TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2020.05.11

Episode Date: May 14, 2020

Join Marty and Matt as they discuss: - Coldcard security disclosure - Delphi Digital Halving Report - Quantitative Analysis of Lightning Network Privacy: Paper Slides Video - Crypto Voices Q1 2020 global monetary base report - African P2P exchange volume ATH - Nodl Dojo build and setup video - LightNite announces NFTs on Liquid - Lolli raises $3M round including Ashton Kutcher and Michelle Phan - Coindesk Top 50 list is sad af - US Senate votes to allow FBI warrantless access to web browsing history - Venezuela pays Iran with $500M worth of gold bars, requiring 9 jets - Thunderspy USB C vulnerability - RHR Live on BTC Mag - US Senator stock sales 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 when 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 intro this episode of Rabbit Hole Recap. Matt and I had a good hour and 10 minute rip, hour and 20 minute rip, whatever the rip was, we ripped it. This episode of Rabbit Hole Recap is brought to you by our good friends at Unchained Capital. You freaks already know all about them, alright? They're helping Bitcoiners by providing financial services for Bitcoiners with security in mind. Mainly multi-sig security. They have their Volt program where you can engage in a two-with-three quorum with Unchained. You can use a ledger, a trezor. They're working on a call card, to the best of my knowledge.

And you can set up a two-of-three multisig warm in which you hold two of the keys and Unchain holds one. You can always move your Bitcoin in and out of the vault by yourself without Unchain. But if you ever need them, you're in a pinch and you need them to sign that second of two in the two-of-three signatures, they're there for you. On top of that, they have their collateralized loan program. You can use Bitcoin as collateral to get liquidity, U.S. dollar liquidity, same-day U.S. dollar liquidity. If you're in a pinch, you don't want to sell your Bitcoin, and you want to get some liquidity, Unchained is there for you. On top of that, they're working on open-source projects, that two or three multisig I mentioned earlier in the Vault program. They've open-sourced that via Caravan.

You can do that by yourself without involving Unchained. they've let that tool loose on the world and recently they added uh support for xpub keys so if you want a multi-sig wallet with multiple addresses so you don't keep sending to the same address you can now do that via caravan as well uh on top of that parker lewis is an incredible series gradually then suddenly a great uh orange pill for anybody that's new to bitcoin and looking to learn more uh they've also working on other open source projects like slip 39 and hermit go check them out at www.unchained-capital.com That's www.unchained-capital.com

Have you freaks heard of the Cash App yet? Yeah, yeah, yeah. Have you freaks already know all about them? This episode is also brought to you by our good friends at the Cash App. They're helping you stack sats. They're helping you send sats, receive sats. And sats is now the standard.

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it can become your bank account if you want that all right as always use the code stacking sats when you sign up that's s-t-a-c-k-i-n-g-s-a-t-s one word you're going to get ten dollars ten dollars to go to our good friends at owls lacrosse who's the complete opposite of al al lacrosse that dirt bag all right owls lacrosse use the code stacking sats download the cash app and enjoy this rip a rabbit hole recap you've had a dynamic where money's become freer than free when you talk about a fed just gone nuts all all the central banks going nuts so it's all acting like safe haven i believe that in a world where central bankers are tripping over themselves

to devalue their currency bitcoin wins in the world of fiat currencies bitcoin is the victor i mean that's part of the bull case for bitcoin if you're not paying attention you probably should be probably should be what is up freaks what's up matt we got a sober episode today we're both drinking uh carbonated drinks i got a seltzer what do you have ginger ale ginger ale ginger ale always makes me think of uh the flu whenever i got it when i was a kid really would you drink ginger ale i guess that's like an irish catholic thing ginger ale will settle your stomach or like ginger tea ginger tea net yeah just ginger ale just gotta get that straight sugar water when you're sick you know i know i've been cutting down on

my soda consumption lately but ginger ale is one of my last uh my last uh weaknesses ginger ale and mexican coca-cola i'll have a mexican coke when i can get my hands on it just because i don't drink soda anymore and other than that rare chance and i'm also a root beer guy so if i do find myself in a weird mood and i'm craving a soda i'll try to find a barks root beer or like a good draft root beer like if you're in a place where they have like homemade root beer oh i'm always a sucker for that that and uh lesser known root beer cousin birch beer um the dutch make it it's like a it's like a reddish root beer it's really good never had it it's good we'll check it out pennsylvania dutch area it's a good uh it's a

good soda um that was a fun fun live stream for uh the having on on monday it was a good day it was a fun monday we should do that more often we should we should uh to the freaks who missed it we do have the youtube link uh below we did it with uh bitcoin magazine um disclosure they had a lot of shitty sponsors there uh so just be aware before you get get triggered yeah i was unaware of the sponsors until uh we went live and i should i mean i didn't i saw john carvalho was was he canceled his talk the night before because of the sponsors i didn't even realize well i was just wanting to have fun during the having yeah i mean i wore my btc pay server hat and i just shat on bitpay fuck bitpay and salt lending yeah we didn't we didn't shit on salt which i meant to

do i forgot it was a short it's a short time slot it's like 45 minutes like we would have used up half the slot if we were just shitting on all their sponsors yeah i'm okay with bitflyer i like bitflyer doing good things in japan well it depends because like some of the exchange ads were like kind of predatory so that's where i get in you know you get into hot water um you know you don't to see predatory ads they did have this bisque ad about how kyc is the illicit activity and i really appreciated that i thought that was great um the btc page server team had a segment that was fantastic so you should go check that out but we should definitely do more live broadcasts yeah yeah we definitely need to i want to get like a legit setup so it's like done well

it's really quality side it's really hard to live stream so then after we did that uh we tried to set up like a a proper having live stream for the actual having event um and after making fun of marty last time i tried to do it and i failed i think i had three false starts and then i got keto minor to set it up for us instead uh because he was joining us for that um and then the the sound quality was fucking abysmal it was like horrible and he kept refining it and he got it down to like decent enough and it was a pretty great reception it was fantastic we had like maybe like 200 250 people um watching uh we had people cycling through coming on we had like 15 16 different people came on uh jack mallers came on bitstein

came on rodolfo was there evan kaloudis um ben prentice uh btc sessions it was just a really good group uh no shit corners uh yeah and and actually we just kind of spur of the moment during the having uh because everyone was in a good mood we like we did a bunch of uh giveaways uh and it was like the one time like i was cool with giveaways because like it wasn't for engagement like no one on twitter even knew the giveaways were going on because the people the way we did it was like trivia and whoever answered it first in the youtube comments got it uh and we did like a noddle cold card open dime uh beefsteak yeah uh beefsteak josh was in the chat was in the he came in so we did a beefsteak ticket uh and no one on twitter knew about it

because no one in the no one who was watching wanted anyone else to know because they were it was like a it was such a spur of the moment thing it was just like one giveaway after the next they're like oh we got to keep this in here but it was great so thank you to anyone who joined on that as well appreciate you for yeah i had immense fomo i was only on there for like 45 seconds a few minutes i missed my own party i was at the value of bitcoin conference the digital conference leading that uh bitcoin in the environment panel that day very good uh very good content that conference as well but it did have immense fomo for the live stream even got janine on there which i think is a coup i mean obviously without video but she downloaded she

she connected to a zoom chat it's pretty this is blasphemy janine she lectured us when she got him though so it was good all right as expected you mentioned predatory ads there's uh before we get into clark moody's dashboard i want to make an announcement sorry my throat's all clogged up uh got a dm from a freak earlier today i'm just going to read it not going to mention who he is hey marty my roommate is getting put on by one of his college friends to a five coins to five million dollar scheme that was created by a guy named tika towari uh we both know this is some bs offering us stupid frog coins promising crazy gains for the last few months i've been dropping subtle bitcoin knowledge on him trying to steer him in the right direction without calling him

an idiot but he's actually entertaining the idea presented to him by his college friend this was your friend what one piece of info article speech would you share with him in order to get him to get it appreciate it all right this isn't a shout out but i feel like this is a question that should be answered on air because it seems like bitconnect and one coin scams are coming back to the market which is never a good sign and people have lost a lot of money investing in these things so you have this dude tika twary i looked into it a little bit complete scammer i never heard of this like a paid newsletter had you heard of this before no but apparently like the dude from london real that podcast whatever that dude's name is never heard that he's had

this guy either he well that's like that's like a pretty popular one he's got like a lot of viewers i've watched a couple of the episodes in the past but he's had this guy like a bunch of times and there must be like a kickback program going on between this podcast and this five coins the five million dollar all the good scams have affiliate programs yeah exactly um so there there's a scam going on be aware apparently uh people are falling for it right now and if there were one piece of advice i mean wasn't there a podcast did lars shouldn't do the documentary series on one coin the bbc did one that was really good it was a whole series that was just it was like a feed that it was an rss feed like a podcast series that was just dedicated to one coin

uh yeah let me look up what it was called that's actually probably a really good one um and just like on a simple thing like if it's too good to be true like it's too good to be true like that's like a very simple heuristic like if they're guaranteeing you returns and whatnot yeah exactly it's if it sounds too good to be true it most definitely is five coins to five million dollars missing crypto queen is the name of the podcast series really really good fucked up shit really fucked up yeah so i would go find that podcast series and listen to that or obviously the person dm me doesn't need to listen to it but they're friends who are getting scammed by this stuff it sounds like it's a very similar structure to what one

coin was um and just show them that this has happened before many times in this space and that's like another thing like on youtube all these like trading and scam advertisements are coming back have you noticed that five coins to five million wow yeah no that's what we talked about this last week that i had a buddy reach out and he's like i've been watching youtube videos for the last week and i was like oh fuck i was like now i gotta it's like you start behind it's almost better they've just never read any rhetoric seen anything they're just so scammy yeah it's um you hate to see it but these things are going to keep popping up and that's i mean that's what we're trying to do here on tftc is get in front of these bad actors and provide

better information for people looking to learn about bitcoin five coins to five million dollars it was in market we're going to start hearing more and more about that was it oh my god oh it's a press release that they just blindly published yeah so this dude tika toari so it's not a specific coin right it's he's he says he's gonna announce five coins that are gonna hit five million right like five shit coins to five million yeah so it's like and it's like an adjacent adjacent kind of altcoin scam right it might just be a pump and dump i think you have to get into his paid group uh paid group pump bring people in

um fucked sounds too good to be true probably is yep back to bitcoin careful things that matter be vigilant be careful prices at according to clark moody's dashboard prices at nine thousand seven hundred eight dollars right now pumped a little bit today pumped quite a bit today actually block subsidy down to 6.25 uh hash rate is saying on the dashboard that it's 117 exahash but that's taking into consideration the last uh 2016 blocks if i go to my node and check get mining info on the CLI, the hash rate currently is around 88 exahash a second, which is considerably lower.

What time period is that based off of? I think that's based off the last block. It can't be, because the way hash rate is determined is average block times and the difficulty. Network hash PS. Network hash. The problem, and I tweeted this out, The problem with trying to figure out hash rate on short-term time scales is that it's a derived metric.

It's based off of the average block times and the current difficulty level. And from there, we derive hash. So it's way more accurate on longer time frames than it is on short time frames, especially when you have something like the halving, which causes a sudden event. And it's worth noting that the halving intentionally happens mid-difficulty adjustment cycle. So half of this difficulty adjustment cycle happened pre-halving and the second half is going on right now. Yeah. So, I mean, just in the Bitcoin core CLI,

if you type and get mining info produces network hash per second, that's what it says to the definition. So I don't know what timeframe, I can't find a timeframe. Maybe it's like a one week on, but I'm pretty sure it's more accurate. than some of these estimates and anyway if you look at mining pools which is a better probably the best metric to get real-time data on hash rate the mining pool uh hash rate has been across the board has been falling but it's worth noting so that's self-reported um i think they said six someone said 16 does that number sound right but it is self-reported

keep that in mind it was 12 the other day austin store i mean i've been talking about this we've been talking about this at gam too just trying to um get accurate numbers so what does gam think i mean the hash rate i mean like 20 percent down right now i mean if it's at 88 it was at it was at 130 i believe last week so that's above 30 percent um if it's accurate you should You should shoot Storms a text and ask him what that CLI command, what the time frame is. Bet you he knows. Yeah, I'll ask.

Mempool's been filling up. Fees versus subsidy has been increasing as well, obviously, as the blocker subsidy got cut in half. Fees are going to make up a better percentage, but there's also been more transactions with more fees attached. So currently the fee percentage of the reward is 21.9. percent um the average fees for a subsidy over the last 20 2016 blocks is up to 5.21 percent so if you remember uh in recent weeks has been hovering around 3.3 percent so that seems to

be increasing law master from the block posted that at post halving it's at 14 percent the average the average yeah you know fees fees portion of the reward yeah predicted next block right now is 22 percent um what else am i looking for when's the next difficulty adjustment uh 636 blocks so the next adjustment right now clark's dashboard is estimating it'll be a negative 0.6 percent or downward difficulty adjustment um and what's that that's like three days right uh four days for 10 minutes 144 blocks a day uh so that's he has it on there um May 18th May 18th

yeah four days so keep a look out I also saw some charts looks like Bitcoin cash hash rate is going up maybe some miners are shifting over there it might be a little bit more profitable at this given point in time

even though I think that's dumb to do some are doing it if you're very hyper profit focused especially if you're still running S9s so yeah we'll keep an eye out on that the other thing that happened in the live stream that you missed is Rodolfo showed the block clock

mini sample oh I saw that part so dope he gave away one of those too I want one of those we talked about this last week he's not giving us any

we have to buy them but we will thanks rodolfo um we got talk about the cold card yeah in a little bit too we got two shout outs but yeah we got two shout outs um you're gonna like this one all right here's the first one says please read each penis thank you penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis penis that is all you should you should have given the freaks a warning on that one no you gotta just gotta i hope your kids aren't in the car yeah yeah sorry i mean is penis a dirty word it's it's an anatomically descriptive right well anyway thank you freak for the for the

humble shout out yeah yeah um grow up please this one is uh this one's a little bit more poetic never accept a bid always ask never ask lower than the current lowest ask number go up i like that one stacks ads never accept a bid always ask never ask lower than the current lowest ask number go up uh i like that cheers freaks thanks for the shout outs yeah cheers to you and uh that first shout out can't get away with that on radio do you think it's um do you think it's kids getting allowance and spending in bitcoin instead of spending their sats on shout outs on tftc just want to hear penis over and over again yeah they want to giggle you want to get their giggles in it's

either probably like a 16 year old boy or uh like a 40 year old man yeah or like a 45 year old man i would imagine maybe it was that dirtbag al al grow the fuck up please uh yeah so we'll jump right into the bitcoin stuff now uh delphi digital having report really good one our boy matt here had a three-page guest appearance in this report. Delphi's put out reports on the state of Bitcoin. I think the last one they did was towards the beginning of last year, and this was a pretty big one. Was it 50 pages, 38 or 50?

I'm getting like the two. I think it was longer than that. I think it was like 60 pages because my piece is on privacy and why people should care about privacy, why Bitcoiners should care about privacy. uh and mine was pages 48 49 and 50 and they weren't the last pages so i want to say it's like 59 or something like that great report overall uh really well worth the read it is free most of their reports are not free so it's nice that they release this one free um also it was

really cool um is that this guy translated it to spanish uh which is awesome and posted it on his website astudiobitcoin.com which is the whole report or you're just the privacy part because he's like privacy is super important so that's fantastic it was my first return to long form uh in the bitcoin world in like four years uh so it was a big one for me but uh as you know it's a it's a it's a topic i i feel you know very deeply about so it was worth it how you do how did uh how'd it feel to get back in the writing game uh i was like you know it's kind of a pain in the ass to be honest like podcasts are nice because we can just shoot the shit and just record and upload it especially us we don't edit at all

uh but when you do long form you gotta like i went over like 10 15 different times and like refined it and and you know made it better and tried to make it more concise and try and do all these different things because you get less people give you less benefit of the doubt when it's in writing you know you have to you have to really nail it down it's definitely more tedious more time consuming i think yeah you got to be more concise that was i mean that was your nice cop out with the bent is that like you get the same benefit of the doubt that we get on the podcast because it's daily just like off the cuff uh which i think is fantastic not a cop out no it's not i didn't i'm not copping out cop out is the wrong word it was like it was kidding i'm fucking with

you but uh it's it's no i know if i if i was gonna if i was gonna write often that would be the kind of situation i'd want to get myself into right where the readers understand that there are going to be typos and and shit's going to be off the cuff which is it's really nice that you've got that understanding with your with your readers yeah really really drove that home early on by referring to myself as an idiot still i'm an idiot um still trying to figure this whole thing out started a lot of drama with yesterday's newsletter was not expecting it at all uh segue into the next topic which is uh late night uh the video game that is like uh fight what the hell is the game called i'm really showing my colors here um

what game am i thinking of what light night yeah what's what's the game in real in fortnight the steam game sorry i zoned out a little bit there but yeah it's it's it's the the idea is a battle royale type game which fortnite made famous there's also pubga uh there's warzone by call of duty it's like the it's it's the largest growing genre of gaming uh this battle royale 100 people drop onto an island and last man standing uh wins i played pub g a little bit when i went took my last visit to chicago whenever that was my boys were into pub ga and i played that for like a weekend that was a good one um but anyway this is about late night they announced at consensus

uh the digital conference that they had earlier this week conference well they announced that in partner with blockstream they've created non-fungible tokens for this game on the liquid side chain um so basically a non-fungible token is a unique digital asset that uh players will be able to use inside light night and they'll actually be able to export those assets outside of light night and into other games as well if they so please still interested to see how that works out but um obviously i don't i'm not an expert on the gaming aspect of all this stuff um and i wrote about it yesterday in the bent that it's funny seeing these nfts come to liquid which is a side chain and udi worthmeyer hopped in my

benches and and uh really started debating the merits of of liquid as a side chain and as bitcoin really anchored to it um i'm still a bit confused on the whole thing i just wanted to make the point in the newsletter that uh i mean in 2017 i heard about crypto kitties in like december of 2017 when they blew up and said like you don't need a blockchain to create these non-fungible tokens like you're going to be able to do them at different layers and i thought light night and block stream announcing uh their nfts on the liquid side chain proved my point so i tried to circle back and just be like hey i said this a few years ago and it looks like it's coming true um regardless like i think non-fungible tokens are stupid like i would never spend even

said that in the bed i said you like you said i think nfts are stupid so nfts stand for non-fungible tokens you said they were stupid and and people still were freaking on you it was it was uh it was interesting yeah the point i was the point i was trying to make is that we're going to get we could potentially get all these use cases that all coiners want and layers on top of bitcoin on top of bitcoin but you said on bitcoin which was triggering to some in the tweet in the 261 you're probably he's he's he's probably just super upset about that one because he's been making a point of making it very clear and i i think it's important that people understand that you know lbtc liquid bitcoin is not real bitcoin it's custodial bitcoin that's held by

a multi-sig federation um who you know while being somewhat trust minimized there's still a lot of trust there and i still think the best way to explain liquid to someone um in a distilled way is it's ripple without the shit coin uh and in that regard we've we've spoke about this before on the podcast um as you reduce the need for censorship resistance you're able to keep fees lower because you're fine with somewhat being somewhat centralized the more centralized you are the cheaper you can make fees so this whole idea where with crypto kitties when they had these nfts um they were clogging up the ethereum main chain but those things are centralized nfts They're administered by the CryptoKitties Corporation or whatever.

So there's no need for that censorship resistance. You're overpaying for that use case. Udi takes it a step further. He says, use Google Sheets for it. Use like an internal database. But Liquid is on the way there, right? It's like a step ahead of a Google Sheets. It's like slightly more and more transparent.

um as far as nfts go you know i'm not like you're like i wouldn't say i'm bullish nfts uh but it's the the idea you know fortnite revolutionized revolutionized such a not necessarily in a good way they revolutionized the the mainstream game model and that that model is now with fortnite is it's a free game the game is completely free and you buy skins and other aesthetic items uh like clothes and gun skins like what what the guns look like and stuff you buy them and that's how they make their revenue and people are spending hundreds of millions of dollars on this shit uh they do not help you win the game it's purely for looks so but the issue is high time preference as it gets yeah but those items obviously have no

scarcity like fortnight can release a skin and they could say it's limited edition and they've done this they say it's like limited um they sell it for like twenty dollars and then like six weeks later they release it again on the marketplace and it's like two dollars right and there's no trading that's allowed to happen and all this stuff so you know do i do i do i think like there should be global marketplaces you know where there's game skins are being traded between games and stuff do i think that's going to be a possibility uh you know probably not in the near term but i i think it it seems like a a net positive regardless like from a gamer perspective like you're gonna buy the thing anyway it's kind of nice to have like a certificate of authenticity

that comes with it and some like semi-provable scarcity even if it's not like enforceable even if the game developer can at least you see them inflate it if they inflate it yeah and this is just my perspective because i'm not a gamer like i would not spend my money on that but i will acknowledge that it seems like a market is there maybe even but like then you get Like, if you make them truly scarce in this model, do you have people, like, hoarding these skins? Like, you hoard domains and then buying up the market. I don't hoard domains.

I use domains. Holding is using. Okay, Marty? This is true. Yeah. You know, there probably will be. But I still think it's an interesting concept. And I'm just glad there's no shitcoin involved.

Yeah. And I hope this conversation doesn't take away from Light Night. i think they're building an incredible product the the demo that they released alongside the announcement of these nfts was dope like it seems like they've really refined their product and it looks like it's gonna be a sick game supposedly that yeah i'm super excited for light night supposedly they're you know they have this rgb protocol that's being worked on right now to bring tokens to lightning so i yeah that's what giacomo is working on yeah so i think light night's long-term strategy is to move them from liquid over to lightning um and they're just

using liquid as like a test bed but yeah i it's it's one of those things that's like an interesting thing thing to look at uh i don't think like uh a limited edition gun skin for light night is going to outperform bitcoin price wise i think it's a worse investment i i don't think i should have to say that but i i am and and it is you know it is just to be clear i think this is like a movement there could be some interesting things like imagine like a light night competitor comes out and they latch on to the network effect of light night right so like for instance right now fortnight if you've spent two hundred dollars three hundred dollars on fortnight skins you're way less likely to go to a fortnight competitor because you've already had that sunk cost you're

locked in right you have this like locked in closed ecosystem if if another game developer was allowed to come in and and basically use those items in their game and transfer them over then it creates a more open competitive market and like that's what we're supposed to be about like i've never been against shit coins from the point of view that they shouldn't exist i think everyone should have the ability to lose their money on shit coins but i i i'm against shit coins because i think they're a way worse investment and i think the proprietors of the shit coins don't explain the trade-offs properly they sell you snake oil and that's where i have my issue and i think it falls kind of similarly here with how i feel about nfts well like if

these nfts are interchangeable between games that sort of deprecate the diversity of gaming design like do you have to design your other game in a very similar fashion to the game in which that mft originated no because it's a token on whatever chain it's on so just the ownership of that could then be it could look different in the two games like the portrayal of what that token means could look different in the two games but the actual ownership of the token is what's transferred over right yeah it seems do you know what i mean like it could be like fortnite is animated right and but that animated shotgun you own in a in a competitor game that is like a lifelike looking game right that looks like real life it could just look like a real life shotgun or whatever

you can change the graphics the graphics aren't hard-coded yeah so the graphics yeah the graphics just your public private key pair gets you access to the differing graphics on different games all right all right and then you have like you know we we hear about these like it exists already today like we hear about we we talked about that article right uh it was like argentina or venezuela kids were were mining on runescape and they were getting gold on runescape and then they were selling their accounts for bitcoin uh to to earn money that way there was like a there was like a lower lowest common denominator for this type of rote work to to get to get it and it was being paid out of bitcoin you know they shouldn't have to go through all these end arounds to do that

right like if they want if if we we are moving to a more digital world and in that digital world um you know there it should be easier to trade in those in those worlds even if it's not completely you know completely trust minimized if there's a little bit less trust and it's a little bit more seamless and it's a little bit easier to use like that seems like an improvement to me I agree and let's not lose sight of the fact that late night is going to allow you to earn sats by killing people

or being better at the game not by killing people this is a video game you're not going to be killing people the dream is I want a 12 year old camper from Thailand to be able to help pay for his family's food by

killing me in an online video game and my slow reflexes thank you for your sacrifice yeah gaming gaming prowess depreciates uh significantly after the age of 24 apparently the peak is like 14 or 13 we're like way past it yeah i'm gonna start i'm gonna start trading my son i don't know doing yeah i always bring up whether or not i should get a get a box whether it be a ps4 an xbox but i don't think it's ever gonna happen anytime soon until my son hits a certain age. Speaking of the lightning network.

If he really wants to be a pro, he needs a desktop computer. He can't... It's true. It's true. Get him a GPU set up. Move him to the woods and teach him how to fend for himself.

Be a Bitcoin mountain man. I only went through the slides for this, but it seems pretty cool. The quantitative analysis of lightning network privacy it was a presentation, it was put on, I forget exactly where. It was a paper first. We have a paper, and then there's a presentation with a video and slides. Yeah, so Sergei Tikhamarov from the University of Luxembourg,

in collaboration with Pedro Moreno, Sanchez, and Matteo Maffei of TU Wien, um they basically laid out three potential um privacy attacks or ways to de-anonymize users on the lightning network and went through uh the different attacks and how um how they would be accomplished how they would be achieved and uh so three privacy related attacks include value privacy relationship anonymity and wormhole attack um so i only went through the slides i have time to listen to the whole presentation and read the whole paper what should we take out of this mainly um in your opinion i i didn't go through it well enough so we will talk about it again in the future but people should check it out this it does seem like one of the better um

uh lightning skeptic pieces uh so it's i think it's important for for people that are interested enlightening to to either give it a watch or give it a read um but as all the big corners know like this week has been pretty fucking crazy so i have not actually been able to dive into it fully so i don't want to make any i don't want to jump to any conclusions but the two main things are privacy and denial of service vectors so how to actively surveil the network um and how to bring the network to its knees or like try and break it up like if you could if you could make it so that it becomes two distinct networks and then also you could it's easier to surveil if you break it up as well yeah and then what i took away from the slides mainly is the uh main lightning network

may not be as well suited for micro payments as um as originally thought of by the the authors of the lightning network paper especially when you have transactions that are lower than the 546 sat dust limit um they're claiming that these are not really secured by the htlc at all payments between 546 sats and 25 around 2500 sats are less efficient than in theory and they're saying that the effect is stable after mid 2019 again i haven't listened to the whole talk so maybe i'm missing some context on these bullet points but that that seemed like something uh something that stuck stood out to me at least we'll discuss it better next next week yeah um wrong chat we uh this was interesting too our boys at

crypto voices maddie vizincas and fernando um jump into the world monetary base at the end of every quarter uh and they released their q1 2020 global monetary base report earlier this week and central central banks and governments are printing a lot of money uh right now the currency the total monetary world global monetary base is sitting at 20.15 trillion dollars um this is pretty massive this is as of march 2020 which is you know april was a blockbuster month so yeah it's even worse yeah the stimulus in april um was historic at the pace at which the the fed's balance sheet increased specifically i'm looking for in one slide here i believe they said that the total monetary base increased by 18 percent uh quarter on quarter and if you factor in some fuckery that

goes on with the chinese yuan it might even be as high as 30 it's gonna be interesting to see what the changes are in the quarter two report you know yeah yeah after we'll see after june 30th hopefully mid-june we'll have that report when is it may now yeah so maybe it took them a month so maybe we'll get that mid-july um once they get all that data you probably have to depend on the quickness with which these central banks and governments get that data out so shout out to maddie and fernando for for putting this together and um it's very important work right now i think somebody's got to be tracking this and it's a very interesting concept to understand uh the global monetary base because that is at the end of the day what bitcoin is competing with bitcoin wants

to be uh that reserve currency of the world where everything is um is cleared through bitcoin at the end of the day it's final settlement that's that's what i was looking for bitcoin as a final settlement currency right now all final settlement currencies in totality are 20.15 trillion and growing pretty quickly uh the japanese yen surprisingly has the biggest share of the final currency or reserve currency status in the world at like 4.2 trillion dollars i believe wait what do you mean by that um let me make sure i got that right because the u.s dollar is clearly the reserve currency of the world yeah but surprisingly there's like the dollar value the yen i believe is more

than all U.S. dollars in sanctions. Sounds wrong to me. Let me find it. That's right. The United States is fourth, so it's gold. Again, this is reserve status, base money, global supply. Current snapshot, gold's in first at $7.9 trillion. Gold's included in this.

japan's in second at 4.7 trillion china at 4.5 in the united states at 3.9 trillion and again here you'll have to dive into the thread um and that's in u.s dollars right yep matt and matt drops a podcast on this where he walks through it every time he does this report so go check them out at crypto underscore voices if you guys haven't listened to their podcast yet and you're interested in economics and how it pertains to bitcoin it's phenomenal podcast and matt matthew who's been on this podcast before has the voice of a god yeah so it's very soothing i know you freaks are like me and you're turned off by the name crypto voices um we told them to change it to bitcoin voices but regardless it's a it's a

very good podcast so don't let that don't let it stop you and it's a very good report all the reports they put out are very good so you should definitely go check it out uh talking about uh bitcoin pivots from a crypto name uh guy swan of crypto economy changed his name to bitcoin audible which is probably one of the best pivots uh in terms of branding i've seen in this space in a long time so kudos to him he even snagged the domain bitcoin audible.com fantastic i mean literally that it explains exactly what he does which is he reads all the all the best uh bitcoin pieces highly curated by him and he reads them out to you out loud uh so you can save your eyes and uh anyway just shout out to shout out to guy and and go check it that out as well yeah all right

and to clear up the very clean pivot by guy i'm sorry i'm reading this this thread to to clear up the the data from the last topic uh go check out guys podcast and also to clarify so the top 30 base money this is i knew this was the case uh the samples that matt fernando take they cover the share global gdp um of the base money so the second and bigger um the ordering of this graph is by GDP per currency block. Two major shifts happened in 2019. First is that India's GDP is now larger than the UK's. Therefore, both the Indian rupee

and the Great British Pratn base monies are now listed. So interesting. You got to dive into this thread to really understand everything they're getting into. Speaking of money across the world, African P2P exchange volume on local Bitcoins of Paxful and exchanges like them hit all-time highs. Matt Alborg, our boy, who's been covering this very intently on UsefulTulips.org, posted a chart based in U.S. dollars, converted to U.S. dollars. It seems like last week they had $12 million in volume.

A couple things are taken into consideration here. uh it may say 12 million dollars on in the combination of local bitcoins and paxful but you also have to factor in uh trades that go on beyond these exchanges once traders meet counterparties that they're comfortable with they may not go through the exchange and uh meet uh via whatsapp or similar apps like that and conduct trades that way so taking into consideration you don't want to give the exchange a cut so you do like the first trade or two and then you you develop a relationship and then they just become you know a trading partner that you just do outside of it um and it's worth noting that 12 million is for a full week

yeah full week and if you haven't um listened to the podcast i recorded with matt a few weeks ago go check that out but he also said in that podcast that africa is riddled with these one coin like scams too so if you're listening in africa and you're um and you're a bitcoiner and try to to help your fellow africans stay away from these one coin like uh scams matt was saying a lot of people are buying bitcoin to get in to those scams um so something to take into consideration with that volume may not be to get into bitcoin it may be part of it at least maybe to get in the scams i mean you just said the word scam so it reminded me um per the scam we talked about earlier which appears to be the five coins to five million

which appears to be a paid group another thing you could tell your buddy is that any of these paid group guys that are like i'm super successful i'm you know i'm super rich like everything goes right for me like if that's true then they wouldn't be running a fucking paid group like you're the mark that's where they make their money yeah yeah why would they share how they make their money with you like that is it's called a market edge for a reason i think training groups don't make any sense because if you're a good trader you don't tell anybody how you make money because then you uh destroy that information asymmetry that you have and that's how you make money trading in the markets is information asymmetry if you're sharing that information

with a bunch of people it goes out the door it's not as asymmetric anymore more people have that information it spreads and prices reflect that it's nice to see noddle getting into the youtube tutorial game this video is fucking fantastic so keto minor put together a noddle build video where he builds the novel dojo in front of you and then he does the basic setup afterwards um yeah it's pretty dope there's a reason i call this thing the bugatti of notes like it's a fucking it's a beast uh he puts so much love to it i appreciate him so much uh appreciate ask who to the the whole model team they're fantastic and i just really love my node um but but just check this out because it's it's like some node

porn and it's it's pretty fantastic yeah it's pretty uh pretty calming too if you're if you're somebody it's very satisfying do you think he got a a manicure too yeah did you give him any manicure tips he's going professional this is why he managed our stream because he was he had set up all the hardware for this already he's planning on doing a lot more videos yeah i mean and then he connects it to to dojo and whirlpool at the end um sets up a samurai wallet walks you through everything very sleek shout out to uh to keto miner nine minute video too not too long and again very satisfying lolly in the news this week ashton kutcher what'd you want to say we should talk about the cold card

uh yeah i mean because i thought that was further down the list well you mentioned it late mentioned it earlier and i put it on the top of the list uh because usually we talk about the security stuff at the top of the show got sidetracked a little bit about the scams um so the security researcher calling himself the charlatan uh did a disclosure about a supply chain attack against cold card which involved flashing malicious firmware intercepting the device flashing malicious firmware on it zeroing out the pin so it looks like it hasn't been initialized yet and deleting the seed and then you put it back in the bag because you need the bag number to look the same as well um and then i i don't think there's a proof of concept for it

but the idea is the malicious firmware when you open up out of the bag will show the two things that you would expect to see if it wasn't intercepted, which is the terms and conditions and the bag number, and then you set it up. Then you enter a PIN and you generate a seed and stuff like that. And I guess the idea is that you'd compromise some element of the seed generation so then you could then sweep the funds at a later date.

So Coldcard released a response to this. um the first thing is is this idea that you can install your own firmware is completely by design like you have a choice when you make these hardware wallets if you want to lock down your firmware which is what ledger does and what shift crypto does where it needs to be signed by corporate held keys so if you don't have it with the corporate held keys then you you can install the the firmware or you have like the trezor cold card model where you can install whatever firmware you want um so cold card went with that route so that outside developers could basically use cold card hardware but run their own firmware on it um and first of all i just

want to say as a cold card user as a hardware wallet user as a bitcoiner as a person i love that these researchers are attacking these things they make them stronger um for actual users it appears the the easiest way to mitigate this type of attack is to well first of all you know you should already be like inspecting the bag that it comes in uh to see if it was tampered with you want to make sure you know there's no like hot the way to try and remove the tamper evidence seal is with like a hot heat gun or like a blow dryer so you want to see if there's any like melty bits or anything like that around that area. Um, you want to look at the actual cold card because it's, it's fused together. So to open up the cold card, it would need to be broken.

Uh, and then, and, and this is what cold card is going to be more clear about going forward is that best practice is a user flashes new firm, the most recent firmware from cold cards website. you want to flash that on the cold card when you receive it because the memory on the cold card can only hold one firmware so if there is malicious firmware on it flashing new firmware uh mitigate should mitigate that and then and then you should be good to go and then last but not least like these supply chain attacks as a vector we've talked about this before it's one of the main issues with having hardware wallet resellers, like buying hardware wallets on eBay or Amazon or getting a used hardware wallet from a friend, that should all be discouraged. Like you should

buy your hardware wallets directly from the vendor. And then the second thing is, this is what the goal of easy self-hosted multisig is supposed to mitigate, right? Because if you can have multiple hardware wallets from different vendors and you can run them in the same multisig setup and you got them from different sources, then all of a sudden to pull off a supply chain attack, you need to compromise so many different devices coming in through so many different methods that it becomes very expensive and very infeasible. and so with this attack particularly even if you do get the firmware on you set the pin back to zero and a user does wind up making a new seed like what if they were to add

the entropy with the dice rolls like what did that would that fuck up that c generation of the of the bad uh code it depends how aware the user is because in normal cold card firmware every time um you put in new entropy the cold card shows you that new entropy being added uh you know if you're not if you're not vigilant about that uh maybe you could have malicious firmware that disregards the dice rolls uh or something to that effect but it's it's still best practice to use dice rolls no matter what because it does protect it does protect you from some some attacks and it does protect you from it does reduce trust in actual uh coin kite and cold card because you're adding user added entropy that's not part of the device user added when i

say entropy i mean randomness added randomness the key to proper seed generation to secure seed generation, secure private key generation, is sufficient randomness. The way you compromise it is insufficient randomness, whether that's accidental or on purpose. That's basically the main idea behind any kind of attack in this type of situation, where they want you to use an insecure random number generator to generate an insecure seed that they can then later sweep from a different device um but anyway it it really does appear like first of all that this is a disclosure of a feature of like a known feature of the cold card uh like like it's a documented feature that you can install different firmware on it

uh so it shouldn't be too much of a surprise to anyone but it's it's really good to see basically cold card literature improving in terms of of of how users should act with it i think most users are probably updating the firmware anyway when they first receive it but now it should be more of a mandatory thing where people should should know that they should update the firmware when they get it agreed agreed yeah it's always even if you already have it up and running if you're gonna especially with treasure and cold card make sure you update your firmware if it's not up to the latest um version just to make sure like because cold card had that what that change address um potential attack uh a few firmware version or many firmware versions ago um that's

why we do the show we try to make you freaks uh abreast of these updates because it is hard to keep up on all of them. Um, so, but you can't always depend on us. Don't, don't trust us. Don't depend on us. Develop tendencies and practices to make sure that you're, uh, up to date on the latest firmware and software versions of the hardware wallets and the software that you're using when you use Bitcoin. Um, it's, it's imperative. The other thing is, supposedly, Ledger has had their hands on the MK3, the cold card MK3, for months now, and they haven't been able to extract the seed. So it should be interesting to see if they're ever able to do that. The other thing is, Rodolfo also teased that they might have new hardware coming that may further insulate this type of issue.

i'll be on the lookout we'll be here to report it um back to what i was going to get to earlier before we covered cold card lolly raised three million dollars from ashton kutcher and investors including ashton kutcher and michelle found um seems like the the influencers do you remember investors and entrepreneurs are getting into the bitcoin game do you remember when ashton kutcher was shilling ripple on ellen the ellen show yeah isn't he an investor in bitpay too yeah is that coin or coinbase i think bitpay maybe both he's been around this area for a while um but yeah i mean michelle fond seems like a big coup for lolly it seems like a really good fit with their their business uh and you know i i really do think uh that lolly is going to be an

introduction to bitcoin for millions of users millions of people that have you know they have no reason to want self-sovereignty or any kind of the other narratives that really drive bitcoin's value uh but they just want to save money on their consumer habits which you know we know americans and and people around the world you know have very high time preference high spending lifestyles um and and these sats back programs like lolly and fold like they really i feel like they really weaponize that consumerist culture to to pump the price of bitcoin and i think that helps all all bitcoiners because i think it makes the network more secure and more liquid well it sort of weaponizes and also maybe in the long term reduces that consumerist culture because

the consumer stacking sats especially during a bull run are noticing how much their sats are appreciating like wow should i just be buying bitcoin instead of buying this new pair of shoes it almost tricks them into saving money instead of spending it as they've been conditioned yeah yeah pretty cool anyway good coup for them and i think it also continues it continues the trend where like you know lolly isn't like a traditional bitcoin company right but it but it is wholeheartedly a Bitcoin-only company. So it's this trend of Bitcoin companies that are, you know, they're more appealing to your typical shitcoin company investors. And I think that's probably a net benefit for Bitcoin as well, to just suck up as much money of

the pie as possible. shout out to alex matt and team at lolly congrats on the raise and keep uh keep getting the normies and the consumers stacking sets create that uh that price floor help raise that price floor a little bit constant buy pressure weaponized consumerism as matt likes to say when does this was hilarious the amount of lolly rewards outnumber the block subsidy that's when shit gets crazy maybe soon what do you mean like next halving if lolly's still around the the amount of sats that are stacked on lolly every day might be more than the actual block subsidy paid out to miners i wouldn't be surprised if that's already happening i don't know that would

be a lot of business they're doing seven and a half bitcoin a day in rewards so yeah yeah that would be like if their average rewards like five percent that would be like 20 times that they would have to be doing like 140 150 bitcoin volume we'll see maybe maybe we'll get there maybe i'm too optimistic on how much business they're doing right now um you got a nice chuckle at this you called some bullshit out today coindesk dropped the top 50 list the most important projects in can we read crypto right now quote unquote crypto yeah you can read it what came in first we'll read down the list just how ridiculous this is and by the way yeah let me pull it up my comment was you know like people say like all this shit about things being priced in

like is the stupidity that led to a ranking list like this and just to be clear they've since added a disclaimer on the top that says this is a list that's not supposed to be implying in hierarchy or order even though they obviously have it in number form uh it's it's obvious damage control because they got shit for it um i mean it's clearly a ranked list it's fucking bullshit that there they're trying to backpedal here but number one is finance number two is ethereum three is fidelity four is libra five is square crypto six is fucking cosmos seven is coinbase with the subtitle cryptos friendly custodian eight is consensus nine is ibm 10 is chain analysis 11 is walmart 12 is gemini 13 is brave 14 lightning labs 15 uniswap 16 jp morgan 17 r3 r3 fucking

out of business they don't even exist anymore 18 bit go 19 bitmain which is like a fraction of its former self 20 chain link fucking shit coin 21 protocol labs 22 z cash 23 microsoft 24 kraken 25, MakerDAO. 26, People Bank of China. They fucking put People's Bank of China there at number 26. If you haven't heard Bitcoin yet, it's because it's number 38. 27 is Prime Trust. 28 is Huobi. 29 is Kasa. 30 is Securitize. 31 is BlockFi. 32 is Bisu. Never heard of it. Enterprise Marriage of Ethereum and Hyperledger. 33 is Avanti. 34 is Lolly. 35 is SKU. 36 is MetaMask. 37 one before bitcoin they put grayscale investments which is the subsidiary of their parent company digital currency group fuck you coindesk 38 is bitcoin 39 is tether 40 is cardano

41 is pooled together 42 is fucking spank chain 43 is 10 cent 44 is silver gate 45 is stellar what the fuck they didn't even get to 50 yeah well i don't know what's up with that maybe they're i mean it is absurd and they definitely backtracked like who the fuck is working at coindesk who put this together like what are you thinking binance at number one ethereum still leading the pack that's the thing they have like bitcoin is king ethereum still leading the pack libra at number four libra hasn't even launched yet if it ever will cosmos this stupidity is not priced in yet you know we saw a take by an ethereum guy the other day that he said uh you know bitcoin is going to exist as like an erc20 token on ethereum uh like it shows

a fundamental misunderstanding of of how value you know why these why these things have value why Bitcoin, where it derives its value from. And it just, it completely shows how misplaced their priorities and attention are at Coindesk. And I think you can't just lay this on Coindesk. There's a whole slew of investors with pretty deep pockets that believe that this Coindesk top 50 list

is a very well curated list. And, you know, those are the people that we're competing against in in the game of accumulating bitcoin um and i i think that's i think that's bullish for us and i think that's bullish for bitcoin in that regard yeah everyone's a scammer they have consensus at number eight and they've been laying off like a majority of their workforce over the course of the last 18 months uh yeah how is this a good year for consensus like what the fuck it's like the top 50 biggest most influential projects in the in for the year and they

fucking have consensus it's been like the bloodiest year for them and then they they had the gall to have fucking larry summers on a panel poo-pooing privacy saying that privacy is inherently bad and people's transaction people shouldn't be able to transact privately because bad things can happen this is the same larry summers it's been pictured with pedophile jeffrey epstein after he was released from prison for pedophilia uh in 2008 uh many times many pictures of him sitting next to larry summers scheming up something i don't know what they were talking about this dude is friends with a pedophile coindesk has him on to spew bullshit about how we shouldn't have privacy at the transactional level fuck you larry summers you're fuck you and fuck you coindesk here i said

what are you looking at over there i know i was just thinking about uh lolly rewards outtaking the block subsidy uh we're like the subsidy is 6 6.25 bitcoin right yeah and there's a there's 144 blocks a day on average right oh so you're i thought you meant of one block yeah that's why we were on the wrong page so yeah so like that's a lot of bitcoin how much bitcoin per day is this probably close to a thousand okay so you have to multiply that by 20 and then probably more than if they average five percent sats back reward you have to multiply that by 20 so it's way unattainable right now but just come next having who knows i'll tell you met one block we shall see we shall see um yeah this is fucked now into more macro themes

uh u.s senate votes to allow fbi warrantless access to web browsing history and it passed by one vote i believe and there were a number of people who sat out of the vote including bernie sanders uh but this is basically this week i believe today maybe today or tomorrow they were voting to uh reinstate the patriot act or extend the patriot act which was supposed to be temporary 2001 supposed to be temporary probably passed in 2002 or 2003 i forget exactly when uh but it was only temporary they're only going to track the metadata terrorists outside the u.s for a short period of time and then they're going to roll back the patriot act and here we sit almost two decades later and it's still being extended into the future and lawmakers are adding more uh more and

more privacy invasive clauses that uh really infringe on your civil liberties and the latest of which is the warrantless access to web browsing history so now um william barr and crew are going to be able to without a warrant just get access to uh the browsing history of americans that's the other thing this stuff was supposed to be targeted at terrorists and enemies of our country and throughout the years it has uh slowly but surely morphed into a an act the patriot act has morphed into a way to spy on american citizens and not terrorists that endanger america so just keep that in mind this is i mean i saw was it 6102 i believe i was posting like he expected this app i wanted um wasn't him might have been max tannahill no i think it was someone else yeah

it was max i mean look i operate under the same assumption you should assume your web browsing history is being tracked anyway both at the isp level and the browser level and the device level um you you should expect that under targeted attack all of your devices are compromised by one of these major governments and their surveillance organizations um but the key here is, well, first off, our political class has failed us globally. They're bought and paid for. They don't represent our best interests. Second of all, our only real effective measure of change is to use tools that make it way more expensive and difficult for them to actually do mass surveillance, right? So you have a difference. There's a difference here. There's targeted

surveillance and then there's mass surveillance mass surveillance is easy to accumulate information you index it and you make it so you can search it out well in the future um you know so the two key tools here um are vpns and tor right you can install tor browser tor browser is very easy to use you can install it on your computer you can install it on your android phone um and everything gets routed through tor so your isp can't see where you're browsing see all your browsing history and vpns do like an encrypted tunnel to a trusted server and you are trusting that server instead that server can spy on you uh but it's a it's a little bit of a different threat model there because uh in most places in the world especially america you only have the choice between like one

or two internet providers but with vpns you have the choice of many uh and you could pick from them globally and the good ones allow you to pay with bitcoin without giving them personal information besides obviously your ip address when you connect so all these little things we can do all these little tools running graphene running linux uh using vpns you know using using a open source browser instead of using chrome uh ditching your iphones like all these little things we can do increase the cost and the difficulty to pull off these type of surveillance and i it's imperative that people fight back in this method this is this is the easiest way the most effective way that we can enact change uh petitioning your politicians isn't going to help unfortunately

no it is not no it is not a lot of the ones that are claiming to to fight for civil liberties and and the common man and the little man don't even show up to vote which is pretty sickening to see it's pretty yeah so this was a pretty fast so this amendment was actually a privacy preserving amendment to strike this part from the renewal uh and it lost by one vote and and four four senators weren't there and one of them was bernie that's like a note very notable noted hashtag noted um we're not going to change the system from within i don't think though i have a episode coming out tomorrow with brian herrington where he makes the case where you may be able to change some things at the local level starting at your county township level moving up to the city level

maybe that's where we enact the most change local is different which is one of the reasons why i'm so for localization of as much things as possible right i mean local agreed it's hard to buy someone off when you see them face to face and they live they live near you you know it's it's it's a much it's a much more tangible connection it's harder to corrupt there's less money to be made being corrupt as well agreed and but in contrary to that in dc it's much easier to be corrupt you're thousands of miles away from the people that your laws are affecting and you don't have to look them in the face and i mean just i mean the patriot act is being renewed in 2020 and again it was an act that started to get metadata from terrorist cell phones and has morphed into this thing where

william barr is going to be able to look at your porn hub history i'll tell you uh if he so pleases well not if you use porn hubs vpn they have a vpn uh you shouldn't be watching porn but i know but Look, as far as porn companies go, Pornhub is a stand-up fucking company. When there's snowstorms in the Northeast, they plow the streets of Boston as an advertisement, but they're actually plowing streets over there. They release tons of open data, which is really interesting to analyze. If a Super Bowl team loses, how much their porn watching of that demographic goes up. uh they have a vpn service and they're educating users why vpns are important

uh in a tangible way that users can understand that they don't want their porn history to be shared with everybody uh and they provided free pornhub premium for people affected by coronavirus so as as far as as far as porn companies go they're they're pretty stand up they still let abuse on their platform which is pretty bad but anyway before we wrap this up i just want to say wait before we wrap up the surveillance thing i want to say that it's not a fucking coincidence that our government seems dysfunctional but they get sweeping bipartisan support whenever it comes time to fucking erode our civil liberties it's it's it's not it's not a coincidence at all at coincidence at all and people need to fucking be aware of that they need

to be you know vigilant these people do not give a fuck about you they want to control you they don't give a fuck about you they hate you you are in their way of getting what they want and they do not care about you they will get on screen they will smile fuck you in the face and then they'll go off screen and fuck you with these laws they do not give a fuck about you and if you think they do and you think you can change the system at the federal level via voting i got i got an answer you're not going to hear it's not going to fucking work turn to bitcoin turn to open source software run your own fucking node that's why bitcoiners are leading the way like the nodes i'm running right now come with tor and vpns out of the box tools are being built

you can take advantage of them it's a little hard at the moment maybe hard to run some nodes for some people but it's getting easier by the day and if you want to turn around and give these smile fuckers the middle finger and tell them to fuck off like matt said run the software use these tools and take some sovereignty back into your possession build support run tools and empower individuals take back personal responsibility and they're not only targeting us they're targeting countries like venezuela and iran with sanctions that don't allow them to move money between borders across borders especially via the swift banking system so to get around that venezuela and iran are dealing in gold so venezuela paid iran with 500 million dollars

worth of gold bars which required nine jets nine jets to get to get sent the rider and this was for uh refinery help i think ajamindaj whatever his name was i definitely just butchered that when he and chavez were um still in office he helped them fix some refineries some oil refineries yeah so finally paying that off venezuela has something that's called a brain drain where all the productive most of the productive uh educated class left venezuela if they could so they don't have the sophistication to repair all their aging infrastructure so they have to call on iran to come and and support them in that regard and because they don't have access to the financial system they have to pay them this way with gold and i just want to say like

people think bitcoin transaction fees are high like imagine having to send nine jets to go pick up to go pick up your money like that's super expensive imagine one of those jets goes down all the fuel all the security that goes along with that polluting the environment it's all fucked up talking about security they can't stop if the u.s government wanted to you know stop one of those jets they could i could shoot it down and shoot it down i could ask it to to land in a place where they could then confiscate the gold uh bitcoin maduro could have been in his fucking boxers at his computer so like with his treasure and sent it um wasn't there like a year ago his own house like a year ago didn't like a russian plane full of gold go down or like the

gold fell out of the hold or something like that yeah yeah it was like raining down it was like raining gold bars it's dangerous see we come back to what we talked about last week bitcoin saves lives it does save lives the physicality of gold falling from the sky it could kill it's very dangerous could you imagine being hit with a gold bar in the head that fell from 30 000 feet um high no you can't because you'd be dead immediately you die rich you're gonna have bitcoin fall on you you die yeah the um the coins on your eyes get sort of embedded in your skull uh when what was Is that the River of Thames or what's the River of Thames? Is that the river to the afterlife in the Egyptian lore where you have to put the coins on your eyes?

Whatever. The Thames. But you get a whole gold bar. The Thames is in, isn't it at London? Yeah, it's in London. I'm going to look this up. Afterlife River, Egypt. what's it called

I forget whatever the duot the river to the duot is it really duot like the music duot duot

duet yeah duet let's duet together um before we get into the thunder spy us and let's just get into thunder spy usbc vulnerability so um the uh it's a uh hack or a white hat hacker i guess revolt uh revealed a seven vulnerabilities or maybe nine seven so so new computers have usbc ports that are used

for if they're thunderbolt enabled they're used for data power and video everything basically they can be used for all the things and these vulnerabilities together allow someone to use that port um most some of the vulnerabilities require opening up the case but in any case it requires physical access leveraging that port and the spec to basically pull data off of your computer even if it's in a locked state um and it affects pretty much every single machine that has thunderbolt so pretty much all recent machines um if your if your device is encrypted and off it does not uh you know the they need to break the encryption key as well and i believe you know the apple has gotten shit for it because they have this new secure chip called the t2 secure chip

which is like a similar model you know that like the ledger uses where you have this closed source secure element in there handling the encryption and that also means you can't run like linux and other open software on it and repurpose these computers but from a security point of view it appears that they're only vulnerable to two of the seven vulnerabilities because of that t2 chip um so i guess that that's one solace for at least for mac users uh but but yeah they they released a checker so you can check your system but you know most of these systems are compromised it's worth noting as i said before you should have your disks encrypted um you know all the all the operating systems have it built in linux has it built in uh and and when you're not around

your computer you should turn it off these computers turn on really quick nowadays your boot time should be pretty quick so you're going through airport security you're going through places where someone might have physical access to your device you're going to want it to be in an off state and encrypted this is this was already standard operating procedure for people that were in the know i mean if people are aware when they caught um when they caught dpr uh with Silk Road, they intentionally made sure that his computer was still on. They got him in a situation where his computer was still on because the disks weren't encrypted. And as we've also said on this podcast, if someone has physical access to your device, even if it is encrypted, you should assume

they can compromise it. Operate under that assumption. Yes. Shout out to Bjorn Reutensberg who found these vulnerabilities in Intel, being a little shady. He let them know about most of these vulnerabilities in March and early April, and they weren't corresponding with him, and he had to reach out to Apple to let them know. I think he told Intel on February 10th. Something like that. That's fucked up.

But Intel, apparently Intel didn't tell everybody they were supposed to tell. So trying to hold face or save face there and actually makes them look worse in the long run. Our hardware situation, especially mainstream hardware, is not a good situation. We need more open hardware. Hopefully we see it. There's a lot of teams that are working on more open hardware,

so hopefully we'll see some big improvements in that space soon. Agreed. Last one I wanted to touch on. Before we go here, is it the last one? I'm pretty sure it is. I want to also talk about price a little bit. Price? Yeah.

Well, let's do your last one first. What do you got for us? This is what I wrote about today, update on collateralized loan obligations. This is something in December I pointed out in the bent that there was a large wave of corporate debt that's going to be maturing over the next three to four years. And that puts the Fed in a very precarious situation because it's very similar to the mortgage-backed security situation where you had these packaged up loans that were slapped with ratings by credit agencies that were far superior than the actual state of the loans and the package of those loans. so you're dressing up a pig with lipstick, it's happening again. And again, I called this out in December before all these lockdowns came into effect, before the oil market hit the shitter, and stuff is starting to hit the fan in the CLO market.

And so Moody's downgraded 20% of the underlying loans in the CLOs at the end of April, and put $44 billion additional on watch for further downgrade. So we're going to get to a point where we may have a $1.4 trillion illiquid collateralized loan obligation shitcoin market. And it's very similar to what happened and led to the 2008 collapse. And this is arguably more severe, especially considering the fact that a lot of the industries that will be affected by this, mainly uh airline hospitality restaurant and oil and gas are all struggling severely right now and so if you think the fed is praying a lot of money already throughout this crisis like just wait it's going to get insane if these these dominoes start falling and um i bet we'll see the full

repercussions of this market um going through this this stress in the next couple of months hopefully it's contained hopefully can be contained but again like i said in the bent today like it just seems like a situation where the fed and the treasury in unison are going to try to have to play whack-a-mole with all these defaults that are going to be happening as many of these companies are not able to produce revenue to pay back these loans you're just going to have cascading defaults through this sector and then the banking sector that holds the debt at these these loans um that holds debt the underlying debt in these cielos and so i think people think things are bad right now already with the lockdowns and the state of the economy

this might honestly be the calm before the storm we're just getting started we may have not seen anything yet in terms of economic impact of these shutdowns and the government governments are going to try and prop it up first and then they'll fail and then it'll be even worse well they already are now like with these with these small business loans and bigger loan facilities the feds trying to take like the fed started buying up corporate debt last month um in an attempt to to prop these up but again that's a reaction to the lockdowns and again in december i was writing like they were already distressed in december before the lockdowns were even uh an idea in anybody's head and so it's just hard to uh hard to see how there isn't a massive correction in that

market alone um considering it was already distressed before the lockdowns and the lockdowns only poured massive massive amounts of fuel on that fire this is the divide that we've been talking about on the podcast where these policy makers and implementers are operating under the perspective that they that we had like the best market in the world the best economy in the world that we've ever seen before before this crisis happened when in fact we had a massive house of cards that was just waiting to implode to begin with um and then this is just exacerbating it all so when you operate from that that different perspective like you make all the wrong decisions and that's what we see happening right now um i just dropped i just dropped in the

chat did you see this the u.s senator trading sentiment versus the s&p 500 so this guy is tracking net buys and sells from u.s senators um and like there's two things yeah there's two things first of all you can clearly see uh the patterns of what would be insider trading where they know all this information ahead of time since they are in charge of approvals and stuff um where where they sell before a dump and they buy before a pump but they sold the most they've ever sold as a group u.s senators uh in the last three years they just sold the most they've ever sold so it appears that you know their wallets speak louder than their words when they say that you know we're already you know we're already basically

through the worst of it uh then why are they why are they dumping right now yeah and that's like three weeks ago in aggregate holy shit so this is an index that's pretty crazy right that guy's got a whole dashboard that like lists their buys and sells too he's doing he's doing good work over there yeah it's fucked man we'll put that in the show notes too it's yeah it's a fucking fucked up situation and so chairman what do we have 2.3 million drop out of the labor force yesterday officially the last weekly numbers so what are we at total now how many bostons filed for unemployment i think i think we're approaching 30 million i thought we were already over 30 million we might be at like 35 now it's hard to keep track

but chairman powell came out yesterday and said he believes that 40 percent of americans making $40,000 a year or less are currently unemployed which is staggering it's staggering and like those people are struggling like 40 grand a year is nothing especially in this economy

the way inflation is and how expensive housing is and just to 40% of those people don't have jobs anymore to all the freaks out there that are unemployed we love you you're gonna get through this fucking sucks yeah you are yeah it's fucked man yeah i feel fortunate

that uh i'm employed right now it's it's it's crazy man i feel fortunate that we have bitcoin grateful every day i do too grateful every day seriously man and again this week was a great reminder of the fact that bitcoin just works you get to block 630 000 the subsidy just gets cut in half and they mine 600 blocks 630 000 and one uh as we were celebrating as many bitcoiners around the world were celebrating bitcoin was just chugging along it just works and it's incredible that we have i mean it's not incredible that we have this uh this economic situation that we find ourselves in going on but the what is incredible is the juxtaposition of everything the treasury and the Fed are doing and our politicians are doing

opposed to what Bitcoin is doing. Bitcoin is just going by the letter of the code, what it's told to do via the protocol, and it just works. Nobody can change it. And you have everybody running the traditional system scrambling and creating worse inequality and making terrible decisions on the go um that reminds me um you had jeff booth on the podcast

this week it was great episode uh there was talk about how uh there's there's this idea that like bitcoiners uh fantasize over like end of world scenarios and how messy that really is and no one should be hoping for that and i just want to make clear here that the reason i think bitcoin is such a good investment is because i think bitcoin does well in both good times and bad times um so no one is is wishing for bad times i i we don't need bad times for bitcoin to succeed i think it's going to succeed regardless um but if bad times do happen we're going to be really fucking lucky that we have bitcoin like a tremendously lucky to have that that way out that escape hatch that lifeboat uh that is completely disconnected from this

bullshit complex system that has been built up over the years i agree man but i think it may be succeeding because of bad things and i don't again i don't want them to happen but looking at the state of the markets and the world it's hard to imagine that things don't hit the fan here yeah but i'm saying let's let's live in theory i know what you're saying i know what you're saying i know what you're saying magic land right theoretical magic land where everything gets a v-shape and everything goes swimmingly and it's like the best thing ever and we're all living in a utopia like bitcoin still bitcoin's still successful in that situation i agree but i don't think that's what it's gonna happen no definitely not no

scary man it's scary a lot of people struggling out there if you are if you're listening to this and you're struggling again and feel for you it's hang in there and i don't know i can't i can't do anything to help your situation behind this mic like it's no it is it just sucks man like we fucked it up we fucked the money up pretty bad fix the money fix the world we need to focus on these problems and actually focus on actual solutions to these problems and not depend on asshole politicians who do not give a fuck about you to solve this they're not going to solve it the academic economists sitting in the fed and the fed boards around the country they're not going to solve this they have created this problem okay if you think they're going to fix it you are

delusional these are the architects of the problems of our day they are not going to fix this mmt is not the way out either should we to should we finish on a on a positive note uh bitcoin has been pumping lately uh that's very that's very positive um number go up right it's good to see number go up number fell about a hundred dollars while we're recording um yeah no number go up's good and i forget who tweeted it today but yeah like paul tutor jones he's not buying tops i i think what's so funny what's so yeah i saw that what's so funny to me is all these guys you know like bitcoin gets correlated to the s&p for like a couple weeks and they're like oh my god bitcoin's a correlated asset and then now like for two days well today the s&p did a little bit is in the

positive a little bit but bitcoin outperformed it but the last two days s&p dumped and bitcoin went up um yesterday was very stark it was like the s&p was down three percent and bitcoin was up three percent and those same guys are like bitcoin's uncorrelated now like blah blah blah like fucking lower your time preference like all of this is noise like just focus on the signal the signal is is that bitcoin is the most separate asset of any asset we have like at the end of the day that's what it is it's the most uncorrelated out of all the ones we have because it's a completely distinct network that's not tangled up in the mess and the rest of the mess it is bereft of the politics and the central authority of the system we're used to

yeah price is pumping hope you're stacking sats out there help your family find safety in sats too i think they're going to need it soon oh i have i have one more thing i wanted to talk about i just i gotta go i gotta call in 10 minutes okay we'll talk about it next week a lot more people got wrecked on march 12th than i thought they did so just stay humble stacks house out there guys like don't yeah don't get too greedy yeah um it's the best way to do it peace and love freaks