TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2019.10.28

Episode Date: October 31, 2019

This week Marty and Matt discuss: - 11 years of bitcoin https://nakamotoinstitute.org/bitcoin/ - #FastForSatoshi - $1B in fees https://twitter.com/yassineARK/status/1189559688494493697?s=19 - China blockchain pump https://www.coindesk.com/bitcoin-dissident-sees-dark-warnings-in-chinas-blockchain-push - Wasabi and Samourai Whirlpool comparison chart https://twitter.com/matt_odell/status/1189606714250858496?s=19 - Casa Gold 2 of 3 multisig https://blog.keys.casa/basic-multisig-2-of-3-now-with-two-hardware-keys/ - Coinmetrics nonce analysis https://coinmetrics.substack.com/p/coin-metrics-state-of-the-network-04a - Wired hit piece on sanctions evasion https://www.wired.com/story/cryptocurrency-boom-post-soviet-frontier/ - Cryptosteel capsule hands on [https://twitter.com/cryptosteel/status/1186354407019110400?s=19 & https://twitter.com/JimJones1913/status/1189021491397980160?s=19](https://twitter.com/cryptosteel/status/1186354407019110400?s=19 & https://twitter.com/JimJones1913/status/1189021491397980160?s=19) - Breez announces Lightning Rod https://medium.com/breez-technology/introducing-lightning-rod-2e0a40d3e44a - Lightning and privacy https://twitter.com/ercwl/status/1186998875854376960?s=19 & https://twitter.com/matt_odell/status/1187731152318160897?s=19 - c-lightning 0.7.3 released https://github.com/ElementsProject/lightning/releases/tag/v0.7.3 - Donations to Tor will be matched by Mozilla until November 4th https://donate.torproject.org/cryptocurrency - Coldcard releases full schematics https://blog.coinkite.com/coldcard-hardware-shared/ - Lebanon institutes ban on cash leaving country https://www.reuters.com/article/us-lebanon-protests-economy-dollars-idUSKBN1X60R2 & https://www.coindesk.com/how-lebanons-economic-crisis-highlights-bitcoins-limitations - Argentina increases capital controls, $200 per month limit https://www.bloomberg.com/news/articles/2019-10-28/argentina-tightens-currency-controls-after-fernandez-victory Shoutout to our sponsors: Cash App. 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. Casa. Use promo code “TFTC” to get up to $250 off your Casa membership … or hit their team up [e-mail] for a free demo

You ready? Oh, yeah, we're ready. I just hit record. Cheers, bitch. Happy October 31st. Happy 11th anniversary of the Bitcoin white paper, the dropping of the Bitcoin white paper, the publishing of the Bitcoin white paper. On this day 11 years ago, Satoshi showed up on a Cypherpunk mailing list and said, hey,

I'm thinking about this idea, this P2P distributed system. That's not exactly what he said, but you get the gist. Matt, happy white paper day. Happy birthday, Bitcoin. One of Bitcoin's two birthdays. well great debate what do you think where do you stand well today is bitcoin's birthday and then in january on january third will also be bitcoin's birthday and then on january 10th will also be bitcoin's birthday the first transaction we have

three birthdays yeah yeah so it's uh you know what more the merrier um you said you have a story i I just told the story of where I was on October 31st, 2008. That'll be on the podcast next week, but I should just retell it quickly because it's very timely. I was a senior in high school, 17 at the time. I was wearing a Lieutenant Dangle Halloween costume all day. It was Halloween my senior year. We were allowed to dress up and go to school in our costumes that day, and it was a glorious day. The Phillies had just won the World Series.

I was sitting on the first baseline the night they won. I was there when Brad Lidge dropped to his knees and Carlos Ruiz ran into his arms. And then, yeah, so we partied all night, celebrated the Phillies World Series. I went to school in a Lieutenant Dangle costume the next day and little did I know, I'm a little asshole that I was at the time,

that Satoshi was publishing something that would affect my life pretty immensely. Now that's a fucking great story. So 11 years ago, I was sitting at my computer and an email came through on the cypherpunk mailing list and i said no i uh it was freshman year of college i wish i was opening the cypherpunk mailing list um and i was i think i was wearing a i was i was dressed as a baby for halloween and uh i had like all my associated baby paraphernalia and i just got ridiculously fucked up that night good times yeah well uh well did your uh

Freshman year of college self, what would he have thought the impact that day would have on him? My freshman year self was completely oblivious to what the fuck was going on around me. That's pretty crazy. It's pretty crazy thinking back. Yeah. Well, since then, the price of Bitcoin has gone from zero all the way up to $19,000, back down to $3,500, and now it currently stands at $9,248.85, according to the tftc.io ticker. We're at block 601,819, getting closer to the halvening, and the current hash rate is 95.29 exahash per second, according to our node. Yeah, big day, big day. Before we get into everything, we've got a big list.

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well done on the ad reads also it's uh 10 800 sats per dollar right now that's uh very important 10 800 sats per dollar we just had a dollar come through on btc pay server 2 earlier the reason i say that is because we got some shout outs uh two shout outs this week one's really quick and i have no idea what it means but it just it just says what's good slurms slurm spelled s-l-u-r-m-s i've never been called a slurm before i don't know if it's a a dig or an endearing term definitely endearing term okay what's good slurms what's good slurms he slurms uh and then in true this is our second one i'm just going to read it because i don't know how else i would do this in true tftc style i'm a bit tipsy i love you freaks i would like to spend

$50.30 fiat to get you to promote the Hal Finning as a meme. As per Kamina Drummer at PocketDev on Twitter, she has helped me down my own personal rabbit hole of Bitcoin in a completely anonymous but 110% altruistic matter. Selflessly, for the sake of the greater good, feel free to promote her profile in the Hal Finning meme however you feel is best, which is this way. She did not ask for nor is she aware about this in advance i want it to be an anonymous surprise in the spirit of satoshi himself brick by brick block by block sat by sat see y'all in the citadel fucking dug that pass love on we're gonna pass love on i love that ending bit by bit block by block sat by sat see in the citadel brick by brick block by block sat by sat see in the citadel fuck

yes see y'all in the citadel so this person might be southern i'm gonna go no dachshund south of The south of the Mason-Dixon line. We're going to reduce our opportunity set there. Big list this week, but let's talk about the anniversary of the white paper a little bit more. A lot of people are trying to discern whether or not October 31st was an important date or not. Some people think it's just he did it randomly. But there are some important events that happened on October 31st throughout history. one of which I think if Satoshi was being intentional

with the date that he published the white paper, it's most likely because of this event in my mind, that's Martin Luther's 95 Theses in October 31st, what was that, 1575? When did he do that? I don't know when he did that. Maybe the kids were out with his wife trick-or-treating and he just had some time on his hands.

I got to figure this out. But 1570, that's when it was. You don't like my theory? No, no, just trick-or-treating didn't even exist back then, did it? I mean, it would mean Satoshi was American, most likely. Oh, yeah, that's true. Well, that's the other thing. So there's the 95 Thesis, Martin Luther, PIN,

and then 95 Thesis II, the church's walls, basically, starting the Reformation, the breakup of the church, which was very impactful throughout human history. and then also Dan Held pointed this out on October 31st could be a tip excuse me a hat tip to ancient Gaelic festival

of Samhain this event marks the end of harvest season and the beginning of winter Bitcoin marks the end of fiat and the beginning of the new monetary standard it's a possibility as well you know like when you're in like an English class and you spend a couple hours

like speculating on what the author meant about this or that you know and i i always wonder like what the author thinks when they like listen to it after the fact so i don't know i feel like it's kind of similar what did satoshi mean was he do you think he was intentional maybe just had some extra free time on his hands and he got he finally got it out he'd been meaning to get it out for a couple weeks and he she they yeah um but maybe it was intentional there's a lot of like intentional nods i mean the genesis block was definitely intentional or was it was it just a time stamping uh proof there you go maybe that was just a paper he had lying around right

um it's pretty crazy how far we've come in 11 years needless to say uh bitcoin has just passed a billion dollars in transaction volume yeah shout out to y'all transaction fees uh minor minor cumulative minor miners fees cumulative fees collected by miners just past one billion not including the block not including the block reward yes um shout out uh yassin almandra from arc invest for pointing that out yesterday big milestone uh obviously we're above above block six hundred and one thousand so it's been working uh almost non-stop it's over nine thousand dollars of fucking bitcoin hash rate at all-time highs and again let's just let's just take in the gravity of how it came to be like bitcoin is here because some rando and we have no idea who it is

at this point in time showed up on some random mailing list and said hey uh i've been working on this like peer-to-peer purely um electric i've been working on this purely peer-to-peer electronic cash system uh let me know what you think started a discussion a back and forth and then two months later launches it into the world and here we are 11 months or excuse me 11 years later uh drinking whiskey with fucking bitcoin signs on them talking about this thing shout out white rabbit btc like how crazy like that like from from zero to i'm holding a glass of whiskey with bitcoin symbols all around it like that it's in our culture now i love it i love it cheers cheers cheers to satoshi to bitcoin to bitcoiners to satoshi and and and on this beautiful uh eve

of the fast for satoshi uh event that we have to remind you of first ever fast for satoshi first ever fast for satoshi you're gonna forgo eating uh tomorrow and spend the money that you would have otherwise spent on the meals to stack some sats are we picking a block height for breaking fast we should pick a block height what block height are we at now our block six hundred one 1,000, give me some time here, got to reload, I forget what, I think it was like, there's 144 blocks a day, what block are we at right now, this is the thing, DJ, if you're listening, we need to speed up the ticker a little bit, let's pick up the pace of the ticker, current block height is six hundred one thousand eight hundred nineteen all right so let's surmise that uh we are uh

half a day plus two hours into the day so that would be um what is it six thousand one six hundred thousand one yeah so it'd be like six hundred one thousand what's the block i just add add 200 to the blockite okay so yeah that'd be 602,019 i believe okay so at 602,000 we can break the fast for satoshi okay right yeah nice round number 602,000 602,000 i mean hashtag fast for satoshi this isn't our event matt i know but he didn't give us a blockite and i think like the true big corner way to handle this is to break the fast based on blockite because it also would be hilarious if we have variance it's like a two-hour block for the last block but we're all supposed to stack break the fast and stack sats at the same time right yes yes um love that idea

fast for satoshi starting tomorrow's been a lot of fasting recently but block 602 000 it's a friday it's going to be tough but you got it 602 000 just got to make it there for satoshi do it for satoshi he gave us this beautiful thing we're drinking whiskey glasses with bitcoin on it's fucking nuts um uh big week this happened right after we recorded last week not right after but a couple days after china china uh flipped the switch or now pro pro blockchain pro blockchain pro bitcoin there is a the state has uh decided to go full-fledged into blockchain the chinese state and they were on state television state-sponsored television and actually educating people about bitcoin specifically as a trojan horse into blockchain quote-unquote blockchain

technology so it seems that china uh wants to uh move forward with this and just accept that it is inevitable but uh we also have to remember this is china and there is definitely some caveats and nuances to what their definition of a blockchain may be and and how accessible it may be so yeah they don't want public blockchains that you can use privately they want you know state-controlled uh panoptic chains yeah did nick say nick nick carter said panoptic chains i like that i like panoptic chains i like that a lot as well um but no no he and nick was uh very ardent and pointing out the hypocrisy of uh people cheerleading well most of them were crypto people not bitcoin people yeah like munib block stack said uh silicon valley spirit is alive in china like that says

a lot about silicon valley if he actually believes that right it's fucked up like they're fucking authoritarian horrible state yeah and and again like but anyway it pumped bitcoin well that's what i was just about to say like did it pump bitcoin i think probably i mean it was a 40 increase like bitcoin you know was primed to pump to begin with um the day before whether it was a coincidence or not was like a second libra hearings and zuckerberg was testifying in front of congress and he literally said he was like his main argument was like if you don't let me do it china is going to do it um which i could see being like a pretty effective argument to congressman and then right afterwards the next day china comes out kind of did you know if you

were going to expect something like that that's what you would see um so either maybe he heard about it or maybe they were prepping something like this and they just um you know because a lot of corruption there maybe they own blockchain stocks and stuff like that because all the blockchain stocks went up really high because they're easier to access than actual bitcoin is and a lot for a lot of people in china um so like maybe they were like prepping it ahead of time and they were like oh shit this is like great timing to launch for virality let's do it we had just fallen in price uh so so like a lot of the longs had been liquidated and then people fomoed in with shorts so like it was like nice and primed and the market was a little bit more

liquid than usual um yeah and then just all hit at the at the same exact time yeah zuck getting cucked in two ways this week chinese government uh proving his point and then and jack coming out yesterday and banning all political ads on twitter yeah that was a power move by jack yeah really yeah uh billionaires flexing on each other there because like twitter makes way less money on ads than facebook does so disclaimer cash app sponsor this podcast right and right Cash has part of Square, and Jack Dorsey is the CEO of Square. Yeah, he's got his, obviously. This is a big chain of disclosure.

Yeah, the disclosure. Also, I'm a Twitter shareholder, disclosure. Yeah, disclosure and some Square stock. There you go. Very little. Full disclosure. Full disclosure. I also have some Square stock.

Now that we got the disclosures out of the way, that move by Jack was very, it was like a, that was a nice quick power move. It's important. Like, the key that he was saying is, like, you can't, like, if it's organic, that's one thing that's organic speech but like you shouldn't be able to pay for political reach yes right yeah and then uh but then mirage made an interesting point like i wonder if like we'll see more influencers uh sell their accounts to tweet out political ads because they're immune from it like even trump did you see trump just like tweeted out a political ad from his personal

account instead he tweeted out his first campaign ad for the next election he just tweeted it right out of his personal account last night i didn't realize that yeah and like that's not banned but like you can't pay for the reach but then like people like i've been getting into shit with people on twitter lately about like our giveaways paying for reach like are you buying followers are you buying engagement you buying retweets buying comments definitely by like doing a giveaway so then if you couple that and then you also tweet out political things from that thing is that paid reach like then just twitter's not even getting a cut of that i don't know there's no easy answers here no there's always workarounds people will try to route around it and it'll be funny to see

which uh quote-unquote influencers sell their their accounts do you think um like what the fuck's his name logan paul i mean if you're gonna do it you should you should do it for bitcoin i think what do you mean i think bitcoin would be the ideal currency to uh sell your account To sell your account in. Yeah, make sure you're running it through Wasabi. Send it from Wasabi, receive it into Wasabi, run it in a node, and validate that transaction. If you're going to be meddling with elections, this is not advice.

This is not advice at all. But, yeah, so China, let's get back to it. Do you think it was the pump? Do you think China was the main reason? I mean, I could see it. The point I want to make here is, like, it may have been. You just will never know. yeah it probably was i mean that i mean apparently you look at the data coming out if it is

believable or not i'm not sure but it seems to be at least uh passing the sniff test of some influencers on twitter or journalists on twitter but the search rates for bitcoin and blockchain on the chinese they definitely went up it was like it was like on the front page of their newspapers and stuff yeah and then i mean i think a lot of it came from america too right just seeing like oh like the china pump is happening and then the americans jump in yeah and that and this is what we're talking about with uh alpha zeta too like it is geopolitical now like how does trump does trump respond to this if so how how could america posture in a way that would be a free market enabling and not too intrusive but also put america in a good position to compete

with china i don't think it's going to be at a bitcoin level at the end of the day but uh for mindshare for the you can see this easily turning into the battle versus the private blockchains and the public blockchains yeah i um i mean i i see the i i'm like trying to logic out what the reasoning would be behind doing this because like a chinese dominated blockchain is obviously very dystopian and but is it any more dystopian than something like we chat which they already have completely dominated right it's like not that much more dystopian um that's a good point uh so like they're going that route anyway so then you ask yourself what was the reasons to pump it and i would say i feel like there's two reasons there's you can make america look like

we're backwards and we're behind the times it's like an easy dunk um you know these people are people right and they like dunking on each other just as much as we do uh you know china's in the middle of a trade war with trump and all this shit's going on right um and then the second thing is it's like super easy it's just like an old school pump and dump right like we've seen this in bitcoin's history so often where like someone who has a lot of influence realizes they can move the price around and and they can benefit from it ahead of time right like it's actually uh a theory i've heard recently from uh people uh close to the situation in china is that maybe these all coins are just a wealth extraction tool from to the east from the west right uh

the eastern culture is very prone to gambling and in high risk and stuff like that especially in china and uh recently before the chinese news was announced like neo pumped like 100 i believe in the last yeah exactly month or something like that and then pumped even more all the all the chinese ones all the asian ones pumped harder after yeah he made his comments so there's something like we are obviously very uh have a very american bias here like as much like as much as we believe in uh are very confident in the fact that bitcoin will be a winner take most to winner take all in this market there is other forces that play other cultures that play that aren't really in it for sort of value but more high risk gambling i mean we could have

pumping dumps on the side and like all these altcoins while bitcoin continues to decouple and move up higher yeah i'm not i'm not that's probably what we're gonna have like that's probably gonna be the result yeah i agree uh but i'm not trying to insinuate that any of these would ever overtake bitcoin at any point in time but that um just the the human drive um to gamble and wasn't vitalik in china this week too yeah a lot of people a lot of people on twitter have changed uh their their twitter names to chinese oh well i think that's like part joke because dovi did it first and then udi started doing it and oh yeah i wonder what my name looks like in china china oh my god jesus christ in chinese um your name would look exactly the same in china

if it was spelled with our characters yes it would it would i wonder what my name looks like in chinese spelt in chinese um yeah so the china meme is big it was big this week i would not expect them to uh be very uh uh forward thinking with public blockchains in the future i would expect them to turn into a panoptic chain as nick carter said one other thing uh just to get you guys ready for it is they've just renewed their ability to uh create a dump of china bans bitcoin which is their favorite uh if we remember in the last cycle it was just like every week china banned bitcoin and the price got hit um so be on the lookout for the next china ban bitcoin fud yeah this is the big uh this is a big setup for for a big foot line in the future there you go if they

can move the markets up and down people will do it all right people will do it we shall see um next topic our friend my co-host our beautiful matt o'dell put together a nice infographic for you freaks of wasabi verse um uh samurai and their different trade-offs so walk us through it matt uh i mean we've talked about it a bunch of times i actually we talked about on the pod the last two weeks i just wanted to put it down in writing uh just to easy easier to digest so if you freaks have any more questions about the different trade-offs between samurai and wasabi i enjoy and use both and i appreciate both the teams uh just go check that link and look through it yeah and um there's a lot of a lot of drama can we get peace between the wasabi and there will never be

peace let's let there be peace give peace a chance hopefully there'll be less drama that'd be nice and just constant improvements. I want them to each one up the other. That would be nice. Yeah. And also today is Wasabi's one-year birthday. Happy birthday. I've said on this pod before, confusingly,

that it's two years old or one year old or eight months old. I'm all over the fucking place. And it's been officially one year. And that's pretty fucking crazy, I think, how much, like, between Lightning and CoinJoin uh and btc pay where we've come in this last year just in terms of tools built on top of bitcoin is absolutely mind-blowing like we are gripping it's just yeah impressive super impressive yeah

so happy birthday to wasabi um let's give another shout out to uh to join market as well join market is another oh yeah that's very important yes so join market we actually don't talk about a lot on this podcast because um it's not very user-friendly you doesn't have a gui you have to use command line they they have a gui for a graphic user interface for uh for takers but you still need to use the command line to set it up and you need to run your own node and it's i mean you should be running your own node anyway but it's just it's very complicated for uh the average person to use i think like 95 of people on bitcoin twitter can use wasabi or samurai um like probably like 15% could use join market but join market is really cool in

that it doesn't it doesn't have like this centralized coordinator like they do on wasabi and samurai and the way they get around that is the coordinator is literally the person who is the maker so someone offers up you know certain amount of Bitcoin that can be mixed and they put whatever their fee is and the fee is set by the market so basically everyone's putting their different fees and and you can choose from which one you use so it's competitive and then the taker takes it and creates that transaction so it does it creates a financial incentive to provide coin join liquidity which is dope we love

financial incentives in Bitcoin like it that is fucking awesome it's worth noting that like samurai is like kind of inching towards that because you don't pay for remixing so almost it's almost like uh the the taker is paying the the mixing transaction the minor fee and the mixing fee uh they're paying for for the maker right so it's like close and like presumably samurai could eventually uh make it so you actually make money to provide liquidity i think that would be pretty dope considering i already provide liquidity anyway it'd be nice to make a little bit um and it'll just drive it'll drive more liquidity so also So it would be awesome if we could see JoinMarket become easier to use.

And it looks like some people are working on that. So stay tuned. Wow, this thought just crossed my mind. These two wires just crossed in my brain. So you can have, if they offer the makers like a percentage fee or fees, that could be like a quasi Bitcoin savings account, right? While you're providing liquidity for CoinJoin. Without a trusted third party.

Without a trusted third party. Yeah, just like Lightning too is similar in that way. I mean, in both cases, with large amounts of liquidity prices should get driven down right so the actual fees you can make are gonna go down if it's relatively easy for people to enter the system and provide that value yeah like I'm still I was I was just recently on ledger statuses podcast and we were he's a lightning noob and we were talking about lightning and and he asked me a feat if I thought like

lightning fees would rise and um rusty russell was just talking about this and he thinks they are definitely going to rise and i mean they're super low right now so they're are definitely going to rise but i'm not sold to like on how sustainable levels they'll reach because it's so easy to run a node um you can run it through tor anonymously you can run it for low cost and there's so many ideologues in bitcoin like just where ideology rules everything around them including us and like are those people going to raise their fees to like sustainable business levels or are they going to undercut everybody right like i like i kind of think like the tftc note is going to be undercutting everybody for a while and i just wonder where that equilibrium

hits yeah the market will will find it um another thing i want to say about join market too is they have uh you can do up to like 200 bitcoin coin joins up there so yeah because of the maker taker structure like the maker can do as much as they want yeah so if you're like a big hodler out there who's been thinking about uh mixing but is worried uh with the an onset on other mixers it's very difficult to use now i'm just warning you yeah you can learn you can learn um so yeah beware go check out that uh comparison chart it was really good yeah and i didn't list join market there you just there's two things it's it's dope and it's difficult to use yeah um speaking of dope this next story is really dope uh antoine from coin metrics is a fucking mensch and he came out

with really good uh he did some research on uh nonce distributions between different blockchains bitcoin uh ethereum monero i believe as well um and a couple others uh and it's crazy what this data can show you so nonce data is basically um i'm probably going to butcher this but the nonce creates an extra amount of entropy when you're mining a block and it's the first data point of block correct yeah it's like where they cycle through the numbers right yeah and uh it's supposed to be have a completely random distribution but given uh mining hardware depending on where a blockchain is and what mining hardware is used on that blockchain so ethereum it's highly speculated it's mainly gpus but this data is proving that maybe a round block or there's

ethasics now with uh bitmain right it was a bitmain or ant miner bitmain but they're not wait well bitmain ant miner is bitmain yeah uh they're the e3 isn't a real asic it's like a bunch of gpus that are hyper optimized for it yeah but like it kind of looks like from that nonce graph that they like intentionally didn't give you any conclusions on the data they just explained the Yeah, but you can basically kind of that bit main was definitely mining with these miners before they released into the market It's kind of known already. And then also you they're showing how you can see that they mostly gave them to Like Asian mining pools and Asian miners were the main recipients of the first batches. They like show the different pools in comparison Disclaimer pools are self-reporting

um but they probably don't know that they're leaking that nonce data there and then the other thing is on the graph it kind of shows it looks like there might be like asics now undisclosed asics on ethereum yeah um which i think a lot of us have speculated for a while i think if you have um it doesn't matter what your algorithm is like they'll always you'll always be able to beat build purpose-built um machines that will be more performant than uh general purpose because that's just how efficiency works i'm not positive but i'm pretty sure it was antoine who did a nonce uh research piece uh for monero specifically earlier this year or about a year ago and he has monero in there too yeah um but he basically proved whoever did the nonce uh data analysis

that i'm pretty sure it's him i'm not positive though so i don't think he showed it in this one as well yeah that so monero has the every six months hard fork out asics and you see the asics come back new asics come back yeah so like that's like so if you can do asic resistance but you have to constantly change the algo all the time and then it's like who gets to choose what you change the algo to uh how do you reach consensus on that and does that person have insider information that leads to him getting asics ahead of everyone else right so it's a centralizing factor it's not really a usable workable scenario for a so-called distributed chain yeah and i just want to read the official definition of a nonce so i don't give any misinformation out there the nonce in a bitcoin

block is a 32-bit four byte field whose value is adjusted by miners so that the hash of the block will be less than or equal to the current target of the network the rest of the fields may not be changed as they have a defined meaning you got it right pretty much on the first try yeah it's tough it's tough trying to keep all this up there's a lot to know a lot of bitcoin comes at you fast just constant learning you never really stop yeah um so when you get a chance go check out uh that coin metrics piece again they don't make any subscribe that's their uh newsletter and that's uh that's actually another good thing coin metrics too they don't try to put together uh excuse me put forward any of their opinions they just try to lay the data out and this piece

in particular was very good it'd be nice to have some more opinions though if you're listening core metrics team yeah it would be i mean so for eth in particular they're debating uh switching to prog pow um prog pow prog pow um and this data is like yeah is it worth it because that's gpu driven right well it also kind of shows that there's asics so they might freak the fuck out yeah because they don't like asics over on ethereum bad for the environment is that their reasoning for it so i think this disclosure they're a sponsor but i think this cost of gold two of three is like a big improvement um because before it was it was it's their cheapest plan what it was it was uh three hundred dollars two of three multi-sig

but like one of the keys was their mobile key and one of the key like the key on your app and then the other key they held and then the third key was on a hardware wallet um and then the worry there is that like they do something malicious on the app and they pulled two of two of the three keys because they already have a key and then they can get your funds so it's nice that now they have two hardware wallets and the mobile key it's going to be it's if it's not if they haven't raised the price to 400 they're about to and you get locked in if you buy it at 300 but at 400 you get a new node every time they come out with a new version you get this multi-sig it's like pretty decently secure multi-sig with two hardware wallets you do two different brands right now they

don't support cold card yet but they're working on it and keep poking them but like I you know you have a cold card Trezor Casa multi sick like that's probably pretty good two caveats there are privacy and sovereignty you're you're using their node to validate your transactions and they could they say they're not logging and I don't think they're logging but they presumably could if they wanted to because they see your balances so those are the two issues yeah i doubt jamison lopp is uh is logging but yeah it is um something to be aware of and yeah so the two or three multi-sig is now open to gold members but i think the dream is they're gonna fucking run all

this shit through the kasa node it should be fucking dope right but like this is you know so nick also did uh he did a presentation nick carter recently i don't have that in there we actually should talk about it about custodians and how much bitcoin they own um and right now i think he has that like four million bitcoin on the lower bound or something like that three million four million bitcoin uh which isn't pretty surprisingly low right yeah it is the lower bound so like he doesn't have some asian exchanges in there but like the two big ones he has like zappo and coinbase and it's not so but for those people like if you're using a custodial solution right now um like something like costa or unchained is like a massive massive improvement

um over custodian so yeah multisig is a disclosure on change is also a sponsor disclosure disclosure but multisig is just overall better um for from a security perspective well i mean there's different trade-offs right like because you do have this for big amounts for big amounts well you have this privacy trade-off you know and and you know there's like there i think like the the casa app is still closed source um so like and they're showing you like your receive addresses and then you you you have the issue with unchained where they're showing the receive addresses and it's through a browser so you want to make sure you don't have extensions and stuff so like there's so much fucking nuance between you know security and where does

privacy bleed into security but in general yeah multi-sig like removes single points of failure it allows you to be distributed and have your keys in multiple places if like your house burns down or something fucking happens you lose a key uh that's fucking dope and i think in general just like using multiple methods is like probably one of the key uh things you can do because it's you know it's like the titanic well the titanic didn't work but like at least it's compartmentalized so So if you lose one, however you stored it one way, you lose that, you still have the rest of your Bitcoin. Why are you going to bring the Titanic?

Titanic's a terrible analogy. But they pioneered this tactic. They just didn't implement it well. It was an implementation detail. The strategy was sound, just the implementation was poor. Yeah, obviously. Yeah, no, and to add on to that, we have people like Justin Moon working on things like Junction.

I'm super excited for Junction. Yeah, which it can help solve these problems or at least abate them a bit. Yeah, Junction plus Core plus a cold card plus a treasure plus like a BitBoy or like Spectre or something. And bang, bang, you got like a nice little multi-sig setup running through your own node privately.

That's going to be fucking dope. I'm super excited for that. And that's why you guys, that's why you freaks haven't gotten any multi-sig guides on tftc.tv yet because i don't want to fucking go through all the nuances of electrum i've just done with it and you'll get a guide when like junction inspector and all these other there's a couple other guys working on some multi good multi-sig tools that just hook right into core with hwi and

i that i think that's going to be the way to go for anyone who doesn't want to have a a key signing service yeah and uh shill here if you want to learn about multi-sig and junction and all this stuff go listen to the just the moon episode we get very in-depth in a derivation pass and stuff like that there's a lot of nuance that goes into all this stuff and hopefully it'll all be abstracted over time but it can't hurt to understand it at least a bit at this point in time seconded that episode was fucking dope this is pretty dope breeze uh announces lightning rod so there's actually some contention of whether or not it's dope or not but it seems dope off the feature so I read the article on the shitter right before we hit record so that's about my

knowledge but what I understand allow somebody to send a lightning transaction or invoice and then go offline and have that invoice either paid or sent later yeah it's basically an htlc inside of an htlc so like lightning uses these hash time lock contracts that allow you to route these payments around without a custodian so like the person can never who's routing it can never steal your money in this case uh before going offline the recipient is sending the the secret that is going to be used for the hash to the sender so the sender at any point can send a transaction to them they hash that secret it goes through rod uh and then so if if they don't take it it goes back so it's either you either prove the hash or for the time lock expires and it goes

back and then once they approve the hash the sender can then be offline still because rod takes it back and in that case it's a huddle invoice which is a longer term HTLC which basically like instead of expiring in an hour two hours expires in like a week so then if the sender comes back online within a week they can then the whole payment can get processed yeah I mean it's kind of a stopgap kind of solution so to allow people to send non custodial lightning payments without being online Rusty Russell commented about it on Twitter like he like sub tweeted it he didn't really call them out by name but I think

that's what he was talking about and he said that it's it's an attack vector uh through like spamming uh these long-term invoices and like they're not disabling them right now but if it does get abused in the future they might have to start disabling them so don't build a business around it why like why can't you just create unlimited invoices that expire well that's the issue is that there's no cost uh to create is there a cost to store those like what's the those invoices i'm not positive but there's a spam attack in there uh we'll link rusty i i i don't i had didn't link rusty's drive before we started so i can't look at it really quickly but he said there's an attack vector there where it doesn't i think it doesn't cost

you anything to have all these htlcs out um but i guess the question is just accept them back well the question is yeah how how burdensome is it for the receiver oh maybe okay maybe it's because i mean don't i guess don't quote me on this but it's because if you're routing through other people's nodes and then you send like back to yourself like they're siphoning off some of the satoshis in their channel and yeah and you're like leaving all these open invoices yeah just like sitting on the sitting through that have been routed to the network but you're not accepting them that's an issue so you can have more invoices in the sats in your uh in your channel i don't know spam it that way maybe i don't know i don't know enough but anyway he says it's an attack

vector so don't build a business around it i think it's just you know it's a stop gap whatever we're just trying to make it work right now uh breeze was very good about doing that in the first place with their app you know their app they automatically lock up funds uh to open a channel to you and if you never deposit money into your breeze account they never get paid for opening that channel if you do deposit then they take the fee after the fact by making you leave 600 sats in the channel but uh that's a a trick to use right now in order to make lightning onboarding easy without custodians so that's to be commended and uh i enjoy the lightning pun yeah rod lightning rod yeah shout out to rod rudy from bitcoin magazine too that's the first thing i thought of lightning

rod shout out rod love your brother congrats and tony hawk oh yeah they got tony hawk for bitcoin 2020 yeah um which we had heard grumblings about for a little bit so i think tickets are still pretty cheap so if you if you remember an earlier episode i like shilled it pretty hard about going or at least buying a ticket at like 20 bucks and that was because like there was like pretty good chance tony hawk was happening so tony hawk is happening we're not sure if a half pipe's happening but it might happen and maybe uncle marty's gotta hop back on the board uh dude it's gonna be good maybe i'll drop in with tony oh so if the freaks aren't aware tony hawk nonchalantly in a twitter thread five years baby dropped that he has been in bitcoin for five years

uh like what was it like three months ago or something yeah in june and it was just like someone unprovoked underneath in one of his tweets was like do you like bitcoin because i think it was pumping like the april 1st pump or something like that so are you riding this wave this is like a half pipe you've never even seen tony's like i've been riding this wave for the last five years like what shout out tony i don't know if you're a listener um well we're excited that you're going to be in san francisco next tony out pro skater was the best fucking game actually that's a game we didn't mention last week that was very formative the the soundtracks of those games uh were extremely formative for me um and being a kid from philly and then transplanted to delco

huge bam margera fan like when jackass was hitting and cky videos were out like i was a huge band fan and seeing him on on tony hawk was insane and tony hawk was one of the most fun games to play like if you knew how to manual and transition uh you were you were getting a couple mil points in one ride there i fucking loved it uh when when tony hawk pro skater game with sats sooner rather than later he's a forward thinker tony is um it'd be great to get him on the podcast that'd be fucking i'm working on tony if you're listening i've been working on him in his dms don't worry on instagram he has his instagram dms open there you go we love you we love you tony come on the pod really like my dad would be fucking ecstatic if we got tony on the pod he used to sit with me

and my brother and play th uh ps2 all the time there you go yeah um lightning and privacy this was actually something i was going to write about yesterday but i got uh i got thrown off the beaten path by crazy fed paper that we'll talk about later but uh eric wall gave a great uh speech on just actually big brother as many things he explained how surveillance states surveil their citizens uh the state of cryptocurrency privacy at the moment uh where it's lacking where it's good and then how it could get better in the future. And towards the end of the talk, he moved the focus towards Lightning Network in particular

and pinpointed some pretty big attack vectors, merchants in particular, and ways we could mitigate these privacy leaks in the future. And the solution is basically turning Lightning Network into a quasi-VPN system. Well, first of all, it's definitely worth listening to Eric's talk. It was a great talk. Eric is a smart dude.

Madame Enriga is a pretty great dude. And he's doing a bunch of work for the Human Rights Foundation now. Your buddy Alex Gladstein is over there, too, which is great. Lightning, specifically for privacy, I think is very underrated. Yeah, are there some pitfalls we have right now? Sure, but it is still a very young network, and it makes substantial privacy gains over basically recording every single transaction you make on this ledger

that's going to exist for all of time right so like with lightning you need to be doing active surveillance you have to be running nodes um like when lightning is mature like at least like you're going to because right now there's just not that many uh lightning transactions or lightning channel opens and stuff like that um but especially when we have snore and taproot but anyway uh you're going to have to be running multiple nodes staking bitcoin essentially pumping the price of bitcoin increasing liquidity of lightning network and running these nodes and logging transactions that go through your nodes because every time it goes through a hop like you need to be able to see that hop and see it happening right and private channels are going to make that even more difficult

so there's some major privacy gains to gain from lightning here and then other little things like when when people buy stuff like when they buy merch from our store and they their addresses gets provided right so they could be getting tied to their bitcoin as and their address their human address well freaks freaks are actually on top of this and most of our transactions are coming via lightning well that's fucking dope but the key there is what most people don't realize is when you pay with regular on-chain bitcoin you usually pay with the utxo that's more than the amount that you're paying with obviously you don't have an exact amount in utxo and in your wallet you get back the change right um so if you get back that change that change is linked to your address

and then you're screwed uh you don't realize if the if the person's logging or reporting those addresses you don't realize and that change is sitting in your wallet waiting to get commingled with your other bitcoin and link you but with lightning there's no change and one of the interesting things is this week on bit devs with this week on bit devs this week in bit devs which is our awesome new york city meetup that we have uh once a month they brought in a chain analysis uh team and i actually there was like a q a period and i asked him you know he was like we can jump between chains we can see through shapeshift we can see through all this stuff um he specifically named like two things he can't see is like if it goes into an exchange um because that basically

acts as like a centralized mixer or if people are using monero they're not like but they can see going to and from Monero, like if you go through ShapeShift. And then I asked him about Lightning. I was like, are you actively tracking Lightning? And he said they aren't. And he said that he doesn't think that it's feasible for them to do it. They're not even going to offer it as a product.

So just take that as you will. He seemed genuine. He seemed deflated when I asked him the question. That's what he wants us to think. I don't know. I think maybe some people will try to attempt to, but it's going to cost them a lot of money. It's going to be way more

difficult like i said it's going to take active surveillance and then even then it's like one or two players maybe will have a really good view the network are they actually going to share that information with other people um you know like things like he said like we can't see through the exchanges like obviously if you're the u.s government you just subpoena the exchanges right and you add that data to the mix right but like a private actor can't see it so it also depends which actor you are right like where you stand in the totem pole of the world like many things that we've been talking about tonight uh a lot of nuance and matt is going to shut the window because they're showing uh somebody our studio space here um but yeah there's a lot of nuance

that goes into it it's not perfect yet definitely go listen to eric's talk but it is better i would argue and yeah i think people are using it too which is great to say i think if we see the flow of you buy or earn bitcoin you go through coin join you send it to your cold storage you know like you send it to like a multi-sig hardware while it's set up and then you in small batches you like top up your your lightning wallet uh with like submarine swaps like loop in for instance through lightning you top you top up your lightning wallet and you spend you know however much you need to spend through lightning and then as that channel gets depleted you just reload it right you'll have like one or two big private channels to like some routing nodes that you know hopefully

you trust more than others and um you run the whole thing through tour and you just top up as you go that seems like a pretty reasonable stack to me that i think most people can do that will give them like decent privacy guarantees and obviously run your own node a decentralized private futures not here yet but i can see the roads being built i can see it being built slowly but surely um staying on the topic of lightning if you are running um sea lightning they just released version 0.7.3 so go check that out uh not check it out upgrade uh if you so wish i'm not going to force you to upgrade but you can upgrade if you will it's usually recommended that you do upgrade uh the highlights is that lightning d now supports different sql backer

backends um which includes a postgres sql driver in addition to default sqlite3 driver i'm sure some of you developers are laughing at me right now for messing some of this up but whatever ability to supply a bitcoin address to close a channel which is a function within a sea lightning in particular on top of that utxo selection is provided with withdrawal and tx prepare this is all stuff that if you're not a developer is probably going to be over your head so if you are a developer go check out the sea lightning version 0.7.3 check it out test it help out um i just i just found the thread about rusty that rusty russell uh tweeted about the hodl invoices and he didn't i makes me feel better he didn't actually give specifics he was just like

this could be weaponized and abused um and if it does get abused then we might have to just knock it out in the protocol level yeah and then on top of that i don't do you have this in here um the macaroon news oh yeah that's we and we actually kind of touched on that with evan that we just we dropped that podcast yesterday really great conversation make sure you freaks listen to it uh if you only tune into rhr and you rarely listen to the interviews go listen that interview that's a really good interview we talked about a whole slew of things and evidence fucking dope yeah and one thing we talked about was like macaroon access and how it can create like a quasi api call for you like oh off almost yeah where you give individual permissions yeah

And I believe the L&D team in particular is working. I think Gross Beef is working to make macaroon access more granular and more accessible for L&D users. And I think it's next release. It's not out yet, right? No, not out yet. But I think there was debate about whether or not they're going to do it. And it seems like the debate is over and they're going to do it.

Like right now there's only two macaroons. There's read-only and everything. so it'd be nice if you can just split out those permissions to like a bunch of different things yes different levels different permissions blah blah blah so be on the lookout for that as well and then this was actually excuse me something that we're very passionate about here Matt in particular is running tour and donations to tour between now and November 4th will be matched by by Mozilla, which is one of the oldest open source internet projects alive right now.

Obviously, the browser. What, Mozilla? Yeah. So that's just good. Just donate to Tor, and now Mozilla has to pay that same amount. If you're going to donate to Tor, it's as good a time as ever. When's the next Stellar drop? Is it about to happen?

That'd be nice if I could just get Mozilla to match my fucking Stellar donation. Jeremy Rubin, when's the next Stellar drop? But anyway, I actually donated to SATS directly this time. So it's just a good cause. It's important. Their main, they do have a source of funding that is the U.S. government, which they get a lot of FUD from,

but rightfully so, I would say. But their overwhelming majority of funds are through individual charitable contributions. So consider donating and keeping their incentives aligned appropriately. well tour is not being donated to by the u.s government you're talking about mozilla right nope nope tour is funded by like the nsa and shit really like the department of justice so one of one of the three-letter agencies or something they get like a chunk of their

because the idea is that it promotes freedom and and the idea is that it hurts our enemies more than it hurts us right and it allows like all these dissidents and stuff to communicate and that our agents and stuff can use it and stuff like that right just like we've helped like darpa was the guys who did the internet in the beginning right that's more of this please three letter agencies the alphabet suit motherfuckers come on but it's also one of like the biggest complaints about tour but yeah it's open source so yeah um speaking of open source our friends at cold card shout out rodolfo you fucking legend uh just released the full schematics of the hardware so if you want to put the cold card together yourself uh with each individual part you can

Rodolfo has made the parts that you would need to acquire and assemble open source we're going to link to that blog post and yeah cold card team just fucking always stepping up yeah that's fucking badass we need to see more

of that from their competitors otherwise cold card is going to continue to lead the way it's the best hardware wallet on the market the other thing I wanted to shout out because Rodolfo is a boss uh he's having his second uh meetup um in uh in toronto where he's from uh november 12th uh the bitcoin fixes everything meetup uh and there will be

cold cards given away and some bitcoin too at the meetup but supposedly this is the second one ever the first one was massive success so if you're in the area consider going to that that should It should be a lot of fun. Rodolfo is a fucking boss. Shout out to our Canadian freaks. Fucking love you guys. Big fan of Canada and Canadians in general. Love your lifestyle, your approach to life, and your overall niceness.

It's just appreciated in a world that's going pretty curmudgeonly these days. It looks like the guys behind HODL with Leden. Is it Leden.io? Leden.io. L-E-D-N.io. Are also organizing with them, too, so shout out to them. Yeah. shout out to Latin

actually they had a great you guys should go check the story in Coindesk I know this is going to make a lot of Bitcoin maximalists freak out but suck it up

whether you like it or not a lot of people in Latin prefer stable coins to Bitcoin because they don't want the volatility risk and Latin is leading the way

down there and allowing people to use Bitcoin as collateral to get stable coins and basically interact outside of the

traditional economy in Latin I think, did Lee write that? I don't know if Lee wrote it. She might have. It might have been Lee who wrote the article. She wrote two other great articles. About the dissidents? She wrote one about, from a Chinese perspective. We have both links in the show notes.

And one from a Lebanese perspective. And we're about to talk about both those reasons. But at least this one connects more. In Argentina, they just made their capital controls even stronger. So before it was $10,000 per month USD, you were allowed to move out of the country. Now it's $200 per month. So you can see with a service like Lendon. Ledon.

It's a horrible name, to be honest. I think that, yeah. It's just hard to pronounce. said i don't even anyway but that's besides the point cool product uh they there's it's a two-sided business right like they need a fiat rail and they need a bitcoin rail that's the whole that's their whole product um and if you're in a place like argentina you don't have a usd fiat rail so like yeah stable coins are they require trust in a third party i think they're inherently unstable they can break at any moment you know they're it's impossible to like cold store storage of

stable coin because at any moment it could be worthless uh so but with all that said like at the end of the day like would you trust tether more than your argentinian government like yeah like if you don't have access to u.s dollars you don't have access to u.s dollars right it provides another thing as long as people are aware of those risks and how they are mitigated with something like bitcoin and like the trade-offs there then you know options are good yeah and that's just come to grips with reality on the ground and these uh latin american countries in particular bitcoin is used as a rail not necessarily as a as a currency right now it's a rail to get money moving some obviously do hold uh bitcoin long term for like a huddle stash but to interact

in the economy with cryptocurrency stable coins are the go-to down there but again this is an endorsement of oh maybe it is a little endorsement of stable coins uh right now but in the long run And again, they're underlied by what I would argue are unstable systems, one being the U.S. dollar or something like DAI. I don't think it has had enough, MakerDAO in particular, has had enough time to be tested in the wild. It's risk management system in particular, but if it's working right now and it's making these people's lives better,

who the fuck are we to knock that use case, right? yeah and i mean i think like a lot of the a lot of the issues i have with the more centralized uh stable coins like usdc and stuff like that from gemini is that at any moment the government can just like basically they have de facto kyc chain wide um and if they don't they will have to but like if you're an argentinian like that doesn't does that really matter to you no you don't care if you do the kyc you just want the fucking dollars like you need to have access to that exposure um so like i kind of see that you know and and something with tether like even more so because you know that's like completely

rebel there's no gonna be no kyc there they're just like breaking banking regs was there any clarity on what happened with crypto capital last week i've been asking people i can't get a straight answer yeah that was the other theory did you see preston burns theory about the pump no it was just people running out of tether and running out of bitfinex so yeah so apparently is this a rumor or true i don't know apparently polish police arrested the head of crypto capital which is the weird bank that's holding 800 million dollars of tether's money which that was seized that was seized yeah it's holding their i think that's holding their ieo cash right no no the ieo came after to pay it back the 800 million that was missing yeah the u.s dollar the u.s the u.s

government seized the 800 million and as a result they went to crypto capital did the ia that's the way no no no crypto capital was holding their 800 million dollars in crypto capital bank accounts and then the u.s government seized it last week or that that was no no right and now they arrested one of the main guys of crypto capital okay i'm confused about this right the crypto the funds that were seized from crypto capital are the funds that were being so-called replaced by yeah yeah the and the most ridiculous token name ever what the fuck is their name onus said leo or something leo leo no no but there's a full name have you seen the full name i don't think so i just heard leo the full name is like three different syllables it's pretty crazy

i don't know yeah it's a long story short stable coins inherently unstable in the long run it requires trusted third parties yada yada yada um but also their customers might be holding a portion in stable coins and a portion in uh at the end of like at the end of the day it's easy for us to say that that trust profile isn't good enough for us when we're able to hold us dollars in a bank account which i don't really trust my bank but i'm forced to but i trust them enough that i keep some in there like i feel like that's like this level of trust they have with stable coins right it's like they know they can get fucked at any moment i know i get fucked at any moment at the bank i'm just taking that risk reward ratio you know into account and and making a calculated decision yeah

um so be aware and hone in more on the uh other aspect of this people are uh are are being forced into doing things like this because uh their countries and central banks are instituting these uh crazy bans so lebanon you can't move cash out of the country uh right now they've been believe their banks were shut down for are they still shut down yeah so what we got on day 12 it's yeah it's pretty it's been a while now yeah it's been like almost two weeks their banks have been shut down argentina again we mentioned 200 dollars per month you can't pull money out this is why we bitcoin yeah yeah like stable coins don't solve this problem long term but they provide this intermediate bridge yeah and and the data is proving that like it's not

theoretical like you can just look at what people are doing on the ground this is uh an observation of what's happening not a prescription of uh what we think should happen also you can track uh argentinian local bitcoins volume on useful tulips.org oh dude we don't have that on the list shout out matt albor coming out with some great data yeah i mean that was the first thing i checked when i saw argentina lowered it to 200 you know the volume is like closest to all-time highs but it's still like pretty negligible volume um i wonder what the spreads are like over there because it'll be pretty hard to arb out you know we're gonna do here man we're gonna do something we don't do usually what give props to coinbase oh no we're not actually giving

them props that was a good blog post i don't know i don't know they're bending the knee a little bit what do you think delete coinbase i think i think that blog post is what happens when you start realizing everyone's eating your lunch including cash app you know yeah shout out cash app but yeah coinbase today released a post we didn't have this on the list but marty decided to talk about it they released a post today well it was confirming this information that people on they were they released a post today that not only gotta give props for props or do not only did they say bitcoin many times which they don't like saying bitcoin uh they also said that the best way to get long-term exposure to this entire asset class of all their cryptos is to stack sets

and they actually used the term stacking sets uh and they were also bullish on lightning in the post which is crazy this is like uh that's what i'm saying you gotta get props for props are due this is like the post you'd expect like in an alternate universe where coinbase never like went down the shit coin rabbit hole and just was maintaining themselves as a bitcoin company like this is the type of post you see on the 11th year anniversary so it's like really crazy to see um I'm glad they're like coming around a bit but you know delete coinbase like use anything else basically yeah they're there that was a good thing they did on that blog post but uh it's one mark in the good column there's a lot of marks in the bad column still hey redemption kanye's redeeming

himself right now maybe coinbase can redeem themselves in the coin yeah i like that you coin slip coin yay let's go let's get coin yay back um but yeah i guess we'll end it on that was the other thing that kanye pumped right it could have been kanye released jesus is king within the 10 minutes that we pumped 25 and i'm just gonna say my thing on jesus is king the fact that uh being religious is counterculture right now is pretty crazy they're not crazy but it's just hilarious that it is counterculture and i'm very happy to see kanye on his journey because if you've listened to his discography we've talked about kanye a lot on this podcast um he has gone through a journey it's it's interesting to see how open he is or

how open he has been with jesus is king in particular we missed one topic well we didn't know i know exactly what you're saying we did not miss the topic no no not the topic you want to talk about we missed the wired hit piece on sanctions oh yeah sanctions evasion so why released a whole post about how um former soviet bloc countries and in russia uh the mining sector is blowing up uh the bitcoin mining cryptocurrency mining in general sector is increasing tremendously through government incentives um because it's such an easy way to evade sanctions and they did it as a hit piece like everything was super negative the way they framed everything but it's still a really interesting piece to read because bitcoin is ideal for evading sanctions uh whether we like

it or not it is ideal for the common person and it's also ideal for for a government entity who wants to evade sanctions and i think that if you uh like bitcoin's the ideal currency for someone like putin uh and if he's actually has a bitcoin strategy of accumulation he's not going to talk about it out loud because he's not an idiot i agree i agree sorry i just took a sip of water there um no that's what we were talking about the alpha zeta like what is the the you don't talk about it right we just recorded with alpha that's going to drop next week yeah we had him on with bitcoin tina earlier the end of the summer to talk about the the yield curve inversion and then we got to meet him in person today

great morning we got breakfast recorded podcast the best part of the podcast is meeting bitcoiners and just from all around the world yeah um so be on the lookout for that next week as well um topic i wanted to end it on was something i wrote about in the benton yesterday it's about central planning in general and how these central bankers and central planners overall think about their influence over the global economy so central bankers in particular in america more particularly the richmond fed which is one of the uh the federal reserve um banks i think there's 13 12 or 13 and my history is uh fuzzy right now i'm pretty sure it's 13 13 central banks around the country richmond fed is one of them and they came out with an academic paper

earlier this month uh titled let me pull up the title here cognitive hubs and spatial redistribution and basically uh the thesis of the paper is that we need to get all the dumb people out of the cities away from the smart people and into their own cognitive hubs so that the smart people can be as productive as possible so they're in in the orwellian talk in this paper the title is cognitive hubs and spatial redistribution this is fucking insane they're describing gulags and like hunger game like levels they're saying if you're not smart enough to be in this quote-unquote cognitive hub we're going to move you to this other cognitive hub where your cognitive abilities are such that you will not disrupt the smart people and you have to live

here and produce on your cognitive level we're going to spatially redistribute you to this area are you fucking kidding marty is furious right now you should see his eyes it's fucking insane they're like i guess the big issue here right is like who decides right who decides who's like i don't think this will ever decides who's not exactly and what about people having kids in these cognitive hubs like are you going to take their kids away if they're not smart enough and send them to another cognitive hub like well first of all i don't even know why the fed's talking wait i just want to say i hope my cognitive hubs near beach what like do you have an issue with it if it was like privatized cognitive no yes yes because you're trying to

because the whole the whole point of this study is to try to um to measure and uh basically chart out human productivity which is fucking impossible humans are animals you cannot predict what humans do let alone individuals like you cannot produce this optimality and this is why the fed is fucking stupid this is what they try to do for our whole fucking economy is optimize a trillion dollar multi-trillion dollar global economy from central planning they think they can model out perfect productivity that is fucking impossible and this paper is just one example of their hubris like they think that they can allocate us into cognitive hubs spatially redistribute us into redistribute us into cognitive hubs and perfectly map out our productivity as

humans and get the most growth out of our out of our existence right but fuck that but these are the people running our money these are the people running our money the most important tool that we use as humans these this is how they think they're crazy i'm sorry that's like it infuriated me yesterday yeah but is the issue the the cognitive hubs or is the issue the central distribution it's all of it the fact that you can but like what if you had a situation spatially redistribute what the fuck how orwellian is that term but what is it very very orwellian but it's because is you're actually doing a centralized redistribution right like what happens if you had like citadel-esque situation where you had to apply to access citizenship to the citadel right

jeff vander brought this up like we we dream about citadels all day this might be what a citadel future looks like and i am but if it's privatized is that a problem like is like should should a government be able to say like if you want to immigrate into our country like you have to have certain qualifications like if you want to immigrate into my citadel you have to have certain qualifications it's got to be opt-in it would be privatized on that situation if it's like but spatially redistribute is that's the fucked up the fucked up part is that it's like a central actor is deciding yes if it's opt-in who is willing who is uh but also i would i would argue that like these the capable and who's not the drive to do this is bad for culture bad for

society bad for social interactions with humans we should not be driving to divide people and separate them by their their economic work we should be trying to bring everybody up right it shouldn't be i mean the last thing we need is more government intervention yeah and the last thing we need is government spatially redistributing people this is uh no i agree i'm i you should be mad as hell but uh this came out from the richmond fed somebody from that fed board has a direct undue influence over your life via influence unfit policy. These people run the most important

tool that exists in human history and that is money. And they want to spatially redistribute you into cognitive hubs. Wake the fuck up. My cognitive hub is going to be dope though. It's going to be by a beach. Celebrate the 11th anniversary of the white paper.

Don't forget to fast for Satoshi. Break fast at block 602,000. Subscribe. Tell your friends fight the fight against spatial redistribution stay humble stack sats peace and love freaks