TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2020.04.06

Episode Date: April 9, 2020

Join Marty and Matt as they discuss: - 16.5M Americans unemployed - Today's Fed announcements - Dave Portnoy calling the dollar Schrute Bucks - Bisq security vulnerability - ACINQ Phoenix v1.3.0 adds Tor support - BlueWallet v5.3.0 - Samourai Dojo v1.5 - Ronin Dojo v1.4 - All Nodls now support dojo and whirlpool - Method to provide clearnet access to Tor lightning nodes proposed - Fold announces sats back visa debit card - Zane Pocock on the EARN IT Act - Stephan Livera with Gleb Naumenko on erlay - Chainalysis CoFounder on WBD - Shoutout to @jamesbtcbond for setting up his node with electrum - Rodolfo bitcoin-dev keychain email Shoutout to this week's sponsors. Cash App. Start #stackingsats today. Use the promo code: "stackingsats" to receive $10 and contribute $10 to OWLS Lacrosse you download the app. Unchained Capital. Head over to www.unchained-capital.com/vaults and check out their 2-of-3 multisig vaults.

What's up, freaks? It's your boy, Marty, here to introduce this episode of Rabbit Hole Recap. Matt and I just had an hour and 20-minute rip. Really, really good conversation. You guys are going to love it. Talked about the Fed, talked about a bunch of updates and releases going on in the Bitcoin world, and ended it on chain analysis. So I think you guys are going to like it. This episode of Tales from the Crypt is brought to you by our good friends at Unchained Capital. You freaks are pretty familiar with them at this point.

Our boy Matt just did a price bet using Caravan with American Hodl and Keep It Simple Bitcoin, where Matt is the arbiter in the bet. And if, come October 1st, the loser of the bet between American Hodl or Keep It Simple Bitcoin does not sign the 2 of 3 multisig, they're part of the 2 of 3 multisig. Matt will step in and do that. Unchained Capital has a security-first mindset creating financial products for Bitcoiners. They have their vault program where you can engage in a two or three multisig in which you hold two keys and Unchained holds one.

You can use a ledger or a trezor, soon to be a cold card as well. And if you ever want to move your UTXOs out of the vault, you can do so by yourself. But if you need Unchained to help you out with that second signature, they're there for you. On top of that, they have their loan program where you can use your Bitcoin as collateral

for US dollar loans. You can get same day US dollar liquidity, putting Bitcoin up as collateral, put the Bitcoin up, you get USD. Friends don't let friends sell Bitcoin. And on top of that, they're doing a bunch of open source work. We already mentioned Caravan, which is the open source multi-sig quorum. If you don't want Unchained involved in that multi-sig at all, they've open sourced their solution for you. So you can download Caravan and do that by yourself. On top of that, they're working on Slip39 Hermit, and they have an incredible blog series, multiple blog series actually gradually then suddenly drew has been writing about how the waves and bitcoin in space joe kelly will cole phil geiger are rounding out that blog as well

with some incredible content so go to www.unchained-capital.com it's www.unchained-capital.com go check out everything they've been doing this all this episode is also brought to you by good friends of the cash app you freaks already know all about them if you don't know about them let me tell you about them all right they're helping you stack sats they're helping you send sats receive sats and sell sats if you so please don't recommend the selling sats part but if you have to you can do it via the cash app on top of that they're making sats the standard this is already out there for android users and if you're an android user also happens to have an iphone your account may have sets a standard on the iphone as well and they're also teasing that

they're going to roll out auto buy function soon tm soon tm that's all i can say i can't say anything else. All right. On top of that, they're helping you stack stonks. If you're a day trader out there stacking stonks, I don't recommend that you day trade on the Cash App. Not ideal. All right. But if you are a long-term trader thinking about dollar cost averaging in the stocks, if you have a favorite stonk that you want to buy and hold for the long term, but it's a little bit expensive, a little bit out of your price range, the Cash App, Cash App investing specifically is letting you buy as little as $1 of that stonk. You don't have to buy the whole stonk. You can buy a dollar at a time a sliver of a stonk if you will all right because cash app is directly

connected to your bank account there's no four to five day waiting periods you can start investing today if you listen to this on good friday you probably can't invest today because it is a holiday um the stock market is closed but if you're listening to this on another weekday where the stock market isn't closing it's not a holiday or a weekend you can stack stonks slivers of stonks today on top of that they have their boost program their personalized debit card except that anywhere visa is accepted you can save money at their partner merchants so go download the cash app you can do a lot with it you can stack sats you can stack slivers of stonks and you can use their boost program to save money at partner merchants if you do download the

cash app if you haven't done it yet what the hell are you waiting for if you're able to download it and you haven't done done so yet sorry for the prep there make sure you do it and when you do do it use the code stacking sats that's one word s-t-a-c-k-i-n-g-s-a-t-s you're going to get ten dollars all right ten dollars that you can then turn into sets and ten dollars going to go to our good friends at owls lacrosse in chicago doing incredible things that's owls lacrosse all right use the code stacking sats download the cash app today and i hope you guys enjoy this episode as well as the new intro we got a new intro at least for this week our boy jay skrilla dj jay skrilla at skrilla ventura on twitter uh is dropping a bitcoin focused album

sound money is the name of the album uh this song is called not in your wallet enjoy okay Plan B. And I, too, will need her Each day I'm closer To being cash of the future Not in your wallet I'm in your computer Not in your wallet

what is up freaks welcome back to rabbit hole recap second edition this week we've got a stimulus package in on monday we're back on this thursday and a lot has happened we've got a lot to talk about it's the longest list i've seen in quite a while matt how the hell are we doing how long has it been since i've been in the same room as you marty too long too long i i've been down here uh at least a month maybe a month and a week yesterday and the episode before we both left the city we did remote as well yes so so we're on six weeks here i think that's the longest i've been away from you since we met

you're gonna make me cry I'm tearing up I'm gonna need to pour myself a drink it's killing me man the first the first Reunited episode is gonna be fucking epic though

so we have that to look forward to we're gonna have to get pretty hammered for that one I'm drinking today it's 3.30 where I am not even yet but there's a lot to talk about a lot going on in the world

cheers cheers freaks through the camera uh we'll get started we'll we'll ease into this by looking at clark moody's dashboard since we last met on monday there was a difficulty adjustment upwards difficulty adjustment uh by 5.8 or excuse me that is yeah um 5.8 upward difficulty adjustment was making sure it wasn't the estimated for the next difficulty adjustment next difficulty adjustment is estimated to be around three percent right now Current price of Bitcoin is $7,265. We're at block 625,171,

excuse me, less than 5,000 blocks away from the halving. What are we looking at? Fees versus subsidies back down. It's at 1.88% right now. Bitfinex inbound capacity is still hovering around 18.68, outbound at 37.37. And where are the tour? total tour nodes is at 1959 percentage of tour capacity of the lightning network excuse me

percentage of capacity on the lightning network that's running through tours 42.1 pretty high that's been moving up recently post-quarantine um my my theory one of my theories is that it's because people are running their running nodes for the first time and if they use like any of the major packages um they default to tor now so my node defaults to tor raspi blitz defaults to tor i'm pretty sure um yeah and noddle noddle if you buy a pre-built noddle it defaults to tor so if they're running their own nodes they go on the network and hopefully we see more of that we see like routing nodes on the smaller side they don't have to be that big that are running through tor that are being run by people who control their own hardware in their own homes

and that people don't know who they are. They're unknown actors. It's not like a big business running it. If you have a big business running one of these nodes, then they could be pressured by a local government or something like that. So, yeah, great to see. Incredible to see. Yeah, like I said, this week we had an upward difficulty adjustment

while we're on mining. uh and we're less than 5 000 blocks away from the having another interesting note this week that wasn't on the list but something we should mention is that bitcoin cash had its uh having yesterday and it really shows that if you uh are not the dominant chain it's going to be hard to to uh subsist after a having if especially if you you're the price of your coin is is very low and your mining hardware i can be pointing at a more profitable chain like bitcoin so bitcoin cash had their having then it took me i think like three hours for them to mine a block and i think they've had like 14 blocks like 24 hours there's there's a couple things there well first of all um i still

can't believe bitcoin cash hasn't had a major 51 attack um i i've been calling for it for since it existed so um still surprised now it's even more vulnerable um so there's a couple things here first of all i went into the halving uh at i think like 0.7 percent of shaw 256 hash so like bitcoin had 99 percent of all hash rate and bitcoin cash had less than one percent and it has since fallen even more i think it has 0.2 percent of hash rate now so it has a very minuscule level of hash rate um when we talk about people 51 attacking uh bitcoin cash we what we really talk about is it's like a half percent attack if you're talking about bitcoin hash rate um the other thing is there's two more things that people should keep in mind they have a uh

like a checkpoint system that's handled by by uh the main um node client for 10 blocks but not all the nodes run that i believe bitcoin unlimited does not have which is the other client does not have um the 10 block checkpoint so if there was to be a reorg greater than 10 blocks we would we could potentially see a change split there is what you would expect and then the second thing is um they changed their difficulty adjustment algorithm so with with bitcoin the difficulty adjusts approximately every two weeks 2016 blocks every yeah right and so that's a long period of time it's hard to game that system but with bitcoin cash what they did was uh it changes on a moving average of the daily moving average so it i think they might have changed it to 144

blocks i don't know if it's the average i think it's just a straight daily type thing okay well whatever it's a lot shorter i'm not exactly sure exactly exactly sure exactly i'm not exactly sure because who the fuck gives a shit but they shortened it so what you see a lot is the few miners that are mining it they hop off and hop back on to game that system right so when the having happened uh profitability got cut in half right like the amount of money the amount of bitcoin cash they they received got cut in half so they might as well pull off and go mine bitcoin while they wait for the difficulty to rapidly adjust down right but the game theory is such that no one really cares about bitcoin cash so there's no like miners of last resort so the game

theory it was like everyone tried to do that and then there was no miners left to mine the bitcoin cash blocks until someone finally was like i better switch back and fucking do it yeah yeah no i mean this is something we've been predicting i think i wrote about in the newsletter like months ago like this is going to completely decimate their their chain and to give them credit yesterday they had four x a hash uh or before the fork they had four x a hash which about like between two and a half and three percent of overall shot 256 no i think it was less than that wasn't it no it was four x a hash i'm pretty positive but are you sure are you sure percentage wise it was over it was over yeah because bitcoin right now is at like 104

x a hash and i imagine bitcoin sv is even lower so altogether it's got to be like 110 x a hash if they had four four x a hash at the time that's it's got to be two and a half to three percent i would imagine um i'm looking at fork.lol and right now it's at 0.63x a hash or at least last i check i have a screenshot from an hour ago and bitcoin is shot up the 12 hour it's at 0.54 percent and bitcoin is at 99.46 percent but if you go by seven days yeah maybe you're right if you go by seven days it's 97.18 percent to 2.82 percent so yeah they did yeah so like average over the week um but no i mean we're going to see this again who knows we're going to see this exact that'll be interesting to see play out it's a lot of the conversation not that anybody cares about bitcoin

sv either but they're going to have their having as well i believe next week or pretty soon after this one um and that's the question is bitcoin sv have altruistic miners that will keep hashing there they definitely have big money bags with calvin air but who knows who cares yeah um well eventually we'll see 51 attacks on both of them now we keep saying that we keep hoping for it i hope we do but we'll see it's gotta happen i guess yeah we'll see but that is interesting Last three hours, Bitcoin hash rate's at 140x the hash. It's pretty insane. Maybe what's miners?

M30s are starting to hit the market. I know they're supposed to announce that in a week, but miners have been known to put those on early. No, it was because the Fed saved Bitcoin. Saved us from the mining. It stepped in. All right, that's a good segue. Let's step in to what the Fed did today.

first let's note um we had another big unemployment print this week was a 6.6 million today uh i thought it was 16 and a half but i mean at the end of the day it doesn't really i mean 16 and a half overall 6.6 this week from week to week oh yes yes that's what it was yeah and the top in 2008 just a reminder was like 500k it was like 500k and change or something yeah so completely insane and we talked about this last week is that the incentives of the small business loan and unemployment guarantees being there that sort of forced or incentivized business owners to lay off workers knowing that they would have the unemployment or is it something else it's probably a combination of both but it's it's sanity like the the and we were just

talking about it before we hit record it's not only the u.s economy shut down the global economy give or take a few countries is completely shut down or i'll say that not a few countries but give or take a majority of the world's economic power the western world is pretty much completely shut down which is unfathomable i can't even imagine i mean we're living it but i couldn't imagine this area yeah and the debate is raging on whether or not that is advantageous for the economy and lives in the long run i think a good conversation to be having right now is what's going to do more damage to health and and lives in the long run the shutdown or the virus we're not going to have that right now but i think that's a question people should be thinking about

especially as you see unemployment prints like we did today and overall it's 16.5 million that's pretty insane that's that's what uh more than five percent of the country probably more than 20 of the workforce i would imagine it's 32 boston's population so boston's population times 32 yeah that's fucking insane and with that print coming out I don't know if the Fed, the Fed probably didn't do this as a reaction to the print exactly, but anticipating what was going to happen, they came out and they took additional actions to provide up to 2.3 trillion in loans to support the economy. So today they announced a bunch of programs, a few of which were expected, one of which

I was not expecting at all and we're going to get into, but sort of just going to read through what the Fed did today, like we did a couple of weeks ago. The actions the Federal Reserve is taking today to support employers of all sizes and communities across the country will bolster the effectiveness of the Small Business Administration's Paycheck Protection Program. That's a tongue twister. By supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses. The PPP provides loans to small businesses so that they can keep their workers on the payroll. Doesn't seem to be working.

The Paycheck Protection Program Liquidity Facility, so they created a new facility for this, will extend credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value. So the Fed basically saying, hey, we're going to work with banks, particularly banks that are supporting small businesses, and the banks are then going to loan out the money to small businesses. So they're going to back up the bank's loan books, but the banks are going to be the ones who are forward-facing with the businesses and actually giving out these loans. So that's something to keep in mind. It's something we touched on on Monday. There's a lot of fuckery going on with that. Next, ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans through the Main Street Lending Program. Some great Orwellian doublespeak here.

The Department of the Treasury using, right? Department of the Treasury, using funding from the Coronavirus Aid, Relief, and Economic Security Act, the CARES Act, some more doublespeak there, will provide $75 billion in equity to the facility. Next, increase the flow of credit to households and businesses through capital markets by expanding the size and scope of the primary and secondary market corporate credit facilities, as well as the term asset-backed securities loan facility. these three programs will now support up to 850 billion in credit backed by 85 billion in credit protection provided by the treasury all right so this is important to note uh these three programs will now support up to 850 billion in credit backed by 885 billion in credit protection provided by the treasury so they're basically taking 85 billion from the treasury which is backed by taxpayer money and then levering that up 10 times so they're they're not really getting 850 billions

again 85 billion then levering that up 10x through their programs how they do that exactly i'm not exactly sure at the moment but it's a loan program yeah yeah so they're levering up 10x while the the economy is in a dire state so they're caused arguably by over leverage as well They're hoping they get 90% payback at least, right? I mean... They have 10% collateral, right? Yeah. Well, I don't know if 90% is right.

I mean, I don't know exactly what they want. I am not well read on this particular... Yeah, it's very confusing. I don't want to speak with any authority on that particular question. But last bullet point here, they're going to help state and local governments manage cash flow stresses caused by the coronavirus pandemic by establishing a municipal liquidity facility that will offer up to $500 billion in lendings to states and municipalities. The Treasury will provide $35 billion of credit protection to the Federal Reserve for the municipal liquidity facility using funds appropriated by the CARES Act. So, again, this is all taxpayer money for this particular bullet point where they're buying municipal bonds. The Treasury is going to provide $35 billion that the Fed is then allowed to lever up to $500 billion.

And to get more specific, what really is very fucked up, I would say, and evil almost, is the one facility. So the secondary market corporate credit facility. This allows the Fed to buy individual corporate bonds and then eligible ETFs that some of these corporate bonds are a part of. So eligible assets, eligible individual corporate bonds, a facility may purchase corporate bonds that at the time of the purchase by the facility were issued by an eligible issuer, have a remaining maturity of five years or less, and were sold to the facility by an eligible seller. eligible etfs and this is crazy so the fed's getting into exchange traded funds which are basically mutual funds that trade like stocks they're not exactly mutual funds but just think of the product it is a tranched layered product that trades like a stock it's as easy to get in and out of as a stock is but it acts like a mutual fund almost the facility also may purchase u.s

listed etfs whose investment objective is to provide broad exposure to the market for u.s corporate bonds so this is just vanilla corporate bonds pretty pretty uh high grade high rated corporate bonds the preponderance of etf holdings will be of etfs whose primary investment objective is exposure to u.s investment grade corporate bonds so again corporate investment grade corporate bonds is usually good debt okay and this is where it gets fucked up and the remainder will be in etfs whose primary investment objective is exposure to u.s high yield corporate bonds so high yield is code word for junk bonds so they're buying junk bonds now basically bonds that nobody believes that will be paid back in the long run they're the riskiest uh types of high or excuse me the

riskiest types of debt you can buy okay so this is they're buying etfs this is not good they're buying junk bond etfs right yeah it's fucked up yeah which isn't even it's like a sure that to lend well like they're buying a derivative of the shit which is even riskier well let me pull this up right now because it's important that we touch on this dan mccardle from asari has been on this tip for quite a while and he he pointed out that in the fed's speech today like powell completely contradicted himself there's logical inconsistencies from what he was saying today in of speech and the assets they're buying. So today, Powell said during the speech where he's announcing all this, I would stress that these are lending powers, not spending powers. The Fed

is not authorized to grant money to particular beneficiaries. The Fed can only make secure loans to solvent entities with the expectation that the loan will be fully repaid. all right so the secondary market supporting high yield aka junk bond etfs the underlying assets in those etfs are not expected to be paid back in full so he's directly contradicting what he said today with the assets he's paying there's some double speak and logical inconsistencies going on that everybody should be paying attention to and you should be alarm bells going off that number one they really don't know what they're doing and number two uh like they're in a very precarious situation and it's almost like their attempts to solve it while misguided are all are

also like making it more precarious of a situation than we're already in well and the even more fucked up part about it is that the fed incentivized all this it's like all the corporate bonds and all the corporate debt that exists today was incentivized via low interest rate regime which the fed has had for the last 12 years so all these corporate corporations were like hey we got low interest rates it's a good time to go get debt and then what dan also pointed out a lot of these corporations took that debt and did stock buybacks so that they could gain their earnings per share and trigger executive bonuses so they did some financial engineering took advantage of the Fed's low interest rate regime, took out the debt, used that debt to

buy back stocks to lower the denominator in the earnings per share, which would jack up their stock prices. And then the boards of these companies have stock targets that if they hit price targets, if they hit those targets, the executives get bonuses. And so via the Fed's low interest rate policy corporations noticing that they were able to take advantage of that and then buy back their stock to lower the denominator to trigger their bonuses the fed is bailing out this action these practices it's fucking evil it is evil at the end of the day while the taxpayer is on the hook for it people are saying like oh no the government's like the the fed's gonna pay for this but now with the treasury interacting with the fed and the way it is it's really the

taxpayer backing up all this and we're all stuck in our homes we can't go to work that 1200 hasn't showed up for most people yet but all these fucking asshole corporations are getting bailed out it always comes back to the broken incentives you have broken incentives and everything else breaks along the line and again that's what i said in the newsletter today they're in a doom loop like so they're just papering over these problems with the same things that caused it they're again levering up buying riskier assets you're just going out further on the yield curve it's insanity shrewd bucks shrewd bucks shout out to dave portnoy uh internet mogul prolific day trader yeah so he he uh that's what i wrote about in the bent today so dave obviously is the founder and

uh he's not the ceo he's the founder of barstool sports uh and is a very prominent pop culture character these days and he came out today and any any analogize the dollar to shrewd bucks like even he and this is not to say that dave's not a smart man he's obviously an extremely smart human being he would not be as successful as he is if you weren't smart but let's just be honest like the fed and monetary policy isn't his isn't his game right he doesn't even pay attention to that he's really worried about content and sports and gambling mostly but the fact that he felt compelled and like noticing what the fed is doing and to say what they're doing is basically creating shrewd bucks and like he basically actually gave a very good explanation of inflation in under a

minute in the video that's referenced in the bent and that's what i said today so we you and i and others who listen to this podcast and read the newsletter and follow the fed we we we have thought that the fed lost credibility a while ago we we believe that the fed isn't not really had credibility for quite some time and seeing what dave did today i think it's really and michael creer pointed this out on twitter too this could be a cultural turning point when you have the dave port noise of the world basically losing or recognizing that the fed doesn't have any credibility anymore that might be a social turning point where more of the mass and that's the thing barstool represents is the common man that's their audience that's who they're speaking to

and more and more common man men starting to question the fed's possibility excuse me credibility is really going to erode confidence that has any ability to maintain stability of the u.s dollar in truth we trust shoot retrust this is an incentive for for good behavior okay so we have a massive week on bitcoin this week so let's jump into let's jump into those topics um i wanted to start with uh wait let's not get to bitcoin yet all right okay we have to stress this is insanity you have the the fucking fed buying high yield etfs bailing out the corporations

that took advantage of their monetary it's like a it's a closed circle of elites taking advantage of a system they control while everybody else gets fucked the taxpayer is on the hook for all this like you cannot this cannot be lost on people this is not right this is not moral this is not ethical this is evil i would say at the end of the day marty the smp is up one and a half percent right now so is this not priced in did the market not price it in correctly 16 and a half the market doesn't make any sense anymore the market doesn't make any sense anymore it's just numbers on a screen i forget who tweeted out i think it was greek fire on twitter he might have a 13 at the end of that he's a fin twit personality and he said the markets don't make

any sense they're just numbers on a screen they don't represent any underlying value or cash flow in the system the economy must be doing great yeah dude 16.5 million people applying for unemployment we're doing just rosy all right end of end of my rant there they made me they made me start drinking rosé at 3 p.m today i was gonna ask you when you're drinking is that what you're drinking drinking some some whispering angel rosé i'm i'm drinking talisker storm scotch i'm starting to run out of scotch i gotta i gotta make a run well you've got my scotch and whiskey uh cabinet is very full back at home and if you if you ever need to get in there let me know i think we had some freaks send uh bottles to the donation

address uh you know uh sats towards bottles to the donation address so when we reunite we'll We'll go on a spending spree. Shopping spree. Let me see if we got it. Do we get any shout-outs? That's what I'm just checking. No shout-outs since our friends at the Auburn, California Citadel. I wanted a shout-out at JamesBTCBond for setting up his MyNode with Electrum.

I love seeing that tweet this morning. It made me put a smile on my face. That's awesome. I agree. Good to see. right and and so for those of you who don't um know exactly what we're referencing freak james james bond btc james btc bond james btc bond excuse me uh got a my node downloaded the blockchain uh and they connected his hardware wallet to his bitcoin full node using electrum

he said my node btc made an absolute breeze incredible software um liberating and he said it's pretty fucking liberating feeling connect yeah it's liberating so it is daunting at first it is definitely daunting and i'm still i'm not gonna lie i still get i don't want to say overwhelmed but it's always like ah it's gonna be a process i'm gonna have a lot of learning it's gonna be a lot of tinkering it seems daunting if anxious overwhelm as well um but then once once you went to everything clicks and you have it working it's like it is exactly that like it's so empowering um and incredibly uh liberating and and it is a journey to get there and it is a little daunting and overwhelming at first but once you get there you realize that the journey

is worth it no going back after that anyway i love to see it so shout out to you james um yeah now we'll start off the bitcoin news with some negative news uh did you see bisque had a security vulnerability this week um i did i did so a couple things well first of all um they discovered this vulnerability and they halted all trading so you know the question comes how decentralized are they right um obviously they have this alert key that is able to stop trading that makes them less distributed than you would expect the the difference is is at least if users wanted to they could override that alert key so it's worth noting that users could have traded anyway even though trading was officially stopped the

second thing is bis doesn't have any access to user funds um so they didn't like you you could still pull your money off of the bis software you have the private keys you could even when even when trading was halted so they halted trading um they investigated and then about a day later they released a patch and they opened up trading again and the issue was um the issue was they used to return address what was that the return address or something like that so they used to have a third uh a two of three multi-sig with the third key control being controlled by an arbitrator they removed that arbitrator and they introduced a bis donation address as a fallback mechanism the arbitrator is still there but in a fallback disagreement

situation the funds get moved to the donation address and what happened was the attacker the and that was a recent update and the the problem was the biz software didn't verify that address when it created the the original lockup transaction so the attacker participated in a transaction and changed the donation address to his own address so when the fallback happened it went to him he only targeted the monero bitcoin market but that's not really that much solace because that's their biggest market on bisque um three bitcoin were stolen four thousand monero were stolen um and now the bisque team is submitting a proposal to their to their governance system the bisque dow to repay the victims um so there's some questions there you know if the

victims should be repaid we don't know who the victims are uh what are the victims the attackers member of the team right stuff like that yeah very interesting externality that comes with a decentralized exchange uh yeah that was i was surprised to see that this week but from what i could tell everybody was happy with the the original uh or i don't want to say everybody's happy but people were impressed with the original shutdown and then they had to back up within 24 hours i believe uh but it is an interesting uh anecdote and example of how do you like going forward how are they going to solve this via the dow like uh are they going to give the money back to attacker what are your thoughts i think money back to the victims yeah yeah money back to the

victims but then the question is is the victim the attacker and then are you sort of incentivizing more attacks like that well the victim probably can't prove but the attacker could be one of the best lead devs or something like that that as well but like no like the the quote-unquote victim could be the attacker pretending to be a victim when they actually did it themselves this is hypothetical i'm not saying this is the case if you could steal from someone else just in the hopes that you get paid back yeah but i mean in that case you might as well i mean you get paid out when you steal like how much it's a it's a no cost it's a no cost attack the bitcoin alone that was what no but you know cost attack but you waste your attack you waste your attack they

patched it now you can't do that attack anymore so you're gonna you're gonna do some like far I doubt the victim was the attacker. Let me put it that way. I do too, but it is in the realm of possibility. Would you admit to that? But game theory-wise, it doesn't make sense because you waste your attack. They got this patch.

Now the attacker can't do the attack again. Yeah, but it's a one-shot. I mean, again, we don't think it's this, but just running through the hypotheticals, even if they do patch over it, if they do pay him back, you're up 4 000 or 3 4 000 monero i guess i mean or it happened it was like eight wasn't it like 18 instances over the last month or something like that it was three bitcoin and four thousand

monero oh it did all the attack wasn't just yesterday seven different victims over 12 days over 12 days i didn't realize that um yeah i look this is why the best dow is supposed to exist if you have the best token no it was over 12 days you're supposed to be able to vote you're supposed to be able to vote in these situations um you know all of these governance systems they suffer in the beginning they're they're very closely held right uh the the the people who there's a very few amount of people that own this dow tokens um but the idea is presumably that over time that that there's going to be a distribution of those tokens and the governance system can handle these kind of things and you know for bisque like this is a it's a critical thing because if

if you have a small group of people that are able to control these decisions those people are going to get government there's going to be government pressure on them uh and that becomes the weak point of the whole system so that that is that is where the that's the that's the hard problem to solve is is what happens in these kind of situations and who has the power over that it's not a clean yeah ever yeah so our friends over at bisque whiz steve jane anybody else working on that project we're uh we're feeling for you that's a shitty thing to happen but hopefully this is just a bump in the road and in the long run it turns out to be something that made the network stronger overall because decentralized exchange decentralized

exchanges like bisque are going to be incredibly important especially if the government starts ramping up uh enforcement against bitcoiners and particularly on and off ramps agreed it should be interesting to see how it plays out freaks if you have an opinion on the matter i know i know you don't need me to ask you but feel free to uh to post on twitter what you think yeah on to more everything else is onto less gloomy topics yeah everything else very bullish first off we got async async's phoenix wallet uh version 1.3.0 has been released and it adds tour support so we were talking about tour support in the beginning of this episode it was incredible to see anything else particular particular with this uh release that you want to

touch on so phoenix we were when we were talking about tour earlier we were talking about routing notes you know phoenix is a mobile wallet uh so people won't be using it for routing they'll just be using it for like everyday payments very easy to install uh alongside breeze those are probably the two easiest non-custodial mobile wallets that exist right now um so it's really good to see phoenix ad tour support right now it's opt-in they hope if the performance holds up as as it looks like it you know if it all goes according to plan they will make it opt out so when you install phoenix uh you will have a defaulted tour which is fantastic i think i think that all of these consumer focused things should be they should default to tour that should be the focus

So that's really great to see. And then on the other mobile wallet front, we have BlueWallet released V5.3.0. And they released an update right before that too that I forgot to mention earlier this week. But the two updates combined have two big changes. The first change is we've talked in the past about how you can set up a watch-only wallet

on BlueWallet that has PSBT support with cold card and it uses your own Electrum server, but that Electrum server connection wasn't encrypted. So they added TLS support for both ElectrumX and Electris and Electrum Personal Server. So all three implementations of Electrum server have been added support with encryption, which is great to see.

The next step there is hopefully adding Tor support for that connection. And then the other big thing they added which is i don't know if you remember mycelium tried to do this and they fell off the face of the earth and became a completely shitty wallet uh they they added a local trader feature in partnership with hodl hodl so you can buy and sell bitcoin without kyc directly through blue wallet using hodl hodl's uh p2p platform this was huge i i'm happy you mentioned that i was very surprised pleasantly surprised to see that especially because you were uh you were lambasting me

for using blue wallet like only like six months ago uh because it was custodian at that point but it seems that they're moving away from that no their lightning wallet is custodial their on-chain wallet is not custodial so i don't think people should be using custodial lightning wallets uh i just don't think that's the future we will see here and it creates a lot of headaches in terms of government pressure and and who you want to squeeze on that i mean we saw that with drop it right like drop it also had the 50 50 model uh where they had non-custodial on-chain and custodial uh custodial lightning and when they got seized by the feds the lightning funds all got taken

right everyone's lightning wallet got drained but their on-chain balances were fine because it was non-custodial so it's a very dicey dicey predicament but it looks like blue wallet is and also the other thing that we should note for the freaks is that if you have lnd hub running uh which is a server it's like their back-end server that they have you can technically run that yourself and then you're not you're not doing custody but the way it defaults it defaults to the lightning wallet being custodial um but they've added all these other features around everything else that are they're nice features and it's a it's a clean wallet on the phone so options it's good to have options

yeah no it's incredible to see and um i think uh isn't isn't blue wall isn't isn't domiciled like in eastern europe as well is it the czech republic i'm not sure i i've heard dominican republic actually that'd be interesting but i'm not sure yeah we'll see shout out to blue wallet and hodl hodl uh to max and roman to hodl hodl big fans of what those guys are doing hodl is doing very important things and it's it's glad i'm very happy to see this partnership come to light and i think it it's it's really fascinating that you can engage in a hodl trade on blue blue wallet directly those are the types of partnerships i like to see i mean going back to the the bis conversation hodl hodl took a different approach right they didn't go for decentralized uh but they went for

non-custodial so they don't ever take custody of the funds but it's a completely centralized platform and right now they've been able to avoid kyc because of it so it should be interesting to watch how that all unfolds but it's it's really it's it's a great option out there for people And with this local trader addition into BlueWallet, I mean, as we've talked about on this pod so many times, as people have noticed in real life, like mobile access, seamless mobile access is like a really, really important thing. Yes, yes. And we noticed that when Samurai released mobile mixing for Whirlpool, that may and probably is the impetus. I think we can safely say that that was the impetus for the surge in volume that they've seen. Or what are we using, liquidity or volume?

I like using volume. People like arguing what liquidity means. I just avoid it. So they've had a surge in volume. And speaking of Samurai, they've released Dojo version 1.5 and Ronin Dojo 1.4. So those are available now. So, I mean, the big thing is Dojo v1.5 switches from using Bitcoin Core to look at transactions and to scan the blockchain. And it switches to Electris, Electrum Rust server, which is way more efficient and reliable.

ronin dojo v 1.4 is the the package that you can run on a raspberry pi that includes dojo and whirlpool and electris so that just brings up it's just updating to samurai dojo 1.5 so it's taking those updates and then on top of that um the noddle dojo and the noddle one already had basically what dojo v 1.5 has become which is they were already using electris and keto miner over a noddle further ported it back to all noddles so the not the original noddles also now have have dojo and whirlpool which is great to see the the 500 gigabyte ssd model the super og noddle um you have two choices uh because

Electris takes up a lot more space, you can either upgrade the SSD to 1TB, which he provided a really nice video on how to do that, or you can use it with Electromex. So he got it to work with Electromex, which doesn't have to keep all the chain data there, so it works on much smaller amounts. So that was pretty cool, that little hack he did there. I know I appreciate it as a noddle 500 gigabyte owner um and also the video on how to upgrade so that's fantastic to see and i just wanted to reiterate um like i i 100 think that if you're gonna buy a pre-built node the novel is the best node uh i own two noddles uh they both have treated me very fucking well they're super fucking reliable and specifically you know with with dojo here like it's pretty

awesome that you can buy one of these pre-built nodes um and you can run dojo on it run whirlpool on it scan it with the qr code automatically connect through tor and then you have a fully functioning coin join wallet that does coin join for you that does coordinated five-person coin joins that does two-person p2p coin joins that simulates coin joins with yourself and it's just that full stack that idea of this full stack um for someone for like 500 is just uh i think it's a game changer like if you if you want to save money you want to build it yourself you want to know the hardware inside and out by all means build your own node um but it can't be understated that you know how it's often understated like how important it is for just like the average user to

be able to just say like okay i want to use bitcoin more privately i want to run my own node i want to do coin join so i'm going to spend five hundred dollars on this i'm going to plug it into my router and power and i'm going to connect it to my phone and i'm good to go yes ux is imperative and it's something keto miner and sqa to have had in mind since the start and it was personally speaking i haven't met somebody who's more of an adversarial thinker when it comes to hardware than nikito minor he's somebody that understands network systems very well uh and networking very well well in general that's what he's been doing his whole life and somebody who i think understands the hardware and the importance of doing it right

from first principles and everything i've seen from the noddle team is has lived true to that ethos i mean specifically their high-end node uh that i purchased as soon as like the pre-orders went up um is on the pricier side i don't know what the retail is now maybe it's like eight hundred dollars but it has two one terabyte ssds that back up each other automatically that are encrypted with a kill switch like that is fucking fantastic he even like little things like there's been complaints like on your like a lot of these nodes broadcast as exactly what they are so like on your on your network you can see my node you can see the old noddle used to say noddle um casa node would say casa node so if someone had access to your network let's say

you're using a router from your isp or something and they can see all the devices that connect not only do they see xbox they also see casa node or they see my node there and that creates a privacy issue right so what did he do all new novels that ship have a randomized name just some random fucking name like cow flipping or something so like you look when you go into your routing settings you're looking for the local ip address you have to look up the the random name and he prints out a little sheet of paper that shows the random name for you um like little little security things like that privacy things like that he's just constantly thinking and it's is very commendable extremely commendable and let's not uh lose sight of this freaks we are

working with noddle if we find somebody in pop culture that's sort of getting their toes dipped in bitcoin and they seem like they're they're falling down the rabbit hole a little bit and we want to send them a piece of bitcoin hardware the noddle team is willing to send to anybody out there who seems like they're jumping into the bitcoin rabbit hole like joke with who has yeah somebody like joe kerr and michelle fan somebody who has a high leverage uh reach maybe not as much right because like michelle is already established orange built we like we got her completely yeah yeah so keep an eye out for that it's still on the table um sometimes i uh don't have my eyes on the lookout so we have to depend on you freaks to let us know if you see anybody

falling down the bitcoin rabbit hole so we can get them this hardware they can talk about it they can experience financial sovereignty in the digital age firsthand and it's important to be clear here that they haven't paid a shit uh the only bias no not at all the only bias we have is that i consider them my my good friends so full disclosure i treasure that friendship me as well shout out taquito minor and escuedo uh i mean talk about two people just care about doing it the right way and care about freedom and yeah you guys can go listen to their episode that we recorded during bitcoin 2019 i think we we hit on why they're in this and and why we love them that was one of the drunkest episodes yeah yeah that was uh it was a good i mean i think that

might have been a three-hour guy too then we went to beefsteak afterwards that was a great day It was a great day I found out I found out that my wife Was pregnant that day Was it that day? No it was the Day after

Day after Because I found out The same day as you right? You found out like The same five minutes You shouldn't be telling people You should Word to the wives

You freaks out there You're not supposed to tell Anybody outside of your Immediate nuclear family Until like 12 weeks I would Less than 12 minutes I don't think I've ever

Told this story But since you brought it up I mean, you know, people talk about how drunk I got at the live RHR at Bitcoin 2019. Well, part of the reason was because three hours later, while we were recording two podcasts in a row before that live one, Marty told me in confidence about it and I just got super excited. So the Bitcoin not only was a Bitcoin price pumping, but I was really excited for Marty and his wonderful wife. So, um, that was that just not an excuse, but just to let you know where my head was at that, at that moment.

No, it was a great weekend. And I know the freaks love when five drink back comes out. I know I certainly do. Ah, now, now I'm like bummed. I'm bummed now because now I'm thinking of, we were going to surprise you freaks for the live show during blockchain week here in New York city. I had like a theater lined up and everything that doesn't seem like it's going to happen. It's definitely not going to happen.

Um, there's no way that would have been. yeah yeah hopefully one day when when everything is uh is lifted and we're able to to meet in person again at some point we will in new york city have a live event at uh where's the soho subculture theater and so it's a dope theater it's gonna be a good time look forward and it's got a bar too it's most important of course yeah um this is pretty open arms dude this dude's putting the team on his back last week we talked about the multi-location seed backup proposal that he had this week he's got a method to provide clear net access to tour lightning nodes which he just proposed so tour to ip underscore tunnel yeah he he dropped this like right after

We finished the earlier RHR this week. I guess this one wasn't just him. I think he was, there was like a lightning hack day going on, obviously virtual, and he like came up with it with a couple other people, I believe, right? I'm looking it up now. He says, thanks to at EMZYMZ for the original SOCAT syntax. Yeah, so Lightning Hack Sprint was where they were discussing it.

And basically the idea is, so like right now, like as I said, like I think that the average user who wants to contribute to Lightning Network and run a routing node should be running it through Tor. The problem is when you run through Tor, the only people who can open a channel with you is other Tor nodes. ClearNet nodes cannot open a channel to you. You know, regular IP addresses instead of a .onion address. The Tor nodes are kind of like first-class citizens in this regard

because they can open to a clear net. But once they open to the clear net, the clear net node can then open a channel back, but not the opposite way. Now, with this, the idea is that a Tor node can use, a Tor node operator can use a VPS, a server in the cloud, to basically relay that connection. So they're broadcasting an IP address.

So a ClearNet node can connect to a Tor node and because of this Tor to IP tunnel, they don't even necessarily need to know they're a Tor node. They just see an IP address, they connect to it, and yeah. So it's a significant improvement for connectivity for Tor routing nodes, which is great because it further incentivizes running a Tor routing node to begin with.

And from my experience, particularly running a large Tor routing node with many, many channels, is that you tend to have a lot of inactive clear net channels. Just propagation in general on the Lightning Network, if you're running Tor only, is an issue. It's not like a deal breaker issue, but it's an uptime issue, especially when you have a large amount of channels. So I wonder how much this, I think it definitely doesn't hurt. And I think it will improve that uptime issue because it will allow the clear net nodes to reconnect to you instead of you having to always connect to the peer. No, I think that's huge.

And then another thing I'm pretty sure you mentioned, but Kanako underscores, there's no port forwarding needed for this, which is huge because that's a manual process that most users aren't willing to undertake. yeah because you're connecting to your vps through tor and then the outside world is connecting to the vps through clear net yeah so shout out to open arms this is a proposal right now it's obviously what not well tested but it's something yeah i mean it's not something that anyone has to implement it's just if you want to do it you can do it they just like set up a

they they they a tunnel service yeah they basically set up the workflow for how you would implement it if you wanted to implement it on your own node um and it appears open arms already did it and he had a a uri code for his lightning node um or a lightning node nope it's his lightning node his store's lightning node on um on clear net so he he's obviously testing it out and using it right now and it seems to be working well so we will be watching it we're gonna have to get that we're gonna need to get that motherfucker on the pod this dude's beast yeah well i told him next time he's in new york but now that we're just doing remote pods we should just fucking get it done yeah shout out open arms if you're listening the invite is open

let's make it happen i want to be in on that podcast definitely joining um this is pretty big announcement fold announces sat back visa debit card something people have been waiting for it's here uh seems pretty cool you can connect it to your fold app to get more sats if you want but it seems that fold is partnered with visa what was visas um their venture arm i think they call it fast track yeah i mean the idea is it's a visa debit card and instead of getting points we've talked about this on the pod before that we think this will become the standard sats back uh instead of getting points you get sets as a reward and i they haven't fully announced the reward structure but i imagine it will be just like regular credit cards or reward debit cards

where it's like you know they'll have different categories and you'll get different percent back depending on what the category is um uh you know they're they're advertising it as as also a more privacy focused experience that's what i was going to ask you um i did speak to will about this because i wanted some clarification will reeves uh the founder of fold about this ahead of time so there's a couple things here so fold right now has a gift card purchasing side okay and you can buy those gift cards with bitcoin or you could buy those uh gift cards with credit card either way you get bitcoin i i am a user and i love it okay and if you pair that with something like escher app or lightning strike you get more sats back without having to spend sats which is dope

right because you get more back if you pay if you pay with bitcoin okay the cool thing about the fold app with gift cards is right now you can run it in anonymous mode so if you pay with bitcoin they take no KYC information whatsoever from you and they pay you back and they give you SATs back for every purchase. You can also do the same thing with credit card. And if you do it with credit card, they don't take an email or anything, but they obviously know your credit card information. So there's some light KYC there in the form of your credit card information and they pay you SATs back. With the added benefit there that your credit card doesn't see all your individual transactions. So there might be a slight privacy benefit there from

the credit card perspective. But Fold obviously knows your credit card purchase history and they know your gift card purchase history. So it's like KYC. Then with this, they obviously are going to know your bank account information. If you link your bank account to this debit card to add funds to it they are supposedly going to do um an account number system so you can just direct deposit to it like cash app does if you don't want to connect a bank account to it or if you don't have a bank account to connect to it so you can just direct deposit directly into the app into the debit card so they don't have that information at that point but they will also have your mailing address yada yada yada so in terms of that obviously it's a debit card you

got you got traditional debit card kyc element there but from a principal point of view they are a more privacy uh focus company so so what will says is you have the ability to opt out of any kind of analytics uh you know marketing stuff like that on your transactions the opt-out is going to be it's unfortunately it's not default i'd like to see it be default opt-out but it's just right in your face in the onboarding experience it tells you if you want to opt out of all of that you can opt out of all that and then they have that feature that a lot of that we see with a lot of cards new age cards nowadays um i think apple pay does this to the apple pay card um where like you can create burner credit card numbers right like one time

use only virtual credit card numbers debit card numbers and use that instead um to try and break analytics more um but it's it's it's conventional rails but at the end of the day like if people are buying things with credit cards and debit cards um they might as well get bitcoin instead of soft money they might as well get hard money instead of soft money um it is a net benefit in that regard no matter what i would say hard-earned soft money is wasted energy make sure you're getting sats back no i agree and like you mentioned we've been talking about this a lot on the podcast we think that's going to be one of the biggest impetuses for uh for constant buying pressure is these sats backs sats back cards and again if it's within your risk appetite that

you're willing to give up this information for a debit card you're going to be shopping regardless for the stuff with a debit card why not get sats back you can uh after a certain threshold begin coin joining those coins and taking back your privacy uh you might as well get good money instead of bad money which i mean and even with credit card points points are worse than than the soft money that we're subjected to some have cash back right um yeah some but yeah like if you're going to give apple the information like i'd prefer fold to have the information than apple um and i have withdrawn from fold on the gift card side of things those those rewards um and i have coin joined them with whirlpool and i've had no problems

and if i ever have any problems you freaks will be the first ones to know but that's just my own personal experience um but yeah like as marty said you know i i consider these sats back programs weaponized consumerism uh so we have like massive consumerism in the united states and the western world in general the whole fucking world um but especially the united states and if you can take a portion of those that spending you take two percent five percent of that that portion that spending and you're pumping it into bitcoin which is a scarce asset um shit's gonna get real real fast you know that's that's going to create an insane amount of buy pressure long term and and it's going to start with these bitcoin only companies like fold leading the way um and then

we'll see entrenched players you know like like square cash app disclosure their sponsor is like the middle ground there they'll probably implement at some point but i wouldn't be surprised if we start seeing like the big dogs within the next five years like the barclays and stuff like that trying to woo customers over with sad spec um yeah yeah it seems like a natural progression and again slowly but surely like fold probably got uh out advertised by the fed's announcement the unemployment numbers today but this is something i've been writing about over the last month and a half as this crisis is unfolding it seems to me at least that a lot of fundamental building blocks for bitcoin being successful in the long run are getting built out and things are

happening and people aren't noticing it in the mainstream but if you're paying attention in the bitcoin world there's some pretty pretty good things going on right now and actually a good transition to our next topic our good friend uh gleb nelmanco was on stefan lavera podcast to talk about early we had gleb on last fall to talk about this but they elaborated on it on the stefan lavera broadcast and this is another example of something that is a huge fundamental building block i have not um i'm i know you did though it was fucking fantastic it was very good i love extremely good i mean glenn's a good a good dude he's like a good kid he's like young and it's an incredibly

one of the most incredibly smart people i've met in the space and had the pleasure of interviewing And for you freaks who are unaware, Erlay is a step towards an ideal. So Erlay basically makes Bitcoin transaction relay more bandwidth efficient. Right now we have the Bitcoin flood system, which takes up a lot of bandwidth per month. Erlay would severely reduce the amount of bandwidth required to relay transactions across the network, node messages between each other. And we're talking magnitude, like multiple magnitudes of order improvement. If you're talking about connectivity, the amount of bandwidth per month consumed by a node that's connecting to 24 other nodes gets reduced from about 13 gigabytes per month to less than one. Freaks, go listen to the episode.

It was very good. Gleb did a good job explaining it. Yeah. Important topic. and gleb is somebody who's been working in the space for a while he did some great things in ukraine building exchanges there he's uh part of chain code now we're lucky to have him working on bitcoin um so shout out to gleb and early would be a huge and that's so early is a part of the the p2p network so there would not be a fork or soft fork anything involved to to upgrade this

correct if i recall correctly he's already running it yeah yeah all right boss i need to i need to watch that but but it only you only get benefits from other early running nodes uh yeah it makes sense even even if not all the nodes run it you still you know if you have like one peer running early and you're running it then you get benefits you automatically you just quickly start seeing seeing benefits uh it brings it essentially it brings the cost down for running a node which is massive um yeah again long term this is this is huge for the decentralization of the network you want it so individuals can download and download the blockchain number one and then relay transactions without the cost of doing so getting too burdensome and early would severely

reduce that cost and allow individuals and parts of the world where internet connectivity is not as good to to run bitcoin and contribute which is very important if you're running through tor that as well that as well and then the other good episode that i listened to this week uh you did uh peter had the chain chain alice chain analysis co-founder on his podcast what bitcoin did um johnny levin right joni levin jonathan levin um this i think is a must listen um they butted heads hard uh peter told him on air that he bought cocaine on the silk road which was an interesting um back and forth uh and yeah and i i just i think people should listen to it because personally like these are the people we're up against uh and people should realize where they're

coming from like he thinks uh he's in the right um he you know they talked about the moral predicament of helping governments where do you draw the line what's a good government what's a bad government um you know are you helping authoritarians uh what happens if a government is a democracy and it becomes an authoritarian do you cut off business with them um and jonathan gave a lot of double speakish answers uh like talking around and stuff like that um and peter got a little bit emotional at times but i think it's i think it's worthy a listen that for everyone should give it a listen if anything just to know your enemy and enemy is a strong word but somebody who has a different perspective on how uh bitcoin should be surveilled and that's

he's enabling authoritarians let's be clear here but i yes let's be clear but i personally think that chain analysis will exist as long as they're able to exist if if exactly they don't make it someone else will make it someone else will track it and it's our job to make their life as difficult as possible in terms of actually tracking transactions so if we increase coin join usage we increase a bunch of the privacy characteristics of bitcoin then we can make their business obsolete and that's the productive way to handle it not um basically asking them to back off because they will never back off and that's where i feel like the disconnect was with peter where he was like you're stopping me from using bitcoin privately but really the the perspective should

highlighting pain points well i mean the perspective should be that we should make it impossible for them to do their job in the first place let's you know let's put them out of business rather than complain about it no and that's the way you do that is you let them highlight the pain points like hey we were able to do this because of bitcoin's existing properties that are made in this way and so that lets us know hey all right this is what we need to focus on changing no i agree and i do not i think i don't i don't like chain analysis at all i did meet with one of their employees we got coffee a couple months ago before the quarantine and he's very good dude um but i again like i don't know i i'm in your camp and peter's camp where

uh it's a slippery slope of if you do this are you really helping bitcoin are you helping the people that don't want bitcoin to happen and i'm certainly in in the latter camp there but i think a good heuristic don't hate the player hate the game and the game is structured in a way where i think a good heuristic is that you the average bitcoiner have no access to their platform whatsoever if you're an authoritarian dictator you you you get access right away they'll give you they'll give you a private salesperson who just handles your account and make sure your life is as great as possible in terms of tracking down dissidents but if you're an average bitcoiner like us we can't get access to it at all we have no access to the platform i've never actually got

to use the platform and i've been trying i've been trying to get you know people who work in regulated in the regulated bitcoin businesses give me a username and password let me just i just want a half an hour in there you know i want 45 minutes in there you can't get it so here's the question that led to my meeting with the employee from chain analysis what the fuck are you doing if you're not helping bitcoin like what are you doing replied to a bent right you like attack them in a bent yeah i attack chain analysis and i stand by that bent like what the fuck are you doing if this is the case like why can't why can't we see those tools like is it because we're not paying no like i couldn't know because you've been trying for

won't let me you've been trying for quite a while i can't pay for access there's no way i can pay for access they like ask you know are you a business or an authoritarian and then if you check one of those boxes and then they decide which kind of business they will allow to do it right like tales from the crypt uh we can't we can't get a chain like i i said i joked to you the other we have a btc pay server set up though but i joked to you the other day like we should tell them that we really just want to make sure you know that coin join users aren't donating to our btc pay server instance and like get a corporate subscription and like they won't there's there's no way they they do it on a private per user basis you know they like determine they

probably risk or their fucking clients uh and decide whether or not they're going to allow access to it spooks or spooks in the hen house be careful freaks no but i mean not i i hate to say that because the person i met with personally i like him as a person but again like i don't agree with the product at all or what the product stands for which is hysterical because the bent that triggered that conversation you called out the employees not the company you were like if you're an employee i chain analysis what the fuck are you doing with your life or something to that effect well i will reiterate that i mean even though i like you like what the fuck are you doing what are you doing at the end of the day like we have a revolution

effect you see what the fed's fucking doing going back to what we were talking about earlier the institutions that you're helping out the autocrats that you're helping out the governments that you're helping out they don't give a fuck about the individuals in this in this country in the world at large we are at we are at i don't want to say war yeah we're at war we're at fucking war for the future of the digital age do we want to be a surveilled cuck fucking populace or do we want freedom and liberty in the digital age we have a fight to fight right now again i've said this many times on this podcast we go one of two directions the chinese surveillance state exported to the rest of the world and let's not lie the american uh defense arm is definitely surveilling

its citizens too that has been made perfectly clear since the patriot act like we either fight back against these governments or you help them cattle herd people into a digital panopticon like i'm sorry i'm not gonna know what i was trying to play coy and and be nice to the person i met personally but seriously what the fuck are you doing we're talking about human liberty here moving forward it is imperative that we fight for this liberty whereas they just hit half a bottle rose down but this is a perfect segue into the next topic which is same zane pocock from uh knox wrote a piece today on the earn it act and the earn it act is a perfect example of the state of the american government particularly trying to leverage fear and push through a a law that

would severely depreciate liberty in the digital age particularly pertaining to encryption technology so this is we've talked about it on the podcast uh a couple times already but lindsey graham and uh gov or representative or senator blumenthal we're trying to push through this earn it act that would basically make it so all these corporations have to share every message every piece of information that you send on their apps with the government and they also want back doors for end-to-end encryption technology which is impossible if you have a back door it's not end encrypted it is not encryption technology at the end of the day and there's no such thing as they dove into this no not at all and they dove in like the orwellian

doublespeak of the earn it act is like again i've spoke about this and written about this before it is mind-blowing the earn it act so earn it they're playing to the american ideals of work hard and earn it in this act if passed is the laziest thing ever they don't earn any of the information they're getting they just get to hand it over to them but uh i mean i wrote a two minute bent and we talked about it for a little bit on the podcast but zane pocock and our boy fib uh wrote a thorough piece on it today and uh a twitter thread as well and it's it's incredibly enlightening so i would go read it they talk about what's happening the long game they get into the basics of encryption and the need for people to rise up like we need to fight back

against this stuff this is the most comprehensive uh earn it piece i've i've read so you freaks should go you freaks should go read it they did a very good job um i mean we have talked about it decent amount in the past um you know the thing with the earn it act was we talked about it it looked like there was no way it was going to pass and now that corona is happening they're able to get a lot they're going to be able to get a lot of this shit through so we have to be extra vigilant um and and as i said they did a very very good job with it um i gave them some very light feedback they showed it to me before posting it there's some very light feedback but it's it's fantastic it's a very good piece and everyone should go read it and and i just want to reiterate because

you transitioned us like you really got to go listen to that what bitcoin did with the chain analysis guy like he one of the things he said to him he was like do you consider yourself a bitcoiner you know and so it was like it was like very much a heated heated emotional conversation with with the co-founder of chain analysis and we we don't ever see that really in this space so So it's definitely an enlightening one. Go peep it. Go peep it, Peter. Hope you're living well, brother.

Last topic and one that we wanted to talk about on Monday but forgot to, and I teased it in the ad on Monday, so we have to talk about it briefly. Rodolfo Novak from Coldcard, he sent something to the Bitcoin dev mailing list that I thought was pretty cool. I wrote about it on, was it yesterday? I wrote about it yesterday. I just wanted to mention it. It would basically be a keychain software

that would allow you to create private keys offline via a cold card and then restore them on other wallets outside a cold card. So you basically have an offline private key generator with a cold card, and then you can use those private keys that are held and encrypted under a password to keep all your private keys that you're using on multiple wallets in one spot, which, again, it's not for everybody, but for certain businesses and individuals doing certain things with multiple wallets, it seems like a cool functionality.

So, I mean, my understanding is it's like you have one seed to rule them all. You back up one seed, and then you have all these child private keys. And those child private keys you can use for different apps and whatnot. And if one of them gets compromised, everything else doesn't get compromised. and you still have this just single seed backup. So you just have these word phrase, super easy to back up. You know it was generated securely. You did your fucking 500 dice rolls on the cold card,

and then you're able to just generate child private keys at will in a standardized format going forward, right? Yeah, it's BIP39 standard. BIP32 is the entropy provider, I believe. And then, so there is a BIP for the specific keychain idea in the Bitcoin core repository. It hasn't been merged or it hasn't even been a BIP number provided. So that's what Rodolfo was asking about in the email. He said like, hey, I want to do this with cold card.

Is there a BIP number assigned? Has it been reviewed? Adam Back and Christopher Allen responded to that email and said, hey, I really like this idea. That's what Adam Back said. He said he thinks it would be useful. the crypt the cryptography libraries are being used they're being used across bitcoin software as well and chris rowan asked if peter willow would review it and said he probably would have some uh some critiques but uh regardless if it gets merged into core or not if it gets merged

into core it'd be great because it would create a quasi standard that other wallet builders could use going forward but i dm'd with rodolfo and he said he's going to implement it no matter if core merges it or not so it'll be on cold card at some point soon it's not like a crazy idea it's it's relatively easy to implement the but the groundbreaking thing would be if it was a standard right because yes the whole the whole concept like you can't have one seed to rule them all if no one supports it right it needs to be a standard for it to you know actually give you real real benefits yes exactly and that hey i'm hoping it gets merged into core it seems that i mean uh don't trust verify but adam back chris for alan are like hey this seems like a good idea

waiting to hear more comments on that but it would be again just a streamlining process of key management private key management particularly for businesses and users with multiple wallets and using different wallet softwares. So shout out to Rodolfo for pushing that forward as well. We got anything to add on here? We got anything to riff on? We're an hour and 20 minutes in almost. No, I think this was a great episode.

I miss you, freaks. I miss you, Marty. I miss you too, brother. i i yeah i i look forward to the end of the end of this bullshit um and i hope everyone is staying safe out there i hope your friends and family are healthy um i hope your businesses are weathering the storm decently uh there's a lot of suffering out there there's a lot of change in this world more so than at any point i think in my short lifetime and with change comes opportunity so try and stay productive out there try and leverage these opportunities that will come

amid all this suffering and stay humble and stack sets i completely co-sign that message and i wanted to end it on this at RogueRabbit3 on Twitter yesterday posted a great wall of graffiti that simply said, the state won't save us, our neighbors will. So think about that. As we're sitting here waiting for the state and the Fed to save us

as they are looking at us, looking at them to save us, and then they're going to bail out people who took undue risk, I think it may be time to turn away from the state and turn internally towards our neighbors' localism. let's get back to localism your neighbors care more about you than the state does let's think about that moving forward peace and love freaks