoin doesn't fix yeah it should be noticed it may be as some people pointed out we do need a multi-sig record uh function here i oh absolutely that would have fixed this yeah um even though bitcoin doesn't fix this bitcoin does fix other things and you can buy bitcoin via the cash app this episode of rabbit hole recap is brought to you by the cash app if you freaks live in america and you've not downloaded the cash app yet and you listen to this podcast what the hell are you waiting for go download it uh we got a special deal for you use the code stacking sats that's one word s-t-a-c-k-i-n-g-s-a-t-s stacking sats one word you're going to get five dollars five

dollars going to go to owls lacrosse uh charity very near dear to our hearts here they're helping out boys and girls in chicago learn leadership skills through the sport of lacrosse the sport that i am fond of the best sport on two feet the fastest sport on two feet the cash app once you have it downloaded you're gonna be able to buy and sell bitcoin through that you're gonna be able to stack sats uh and then you're also going to be able to withdraw you can withdraw to wasabi You can withdraw your personal wallet, and then you can also send from a personal wallet to the Cash App if you just so happen to need to dump some sats. Unfortunate if you do.

On top of that, they have their Boost program. Can't forget about that. Go to merchants like Chick-fil-A, Whole Foods, local coffee shops. Save money while you shop using the Boost card. Download the Cash App today. Use the code STACKINGSATS. Then we've got to give a shout-out to our friends at Unchained Capital. Doing incredible things.

Go to www.unchained-capital.com slash vaults to check out their two or three multi-sig vault product, which allows you to use multiple hardware wallets, whether it be a Trezor, a Ledger. I believe they're working on Coldcard. And you can engage in a two or three multi-sig with them where they can be that second of that two or three scheme if you ever are in a pinch. And then on top of that, they have their loan product as well on the other side. if you don't want to sell your bitcoin you want to lever up and take a usd loan you can do that as well go to www.unchained-capital.com slash vaults check out the vault program matt we're about to run through the cycle again are you ready for round two we we have a couple extra topics so the freaks get that benefit is there anything that you said in the uh the first go around that

that you were like ah i should have said that or anything that you didn't say yeah yeah there's been a couple there's been a couple but but because we didn't record there hasn't been as much as usual i think you know it only clicks after after we publish after you know it's going to going to hit the airwaves yeah no doubt so we're going to start out uh with the cold card mk3 was mk3 was announced uh this is uh very prescient news considering the interview that we dropped on tuesday with rodolfo novak who is the founder of cold card um uh matt what are your thoughts on this cold card mark three right isn't that what we say mark right and what'd you say m key what the fuck's going on k3 okay i don't know anyway the cold card mark three the newest cold

card rodolfo keeps iterating um i ribbed him on twitter that the uh that the true environmental cost of bitcoin will be all the cold cards i purchase uh destroy and replace um it's fucking awesome he keeps proving himself keeps iterating and dropping new products uh make sure you do listen to our episode that we dropped with rodolfo i think that was a particularly great episode i really enjoyed medium he's just such a great dude so smart so just a fucking hustler um and also like if you yeah it's very complimentary to stefan's episode with him i listened to stefan's episode as well it's a very good episode but we cover a lot of different things um so you should definitely make sure to listen to both of those and then and then fomo buy some cold cards yeah

and this uh this particular update is pretty cool it will brick if uh somebody has 13 failed pin attempts so make sure you don't forget your pin um and if somebody is trying to get into your cold card and they fuck it up 13 times it's going to brick that so make sure you take care of your your backup as well then it also uh helps uh harden the cold card against some side channel tax as well so make sure you're updating and yeah like matt said like we uh we have the we're giving a demo on the mark three in a few weeks here and it feels like we're we're already behind yeah no no we're giving a demo on the mark two yeah the mark two yes i just i just ordered 36 i had started 36 cold card mark twos and this motherfucker announces it right afterwards uh but no it's

great it's great we got a great discount for our the people who are coming hopefully it'll be the first to many um rodolfo is really good about that he is also offering a discount if you pre-order the mark 3 now um i think it's a 20 discount and you get additional five percent off if you use the code tftc um so that's awesome um and then the other thing of course is that our first walkthrough video of of hopefully many i've kind of been slacking off so i apologize for that now that i have my manicure i can i can come out with more videos um is up on our youtube channel so you can see how to use the cold card the full initialization initialization process of the cold card with wasabi wallet uh without connecting it to your computer using the the sd card to to shuttle

transactions back and forth yeah shout out to rodolfo again uh rodolfo it was uh incredible to meet him in dallas uh fucking what a don dude is just putting the team on his back building dope hardware solid bitcoin or true true man fucking legend i think i have nine cold cards now oh no i have 10 because i have another one coming with the workshop and so i'm like saying to myself you know like maybe i'll wait for the mark four you know but what do i do i don't know so we'll see but uh but i'll actually probably i'm probably after we finish recording i'm gonna order three one are you gonna have more domain names or cold cards by the end of your your hoarding oh that was a topic we forgot to bring up last time stefan like fucking encouraged my addiction

and i bought two more domain names uh tales from the citadels so yeah so so look forward to our pivot once we once we start building our citadels we will we we'll rename the pod to Tales from the Citadels as we should. Become more positive. This is, I am very happy to be able to rehash this because this is just pretty dope. This dude on Twitter, his handle is FiatJF.

He's the creator of the LNTX bot on Telegram, which allows you to basically create a lightning wallet on your Telegram app and then interact with the app. like so that's the way i send messages to the satellite app you hit like slash app satellite 50 and then your message you're just able to send a message to space uh the same creator came out with a a new uh lightning network block explorer or uh what would how would you describe it matt you're the one who found this did you drop his name at fiat jf yes i did okay sorry i zoned out a little bit um yeah it's a lightning block explorer well it's a lightning explorer not

block explorer yeah there's no there's no blocks yeah uh my my main my main use uh my main the main explorer i've been using up until this point was 1ml.com which is also pretty useful but i just really really like this uh explorer so i i thought it was important to uh to mention it here that it shows the way it shows a lot of the um the statistics is is a lot different uh it's very intuitive it's very clean keep in mind that this isn't showing private channels and none of the explorers show private channels and stats from those so they're like a lot of the new nodes that are being launched are being launched with private channels and they aren't being shown in either and any of the explorers yeah i'm just like going through it right now it's very aesthetically

pleasing really cool stats sick layout again shout out to at fiat j uh f jf correct yeah at fiat jf and yeah i put his name in the show notes so yeah building uh building dope shit uh again the lntx bot if you are on telegram and haven't checked that out all you need to do is follow it and then it gives you instructions on how to fund a wallet you fund a wallet on telegram and then you're just interacting with apps outside of telegram and it's it's fucking fascinating you know i love the telegram bot but like you really need to try and send a sat node transmission through the website a blockstream's website just google blockstream satellite transmission it's actually very very intuitive to do it through their website i know but at this fiat jf made it so fucking easy through

telegram that yeah but i realize that you're overpaying by like because because it doesn't tell you how much your bid price should be true so you've been like paying like 40 more sats than you're supposed to pay you know like you're you're wasting sats all right all right maybe this will be the impetus that drives me to the to the website you got me i mean don't worry it's like 40 cents is at 40 sats is like a half a cent so right now you know but who knows like in the future it could be a lot more than that so yeah it could be 40 when they never know which we're not implying sat dollar parity um next uh topic uh justin moon good friend justin moon dropped some new ui for hardware wallet multi-sig using bitcoin core uh an hwi and he released a testing for that

on github and is looking for help testing that out um matt you any more color on this have you looked at the screenshots yet um i have not i don't think it's badass look at the screenshots Anyway, so up until this point, everyone knows that multisig, well, the agreement is that multisig is a significant improvement. You know, all these hardware wallets have their own tradeoffs that they choose to take. So if you mix multiple hardware wallets together, you know, for instance, like a two of three setup with a Trezor, a Ledger, and a cold card, then you have to compromise two of the hardware wallets with different tradeoffs to access the funds. the issue with that is that it has been very difficult to set up uh with your own full node to begin with uh currently like you you basically have to run bitcoin core you have to run electrum

and you have to run electrum personal server or something like electris or electromex um it's it's a convoluted process it's not a simple process and the ui isn't very clean so what justin did here is he put a nice clean ui on top of bitcoin core so you just run it alongside bitcoin core you don't need any other software on top of that and you can you can use any hardware well at least the top three hardware wallets i don't know why you'd use any others anyway um to create multi-sig receive addresses and to to construct transactions and broadcast them um currently it is under testing i think he released it this morning or last night whenever he released it i got super excited i think it was last night yeah but please go to the link that we put in the show notes and

help him test it and help you know submit pull requests with complaints and stuff like that yeah for those of you who cannot wait to see the show notes it's github.com slash justin moon slash junction um and we got we got an alarm going off in the background here i'm on a back porch it's happy noon happy noon um where are where can we find those screenshots you're talking about they're not on the github page we can officially start drinking um i put it he tweeted them out okay yeah so um we'll include those tweets as well yeah i guess i guess he didn't put screenshots in the github but anyway it's just a very clean simple interface it's exactly what we want uh it should make multi-sig way easier for someone to use and the beauty of

it is that by design um it's using uh your full node so that's that's fucking badass so good job justin keep hustling and i look forward to testing it i have yet to test it yeah i just checked he released it last night but i have yet to test it yeah yeah huge shout out to justin uh another pump of a previous episode if you guys have not gone and listened to um our episode with justin moon go check it out i forget the particular number but it was an incredible three-hour conversation and we are planning to have a catch-up episode with justin soon so be on the lookout for that as well and again another huge shout out to him putting the team on his back teaching bitcoin devs and now making multisig easier for people running bitcoin core

next topic bitcoin realized cap all-time high 100 billion nice big round number uh it's cool to see uh bitcoin previously had uh when was the last realized cap all-time high like okay so first of all realized cap is a metric that coin metrics has pioneered and basically it's different from you know you have the the traditional market cap which is just uh the current price times total outstanding coins um but that doesn't really account for lost coins um it doesn't account for when people purchased so what realize cap does is it values your it value it weighs each bitcoin each utxo on on the blockchain by when it last moved the price of when it last moved. That's why it's always important to mix your coins when the price is

going up so that you can pump the realized cap value. But anyway, right now we have a realized cap for Bitcoin of $100 billion. But meanwhile, Ethereum's realized cap is down from its peak. it's at 27 billion dollars its peak was january 2018 so that's almost two years now um since it since the last peak which is interesting more potential upside bro yeah i got i had a couple of youth heads it's a buy a couple youth heads tell me that it was it was underpriced as proof that it's underpriced but if you use that logic then you know then maybe like the the real value prices uh ripple or some bullshit like that um what's interesting here is a lot of people you know they judge uh bitcoin success based on its former all-time high price you know in this case

uh what was it was like like a little under 20k um but we were barely there you know that was that was we were there for a couple days um the whole thing with the whole run from like 10k to 20k and back down was like a couple weeks max um so it's you know not many people bought up there uh realize cap does seem like uh a much better metric um some of the eth heads said that they don't believe in made-up metrics um i would contend that every metric starts got it has to be created somewhere first um and if you use every other fucking metric bitcoin is also outperforming eth including you know hash rate including price uh including regular market cap um so yeah yeah the the hash rate in particular is uh fascinating to me and then the realized cap too not being

anywhere it being half of what it was in january of 2018 is fascinating yeah i mean bitcoin is hitting new all-time highs with hash rate um but meanwhile eth is like i think i'd like half of what their their top was or you know just significantly lower than what their top was and what's the reasoning for that the reasoning for that is that they continue to neglect miners and that you know miners are running businesses and they want to have predictable money flows and but meanwhile they keep saying they're going to integrate proof of stake they keep saying that they're going to fork out miners they keep saying that we're going to change the algo so if miners have asics or something like that we're going to brick them you know if you say these things

like people aren't going to invest in securing your network and this is this is going to be the end result yeah the market's sort of speaking they're saying hey uh we're not going to go along with this uh so be aware be aware especially if you're working on a competing cryptocurrency um next up chain analysis they recently did a study on dark markets and coin joins and it came out that they came out and said that they believe that less than 11 percent of bitcoins that have been mixed and coin joins are being used for illicit purposes which is a very uh positive comment you can read it as positive because it shows that most people in chain analysis mind which is a company that works to make sure they can track everybody through the blockchain

they're saying that most people are just using coin joins for privacy which is great to see and it should it should be a nod towards privacy is okay and people want it people obviously want it and what are the exact stats on uh people sending from exchanges to coins first of all yeah so chain analysis whole business is that they're selling this bitcoin tracking to exchanges and stuff to try and block so-called illicit activity uh so that they can comply with local regulations so their incentive is to overstate um what this number is so for them to say that it's less than 11 is fucking huge because their incentive is to to have that number be way higher than it really is the overwhelming majority of people that are mixing coins are clearly doing it to protect

their privacy one of the interesting and and and not commit crimes you know privacy isn't illegal the majority of coins that are going into either wasabi samurai or these centralized mixers are from exchanges which is exactly what we've been advocating which is you know if you go to a kyc exchange if you go to a kyc broker like cash app or something and you withdraw you don't want all your future and past transactions to be linked so you you put them into a mixer i they're at 40 percent or 40 percent of all coins that are being mixed right now are um coming from an exchange damn that's crazy one of the interesting things to note here is that um you know people are like oh well how do they know these stats if they're being mixed it's trivial to see that coins are

being mixed that you can see them going to and from the process the harder part the more difficult part is tracking them through the process now chain analysis says that if you mix it breaks their ability to track i would you know put on your tinfoil hat as ridolfo said put on your tinfoil underwear go into your faraday tent and be as paranoid as possible because i would not trust them for a million years for them saying that they can't track it that's exactly what they would say if they want if they wanted people to uh you know be be at ease and think that they're not being tracked yeah so just be a little skeptical of that and be aware but if uh they are being forthright with this information uh it's fascinating like i don't know i actually

sent from cash app to wasabi last week and it felt good and it's yeah don't be afraid to do it and chain analysis coming out proving that uh privacy is what most is what is being is the use case uh that most people are using these coin joints for non-illicit purposes which is incredible yeah i mean usually my flow is i i when i stack stats on cash app i then withdraw to like green address or samurai and then when it hits a certain threshold then i will send it into mixing so that way you never have too much like on cash app at any given time because remember not your keys not your coins um your account could be frozen at any moment you never know so you always want to take custody yep and yeah and it's a great learning experience too uh and as matt

has said in the past it makes you a little less uh less nervous when you're sending transactions you get more comfortable with it uh next topic one that i would piss we're talking about but after matt's explanation and take one sort of is uh pretty important to bring up or a good topic to bring out i don't want to say important uh the the craig wright uh saga is i don't know if it's coming to an end but it's a very exciting part of the saga happened this week where the civil case that was brought against him by dave klyman's estate um the judge in the preliminary uh i believe uh like evidence proceedings basically came out and said that craig wright is a bullshitter fabricated a lot of the evidence and order and ordered him to pay

50 of his bitcoin to climb his estate but he really i mean he doesn't own it that's what we've learned for the last couple years is that he can't prove that he owns it and he doesn't have control of those keys so the judge is just semantics that's what the case is about so uh the judge assuming that he has coins because he said he does is now ordering him to give him the client's estate um after fabricating a bunch of evidence yeah i mean i i think i i'm fucking sick of talking about craig too um but but the important reason to bring this up is because this is it's already turning into a bit of a fun line um this is like the type of thing that you might see like your aunt like sees it in the news and like brings it up to oh i heard satoshi has to

give 50 of his coins um yeah so this is a civil case uh the see uh craig's craig's argument this whole time for why he's been satoshi is that he was in partnership with david kleinman of florida who passed away so his estate um sued sued craig and was like well then we want half the coins um and the judge was basically like everything you've submitted to me is fraudulent uh like pretty much everything you just keep lying uh if you do have these coins you owe 50 of them but you know as marty marty stated earlier he he is very very very unlikely that he has any amount of bitcoin because um he'd be just using you know if he could take the price of bitcoin or if he could pump the price of bitcoin sv like you damn well bet he would have already done it and uh he's

just fucking full of shit and i think it's it's important to note here that there was a lot of influential people uh that both directly and indirectly supported him all the way up into a couple months ago some of them uh they're awfully quiet now some of them have even you know like grandstanded about like oh i'm done talking about it's so obvious he's a fraud um like we we we see you we we know who you are like you go fuck yourself people don't forget the internet doesn't forget and god damn it matt odell never forgets never forget that um yeah so this saga it seems i don't know if it's coming to an end but uh definitely a blow to the credibility of craig wright if it wasn't destroyed already um which i think it was a long

time ago but some people need more closure this is uh adding to that closure no i mean the bag holders the bitcoin sv bag holders will keep up making new excuses you know they have this like tulip trust bullshit uh which i think the judge also said it was bullshit uh and and that's supposed to come up in january 2020 so when january 2020 comes around they'll come up with some other excuse and uh you know as is tradition it is what it is yeah uh god bless those poor souls getting stuck in that that terrible terrible cycle of believing this dude um next topic uh uh not more optimistic topic but a better topic in my opinion uh or a good friend of the podcast a fellow beefy bitcoin boy uh chain code labs resident and phenomenal dj uh james o'burn came

out with an incredible piece describing the current state of the u.s financial system particularly uh explaining why the stock market is at all-time highs it's mainly being driven by stock buybacks which are enabled by easy money so large corporations will take advantage of low interest rates uh take out some loans and then initiate stock buybacks in which they take stock off the market off the public market and basically burn it it's like a coin burn and that uh that drives their earnings per share up so it looks like they're they're more profitable than they are and uh again james points out that that buybacks have been a large uh large reason that that the stock prices have increased recently a lot of flows via buybacks have happened then on top of

that he dives into the the pension situation in america too which is looking pretty dire as a lot of the big pension funds uh i don't think he named them by name uh in the article but two that come to the top of my mind are calpers and illinois state pension fund and actually a third would be jersey state pension fund i believe those three in particular are pretty dire and so these funds that are holding all the public pensioners uh money and trying to invest it in the stock market they have targets of like seven and a half percent usually and they're not coming anywhere near that and so there's there's vast um basically the the valleys between what they owe people and what they actually have and what they're making in the stock market so it seems to be a very fickle

situation in the u.s and james does an incredible job of of laying it out in layman's terms and being concise and while he's doing that he's also uh explaining why bitcoin may be a perfect hedge in this scenario why we may like desperately need it because our system is so fucked up yeah i mean i three points uh first of all is james is like the bitcoiner's bitcoiner uh he's is such a great dude uh you know his brother's awesome too and he's he's smart he's a talented developer uh he's a good writer he understands his economics he's a dj it's just a just so props to james you can follow him on twitter at james ob um the other two things is he he really missed an opportunity uh in the title he called it bitcoin for safety it really should be sats for

safety james just saying sats the standard and then third thing i thought was a really interesting point that he made and i think a lot of us agree with it here um is that you know our our i i think we can all agree that our system is fucked our current financial system is fucked you know we hope bitcoin is our safe haven is our solution to that it is yet to be seen if that will be the case but one thing is for sure and i is is that is that all of this is unprecedented and uh it's just a really it's really hard to see it ending cleanly or or in a very good way at all and i think that's a good framing here you know it's it's it's that we are fucked but but bitcoin gives us hope yeah yeah cause for us optimism uh something we can rally around and cause for hope

at the end of the day um and this uh like i said in the first take like this this james's piece uh i think it pairs well with a couple of things one being uh the the uh website that heavily armored clown who's the host of um the um bitcoin echo chamber yeah the bitcoin echo chamber podcast um he shared this website what the hell happened 1971 or something like that i forget the exact name we'll put it in the show notes but uh 1971 is when we went off the gold standard uh and you look at the charts specifically like gdb per capita uh uh production productivity excuse me and like wage growth and they just start like uh deviating from each other pretty drastically after we went off the gold standard in 1971 and then something in 1973 that

you brought up what was that they started the electronic voting uh in congress so that all their votes were recorded by name and cataloged so that they were a lot easier to uh to buy off they it was corruption became a lot more because because if you if you gave someone money you could tell to make sure they voted properly yeah um yeah so it's interesting yeah that so that pairs As well with James's piece, and I think is sort of a proof that, hey, maybe going off a hard money or a somewhat asset-backed monetary system has created these distortions in the economy and has led to the crazy things that James pointed out in his paper, specifically the stock market and pensions. And then also, which I forgot to mention earlier that James mentioned, was the amount of negative yielding debt throughout the world, which is hitting crazy, crazy levels. And if you look at all the European yield curves, they're all basically negative right now. And it's pretty crazy what's going on out there in the terms of the monetary system.

And then another thing to pair with that was something I wrote about in the event today. Our friend Janie, who's notoriously fighting to get back to a world where we have grazing cattle and we're back to the pastoral type world. She shared something that was shared with me this morning in a chat. Basically, a year and a half ago, she shared information about basically financial planning from 2000 B.C. So and we pointed out that people used hard assets like livestock and silver to financially plan. And they would use livestock herds to sort of represent initial investments and try to plot the growth over time. So it was crazy. We have people in 2000 B.C., 4,000 years ago, thinking about financial planning with hard assets and doing financial projections and stuff like that.

It's crazy. And then another thing that was brought to my attention. And you fast forward a couple thousand years in ancient Rome. Like there's again, we've talked about it a lot on this podcast. There's always like signs throughout history of people like warning about money and stuff. And this stuff has to do with with using livestock as as a hard asset, too. But it also brings in money lending. And this is a quote from Cato the Elder.

and uh when the old when the elder cato was asked what he thought was the most profitable way of utilizing one's resources he replied grazing livestock successfully uh what what is second to that uh grazing livestock fairly successfully what third grazing livestock unsuccessfully what fourth raising crops uh when his questioner asked what about money lending cato replied what about murder so somebody from ancient rome uh understanding the importance of of of raising hard assets or accruing hard assets and livestock um and and analogizing money printing or money lending to to murder which is pretty interesting and then you fast forward a couple thousand more years or 1500 more years and you have people like andrew jackson and and

thomas jefferson warning warning us like just take care of the money don't make sure make sure that like banks don't have control of the money and these little lessons are spattered throughout history and i think it's just important to bring them to the forefront uh especially when you take james's article into consideration uh how fucked up everything is and maybe we should look back into history and take some advice from our from our ancestors so that's where my safe haven you've been holding your breath to say that for like five minutes i just went on long spiel there i just i it is so i don't like preparation there's there was too like because we did the previous episode there's like way too much preparation for this episode

so far but the good news is we have one more topic before we enter our our three new topics so then we get some fresh i'm pretty excited so let's let's nail out but so binance just recently added interest-bearing accounts um you know aka money lending which i i guess was just compared to murder so so that's probably pretty bad um but i thought it was interesting because you know we've been covering binance adding staking support for all of these um different networks all these proof of stake networks and i think that's naturally centralizing because these exchanges they they do want they want you to keep money on on their platform it's more likely for you to trade they get to collect fees in between um and and this is another way to encourage people to keep

money on their platform um it is worth noting here because it got a lot of press it was in bloomberg it was covered in bloomberg so you know not your keys not your coins people just remember that this is high risk um you like they're loaning uh the people who are borrowing like they're they're then lending out your your crypto it's not bitcoin by the way it's it's only binance coin ethereum classic and tether um so far but the people they're loaning the coins to and this is similar to the other services you know that are offered out there for bitcoin um is is they're loaning them to short sellers mostly like that's who wants to borrow the coins so you know if we have like a bitcoin tina situation here which is like core to my investment thesis as well is that

at any moment you know bitcoin is so illiquid that the price could go up and significantly And that's even more the case with these even more illiquid altcoins. Like they could end up in a position here where they're short and they can't pay you back. And then you also have all the additional risks that exchanges have, which is, you know, they could get hacked. They're prime target for hacks. They're prime target for inside jobs, government, you know, regulation and enforcement. And then just a good old fashioned exit scam. And that exit scam could even be in the form of a KYC exit scam where they force their users to do KYC to remove their funds, and they've been known to do that.

So just be aware. Be aware, freaks, of the layered systemic risks that something like this creates. It's very interconnected and very concentrated risk is what a lot of portfolio managers would say. um next and the other thing there is that etc the you're like everyone's probably wondering why etc is included there it's because it had a recent run-up in price so they probably uh have a lot of demand on the short side for people to to want to go march in short uh so that's that's why they included there and bnb is the other interesting one to note because you know that's their own quasi security token so now they want people to it's just like another method to try and pump the

price of their own token uh and it creates all these it creates even more questions because you know they're issuing the token they're the ones reporting the revenue you're trusting them reporting the revenue and now they're going to be custodying a large amount of it um and loaning it out to short sellers i don't know it's interesting it is very interesting uh defy hashtag defy and but yeah by interesting i mean it's all going to blow up at some point and when it does blow up i'm gonna say told you so i'm gonna feel bad about it but i'm still gonna say yeah yeah it's not gonna be shouting freud it's gonna be a somber i told you so um but yeah one day i told you so will come um next topic didn't see this uh open node that's kyc and shopify

integration is a kyc only if you uh integrate with shopify well first they added kyc then they added shopify integration so i just put it into one topic line uh so like a couple days ago they added kyc not great uh you know it's it's for the merchants it's not for like if you shop at an open node merchant that you have to provide kyc just the merchant has to provide kyc um this is to be expected i think like this is what you know centralized companies have to do to comply with money laundering regulations um they what that was good about it and this is why it's important that btc pay exists the btc pay server because it isn't a company that you can run your own node you could do it yourself and you don't have that same pressure um what's interesting what's good

here to highlight is that open node didn't pull the like kyc exit scan kind of thing you had all the current merchants had the opportunity to remove their funds not complete kyc but going forward all all merchants will have to do full kyc so just be aware be aware if you're using up a node and you're worried about sharing kyc if you're a merchant um may not be a big deal to you but just be aware this next topic is wait wait one sec if you if you if kyc is a big deal to you then you could use btc pay server yeah it's very easy to do check it out uh their team's great but the shopify integration is a big deal you know i'm no one spends bitcoin but you know if you i think shopify runs the majority of online stores now so if you run one of those it's like a couple

clicks and you can start accepting bitcoin and lightning so yeah and it was uh actually don't want to piggyback off open node here but we did open source our shopify btc pay integration it's a little work around but if you go find dj seeds github i believe he he has that code available of how to integrate your your shopify store with bitcoin it's a little bit of a a bad ux process and check out like the bitcoin's hard to find the bitcoin payment methods hard to find but it does it is available and it is possible with bdc pay server as well so um i'll try to find a link to that as well i'll hit dj up for that um next topic is very fascinating uh just brought to my attention by matt but pretty interesting observation by huddle not on

yesterday's dump of bitcoin yes bitcoin dumped what like five percent yesterday uh out of nowhere not out of nowhere we've just been in a very strong consolidation move been pretty pretty boring for the last week or two um but eos dumped super hard before bitcoin even moved and then eth litecoin and other alts followed suit shortly after before the big bitcoin dump so that would signal to me if i'm looking at that is that's that's uh people with big all coin bags just exiting the market and just being totally fed up and selling their bitcoin too after dumping their all coins is that a fair assessment matt i i don't know what to take from it i just thought it was an interesting point that hodl not made i saw it after we stopped recording uh so i threw

it in there um yeah you can read it however you want but i i it does show you know like diversifying in this space is a crock of shit um you're just adding risk on top um but yeah i i just thought it was interesting that it it dumped it dumped 20 minutes before and then bitcoin had we had one of our classic beautiful capitulation wicks or whatever where you have like a five percent drop in like five minutes uh we went from like 10-2 to like 95 like fucking right away um But, you know, if you're doing it right and you're just staying humble, you're stacking sats, like, it doesn't matter. It's just all noise, in my opinion. Yeah.

Find your Bitcoin Zen freaks. Join us. Join us. Find safety in sats. Just chill. Matt, I can't apologize enough. I'm sorry for wasting your time this morning. We have one more thing to talk about.

Oh, we do? Oh, the Portugal tax exemption? My bad. Yeah. i i'm not sure if this is fake news or not but a lot of people are talking about it and like hyping it up on twitter so like i figured we'd bring it up this time um like i actually like when we finished recording i walked out and i told my lady that that the recording didn't work and she's like well at least we can move to portugal and i was like babe that might be fake

news so now i added it on to the podcast um we're not trying to peddle fake news here matt yeah i mean i'm not sure if it's real or not i'm not sure if it's some people are saying i don't speak portuguese um so we have to wait to see but some people are saying it's just vat tax some people are saying like you don't have to pay capital gains um but i think regardless like this is the type of thing that we're going to start seeing happening um as bitcoin becomes more successful because because countries are going to um you know after our last conversation that is going to come up soon with uh with eric vascul uh i've been thinking a lot about game theory and um i do think that the game theory here is that is is that these different countries are going to start

trying to court bitcoiners to come and start businesses and buy houses and and and do all that you know jazz to spur their local economies by giving them favorable tax treatment yeah so if Any of you Portuguese freaks out there have better information on this, definitely tweet at us, let us know, DM us if you don't want to be public. We're interested. We want to learn. Matt alluded to it, but, yeah, we did have an incredible conversation with Eric Foscule earlier this week.

That will be out in a couple weeks, I believe. Great dude. That was an episode where I just, when I got off, I was just like, my mind was just right. There was a million different things that I wish I had talked about. and we talked we continued talking to him afterwards too it was great it's great to meet him yeah um very interesting bitcoiner i love his perspective um yeah that's it so now i officially get to apologize to you for the third time now i'm sorry uh i'll take i like

apologies apologies are great uh more people in this space should do them uh i i'm you know i i'm i'm surprised we don't have more lost tapes uh so there's that and uh and i'm glad that we got a couple more topics that we got to add on there uh and you know just stay humble stack stats and i look forward to uh next week yeah we'll see you in person next week and maybe we'll have that multi-sig record button figured out by them there you go and then we'll be able to play around with justin moon's dope new tool yeah um yeah go make sure you guys subscribe on any platform you're listening to this too you're listening to this on i can't speak right now um check out our youtube channel reviews go a long way if you can review um check out the website tftc.io if you want to

get a shout out on here you can go to the contribute page um yeah we got big plans 2019 is rolling on but i just saw uji's tweet and i just wanted to bring it up he said sell your if you're having trouble falling asleep it's a way to end it yeah i yeah it's a good advice good advice i've given it out many times actually um yeah sleep's important sell your eth take care freaks peace and love