TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2020.06.29

Episode Date: July 2, 2020

Join Marty and Matt as they discuss: - Liquid UTXO expiration incident - Lightning vulnerability: Flood & Loot - HWI v1.1.2 - Electrum v4.0-beta1 - BTCPay server v1.0.5.0 - Zeus v0.3.0-rc1 - Polar v1.0.1 - Blue Wallet v5.4.4 - Joinmarket v0.6.3.1 - Tails v4.8 - Tor Browser v9.5.1 - Fully Noded updated adds easy wallet recovery mode - Australia tax letters - This month in bitcoin privacy by Janine - Words bitcoin journal - Using postal orders with bisq by @heady_wook - New coldcard bags - Chinese ASIC manufacturer Ebang IPO - ticker EBON - OCBTCN MyNode Special - Fake gold in China - Three Gorges Dam 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.

Sup freaks, it's your boy Marty here to introduce this episode of Rabbit Hole Recap. Matt and I just had a high-qual 75-minute rip. A lot of software updates in this one, so if you're running a lot of Bitcoin software, you're definitely going to want to listen to the end. This episode is brought to you by our good friends at Unchained Capital. You freaks already know all about them, but if you don't, let me tell you about them. They're providing Bitcoiners with financial services with a security-first mindset. A lot of their products revolve around multisig, particularly their Volt product, which is a two-of-three multisig product that allows you to engage in a multisig quorum with Unchained, in which you hold two-of-three keys, so you always have control over the UTXOs in your multisig vault.

You can use a Trezor or a Ledger with cold cards soon to come, soon TM, so you hold two-of-three keys, so you can always move your funds out or in by yourself. but if you ever need unchained there to sign the second and the two of three quorum they have a key as well and they can sign that for you on top of that they have their collateralized loan program where you put bitcoin up as collateral again in a multi-sig wallet so that you can prove that the collateral is staying where unchained is saying that it's staying you put the collateral up you get same day us dollar liquidity so friends don't let friends sell bitcoin if you don't want to do that you can take out an unchained collateralized loan on top of that they're working on a bunch of open source projects the multi-sig quorums that we're explaining in this

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stacking sats when you download the cash app you're going to get ten dollars and ten dollars going to go to our good friends at owls lacrosse that's owls lacrosse you just got sake sats download the cash app and enjoy this rip of rabbit hole recap you've had a dynamic where money's become freer than free If you talk about a Fed just gone nuts, 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. You probably should be. What is up, freaks? welcome back to tales from the crypt matt and i are here for this week's rip of rabbit hole recap coming right off an episode with kevin mulcrone who created the lily wallet back-to-back pods matt how you feeling about this one feeling good i'm feeling good marty keeps uh well i guess last

last week it was a late rip but marty he does early rips and then admonishes me for drinking early well you shouldn't have an early rip then marty it's a great beach day like i said i gotta catch that back end of the beach day uh i'm sorry i'm still hearing myself uh echo so i don't know if that's coming through your mic it's definitely not coming through the mic because the mic's not connected to the computer all right good just want to make sure that's just something you're gonna have to deal with because my my linux machine does not except bluetooth so i am wired right now but the freaks definitely don't hear the echo i just want to make sure they don't okay um how's your week been my week's been fantastic

i was in the woods it was good good time in the woods good to get away very good time be close to family uh-oh you were we right before we hit record we were complaining about the uh the fire the fire uh trucks and they're still going off sorry freaks if you're in the car you're not being pulled over you may be actually but uh you may want to wait 30 seconds to make sure or just look in your rearview mirror i fucking hate that marty just triggering all the freaks driving in the car we've got uh yeah sorry you know it's uh i can't control the emergencies uh where i am i have no control over that and recording inside just isn't as good we got a nice ocean breeze here it's a beautiful day blue skies vibes are high and the bitcoin

price according to clark moody's bitcoin dashboard is 9068 on the dot uh we're a block 637 372 we had a difficulty adjustment um yesterday i believe early morning yesterday like i think not on not i mean it depends on how you want to frame this it it's like the lowest difficulty adjustment ever uh ever outside outside of like the early parts of the network when basically difficulty didn't adjust because there wasn't enough people but it was less than uh point 0.0 or it was like 0.1 percent really negative yeah um yeah one underscored zane pocock uh pointed that out um i'm gonna get the exact i'm gonna btc.com for bitcoin uh i mean i think it was yeah it says zero saying 0.00 change on btc.com too so yeah like

flat hash rate um stats from a stable coin after a 15 percent uh upward adjustment uh the prior period so we would be we'd be remiss if in the and the previous adjustment for that was minus whatever a lot minus uh minus 9.29 yeah yeah um yeah so a flat difficulty adjustment pretty rare pretty rare um yeah i'm looking at the btc.com site fuck btc.com yeah they have good data they have good mining you know who owns them right isn't it um aren't they f2 pool it's bitmain bitcoin bitmain yeah um yeah right this they have good historical data on difficulty adjustments in a nice concise fashion don't use it you can use it for difficulty adjustment

data it's pretty good i'd rather not have the data uh what else have we got here it's been a pretty quiet week so this is a heavy um uh release episode a lot of new software being released and updated updates a lot of updates they're currently 25 980 transactions in clark moody's mempool the reward the fees versus reward right now are 8.63 percent up a little bit higher from last week i believe it was at like four percent or five percent uh total capacity of the lightning network the public capacity is 966.13 btc uh some updates there some interesting attacks discovered on the lightning network this week or not discovered but released on

report on a potential attack was released this week. I think the people who wrote the report have known about it for some time. We'll get to that. What else are you looking at stat-wise, Matt? Anything stick out to you? What does Whirlpool look like right now? Whirlpool

is... I just gotta make my own... You can, like, add favorites on clark moody's dashboard here it is as i i don't have any of this shit up so unspent capacities 1154.34 btc the that's pretty good uh spent cycle out or tx0 volume of the last 30 days has been 462.24 bitcoin and there have been 7300 cycles in the last 30 days what's interesting is so we just finished the month um the last three months of whirlpool the

the big pool the whale pool the 50 million sat pool half a bitcoin pool hit new all-time highs the last three months and then this month fell off a cliff and the reverse happened on the two smaller pools the two smaller pools both hit uh and uh they they were higher than last month they both increased and the whale pool dropped off just interesting thing to note you think that's i don't want to read too much into it but you know you know the whales got their you know they got their mixes in they got their coin joins in and uh now they're just sitting now they're just sitting in the remix queue waiting rather than adding more liquidity to the to the pool um what about the lightning tour percentage that is 45.5 percent oh that might be the highest it's been on

an rhr that we've talked about i think it is it's been hovering around 42 43 that is good bump there If you're running a Lightning node, it should be Tor only. Yeah. Impressive or interesting to see. Again, we'll get into that attack on the Lightning network. It doesn't look good. It does not look good in a little bit. Back to Samurai, though.

I think it's a good point in time to walk users through a problem I had this week and I had to ask you about my wallet was stuck on an initializing tour loop. I felt lost. I had to reach out to my Uncle Jim here, Matt, and ask him what I needed to do. And as somebody who's never used an Android device before, which I assume some of you out there listening may be in the same shoes as I am, especially if you wanted to use Graphene and Samurai coming from an iPhone world,

uh you have to shut down the app and restart it i thought i was just stuck specifically force close you force close right force close yes so if you long after you close out of the app if you long hold the icon it opens up a get info or something like app info dialogue you click app info and then you can force stop it um that's the best way to restart any kind of app in the android ecosystem but with samurai it is still beta so i end up having to do that a lot you will have to do that a lot just keep that in mind duly noted and just tor in general is unreliable and on mobile it's even less reliable yeah especially if you uh if you have bad internet connection as well

yeah poor internet connection does not help for all of these things but no matter what just remember like it doesn't mean your funds are at risk like if you if it shows a zero balance it's probably a dojo issue and you have to restart your dojo or something but don't like go erasing your wallet and trying to just ask just ask people i find that a lot where people see like a zero balance and then they go and make things more difficult for our troubleshooting when they should just reach out yeah yeah don't be afraid to reach out both of our dms are open yes they are every now and then you got to tap uncle jim on the shoulder say hey what's going

on here lead me in the right direction uh we got a shout out let's get to the shout out before we get to the list um yeah it's from aranda uh anon anon listener oh hell i mean hello we are from the planet flat flat you lintas uh we have waited millennia we have waited a millennia for your primitive monkey ape brains to discover rock hard currency which is why we had to send someone you're welcome we have reviewed your historical records and wish you much luck with defeating vegeta i said it right right yeah vegeta uh if he does not destroy you we will invite you to join our federation when you achieve type one and do not fear we have contracted the lizard people to monitor the situation very closely like super closely like they run block

stream close additionally we have taken a poll and the collective of our planet has decided that you now be known as marty bent coin and matt hodel thank you from planet flat you lint flat you lint has flat you lint has thank you for weirdest weirdest one we've gotten to date good weird i like that one i mean i'm not going to speak in absolutes i'm not sure if that's the weirdest one but it's up there yeah the penis one was pretty weird too yeah yeah the having to say penis about 200 times straight was uh was not fun mad huddle hodel hodel bent coin come on i think you'd come up with a better name are you really like sophisticated aliens are coming up with a weak name like that bent coin yeah i don't know i don't know if i like that never buy bent coin

that sounds like a shit coin it's a shit coin dump it turn it into zero block stream was mentioned in that shout out and that's a good segue into our first subject which uh is the fact that the there was a liquid utxo expiration incident which sort of highlights highlighted uh this incident really highlighted a centralization factor on liquid uh which is the fact that it's like a two or three multi-sig right that they sweep well i think we've been talking about this for a fucking long time and i know the freaks that listen to my 6102 um um not impression my 6102 episode with stefan where i was the voice of 6102 and he wrote everything he was very critical of liquid security model it is custodial ish you know i i i don't

know a better way to put it like that's what it is liquid is usually 11 of 15 multi-sig right now with their federation partners so if if the the bitcoin that you put into liquid is locked in a multi-sig of 11 of 15, but in these emergency conditions, it goes to a two of three multi-sig and all three keys are controlled by Blockstream. So that's not good. That's not a good situation.

They said they were aware of this vulnerability. They said that Corona prevented them from patching it as effectively as they would like to patch it. they say a patch is on the way but from my uneducated strong opinion mindset if it can move to two of three if there's a way to move it to this two of three multi-sig that just block stream controls they're gonna have they're gonna have problems on their hands right Because if they can force it into this two of three, if Blockstream can end up in a situation where they can make sure that it goes into this emergency mode, then that means they can control the funds at will, right? And if they can control the funds at will, they can be pressured into compromising those funds.

In this case scenario, this has happened many times before, but always with small balances. But someone pegged in 870 Bitcoin and that 870 Bitcoin expired, moving into the emergency two of three. And that two of three is controlled strictly by Blockstream. They say they have it in very secure distributed locations, but you're trusting them on that. And they do have full control at that point. and this was 40 minutes it was like 40 minutes that they had the control but these types of little centralization situations are exactly where governments pressure you right that's exactly where they come in and they go we know you can push it into emergency mode

and if you can push it into emergency mode we want to seize the funds and and this is where it gets sticky so for their best interest and for the best interest of their users they they should make it as difficult as possible to get into this fucking emergency mode in my humble opinion well it's not even really difficult to put it in this emergency right you just have to let the time lock run out yeah it has something to do with like how the federation like if the federation doesn't update the transaction doesn't sweep the transaction on the bitcoin blockchain it goes into this emergency mode and uh adam bach uh adam back i always call him bach i don't know adam back uh released a blog post that everyone

should read but i i still i mean to this day i mean we've said this this whole time like if you're a trader absolutely you know it's a better it's a it's a way better trust model than trusting a single exchange but if you're not a trader this is you know not your keys not your coins territory this is you know something that's that's that's very different yeah i think that the way adam described it is sort of like a bug in the in the hsm model which is their emergency model in which the expiry um sort of warned the user after the time lock had had uh expired instead of before which it was intended to do um so it seems like a ux issue there but still uh it did they did have to use two or three keys to to recover the funds and

james no i don't think they did i i'm not sure if they had to use i'm not positive if they had to use the two the those keys to actually move them back in i think the federation might be able to move them back into the 11 of 15 but the key is is that during those 40 minutes the two of three had had the ability to spend them right okay yeah and whether you know and and the other thing is is like the whole the disclosure process was fucked and i think they know that so i'm not gonna like lecture about it but like james prestwich our boy he he stumbled on it he posted on twitter they shat on him to begin with and then they were like oh shit this is real and then they like kind of you know whitewashed it a little bit tweets were deleted yeah it was like whitewashed

it was it was you know we've known of this vulnerability but we didn't tell anybody about it like that's not how you do this right this is it's supposed to be open and transparent we don't want this like shit coiny tactics no and you folks will see in the in the blog post by autumn now you got me saying autumn adam back that um autumn boss the last paragraph is about improving our communications but not a good look not a good look for liquid as they attempt to to uh accumulate users and get people to peg in their bitcoin uh hey learning lesson nonetheless speaking of vulnerabilities we alluded to it already earlier this week a team of developers released a white paper on a potential attack on the lightning network a systemic attack

on the lightning network knowing as flood and loot basically this attack would entice uh individuals to close channels all at once or attempt to close channels all at once and the congestion that would cause on-chain would allow the attacker to to target channels and sort of siphon off funds um as uh the on-chain network is being flooded with transactions from the lightning network so basically i understand it at a high level yeah so basically like the attacker is cheating you on the lightning network and so so then the way you're able to fight that cheating is by closing it on on chain right and then if if they do it to enough channels at the same time then it causes a shit ton of congestion on chain and then your time lock

expiry goes out of date because it took so long for it to confirm yes and the attacker has both control of the sending node and the receiving node and they're attacking the routing nodes in between uh from my once again this is the same thing you know just trying to understand it as best as i can uh this seems pretty bad this seems pretty bad and i would like more educated people than me smarter people than me to allay my fears a little bit here but this does not seem good in terms of the lightning network threat model you can increase your time lock delay which i think is kind of like a nice little band-aid on the problem but i am a little bit concerned here i don't see a very easy solution to this type of attack it

seems like it's a very it's a very hard to fix attack uh if possible at all i don't i don't really i i'm uh it's not it does not seem good so here's what the authors of the white paper suggests to help mitigate this attack but again it doesn't i agree with you this does not sound good um and this sort of echoes what antoine we are was alluding to on the episode that we recorded that dropped on monday go check that out if you haven't but he he's been diving deep into lightning and he sort of uh communicated to me that he thinks it's going to take a lot longer to build lightning out than people assume right now especially if you want it to be secure secure enough to to be locking up funds a great amount of funds at that and so back to

the mitigations right now the the authors are saying that you could reduce the maximal maximum number of unresolved htlcs um so that would that would help mitigate the flood i imagine and earlier closure of channels uh so the time victims have to claim their funds is determined by an implementation specific parameter so there's some things that could be changed in the implementation you can adjust that parameter uh so i increase that parameter on my so i run two so on a positive note i run two routing nodes i haven't lost money yet but i do feel uneasy i feel a bit uneasy here freaks you know i i i think i'm vulnerable i think my my coin is vulnerable on those routing notes but i've raised the time lock parameter on my channels

if it's an attacker they can open a channel and refuse your increase of the time lock parameter which kind of gates that as a as a real fix in any kind of way yeah it's sort of confusing in in the paper like the bullet point says earlier closure of channels but you really want to extend the time it takes to close that channel a little confusing another mitigation they put out there is immediate release of htlc claiming transactions so a node can and should release these transactions immediately along with the commitment so you don't have to wait for a confirmation i think um then you get into like zero comp stuff it seems pretty bad and then reputation-based behavior uh which is sort of

social you're depending on social parameters their channels parameter greatly sounds super centralizing like i'm going to decide who i open my channels with yeah exactly so like i'm a routing note and i'm just only opening channels with people i know sounds really clickish i don't like that is the lightning network dead no but it's definitely still a test it's definitely still a test people should be careful with it it's raw it's very raw right now no one thing the freaks can you can you can the freaks will know that we're there with them we're there with you fucking around with lightning we are also fucking around with lightning and if we get fucked you get fucked we get fucked together that's that's the one guarantee that tftc

provides you know we're not laura shin we own bitcoin we use our bitcoin put skin in the game skin in the game um but yeah going back to what antoine was explaining to me there's still a lot to figure out in lightning network especially with eric especially in terms of security um but with that being said he was also extremely uh optimistic about the the future of lightning network in the medium to long term and the uh use cases that it would enable and utility that would provide to bitcoiners but hey this is to be expected though right this lightning's what three three and a half years old now at this point two and a half years old extremely optimistic sounds good to me i'm cautiously optimistic i would put it at yeah i think that's probably a

better way to describe it too i probably just put words in his mouth you know how those core devs are i listened to that episode that was a great episode by the way the french accent wasn't too much it was a little bit i tried my best i had to lower my speed though i listened to it yeah i um i i did as well when i was re-listening to it but yeah shout out to antoine i wish him well on his journey back to france it was great having him in new york um and yeah if you did listen to that he's working on a ton of dope shit so if you haven't go go listen and and learn from somebody much smarter than me uh we got a bunch of updates i always feel like before we do that i always feel like the true legends you know they have good opsec like he does and they get less traction

on their episodes so you should definitely go listen to that one that is a good it's a very good episode and and people don't you know they read the name they're like i don't know who that fucking guy is and they don't listen yeah it proves that they don't read the mailing list they're not on the bitcoin dev mailing list yeah he's not on twitter so i think a lot of people saw that was like who's this nobody not a nobody go check it out definitely not a nobody uh i'm counting here one two three four five six seven eight nine ten software updates very bullish um let's just run through them let's do it one at a time uh hwi version 1.1 1.2 has been released i believe this is the first release since the uh since the treasure

um firmware update and now it's compatible with trezor and compatible ledger bitcoin app 1.4.0 um yes and it's fixed the psbt problem apparently shout out to andrew chow and anybody who reviewed uh that release for getting it out there i know there was a little bit of a little bit of worry between that release and the uh the trezor firmware bug uh or trezor firmware update that when they released that bug as well i mean i worry is the wrong word but trezor just didn't work with core yeah and anything else ever lied on hwi annoyance is probably a better word yeah frustration yes uh it's a pretty big long-awaited election version 4.0 beta beta one uh they uh they released uh the beta and then

got quick feedback that uh they needed to update it because there was a bug that was making things crash correct yeah we talked about this on the pot the crashes that were happening fixed yeah fixed um so that's updated uh btc pay server version 1.0.5.0 is out massive release yeah i'm not i mean i won't read the show notes or the release notes just blindly release read the release notes for us marty they got pull payments uh looks like they've implemented some good accounting software for freelancers, refunds, which is pretty cool. I'm not going to start reading those notes, but...

I don't get how the pull payments work. Have you figured that out yet? No. Center creates a pull payment. I'm reading the release notes now. Read it. Specifies the maximum amount that can be pulled out of their wallet and shares a link to a public page with a receiver kind of like that idea i'm not sure

exactly how it works i still think like the best way to do bitcoin subscriptions is you just do yearly you just do yearly and the fact that you can't pull payments is a feature not a bug you just they pay you yearly and if they don't want to pay you they don't fucking pay you you know that's not it's not the end of the world i'm sorry your business model relies on predatory tactics and you want to you want to pull payments directly out of the fucking credit card sucks for you this is better money like you think the user needs to approve it you know that's fine by me this seems more like it's for contractors and stuff like you have a contractor they send you or you send them like the ability to pull for a one-time payment i think that's that's the proper

understanding of what's going on here but this is a major ass release for for btc pay and they had a great gif for the release i don't know did you see the gif and hands and hands jail i had made a gif for them and it was it's quite good i have not i have not seen the gif you're have to link it to me okay i'll send it to you later um yes a big say leveled up pay join made fee selection the ui around fee selection better um and launched the greenfield api um which is their attempt to build a straightforward api for their users so and they improved the wallet right yeah yeah so the fee selection mainly um can natively open bit 21 payment links as well

um i think that helps with pay join so big release the juggernaut that is the btc pay server team continues to fucking roll and i love it they're crashing um I feel like I had something to add, but I'm forgetting. We're just going to roll on here. Tails, or excuse me, that's way down the list. Zeus version 0.3.0 RC1 has been released. Did not look into those release notes. Do you have any comments on them?

I have no comments off the top of my head. I love Zeus. Zeus is good. it's just as good we also love polar here shout out um to jamal who's been working on this polar version 1.0.1 is officially out um you can go to lightningpolar.com and check that out if you guys don't know what polar is is basically a one-click bitcoin lightning uh network uh for local app development and testing so allows you to easily replicate lightning apps before you push them live so you can test and iterate and experiment with lightning before you push it live to production and create like a good ui and apparently developers really like it because

it saves them a lot of time this is a time saving app polar is maintained by our boy jamal uh he's fucking dope the polar is dope this update is a very simple update it updated to the most the the most the latest lightning versions of all the implementations nice and simple that's what you want to see uh blue wallet version 5.4.4 is out i have this tweet up kobo vault hardware wallet is supported they've got air gap psbts with animated qr codes uh added entropy via dice rolls and entropy via coin flips which is pretty sweet to see any cool ux on top of that for that yes yeah they fixed scanning qr with a mount a bunch of stuff we'll link to that as well i figured out

what zeus did the update they do um they added two new features for lnd hub um which is like a a way to do custodial with your own node um which isn't really custodial if it's your node but if you uncle jim it it is custodial um and they allowed users to change units on the send view Oh, and they changed the icon for your phone. Better icon? Better icon. Hopefully better. I don't think I updated.

I have to update that. Get on it, dude. Get on it. What else is updated here? We've got Join Market version 0.6.3.1 is out. If you're using JoyMarket, go update that. I'm done reading release notes. Oh, no, the JoyMarket one is a big one.

They added support for the way they do pay joins so that they can support BTC Pay. So they added BIP21 support so that you can do pay joins with BTC Pay, I'm pretty sure now. And they added the back end for Fidelity Bonds, which we've been talking about for a while on this here podcast. That's pretty big. And in the release notes, they remind you that Python 3 is required.

Python 2 is no longer supported, and this will probably be the last release supporting Python 3.5 or lower. So just be aware of that as you update that. Tails version 4.8 is released, and I'm assuming this is a big release after the vulnerability that was released last week. So I guess the new Zeus logo is just, the new Zeus icon is just a lightning bolt. Simple. What did you say, Tails?

Yeah, Tails update. I'm assuming it's fixing or trying to mitigate that attack that we talked about last week. No, unrelated. we still don't know we still don't know what that attack was uh the facebook attack what says we disable the unsafe browser by default that's different okay so so tails attack so tails used to be everything you did through tails so tails is run by the tour project everything you did through tails used to go through tour no matter what but the issue was if you were like signing into a public wi-fi or something you needed you know when you sign into a public wi-fi

like the little window pops up and you're supposed to put in your credentials or whatever on the like paid wi-fi there's certain wi-fis you needed to like put in an email address or something like that um that would net it was it wasn't compatible with their tor browser so they added a browser that didn't go through tor and they specifically called it the unsafe browser because they wanted people to realize that it wasn't going through tor but it defaulted to on and the the user flow was poor there it confused people and then people were exposing their ip address and they didn't realize they were exposing their ip address because in the past you had to be you had to really go out of your way to to not use tor so what they did now is

they made it not default so you have to enable it separately and then the other things they updated with tails is is just like they updated all the packages all the things firefox got upgraded all all the you know tor browser got upgraded everything got upgraded thunderbird got upgraded. Tor browser in general also got a release update. So if you use Tor browser, go update. If you don't use Tor browser, you should use Tor browser. Except for clear net sites, because if you use clear net sites with Tor browser, then you're trusting your exit node. But if you use it with only onion sites, you're not so just keep that in mind another added nuance to this whole fucking thing so much nuance hit

your bingo boards freaks did you hear that one of the freaks called me out because in the last you had already said it i said nuance like five times i re-listened to it i said it like five times before like the 35th minute i said nuance i was like bingo i so i don't even know maybe i said nuance already i think we have i think we have at least once uh this is a pretty big update for fully noted you can now create your own wallets within fully noted if you freaks were using it before uh you know that you had to create uh wallets and seed phrases using uh your bitcoin cli and your node um a little cumbersome now that you now you can create uh wallets within the app itself it's a pretty big step up and even more importantly this update brings

the ability to recover wallets from pretty much any other wallet you can recover and it'll search the derivation paths for you if you just give them a seed a passphrase and the account number that you've used so the standard is zero every time you add a new account some wallets call it wallet or something like that but like you add a new account you have to switch that number and it should be able to recover it this includes all samurai derivation paths post mix pre-mix regular wallet regular segwit wallet so that's pretty cool one thing i would comment it is a little bit confusing that they both have fully noted and fully noted to both being maintained at the same time different products it's confusing you know i know fontaine listens

to the pod so i've meant to reach out to you but here i'm doing it now and if you don't listen i will reach out to you separately it is a bit confusing but i i do love your work so i i do appreciate it don't take it the wrong way yes and if you've been using fully noted do not worry all the past functionalities and the way the wallet works still works that you can still get those functionalities as well so nothing is forcing you to do anything differently looks like priorities are shifting a little bit that's it we made it through those are all the updates those are all the updates yeah um trying to think there's any off the top mind mind that i can think of but there aren't his story out of australia is to be expected right so news is coming out

screenshots of emails are coming out uh the tax authority in australia is uh is making cryptocurrency quote-unquote owners who have sold or bought stuff with their cryptocurrency that they owe taxes in australia so the australian tax authority is sending out warnings and i what i think is interesting about this is highlights that hodlers are are immune to this if you're just buying and hodling um they're just sending this they're just sending this letter out to everyone they know who owns bitcoin or shit coins and we saw this already in the united states we should probably see this in countries around the world my real question is is how does craig wright respond to this as an australian citizen pleads insanity i don't know

does all of a sudden he doesn't own the a million bitcoin right well he can't he can't access it he's waiting for the tool of trust carrier to deliver that key that gives him access so he's sort of shit out of luck right he's full of shit is what he is he's probably telling the australian tax office that he owns no bitcoin or very few bitcoin or not satoshi's coins tell you that much no um one thing we didn't touch on but somebody dove into the um statoshi is this that's it no that's a lops um website what is what was the research that sort of tried to identify satoshi the minor um oh fuck uh whiz it was whizsack who did it yeah the potoshi uh potoshi yes that's what it's the potoshi research and somebody the potoshi nances yeah somebody did some deeper

uh took a deeper dive into that and highlighted that satoshi would wait like five minutes or the patoshi nonces or whoever was uh in control of the miners that created those nonces was like altruistic it would wait and try to let somebody else mine for a little bit before uh hashing shot 256 stuff to to add a block so it seems like uh if we are to assume that the patat the potashy patashi patoshi nonces do belong to Satoshi that he was definitely trying to help distribution

in the early days. Marty isn't even drinking. I'm not. Yeah, Craig would never do that. No. And just sign a fucking message, bro. This is what I've been saying since 2017. 2017. It is. Let me check my calendar.

2020. Okay? Holy shit. I'm done talking about this motherfucker. officially halfway through the year freaks uh congratulations uh we made it halfway we made it into the craziest year of my life at least uh not in my life but just uh looking outside at the world it's the craziest year of my life probably except for year one where i was birthed which is pretty crazy when you think about it do you remember what year one was like for you no i just i just imagine like humanity was created right like when you create a human like that's

i mean you're the you're the one who's living in mr dad dopamine rush like that's pretty crazy to me right so i'm gonna give i'm gonna give that some credence but besides that this is is definitely the craziest year i've i've been alive yeah um it is it is fun watching this little human grow and it's crazy how fast they grow and uh how fast they develop a personality my my son is quickly becoming cognizant and aware and it's starting to scare me we cannot leave him on the changing table uh anymore he's starting to roll and roll and roll and i think he should start crawling soon which is another scary thought but life is beautiful this is why we this is why we live right to keep the cycle going go out go forth and build strong families freaks

it's what the world needs right now on another positive note our lady janine released her first ever this month in bitcoin privacy newsletter which was fucking fantastic and i fully support 100 the freaks know i'm super biased on this topic but this was a very good read she did a very good job and i'm very excited for what she has in store for us coming forward and it's going to include a podcast she has a panoptic cast is coming out um which is a podcast focused on privacy so i'm very excited for that everyone should go read that everyone should go support her uh fuck yes very thorough newsletter hosted on github of course and i really love her tagline that one privacy girl writing about privacy publicly i think that's a nice little nice

little tagline there shout out to you janine uh we appreciate you we appreciate the fuck out of you in that same vein uh not sure if you freaks have been aware of this but bitcoiner joe rogers joe rogers or john rogers it's joe right it's joe our boy joe he's a freak yeah sorry joe i'm sorry we haven't highlighted this more in the past but we're highlighting it now so he does he has bitcoinwords.github.io where he uh he gathers the best bitcoin content month to month and puts it on github for anybody who wants to access it i think it's a really cool project just trying to uh open source uh quality content within the space and keep a a nice uh repository of dope bitcoin content and um this month uh highlighted a bunch of cool um pieces that we've talked about

in the bend on this podcast of bitcoin's mining free body problem by leah zhang anarchy and monarchy and natural state i mean there's a bunch of stuff there's 480 490 minutes excuse me in june alone so if you're looking for uh the highest quality bitcoin content and you have nothing to read bitcoinwords.github.io we'll have plenty of content for you to to dive into and this is pretty heady the uh this is pretty cool to see like the the amount of uh uh like u.s postal money orders uh being used to buy bitcoin via bisque has gone up considerably and um there is a tutorial how to buy non-kyc bitcoin with u.s postal money order uh out there now by author at heady underscore wook that's why it's heady i'm assuming this guy is or what's the

fish heads or the uh yeah they're fish heads right no they're not specifically fish heads oh i thought they were but they're but they're i'm i i'm drawing a blank on the genre but uh they love music yeah jam band their jam band enthusiast yes and heady wook is our boy well he's at least my boy and he is a freak and he wrote a very nice write-up for the rest of you freaks if you want to try and use bisque with u.s postal service money orders which is one of the most private ways to exchange fiat short of cash and you can use them with this yes you can and you can find heady wook at heady underscore wook w-o-o-k on twitter it just makes me miss live music just that much more we stop you free stop bringing up stop bringing up the live music

please you will not hear it until we release the kevin mulcrone episode which will probably get release sometime next week i imagine marty is in charge of the release schedule but we did talk about live music a lot and that is one of the main things that i miss in this current crisis that we're in when will live music come back a long fucking time it's going to start with like private shows and stuff but like where we get these like all the best venues in new york are the closed intimate venues you know it's like the the very tight venues it's like the exact opposite of physical distancing yes and i miss them tremendously i miss them as well there has been some like outdoor music down here some bands like music festivals right music festivals aren't

exactly you know the most hygienic places if you want to talk about wooks they they have a they have a reputation of not being hygienic yeah i love the lifestyle but not hygienic at all commonly referred to as dirty wooks exactly well that's that's a little bit fucked up you might you should get canceled for that marty well you know what it's the truth i'm gonna be the first co-host to get his co-host canceled i was uh i was uh i've always been the tag along to like fish and dead concerts there's always been like my friends who are really big deadheads or fish heads like oh i have an extra ticket do you want to come and as you know i like live music so i've gone to uh a few of those shows and it's not me calling this out it's the friend that drags me

along he's like those are the dirty looks okay i had no idea what a book was until i was dragged and then it was described to me it's a very special experience i i am also pretty much in that situation as well i will say yes to pretty much anything yes but i just love live music i don't forget i went to dead and company with a friend who invited me john mayer is actually pretty good john mayer fucking right rips i mean i used to get john mayer concerts every summer in high school i i think i read like five of them lame yeah no have you ever you've never been to i've been to a dead and co i've been to dead and co a couple times well i gotta describe now we're back to john mayer i gotta describe the uh john

mayer uh concert experience in camden new jersey every summer it was either him or dave matthews or a combination of the two well fuck dave matthews i don't like him throw jack it's not i mean it's not about the music it's sort of about the music it's not about the whole that's what they always say that's what they always say to defend their shitty music dave matthews sucks sorry i'm not defending them i'm again i'm talking about the experience you know what i'm okay with dave matthews he's pretty okay we listened to him a lot in the 90s growing up but concerts in camden in high school were some of the craziest experiences uh ever along the waterfront i believe it's still the susquehanna bank center it used to be the tweeter center uh it's gone

you've been to pnc that may be it's like a dome it's an outdoor dome no asbury park asbury's good that's asbury's the horses or whatever triple horses or something yeah no no pnc the pnc bank art center or whatever it's it's an outdoor uh hill with a in like an interior it's like a semi-circle there's a word for it that i'm forgetting amphitheater amphitheater it's like a little amphitheater like the the rich are in like the seats in the concrete area and then there's like a there's like a hill lawn area where the where the plebs all are and that's the place to be that's the fucking spot this is this is exactly what it's like in camden uh the lawn is notorious many many uh interesting things would go on on the lawn let's go ahead to bank center

it's all about the ga yes yes all about the ga actually reminds me now we're on venues god i do miss live music the man center in philly reminds me of that and then forest hills in queens that's one of my favorites good yeah we were talking about on the kevin pot the king's theater is fucking insane yeah i saw the rank of tours there last fall incredible show shout out to jack white if you're listening i think he's a freak jack white's definitely if jack white's listening that'd be dope as fuck come on the pod bro we'd love to have you i'd love to talk about your career we know the class listen we know the class listen we'd love to have you as well julian keith levine if you're listening um i mean we're we're talking about it we're gonna make it happen

definitely um the all right back to the topics we could talk back to bitcoin apologies uh our boy rodolfo hit another um in another bingo box off there released uh new cold car bags and these are pretty pretty dope they're gonna be blue now or they're gonna have blue on them and it's just more thorough they're pretty blue they're like mostly blue it's more thorough tamper evidence so if you it's going to be more obvious if your cold card bag has been tampered with in route to your uh pl box wherever getting it mailed to wherever you pick it up from um so it's got a serial number on it now i think you're going to be able to uh to cross-reference you can use a magnifying glass to check the preparations

um to make sure the tab matches the bag a bunch of cool things and then i'll pump power up there's a separate there's a separate serial number tab that you can use to measure the width of the bag and the serial number make sure it matches um if i were to tell you that rodolfo it was as excited about these bags as a little kid in a candy store you have to believe me but that is exactly how excited he was he was very excited about these

tamper evident bags I hope you freaks are as excited as he was I might be a little bit less so but I dig the bags good bags the more peace of mind you can provide the better that's dope

to see that the tamper evident bags are getting better as well as the cold card that comes in it um mining shift here chinese asic manufacturer ebang ipo'd on nasdaq i believe right yes and their ticker is ebon e-b-o-n do not buy it yeah do not buy it i mean i do not know any miners personally that have been buying ebangs How can you trust a group of people that name their fucking company E-Bang? E-Bang. Who does that?

E-Bang. Oh, baby. Yeah, she moves. What was that dude's name on American Idol? I forget. William Hung. There we go. How do I know that?

That's sad. I don't know. I shouldn't know that. You knew that really quick, dude. Dude was a fucking sensation. He really was. Is American Idol still around? I don't know.

it was like season 21 or whatever i don't know simon cowell fucking killed that you know he made so much money off that shit and they also got the the record label deals after the fact on all of the artists that's the real money maker yeah that i mean if as if he wasn't making enough money off the spice girls you know i'm surprised he didn't release a shit coin that seems right up his alley You know he's made enough money Maybe he doesn't need to Never have enough Gab children shirts

His shirts were always A little tight on that dude Our good friends At the Orange County Bitcoin Network OCBTCN Dropped a video Full node deep dive With the mynode team

Brian Harrington our our boy katan was on this one katan was on it i fucking love katan everyone should go follow him under dash k3 tan go follow him good dude makes great guys him and stefan crushing it at ministry of nodes and also they have previous episodes just so this is part of their full node special they started with me and stefan talking about full nodes in general then they did an episode with our boys at noddle now they did the my node i assume the next one is either the raspi blitz or the ronin dojo and the one after that is whichever one isn't that next one so go check that out very good listens if you're if you're trying to run a node uh specifically a dedicated

24-7 low-power node on one of these dedicated boxes, you should go. It's a very good listen. Shout-out to the OCBTC crew. Doing a lot to educate people locally in California now with this OTCBTC network globally on the Internet. um slush pool that's what i read about in the bent today but they released a cool thread this morning that i wanted to talk about and uh just because i think it highlights just how drastically

the the uh sort of dynamics of the mining world have changed since the last having epoch in 2016 so around that point in time was uh the release of the s9 and it's funny going back to the bitcoin talk.org uh post that announced it and seeing the comments and replies to that announcement and a bunch of people being like i'm never going to get my return on investment on this like i need to turn this around in six months and as we know now as we stand here today in 2020 the s9 is still running profitably for some people more than four years later uh and so that just really shows the maturity of the ASIC hardware industry particularly in the fact that these life cycles are being extended and one thing that they put in this thread that really stuck out to me is why I

decided to write about it is the slush bowl team is saying that these ASICs are basically like a quasi proof of stake asset that's built into the mining uh network uh which is an interesting thought like proof of stake makes you lock up funds um if in in that consensus this has nothing to do with consensus again it's quasi proof of stake in the sense that uh miners that are buying this hardware are sort of locking up that hash to the bitcoin network because they want to get that return on their investment um which is a cool concept again it's not exactly proof of stake but yes but like if we're using that as a sort of something to compare to i think the hardware assets being locked to the network and their hash being locked to the network because the miners

want to get their initial investment back is very interesting and then when you couple that with longer life cycles it reduces the the probability of a 51 attack just from pure profit incentives which is uh something i want to explore a little bit more especially as somebody who's in the mining industry i've never thought of it in that way fuck proof of stake do you have any thoughts on that though that that's just my only thoughts on that um our boy our boy fucking jack mallers just released strike today he's releasing it right now i think on bitcoin magazine's live stream it's a public beta it's a public beta it's released to everybody i think it's been a pretty pretty small beta up to this point and i think the only kyc you need is your debit card is that

correct no but you need phone number and name and obviously they have your bank account information let's be honest all right your your debit card info i think the debit card may be the only thing you need and they just know he specifically said phone number and name as well okay but you know it is what it is it's like kyc uh you can pay anyone on the lightning network with your debit card for limited tax consequences uh this opens up a whole slew of different um capabilities specifically i would say uh the big one for me is is all these content creators that are getting demonetized they can accept lightning but their users their their listeners their readers um are paying via debit card but it's like a reverse payment processor so they get around the the

de-platforming, the de-monetization the biggest issue this whole time has been regulatory so we'll see how he's able to fight this off if anyone can do it it's fucking Jack so we'll see how it plays out, there are four states

first of all it's US only and then there's four states that he's limiting, New York is one of them by all means, everyone should just avoid New York fuck ben losky he did this to us but the other ones are interesting it's like texas i think illinois and massachusetts texas is an interesting one illinois sort of makes sense massachusetts is interesting as well let me check let me i'm gonna double check right now but i know texas is one of

them because bitstein got triggered texas florida and hawaii and new york so i was wrong on the other too i just like made them up because fuck massachusetts like all the boston freaks like go fuck yourself i love you but fuck you i do not co-sign that message i i really appreciate my friends in massachusetts boston i have a lot of close friends i have a lot of close friends in the boston area you can all go fuck yourself just and just everything you know you're losing the rivalry you're losing what a good friend um that's why that's just you know like they're living in an island in the middle of pacific and they just get fucking slapped by jack you know like fuck you you're getting really heated about these uh excluded states look there's only one

person drinking here so i someone's gotta get it well i'll get heated on this one our final topic uh this happened i think this news became public uh either while we were recording last week or the day after but uh interesting story out of china there was a jewelry dealer that put up gold as collateral to get loans to extend their business and uh they their loans they were falling back on their loans and had to pay them back and their collateral got called and the institutions holding their collateral actually checked the gold to make sure it was gold only to find out that a good portion of it was uh gilded copper uh which is not gold obviously and so this is just highlight this just highlights the uh the uh the advantages

bitcoin has over gold specifically the fact that it is extremely cheap and easy to verify with a line of code uh this wasn't just any jewelry dealer wasn't it like billions of dollars worth of collateral well so they took that out of 2.8 billion dollar loan what the fuck using i don't not all the gold was gilded copper um that's a big fucking loan without verifying man right that's the beauty of it like so if you're using bitcoins a lot of people think i think i fall into this camp too that bitcoin's path to becoming a dominant reserve asset is its use as collateral in lending markets and bitcoin is far superior collateral for this reason exactly you can throw it in a multi-sig or a single sig for that matter which i wouldn't recommend if you're going to be

using uh bitcoin as collateral for a loan probably want to use multi-sig but it can be immediately verified by the lender and if they use their own note yes if they use their this is one of the reasons important to use your own node freaks yeah and so that's a pretty yeah like you said that's a huge fuck up so marty i will ask you again is gold a shit coin yes yes it is oh shit we got him we got him freaks he said i supposed to admit wasn't i supposed to admit this like three months ago yeah and then we like forgot we kept forgetting but you were supposed to do a med culpa about it and but we got it we got it now we got it now better late than never um yeah bitcoin is more divisible more portable most importantly verifiable if you need to

and this case out of china just really highlights that and the long-term gold will trend to zero on bitcoin terms along with every single other asset on this fucking planet it's actually it's been an interesting chart i think ter ter demister has been posting it pretty frequently recently is uh bitcoin and gold terms and it looks like uh it's at a critical actually i'm not even gonna get into trading well it's a little bit fucked up because he starts it from like the beginning and like bitcoin is going through its adoption phase so it seems more aggressive but yes i do agree that it is trending to zero long term along with every other asset alternatively bitcoin is designed to pump forever these are these are the mean the same thing well

Well, and I'm happy you said that here. Here's an explanation of why it is designed to pump forever. Our good friend Pierre Rochard succinctly packaged this in a tweet last night that I was actually very impressed of. I wanted to write a section on the bent about it this morning, but didn't get around to it. If global productivity continues to increase decade after decade, there will never be a Bitcoin quote unquote top at full adoption. Why? because purchasing power will steadily increase thanks to productivity driven deflation even the last adopters will benefit from saving bitcoin so it's a combination of bitcoin's uh hard monetary policy it's scarcity enforced by the protocol of rules and uh the fact that humans are becoming

smarter and smarter and creating technologies that make us more productive and create a deflationary environment for technology and products so the combination of that scarce monetary good and the deflationary pressures of technology improving and humans becoming more productive will ensure that bitcoin pumps forever in purchasing power i think every person i mean i'm just agreeing with with pierre here but in layman's words i think every person benefits from bitcoin just the early adopters will obviously benefit more what i think you're agreeing with him i don't think that's what i said i said i think i'm agreeing with him yeah oh yeah i was just speaking in layman's terms yeah um i think that's a good way to end it

bitcoin will pump forever and purchasing power uh no no bitcoin is designed to pump forever we're not sure if it will pump forever that is a good point not a definitive statement that i'm not willing to make i think that's out of the bag man i don't know we'll see just trying to be responsible here marty one thing actually the last thing that is uh it we don't know if it's we can't verify it's hard to get good information out china oh we're talking about different things oh what are you thinking well we could talk about the three gorges dam first yeah so i mean apparently there's some reports coming out of china the three gorges dam which is one of the largest in the world is experiencing a lot of stress as china endures another rainy

season it's supposed to rain for the next six to nine days i believe and their reports are coming out again hard to verify that uh the dam has been um they're releasing flood water from the dam downstream which has caused a lot of flooding in cities that were not made aware by the ccp or the people around the dam rumors going around that the dam's close to breaking there's some satellite images out there but there's good uh a lot of um a lot of people are saying that can't depend on those because they may be manipulated a little bit regardless if that dam does break 400 million people would be in danger or in harm's way which is insane to think about and a lot of asics would be fucked well that's the thing like i don't know i yes it's there's potentially a material amount

of hash rate in that flood plate as well that could be in in in the uh in it could get washed out uh i don't know exactly how much hash rate uh but it wouldn't surprise me if that did break that it could affect bitcoin you know by wiping out some hash rate but it wouldn't necessarily that wouldn't necessarily be negative i mean like obviously it would suck for the lives lost but it would distribute mining yes but it could have like i mean depending on where miners are in the world if they're being like if there's unplugged miners being delivered to miners right now or if there aren't it could be pretty big headache between the next difficulty adjustment we'd have slow blocks for for a while yeah for a couple weeks

yeah possibly more yeah on top of that like wuhan is would be like the first major city i know there's some asic manufacturing factories there so could disrupt the supply chain too obviously poor wuhan hopefully fingers crossed praying it doesn't happen um also hong kong kind of got the death knell to this week which sucked yeah that's pretty big uh basically china china's just like yeah we're don't talk shit on us we'll come get you i love that city it's just another reminder that we have to focus on the things we can change which is empowering individuals through free and open source software yes uh what i wanted to bring up was bitcoin 2020 has officially been rescheduled to 2021 and they're not going to call it bitcoin 2020 in 2021 they're going to call it bitcoin 2021

it's going to be april 30th and it's going to be in los angeles instead of san francisco um tony hawk and nick zabo will still be present uh and and and we'll be either giving interviews or keynotes i'm not sure how that's gonna work um but yeah and it's gonna be in la instead of san francisco did i just say that i'm not sure but either way la is way better than san francisco i was hoping it was going to be in nashville they know i wanted to be in nashville hopefully bitcoin 22 2022 is in nashville we will see i'm not the biggest fan of la or san francisco yeah but la is way better than san francisco it's the better it's the better californian city it is known everyone knows that if you

ask people in san francisco they will say it too but i'm torn between my love for the ocean and the beach which san francisco has but it's better in southern california and wine country I love wine country it's so dope up there that's true LA does not have wine country

no alright I didn't drink any wine in this podcast I've been drinking I've been drinking Obon 14 shout out to

the freaks from the planet Flatulentaz terrible planet name hard to hard to read um yeah shout out to you freaks if you guys are liking this smash that subscribe button if you want to get a shout out on there you can do so at tftc.io slash contribute

uh subscribe to the newsletter marty's bent uh when you subscribe to that you're going to get sat standard as well um what do you think about the chart in the sat standard to get your comment on it i put it together this weekend you did a good job this weekend to the freaks i usually put together the sad standard but marty did it because i proposed to my lady oh i didn't know that was gonna be public i wasn't gonna tell people but if they listen this long they can know she's uh we all talk a big game but she's the ultimate hodler we started dating in fall 2015 so if you've been around you know she got in at a good time well congrats to you too i'm very excited for you too um hopefully you can join me on father's day next year let's get quick quick quick dude

you're like my you're worse than my grandmother marty already wants the kids we need uh we need strong families that's what we need to focus on go forth and uh spread your seed and we'll end it on that peace love freaks love you all Thank you.