TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2020.07.13

Episode Date: July 16, 2020

This week Marty and Matt discuss: - samourai post mix address reuse disclosure & patch samourai team shinobi - Timing attacks on Lightning Network - Twitter hacked - difficulty hits new ATH - taproot activation - coinbase selling surveillance software to Secret Service and [IRS](https://www.theblockcrypto.com/amp/post/71261/coinbase-is-selling-blockchain-analytics-software-to-the-us-secret-service & https://www.theblockcrypto.com/linked/71890/irs-coinbase-blockchain-analytics) - Zap Desktop v07.0 & v0.7.1 - Zeus v0.3.0 - Bisq v1.3.6 - BTCPay Server v1.0.5.3 - Specter v0.5.5 - Ronin Dojo v1.5 - Samourai Dojo v1.7.0 - Tallycoin v2.1 - blockchain dot com wallet fingerprinting analysis of marketshare - Bitcoin Mining Hashrate and Power Analysis - Zap raises $3.5M - Paradigm provides funding to Anthony Towns - List of ongoing dev funding by @polylunar_ - Animated QR code demo by Blockchain Commons - Russian Activists using bitcoin - Microsoft and the police state - Mitre Corp surveillance programs 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 long rip of Rabbit Hole Recap, man, I just went about an hour and 50 minutes. Very dense episode, very fun episode, I think you guys are going to love it. It's brought to you by your good friends at Unchained Capital. Unchain yourself. Unchain Capital. That's not one of their slogans, Unchain Yourself. I just ran with that for some reason. But what does Unchain Capital do?

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And on top of that, they have the incredible open source initiatives that they've been working on, which include caravan which is an open source uh uh release of their multi-sig quorum if you don't want unchained involved at all they've open sourced the software that allows you to create these multi-sig wallets uh they're also working on bip 39 bip 39 excuse me slip 39 not bit 39 and uh hermit and on top of that they have an incredible blog which includes parker lewis's gradually and suddenly uh joe kelly drew bansal uh will cole and uh buck are putting out incredible content go to www.unchained-capital.com that's www.unchained-capital.com check out all this stuff uh unchained doing incredible things this episode is also brought to you by the motherfucking

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of rabbit hole recap enjoy your day enjoy your life you only got one to live embrace it take advantage of the day seize the day carpe diem as they would say in a dead poet society enjoy you've had a dynamic where money's become freer than free if 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 what is up freaks welcome back to rabbit hole recap it's your boy marty on the back porch

studio in the back porch studio actually sandwiched between a couple of uh slip and slide parties from my neighbors in the backyards uh literally just started right before we hit record so record record so uh forgive me if uh there's there's sounds in the background matt what are you sipping on today i am sipping on some tam do definitely pronounce that wrong t-a-m-d-h-u it's from uh the scottish scottish highlands i've got what are you sipping on some blantons bourbon here the Blanton's that uh you were gifted a bottle too I I believe when we were giving those uh those minors the one with the horse on the top right yes yes very delicious very delicious whiskey I love the horse when I went to Iceland in Iceland alcohol is everything

is extremely expensive in Iceland it's one of the only places in the world I've been where the cost of living is more expensive than new york city uh which is a very weird feeling and alcohol specifically is also extra taxed so like a really good rule you know when when international travel opens up again is you're supposed to get a shit ton of duty-free alcohol on your way to iceland so you don't have to buy it when you get there and i got like this massive bottle of blantons because it had a huge horse on the top you know the bigger the bottle the bigger the horse and i purely got it for that reason well they sold you on marketing and aesthetics and they follow up with their product at least in my opinion it's delicious whiskey uh we're gonna be

drinking heavily today a lot of a lot of big topics to talk about uh what a day please freaks drink responsibly what a day yesterday was and we'll get into it we'll quickly blow through clark's dashboard right now we've got the price at nine thousand one hundred twenty three dollars very deep consolidation we've been consolidating for almost 10 weeks now around this low nine thousand high nine thousand price range that makes me extra bullish actually i really like this consolidation i think it's uh not that we talk about or try to predict price movements i just like to see when price consolidates like this currently at block height six hundred thirty 39,546. 454 blocks away from block 640,000. No significance. That's just a nice, big, even number.

We had a difficulty adjustment earlier this week, and it was an increase of about 10%. The hash rate in the last 2016 blocks is averaging about 123.8 exahash a second. We have 1,542 blocks till the next retarget, which is scheduled right now. It's estimated around July 26th, and that is estimated to be a negative 1% downward difficulty adjustment. Fees right now making up 6.44% of the total block reward. We got our core version 0.20.0. It is the most downloaded node version right now. 22.8% of the network nodes are using that version, the latest version.

Interesting to see. Samurai Whirlpool unspent capacity is currently at 1,154.76 Bitcoin. um the cycles in the last 30 days are 7464 and the tx0 volume in the last 30 days is 366.67 bitcoin what you've been seeing on whirlpool stats looks healthy could be higher uh we'll talk about the twitter hacker in a minute but he didn't use whirlpool so he's looks like he didn't contribute to the volume i've seen some uh chain chain analysis of the twitter hacker he is not very smart pretty bad pretty much as bad as you can get yeah um what was he going to say uh you were talking about uh consolidation of the price yes

and you told all the freaks to market buy yeah i mean i didn't say that directly i was sort of alluding to it but you can if you want to but usually when we get into these consolidations right where it's just like volatility just goes down and down and down and down something big's gonna happen yeah it'll either break up or down really big as you you know that's what happens that's the the volatility will be back soon enough freaks i mean uh and i think that's part of the reason why twitter has been kind of uh lame bitcoin twitter has been lame until the hack yesterday is because when there's like no volatility there's just people just start going at each other yeah yeah they start eating each other and they get bored i try to stay above

that fray do i do a good job i think you do an incredible job you you stay focused on uh on high quality tweets i try my best it's very difficult i think you do a good job though yesterday i mean yesterday was exciting let's just jump into yesterday i but so i talking about bullish uh i said to myself so yesterday if you were under a rock there was a someone hacked twitter and they were posting from major big accounts um a bitcoin scam and first it was a link to a bitcoin scam website one of those giveaways send bitcoin we'll send you 2x back and then they just started posting bc1 addresses just bitcoin addresses directly into twitter accounts tweets you know in bill gates got hit barack obama got hit joe biden got hit

and i said to myself is this bullish for bitcoin and i was like everything's bullish for bitcoin matt and i just market bought like i just and it's down it's down since then so this is extremely below your time extremely bullish for bitcoin uh the fact that they're using beck 32 it literally it was the best marketing day for bitcoin this year dan held i hope you're happy we got some grassroots uh marketing efforts from this hacker and we should know dan to blame for the hacker was the hacker like oh we need better marketing and dan convinced me i mean he seems like he's on top of the uh the bitcoin space particularly i mean angelo btc was the first to get hacked right it started in bitcoin twitter yeah that's why i think it was a big corner yeah

and then it moved to it from one from angelo to like the exchanges bitcoin exchanges and then coindesk and then so my take is twofold i think well it appears now that the hacker got access to an admin console like a super user mode of twitter so i have two takes here that i want to start off with i think you'd agree with me is the first take is i think i mean it obviously shows the perils of having a centralized system with admin keys which is very common in the crypto space to have admin keys and centralized control so something that people should really learn from those trusted third parties or security holes and the second thing is i wouldn't be surprised if this admin console is something

that was always very you know closely guarded and secured in their offices where i i think you went to square's office once right yes i did disclosure sponsor the pod i'm i imagine square's office which was in the same building as twitter is very similar concept and you have to do like kyc to go in and stuff it's like very tightly guarded and they have all these access controls and stuff But now all their employees are working from home and shit. So one of their employees had the admin console like on their laptop at home. And that's how it got compromised. It's a very different situation for these companies when all their employees are working remote.

Yeah, it opens up another attack vector. And so that's the big question right now. A lot of people are assuming the motherboard came out with a good article. uh apparently they're they have sources close to the situation they're saying that a twitter employee was bribed to get access to this panel and then it just gave them god mode over all these accounts and that was the big question as the hacks were going on a lot of people were speculating that it was a third-party service like hootsuite that had been hacked and the api calls were being messed with but uh it later came like a lot of these accounts had 2fa on especially the exchange

accounts and it became apparent that people were having their their email addresses changed in the background uh without even being notified via email so that may be a function of this admin panel and so yeah somebody got root access to uh twitter's god mode and asked for bitcoin donations and using back 32 addresses so you have the chad uh root access uh bitcoin scammer versus the virgin uh reply guy bot eth scammer i think that's very bullish for bitcoin uh very bad day for i'm going to very bad day for twitter though dude they're gonna get they're gonna get dragged into court for this because this stock barely budged but i mean the whole market hypothesis what's the whole platform versus publisher debate is going to get dragged really into the spotlight here

because if the screenshots of this admin tool are real, they have shadow ban lists and black lists, which Twitter has come out in the past and say they do not curate content or push certain content over another piece of content. Have they actually said that? i think so in court too that's what um that's the word on the street is uh i thought it was known that they have like algorithms and shit i thought they said they they don't shadow ban they never admitted to shadow banning yeah well that's exactly that's the yeah and that's the shadow banning and uh sort of uh hashtag banning is what people are honing in on because i think

in the past they said they do not do that and this screen they block trends and stuff yeah and they had the screenshot that's going around and i can't confirm whether or not it's it's real or not but if it is real uh that's those were two sort of buttons on or or tags on on the dashboard where we're it must be real because twitter's deleting them yeah yeah that's the other thing yeah tough so it's got to be real they're like basically admitting to it being real well that's what like cernovich tweeted out yesterday they're going to get section 230 of that bill dragged into this discussion because if this is true uh it does make a very good case that twitter is acting as a publisher not a platform which makes things a bit um well i don't want

regular i don't run regulators to be regulating all these no neither do i but it's not a good sign do i and that's why i mean twitter is shooting themselves in the foot right they should just like preempt it they should just switch back to a time-based feed they should do no moderation they should allow you to subscribe to moderation lists and let those people moderate for you um you know i could i could imagine like you could subscribe to like all different organizations that moderate that have the power to moderate whatever you want to or you can just do completely unfiltered twitter but just time-based and like that that that takes them completely out of the equation and they can just skip all this one thing that's interesting

is trump uh i think it was like a year ago or two years ago like a rogue twitter employee like deleted a bunch of his tweets or deleted his account his account yeah um so i think they like put him on like a locked list like he wasn't in the admin console which is probably one of the reasons why like biden and obama got hit but he didn't get hit yeah i mean that's a scary situation about all this garbage or z-boat freaks third third parties are security holes trusted third parties are security holes and a lot of people are surmising that if trump's account were to be hacked and this uh hacker wasn't so gung-ho on getting bitcoin instead was gung-ho on fomenting chaos in the world he could he could hack trump's account and send out some tweets that

that incite reactions from countries around the world and it's uh it's fascinating to think of how important twitter has become as a communications tool in today's day and age and how much trust we put in that in this platform and it yesterday proved like holy shit you can't really trust that anything is safe on this platform and so the other thing too is you shouldn't have to be did the did the attacker really want bitcoin or is that just a sort of facade to really get to the dms of these powerful people which no no i want to push back on this like chad hacker meme like this guy was in the chat like like there's i respect it but like i don't think they knew how much power they had i think they like stumbled into it that's why they started with angelo first

and there's like there's so many different ways that first of all they could have made more money uh they could have if if dms were really the thing don't do any posts you could just silently be collecting all these different dms and you can just be in there just for a while you know and just take all these dms there's no reason to blow up your spot like i'm surprised twitter took so long to i i mean i i think some people mistakenly think that the hacker disabled blue checks from tweeting which also is hilarious because i would never get a blue check um but it was actually twitter doing a safeguard they were like okay we can just disable all blue checks so the hacker can't access blue checks without taking down the whole platform but like i'm surprised twitter

didn't just take down the whole platform just like pull the plug uh to try and mitigate it and they basically did by taking down the blue checks at least they took you know like their corporate platform down uh and there's so many ways like even like imagine if the only the only tweet that went out was like obama pumping a shit coin right or like elon pumping a shit coin like announcing that he had taken up a 10 position in dogecoin or something right like and then the hacker is like 100x somewhere on some exchange and just like makes bank he can make so much more than a hundred thousand dollars and and and one thing that i want people to realize is the total amount in the address is not how much the attacker made because they send they intentionally send

money to themselves to to make it seem like it's more active so it's an easier scheme to fall into if you see that the address is more accurate yeah they try to create like a group mentality oh people are sending it here i should too uh a fomo kind of yeah no and i think i would agree with you there especially after seeing this chain analysis of uh the movements of the coins before and after this hack this dude's screwed i think they're gonna be able to find them oh yeah the bitcoin part is probably his weakest link that's that's how fucked up bitcoin's privacy guarantees are that if you don't use bitcoin uh safely like in a in a educated way like it becomes your biggest leak this guy could have used tor and all these other privacy

preserving things but the the bitcoin itself will be his downfall yeah this hacker is not listening to tftc uh he should the chain analysis is horrible like you know like what we've seen from the graphs of of his transactions like it is severely bad like bitmex is in there coinbase is in there coin payments is in there yeah what is coin payments that's all i've never heard of them it's like what a smaller bit refill okay all right the gift cards for bitcoin i can turn my mic back up here it seems like the sprinkler parties are over uh yeah it'll be i mean it'll be interesting to see what the fallout is for twitter as the company uh people's trust in it uh certainly uh certainly hurt yesterday there's a wounded wounded trust bottle there um you take

these things for granted and then something like yesterday happens and it really drives the point home like holy shit you can't trust any of these companies with your data and dms on twitter like don't talk about anything that you wouldn't want the dude with the twitter admin access to to be able to read yeah i mean this is why i tell people to use pgp or keybase you know when they message me uh like twitter dms it's you know it is it is not you and you can't delete them either you know so it's not even just not encrypted you can't even delete them um and a lot of times they're tied to people's real identities uh yeah i i i do want to say that first of all you know hopefully this does push some people a few people to realize the

importance of encryption and distribution decentralization um and and trying to reduce trusted third parties and open source software um and it will but the overwhelming majority are going to completely forget about this just like what happened with equifax um when like every american adult got all of their personal information stolen no one talks about it yeah but do you think the fact that dms are exposed here would make people act more aggressively look maybe if there's like a long pronounced like every week new celebrities like crazy dms get posted um then people will realize but two things first of all i don't think that they actually went for dms i i i think it's amateur hour i think it was

they had no idea what they were doing they didn't really plan it out and they kind of just went for it and and you know just was they just were going for it it's just like the one thing happened after next like oh my god we have access to all this shit and the second thing is how do you release those dms are you going to release them as screenshots yeah how do you prove that how do you verify that that's a good question like are we going to see a bunch of fake dm leaks now potentially all right if they're real dm leaks do they get intermixed with fake ones most likely if there's real ones they'll definitely get intermixed with fake ones yeah it's the interesting thing about entities like wiki leaks that take emails and that can

be cryptographically verified on the internet you can't can't verify these dms yeah so if these dms are released you can't you can't really trust that they're real so i i guess that can give anybody who was hacked a a small peace of mind there well i mean if they had admin console we were all hacked it's just we just didn't all have our tweets we didn't have tweets sent out from our from our whatever what do you think of uh what do you think of the the uh the fake tweet i sent out oh my god i unretweeted it after i read the first time i saw it i laughed out loud i literally thought it was the most hilarious thing ever i retweeted it and then i had like a bunch of people message me to let me know that

you got hacked so then i unretweeted it because i was like people didn't get the joke they didn't realize i like that you switched to bitcoin for health instead of crypto for health as well that that was a nice touch i thought it was you know i thought that was hilarious yeah i thought it was uh ethical to not to not to tie that we're going to give back bitcoin but qual takes um just in case yeah no it was it was very it was very good tweet but like it tricked a lot of people i got so many dms ironically enough telling me that that you got hacked and i needed to help you um the other thing i wanted to say is is like this is the point of the story where i grandstand about why i've always taken a hard line about buying engagement through bitcoin

giveaways and crypto giveaways okay because when you normalize this fucking behavior then you enable scammers to use that same behavior so i i hope some people that have been doing giveaways take that away from this not everyone will but hopefully some will yeah yeah and i think this guy is is going to get caught pretty quickly so 100 100 what an idiot i hope it was worth the joy ride on twitter admins tool for for six hours whatever it was i wonder if it was a freak hey let us know we'll write you letters in prison um about what you should what you should do better next time we will you know who is a freak i mean we'll write you letters we're not going to give you any kind of advice on evading law enforcement well talking about evading law enforcement i think

we've got uh one of the biggest law enforcers particularly from the treasury department as a freak steve munching butts gave us a shout out as critical uh tftc is critical to the fight against terrorism so that's uh what does it really stand for i think the uh terrorist financing something uh criminal task force or something like that task force yeah terrorist terrorist financing financing task force coalition or something i don't know tales from the crypt thanks to the hard work of tftc dude i'm actually i'm interested to hear your thoughts on that because uh the freaks shout out to you freaks uh spammed his his mentions like out of 56 mentions i think 30 are about our podcast

imagine imagine being like one of the most powerful people in the world and when you you tweet you send out a tweet and all of your engagement is a bitcoin podcast and you just fucking hate bitcoin steve that would rile me up i hope it did i hope it didn't like put us on his on his bad well that's like are we on steve munching butts radar now i don't know it's marty's podcast steve if you're listening just hit him yeah hit me up steve i'd love to have you on we can have a nice discussion um we won't bite we'll write you we'll write you letters in jail from jail or in jail or i don't know steve mnuchin just thinks that like all big corners are criminals he's like a true bitcoin denier steve we're not all that bad he's an enemy of

bitcoin we're not all that bad hey he likes tftc though maybe he's coming around maybe hey steve the invite's open we're not bad people okay uh on the bitcoin stuff on the more pertinent bitcoin stuff we mentioned the samurai rounds uh while looking at clark moody's dashboard a bit of drama Uh, uh, uh, with Samurai this week, Shinobi, uh, revealed to them, uh, last month on June 15th, uh, about a sort of address reuse with the post mix spends that, um, that he discovered. And I guess he gave them a month to responsibly disclose what he had discovered. And yesterday, the Samurai team and Shinobi sort of wrote postmortems on what was going on, how it happened. You probably understand this much better than I do, Matt.

So what the hell is going on here? So I'm still trying to—this did drop yesterday. As you said, Shinobi responsibly disclosed it to the Samurai team. A month ago, which is great to see when you find a vulnerability, you responsibly disclose. And the claim is address reuse in the post mix. Not in Whirlpool, but in the post mix. So after you go through Whirlpool, you end up with a bunch of post mix UTXOs. obviously address reuse is bad for privacy right so in the post mix you don't want any address reuse

and one of samurai's big goals is to reduce address reuse and bad post mix behavior as much as possible try and automate that away um so you know but people are going to be people so there's a bunch of address reuse that so so samurai tried to replicate it they couldn't replicate it so instead they went back and they shinobi gave them 200 transactions of 5,000 that he found and then these 5,000 he then posted yesterday but up until that point he gave them 200 they couldn't replicate it so what they did was they went back and they did all 12,000 post mix UTXOs that have ever been and they analyzed them to see when there was address reuse the majority of time

there was address reuse um it was like intentional address reuse right so it's like a user sending to like paxville or something a lot of them were paxville for whatever reason uh which is like a gift card exchange site uh and and you're just sending to an address that has been used before right so like the wallet can try its best but like if the user wants to send it to a reused address like they're going to send it to reuse so that's my question like in the post mix like when you're done mixing is there a stage within whirlpool or a samurai wallet where it's still within samurai software and sitting in a an address after it's been mixed and isn't live anymore well so there's a small subset

there was a small subset of like 400 transactions that addresses were reused and it appears they were reused unintentionally and most likely from my limited understanding here so far i don't want to like make too big conclusions and we will keep discussing this we're going to talk about it next week as well there was situations where there was unintentional address reuse and that's the big that's the big risk like if a user wants to like if a user has like a like a good example is like bitmex right your bitmex deposit address which you should never use bitmex is a fixed address it never changes right so if you send to that

from post mix over and over again like that's address reuse there's nothing the samurai team can do about that like if the user wants to do that the user is going to do that you can like pop up a warning um but the user is going to do that there's this other subset unintentional address reuse where the change output right you send bitcoin you get back change in your post mix wallet that change is reused now that's an issue you don't want to ever reuse a change address because you don't have to and samurai can enforce that um so presumably the small subset of transactions where that happened it happened because of a tor reliability issue and the wallet losing track of where it is in the wallet right which which which addresses have been used

like a jump forward type bug or something like that but backwards yeah but jump forward would be gap limit right where like your wallet doesn't know where they are but jump backwards and then all of a sudden you're reusing addresses you've already reused before it's because the latency issues because the tour yeah it seems that way i'm not positive um for now what samurai has done is they updated dojo to add this strict mode which basically dojos is your your the back end and they've upgraded their back end so if you're using it in light client mode which you shouldn't be, frankly

or if you use the upgraded version of Dojo Dojo v0.1.7 I believe is it that just released no, v1.7 it enforces it will not broadcast the transaction if it's been if that change address has been reused

if there's unintentional reuse. And then one other thing I can add here is that I looked at all my PostMix transactions. I'm using my own Dojo. I looked at all my PostMix transactions. I have no unintentional address reuse in there. So I don't have the wherewithal to do massive chain analysis.

but for my limited analysis of my usage of it I've never experienced that and then one other thing which is also unconfirmed because I don't I don't have the capability to do like massive chain analysis is the majority of these transactions were from before they even implemented mobile mixing these unintentional so it's on older versions of samurai but an easy way to check to see if you have used address reuse is if you go to go to block stream dot info store tour portal on through your tour browser you go to block stream dot info and actually now tour browser it automatically will ask you if you want on the top you can click and it automatically takes you to

the onion and then you can set it so it just automatically brings you the onion every time and if you put your transaction id in there it will show you if the address has been reused or not and but one thing to keep in mind is if you keep putting in addresses then technically blockstream could link those addresses so what you want to do is in tor browser every time you do it you can switch your tor identity and then it it swaps your tor identity when you do it if you want if you want to check your own post mix transactions um and if you upgrade to dojo if you upgrade your dojo then it'll block it on the back end side while they continue to investigate they just wanted to make sure that they like nipped it in the bud for now yeah the uh the coin join wars

continue the flame wars it's yes i i want to say though that this has been the most responsible exchange between the two the two so-called sides here uh here at tftc we're often caught in the middle but this has been the most responsible exchange uh shinobi responsibly reported it to them they released a very in-depth analysis and a patch to the software uh so that's good to see right that's definitely a positive element is shinobi even officially associated with wasabi Or is he just partial towards He's not officially associated with Wasabi But Nopar is a co-host on Block Digest

That's true And they don't mince words between each other Shinobi and the samurai guys No Samurai guys are not It is nice that this was handled maturely On both sides And at the end of the day

Samurai users have They're in a better situation now than they were before uh so we'll see i mean look regardless still way better off than whatever this fucking hacker did he didn't even attempt to fucking do anything i don't even know what an idiot he's definitely not a freak because he would have he would have coin joined well when i saw the bc1 at first i was like all right based i i thought you know wasabi and samurai both default to that that's the only address type you can use to use them so i assumed he was getting all of his funds were going straight into one or the other and i was waiting for like him to just press coin join

you know and it didn't happen i was surprised no um our hacker not friend our had the hacker that we're talking about we will write to you in prison we won't teach you how to be smarter but we'll we'll tell you where you fucked up how about that um i think a lot of people are going to tell them or her or her we can't be uh can't be too sure you can't assume their gender and we cannot um yeah yeah so anyway well like i tried my best to explain my understanding there uh i hope that was helpful to you freaks uh and we will talk about it again uh you know i've been trying to talk to other people about it and try and gauge their opinions and their takes and uh the the privacy focused community in bitcoin is a very close-knit community a very small

group of people is it really close-knit so it you know i'm just saying like it got it got dropped on us right as of yesterday so like i i i i'm curious what a lot of other people have just what their opinions are of this and i'm going to gauge their opinions and i will share their opinions as well next uh next week yeah and my my opinion will probably also uh shift a little bit or mature i like mature mature is better than shift uh it'll evolve my opinion your understanding i won't even say opinion your understanding will uh yeah yeah exactly um hey shout out to all these teams working on coin join implementations i know you guys hate each other at some points and yell at each other and hey i even get caught in the crosshairs of your ire uh even even though

you guys yell at me and lament to me sometimes i appreciate what you do you know i'll i'll eat those lumps when i have to shout out to you guys um what do we got next should we go through should we just run through updates and then get to like the meaty topics uh yeah but before we do that just like a really quick bullish thing uh difficulty hits new all-time high seven where's the mining death 17 trillion or something like that uh or 17 to something power i forget what it is ari ari paul should be funding bitcoin development instead of fucking footing bitcoin death spirals is what should i've been blocked by ari i haven't seen uh no i still follow i'm blocked by him he blocked me a while ago he's in good company he hasn't been tweeting that much

that's what people always ask me like matt how do you do it with no block empty block list and empty mute list well like all the worst offenders they all they all get pissed off me and block me so they just do the work for me yeah um i've been i mean we've talked about this before i don't i don't have a problem blocking people you know there's so much mental bandwidth that you can you can allow others to to take up in your in your mentions well you know good old-fashioned ignore no i agree you can ignore or just like never see it which is even better than ignore this takes effort to ignore agree to disagree marty agree to disagree i can agree to disagree when when somebody's trying to have a civil discussion but when it's

oh no i was i was i was saying me and you oh yes we can agree to disagree on this always always look most people on bitcoin twitter disagree with me on this topic so you're in good company yeah um another attack on the lightning network being brought oh let's run through the updates okay let's run through the updates let's run all right uh any of you hardcore freaks running a bunch of different uh software hardware apps in the bitcoin world uh running your sats through this there have been a bunch of updates this week do we want to just run through them tell them that they should update or do you have any particular updates that you want to focus on and talk about what's been merged uh zap desktop was a huge fucking update because they've been working on strike this whole

time uh so they like brought it up to speed uh they just added key send support i believe um a bunch of other reliability things have been added to that so that's like massive update if you're a zap user zeus just got updated to v 0.3.0 it's a major update right yeah these are all pretty big updates bis got updated v 1.3.6 staying on bis i really like their marketing efforts recently um the videos they've been putting out it seems like that bis now is putting some money to work to to bring more attention oh that's one thing i wanted to mention yeah i fucking love bis um shout out to that team over there i wanted to uh we talked about plaid and and because zap just came up so i thought about strike and i thought about jack maulers

our boy jack and we talked about plaid being integrated there he did like a tell-all interview with block digest um that the freak should go listen to and you know janine over there is major privacy advocate and tons of respect for her so she asked him a bunch of hard-hitting questions um you know plaid is now rolled into visa who they partnered with uh it's only the plaid integration is used if you connect your bank account not if you do the debit card the other thing that's interesting to mention is that they're using a partner called cognito which is if that's why it's debit card plus phone number plus name is all the kyc you have to do is because Cognito uses the phone number and the name

to look up all the other required KYC info. So if you don't have a social security number and shit attached to that phone number and name that Cognito has in their database, that's when Strike asks you for more information. So it shouldn't be considered KYC-free or KYC-light even, but it's a benefit that at least you don't have to put that information. That information is already out there. cognito already has it uh you don't have to trust jack to securely store it right and it reduces

friction there so so there's a benefit in that regard but it's not really um the like lack of kyc and then the other thing is i discovered after i you know shat on plaid uh is that cash app has plaid integrated who's our sponsor so it would behoove me to mention that and the reason i didn't realize that is because it's the same thing plaid comes into play uh if you set up like ach if you set up like a bank transfer if you do if you do it through debit card it does plaid isn't involved so just another thing to keep in mind i needed to get that off my chest beware freaks be aware we love you jack keep hustling yeah be aware be aware no that's what somebody uh somebody's coming at me uh for kyc stuff today uh and again i don't think we could be more vocal

about pointing out how evil kyc aml is and how much more harm it does than good uh we also i mean fucking hate kyc yeah but again like you also have to feel for some of these providers where it's forced upon them too they can't operate right and so hopefully we get to a point where some of these financial institutions and fintech companies are able to band together and stand up against this. Maybe that's something we should think about as a group, as a community of freaks here.

How can we give these companies confidence to stand up against these immoral laws at the end of the day? Do we as users of these products need to be more vocal? What are your thoughts, Matt? um well first of all i want to thank all the freaks out there for keeping me honest you can count on us to always return the favor as well um and the you know kyc is fucking dangerous we hate kyc i think it's really one of the things i love about the

bitcoin community is i get shit from the uh no kyc absolutists saying that you know we shouldn't have a kyc sponsor and we talk about kyc products too much and then i get shit from the kyc lovers the statists on the other side who are like you talk about no kyc too much and and it's just not practical and all this stuff so you just we get shit from both sides and that's how i i think that's confirmation that we're doing it right um but yeah we should give them cover i think the other thing is is um like an important practical thing is like if you are going to kyc you should choose your providers very very very carefully because you're trusting them intimately and you should reduce the amount of usage you use there so there's some nuance there right so you

want to you want to isolate where you do do the kyc and you want to pick providers you trust um and then the other thing is uh and i can't believe this week the twitter hack and shit has been so crazy that we didn't lead with this story uh at least they're not fucking selling surveillance software to the irs and the fucking u.s secret service and let me remind you that the u.s secret service were the ones who were in charge of fucking executive order 6102 like actually doing that fucking order to take people's fucking gold from them yeah i mean and again very selective is who i allow to advertise on this podcast and partner with cash app and unchained particularly because i know they have people within those companies who have the balls

to stick up to these chain analysis companies and tell you fuck off we we don't need we don't need your services we don't want to spy on our users more than the kyc aml regulations are forcing us to well i know does i think unchained doesn't even i don't want to put words in their mouth no unchains come out and sit up for coin joins like hey if you coin join right before they stood up for coin joins but i don't know if they have a subscription to one of these services i don't want to put words in their mouth but they they definitely specifically said that they're fine with coin joins and we've never seen any kind of cash up we'll never say it publicly but we've never seen any kind you know knock on wood we've never seen any kind of issue there um with cash

up and withdrawing to coin join um i do like to think that these companies are a step above and they want they want to it you know if something happens like we will call them out uh but once again even subscribing to a chain analysis service to a surveillance company service is wildly different than what coinbase is doing which is packaging their own service creating their own surveillance product selling it to the u.s government agencies while virtue signaling on twitter that they're about open finance like we had brian armstrong finally spoke about it and he tried to excuse it away he said specifically he said they're trying to recoup costs coinbase is fucking rolling in the shit coin money they are not recouping costs selling surveillance software

to the secret service for 184k i think for four years like way below market i my sources telling me that elliptic which is like the number two sells for like 50k a year um and chain analysis sells for like 125k a year selling it to seek the u.s secret service or 184 4k for four years is not like that's pennies they on on coinbase's balance sheet that's pennies they are not doing it to recoup costs they're doing it because they're brown nosing they're like getting on their knees and they're trying to get around the fact that they sold unregistered securities to the general public and they want to go public themselves on fucking stock exchange. We know exactly what you're doing, Brian.

What's that? They've had Katie Hahn on their board, who's ex-Department of Justice, I'm pretty sure. I mean, we've talked about this ad nauseum. Naked mole rat. Hacking team. naked mole rat and crew is just consistently throughout time been anti-bitcoin at every turn pushing contentious uh forks uh pushing shit coins uh doing this data share with the government and really just handing over everything about

their customers to um government agencies and i mean we can beat a dead horse here but like just look at their actions don't look at brian i mean you can read brian armstrong's the naked mole rats uh tweet threads it's all it's all fucking air man coinbase is a16z's portfolio consolidation company within the crypto sphere and they are more game to play ball with regulators than anybody else in the industry that i've experienced no yeah i mean they they just continuously take it to the next level uh like i love i love the meme that you made to the open finance mean you know meme is you know if the picture's worth a thousand words i think like a meme's worth you know a hundred thousand words or something like that a nice good meme naked bull rats taking off

i see it in all of under all of his tweets it must drive him crazy well does he even have a soul he's like robotic i don't know brian i know you're gonna whoop it i don't know i got a lot of shit for saying that coinbase employees didn't have a soul so i'm not hey i actually i know a few coinbase employees they're very good people they're very good bitcoiners well then why haven't they left the company yet yeah you know man it's i don't know i can't coinbase employees aren't like mcdonald's hamburger flippers okay they are they are they can be hired by any company in the space they want to go to go help cash out river top dollar go help those exchanges they're not like i'm sorry okay i'm not going to give you the like whole like oh like or you're going after

someone's livelihood like they can move like they can switch and and now all the jobs are remote but even if they weren't like they're based in silicon valley they can go to any of those companies they would be happy to have them well this actually drives a good point and there's a good segue into another topic that we have on the list about blockchain.info as well it's like these early movers in this space have a lot of influence man like even though we shit on coinbase a lot we're basically screaming into the ether uh because newcomers don't listen to this podcast and don't know ether i thought this was a bitcoin not ether as it was originally intended uh and ether the the the asset probably actually definitely definitionally like vibes with

that that definition like you're just throwing your money into into an abyss but uh where's that the fire a fire an abyss whatever but going back to the topic at hand these incumbents these these early movers in this base blockchain dot info with their wallets and coinbase with their exchange and and market share they still have a lot of influence yes so um this dude this german bitcoin developer 0xb10c who actually spoke at new york bid devs um pre rona uh so i met him there great dude i did an in-depth analysis of blockchain.info users using wallet fingerprinting techniques which is what we've discussed in the past on this podcast which is unique things that the blockchain.info wallet does with their transactions you know

they don't have sequit enabled is one of those fingerprints that allows you to track the transactions along the chain to see how much their usage is and it does appear that they are about 30 percent of of transactions um are blockchain.info users and you should not use this wallet like this is a really really bad wallet you know that that is a there's consensus there on this wallet just being fucking horrible so yeah like that sucks to see and i mean if you want to look at how bad the situation is i mean just open up the app store is their app wallet or the web wallet it's both and if if you know so blockchain.info started as a web wallet it was one of the first non-custodial easy to use web wallets so as marty said it's had first mover advantage i mean they

also have blockchain.com which is like an insanely good domain i mean the freaks know what i think about domains i mean it's not as good quality as cuck mentality.com but it's close it's like up there uh so they they've they've been able to ride that tide and and if you want to see how bad the situation is i mean you go into the app store or the play store on android um you type in bitcoin wallet um all the top results are complete shit so you know consider going in there and rating the wallets you like up you know to help them out do consider though if you do it

on play store it doxes your google account being interested in bitcoin which is not ideal on apple they don't do that interestingly enough so use a burner gmail account if you're look you shouldn't be using play store anyway to download your

bitcoin wallets you should either be downloading the apk directly and pgp verifying or download from eftroid but what are you going to do i don't know these are things you can do if you are using play store rate them up or don't consider the privacy implications yeah i mean it is crazy dude 30 of transactions coming from blockchain.info wallets like who the hell are using it like these people must not go on the internet much they're saying 30 to 35 that's a significant portion of the network right there

that's pretty crazy right like you think it was way lower i mean i thought we had like pretty good consensus that no one should be using that fucking wallet yeah like and i guess that drives the question like again are we just speaking into the ether here like who are true bitcoin end users that are even aware about conversations going on twitter on podcast in other areas that's where i said i've said this in the past like the only way this thing scales is that the freaks go out there and they tell, like, their friends and family, you know? Like, that's the only way this scales. Like, we're never going to be able to hit everyone.

Everyone's not going to be on Twitter. Everyone's not going to be on Reddit. I mean, Reddit consensus has been anti-blockchain.info.com for fucking years now, right? So, like, you got to, you know, you got to be a good Uncle Jim. That's what it comes down to. Hey, freaks, do your part. Get out there.

start knocking up on your neighbor's doors hey you should listen to this podcast take their phones out of their hands they answer the door after you knock on it and they have their hand in their phone their hand in their phone their phone in their hand you take that phone out of their hand you go to their podcast app and you just subscribe them to this podcast and say hey you look them in the eyes sternly you say listen to this podcast and i'm going to come back next week and i'm going to ask you if you listen to the podcast and if you haven't there's going to be some repercussions and you decide what those you decide what those repercussions are give them some actionable recommendations they don't have to listen to the podcast no they have they must but we'd love to

have them we would love to have them also if you are ringing their doorbell and it's an amazon ring device you should rip it off yes yes in one foul swoop and tell them i didn't give you permission to spy on me so because i'm sure then they'll take your podcast device right after you rip off their brand new expensive acid video doorbell just like yeah just take control of your neighborhood rip down the the nest device give give them quality bitcoin information and get their lives straight this this world is off kilter right now people need some actionable good advice and these are actionable steps that you can take to develop better practices within your local neighborhood all right we're just looking out for your neighborhood consider tftc your neighborhood

watch so to go back to updates btc pay server got updated v1.0.5.3 a bunch of psbt updates in that and payjoin now works with hardware wallets what else do we have here we have ronin dojo v1.5 got updated it brought all the packages up a notch and fixed a bunch of bugs and reliability fixes. We already talked about Samurai Dojo v1.7. Spectre v0.5.5 got updated. I mean that's a really big deal. I think Spectre is like one of the software packages that we should really be watching. I like to see someone provide a grant to them because I think that's how we that that seems like our best shot here at getting the soonest that we get

user-friendly multi-sig with your own node so I'm watching that project very closely tally coin V 2.1 also got updated I'm like a tally coin I've distributed a few donations using tally coin I really like the UI and in the ethos of the project I can't remember the name of the project all the top my head but there's There's a... What, the dude? There's a...

I believe it's Nigeria. A Nigerian is trying to... Oh, Spacebox? Yes, he's trying to get a Spacebox so he can set up a town node. It's like his node project, right? I threw some sats at that. I think that's a worthwhile project to look into.

Can't remember the name of the project off the top of my head. think it's called space box yeah it's called space box and the guy's name is I'm gonna butcher this Chimazee Chuta and his tag is at M E Z I E 16 so he's using tally coin I'm trying to alright DJ booth 0 0 7 is the dev behind tally I really like this dude, he's a hustler, he's a Bitcoiner. So the idea behind TallyCoin is, yes, if you're running donations, if you want donations, you want tips, you want to do crowdfunding, you can run a BTC pay server, you can host it yourself.

The best way practically to do a BTC pay server is to run it in a VPS, at least until we have ways to tunnel from your home node because you don't want to if you're running btc pay on your home node without tunneling you're exposing your ip address which we've talked about on this pod like a bunch of fucking times it's really bad for your privacy to be exposing home or office ip addresses so you're going to run on a vps and then what happens is you're doing luna node because it's the cheapest one and it's like a hundred dollars a year and you're kyc'ing to do it um well it's like like kyc you have to do like cell phone verification and they like block burners uh so tally coin sits in the middle and you upload an xpub and it does a fundraiser for

you and then they they host it and it's completely donation run dj booth just accepts donations to to pay for the service he doesn't take a fee on top so it's a nice middle ground i do wish that the xpub integration served a new address every time i don't know why it reuses addresses um that doesn't seem to be an option to to serve a fresh address um i've been meaning to reach out to him about that but i haven't so i if you're listening dj curious it'd be nice to have that feature why why but beyond that thank you for building it i've used it twice i uh that um space box donation that i helped contribute to the uh the uh the jersey shore uh banner ad uh plane banner ad that flew down here over fourth of july you fucking did it right

and they wound up donating uh any excess proceeds to locha mesh so i went out and helped that as well give back what's his tag again that's adam that's adam adam paul moore shout out to adam paul moore little known fact adam paul moore uh one of the first believers of marty's bent and first advertisers of marty's bent gotta give a shout out to him uh and his digital marketing um company that i met him in person yeah i've met him in person many times to another another philly guy another legend uh adam thank you thank you for your early support of of this media network or whatever this is lifestyle brand lifestyle i like yes lifestyle brand there we go we're citadel citadel corporation citadel aesthetic planners um that that banner he did was great so this is

another just to go back because i love going back to connections in rhr um this is a perfect situation right where if you're doing a naive analysis of post mix transactions people who pay a tally coin fundraiser from their post mix will appear as they're reusing addresses but you know that's because tally coin has a fixed address for the crowd fund so that's like not something that the wallet can really enforce i should probably know this but is there an advantage from like utxo compression if you're just doing a one one address like is it cheaper that way no no but the advantage is because they're still individual utxos um the advantage is it's like very easy for transparency to show

how much the crowdfund is raised right yeah that probably makes sense because you can see the balance go up yeah yeah i'm like the btc pay server crowdfunds you're just trusting that the btc pay server crowdfund page is telling you exactly how much donations have come in yeah but because addresses aren't being reused and because they have lightning you don't really know for sure i imagine if you're pulling xpubs from hardware while it's too that's probably just like a user experience hack by djs like instead of having to deal with like the the gap gap forward problem just use one address i know it's weird though right because like tally coin lets you upload a single fixed address

but then it also lets you upload an xpub and when you do the xpub it gives you a fresh address for each crowdfund you set up but not for each donation it's just an interesting little I bet it has something to do with the gap forward that would make the most sense to me

well if tallycoin doesn't do it there will be an easy way to accept donations without reusing addresses soon besides i mean samurai has paynims but you can only pay with another samurai uh wallet because no one else has implemented bit 47 yet which is weird but there's also going to be another wallet that implements bit 47 i just can't talk about it yet we'll talk about it drop some news scoop i want to be able to scream scoop on twitter at some point

yeah you can i'll let you i'll let you scream scoop how can we never scoop we never get the scoop tweets here at tftc because we scoop all the time we just don't have to tell people it's a scoop they just know it's true i don't want to not to i'm not throwing shade at frankie scoops frankie scoops we're happy for your scoops scoop to dupe i called dudas a tool on twitter yesterday um why did he tell people to hack presidente i don't know it was a bad move dave was not happy that was like the worst like it was the best bitcoin marketing day ever dudas had to ruin it again davy day trader uh all riled up do we know what his reasoning was dudas's or yeah i mean i can only does he just not like does he not like barstool

uh based on observation i could imagine that it's not his favorite brand that was a weird tweet anyway it was deleted before i saw it yeah as is tradition typical typical um but hey we try to talk about ideas not people here at tftc uh do we we like to mix mix it in and out um bituda which is a uh company in new york believe they're in new york pretty positive they're in new york attempting to create uh markets for uh hedging products for for miners and other people within the bitcoin uh industry came out an incredible analysis of the bitcoin mining landscape yesterday they dropped it i believe they're doing it in conjunction with fidelity who is is trying to amass uh more data on the

mining industry particularly to help bring um more transparency to the mining industry and so bituda came out with uh a report yesterday i had some pretty i mean there's been rumblings of uh some of the stuff that they talked about throughout the industry um for a bit now but they basically confirmed it with some pretty pretty good data uh biggest um sort of data point that stuck out to me that again i've heard rumors of this but it was very comforting to see them confirm it with some some good data is that china's share of overall hash rate in the bitcoin network is around 50 percent where the last couple years particularly a lot of people have been throwing around the 60 to 65 percent range um based off of of past studies that have been done

and so it seems that hash rate is becoming geographically distributed which is incredible to see uh u.s according to this report is accounting for about 14 percent of hash rate which is incredible to see and i actually talked to somebody earlier today is he's uh wait new york said 14 united states oh united states yeah um but i spoke with somebody earlier today on a panel for the silicon valley bitcoin meetup who marshall long has been on this podcast he was he um he's under the impression that it's actually higher than 14 so it seems like hash rate is becoming more distributed uh also in that uh study which we'll link to obviously in the show notes you guys should go read it um just broke down the different sort of generations minors the s9 class

s17 class s19 class um and they involve other asics with similar uh similar um uh terahash outputs so it's not just s9s s17s and s19s it's those miners and miners with similar sort of hash rate output and uh so you can see the breakdown there of of uh what percentage of miners are dominating the network right now and then the one thing i would contend with this which i find hard to believe is that the median price for uh energy right now between bitcoin miners is three cents a kilowatt hour i think that's a little low i would i would imagine that's a bit higher um but this is what their data is showing and again it's just incredible to see that uh mining which has been a huge uh point of thud in the past the fact that quote-unquote china dominates mining can shut

down bitcoin whenever it seems that their power is waning pretty quickly um as the asic life cycles extend longer into the future so you don't have a situation where maybe like three or four years ago when a new asic would drop it was more imperative to get it within the first few weeks and turn them on um so you can get your return on your investment and obviously with the proximity to the production in china they had a huge advantage there but now with longer life cycles you don't you can wait a little bit longer from release to uh delivery and then plugging it into the wall and that has helped distribute hash rate a bit more and i think this trend will continue like i said in the bend today things that we're discovering at great american mining like at the

oil and gas industry alone like there's so many little nooks and crannies that we're discovering and can take advantage of from an arbitrage perspective that I think this trend will only continue. I bet a majority of hash rate will be in North America at some point in the next 10 years. And is that a bad thing? Can the U.S. government attack Bitcoin at that point? Like, I would argue no.

Getting to know the... I would argue yes. No, I would argue no. Getting to know the energy. Like, so all these oil basins... We don't want it in one country, Marty. No, I'm not saying like 80%. I'm saying, like, we'll probably get to, I would imagine, 30% to 40% at one time.

And then that would be, if you want the hash rate concentrated at that high of a level, I would argue that you want it in North America between the United States and Canada predominantly. Because, again, these basins are the Bakken, the Permian, Marcella Shale. They bleed across state lines and jurisdictions. And what you'll actually come to find in the U.S., similar to the COVID response where everything was allocated to the governors and it was sort of the state's decision to do what they want to do. the energy markets uh actually very similar situation where like states have very different regulations and laws and there's a sort of regulatory arbitrage there too that i think will sort of protect bitcoin mining within the u.s

um i mean i don't really i i i guess you know we're a fan of of localism on this podcast So if states' rights are upheld, then that counts as distribution, I would agree. But we want it as distributed as possible, I would say. Yeah, so. Across different regulatory landscapes, hopefully not too much in, you know, I think we agree on that. Not too much in the U.S. market. I'm trying to read through this. that's why i'm uh distant speaking in this way right now uh is there a chart that shows what

they think the current distribution is because i i keep finding charts that show implied capacity like potential capacity do they have a chart that shows um where where they think the miners are located right now yeah i'm pretty sure it's the two pie charts no but isn't that implied capacity like total control f14 f14 i think i'm there the u.s follows with 14 so the figure what's interesting geographic distribution of surveyed mining capacity right so they have uh known capacity like the potential to become bitcoin miners kazakhstan and iran are super high up there yeah that's what i was going to say but people know russia if you want to give props if you want to give props of distribution shout

out to kazakhstan fucking doing their thing i don't think i don't think they're saying that there's miners in kazakhstan yet i think they're saying that like they're particularly well suited to host bitcoin miners right no there are there are there's like a huge operation kazakhstan it's pretty well known what's also interesting here is that iceland gets like a disproportion disproportionate amount of attention as being like a mining capital and like they're implying that they have like no capacity they're saying like two percent in iceland or something like that yeah that would make sense considering the size of iceland as a country it's because the alcohol taxes are so high you're gonna get bitcoin miners there

yeah now kazakhstan i'm pretty sure has a pretty a pretty legit operation in the middle of the country um and then iran obviously i mean they obviously have less than 14 percent though because the u.s is number two and 14. yeah i mean i think that makes sense but kazakhstan's obviously not as big as the u.s so they're competing what do they have 455 megawatts it's pretty borat would disagree with you have you ever heard that uh that conspiracy what's the conspiracy that borat was just a psyop to keep people away from kazakhstan because it's actually like an incredible country to live in um i i never heard that conspiracy but it makes sense to me i would also say that that movie can

never be made today ever dude and let's just run through actually my wife and i i was doxter name we're uh we're talking about this the other night my cousins we had them over for dinner like what movies could it be made today um none of the mel brooks movies could be made today american pie none of those movies sex drive which came out like when we were in high school couldn't be like the first line of that movie like would just get that dude this probably go forever like almost no movies could be made what does that say like do will we ever get to back to a point where like an american pie can get made i sure hope so we will it'll be fine we're just going through a phase it's just puberty because i mean and i've mentioned this i don't think on

rhr but like in the interview series like hollywood sucks these days it's just remakes and remakes and remakes and remakes and remakes like ideas mainly superhero ideas have been played out and disney movie ideas like mulan live action who cares some of the superhero movies couldn't be made today like which one i don't know i'm sure there are a bunch of them couldn't be made today i don't know the uh the michael keaton batmans was uh yeah like all the old ones couldn't be made today yeah who's your favorite batman like the first the first new joker movie um with what's his face the guy who who committed suicide heath ledger i don't think he committed suicide i think he overdosed overdosed right it wasn't suicide apologies rest in peace that

couldn't be made again do you think that one could be made yeah i think that's timeless i think that's a very good movie actually american hodl timeless i don't jinx it american hodl and vay got into a very interesting discussion that i watched from afar uh what's the better batman batman begins or in the dark knight and very good discussion uh hard hard to say the the argument is that batman begins has a a more structured and um streamlines plot and and everything's sort of filled in start to finish which i agree i love uh batman begins but i am partial towards heath ledger's uh portrayal of the joker i think it was masterful um okay next bitcoin discussion um see the plans paradigm

the investment fund who i i think they make they make both vc investments and they also buy like bitcoin and i assume they have shitcoin bags as well um has just announced that they're funding anthony towns renowned bitcoin developer um which is fucking fantastic to see we've seen so much more bitcoin developer grants happen recently and we did say previously in the pod that anyone who does it will get shilled um so we're holding up to that i i think these guys are the first fund to ever do it right i i believe so there what's the one in china may be the first one um who funded luke dasher hardcore fun yes are they officially a fund or yeah no i think hardcore fund is the name of like the donation like like

so like you could kind of count chain code right well chain code's like funded by a fund yeah right that's what i'm saying right but this is the first time i think a fund has specifically allocated capital funded Bitcoin development straight yeah shout out to that

hey shout out Arjun I want to see more of this Ari Paul when Bitcoin development funding he's too busy shilling Bcash dude Craig Wright is Satoshi

he's revised that history he never shilled Bcash he was never in Bcash ideas his birthday cake just had Bitcoin cash ideas ideas ideas ideas

um no but shout out it's actually a great segue to another topic as well uh anthony towns doing incredible work uh he actually sparked a discussion on the bitcoin dev mailing list earlier this week which i wrote about yesterday in the bent uh talking about a potential activation pass for for bip taproot which is actually three bips bit 340 341 and 342 um and so him and matt carallo had a little back and forth that i wrote about and i think anybody who is interested in taproot and how changes get implemented into bitcoin core and how they're okayed by the network beyond the developers should definitely look into this discussion between anthony and matt and so there's a couple proposals anthony has one that builds on a proposal that luke dasher who was previously

mentioned, proposed last month in the form of BIP8. So you can go search BIP8. And this is very similar to BIP9 in that it has a sort of readiness threshold for miners and full nodes. And it has a flag day at which the change will activate or not activate depending on if the threshold is met or not met. And instead of a UTC time threshold, it's a block height threshold. And Matt Corallo But from the way I understand it, it was a little apprehensive to okay this type of activation path. But regardless, it's an interesting sort of facet of Bitcoin is activating these upgrades and how do you reach consensus on this. So it's something that should definitely be read up on if you're interested in this stuff. And you should definitely know about as a Bitcoiner.

It demands extreme responsibility. and that means understanding what these upgrades are and not just allocating trust to the developers but trying to understand the stuff the best that you can. What's Corolla's issue with this activation method? He's worried about the precedent it may set of people just saying, hey, the developers want this, it's okay, like the way the activation happens. From what I read, I could have been misreading it.

It seems to be like he seems to be under the impression that could be construed as a brute force activation from a developer sort of minority trying to force their ideas through. I kind of like the idea of... Could be wrong there. An updated client being released that, like, pops up a tooltip dialogue

that's like, do you want to flag Taproot? And then, like, do you want... you do you want to run taproot and then it gives you like links to for and against arguments and then you select which one you like to do that's a slippery slip didn't we have that sort of phishing attack with electrum yeah but i mean if it's i mean it still would be like the open source bitcoin core client you just you're basically packaging two clients and one right you're just with like a slight variation but yeah but like how so like people can easily choose which one they want to run

but how could you be certain it's not a phishing attack right if it's like a pop-up with a link okay so fuck the link what if it was just like it just said taproot no taproot and you just choose which client you were running just very easily um i i i part of me feels like first of i love that you know don't trust verified ethos of bitcoin now part of me just feels like uh we're so scarred from the segwit battle that we're almost like creating a self-fulfilling prophecy that we're going to battle over taproot when there's is what is the dissenting opinion on taproot so i don't think there's any dissenting opinion on taproot i mean there was that one that came out from like an a non group of devs but turned out to be pretty toothless from what i

understand but i think matt's consternation is apprehensive apprehensiveness uh stems from the fact that yes i guess it's obviously most people want snore and taproot but is this activation path setting a precedent that would make potentially more controversial upgrades easier to push through in the future. So just think about the precedent that this particular activation path sets. I guess that's fair. And so I think Matt's proposal, he proposed it in early January. It would just take

a bit longer to get it activated. There would be more debate and more time to hash things out and signal about preparedness and actual willingness to include this stuff in the code base. Look, I don't really... I think I'm pro-Taproot, but I don't really have that strong of a... I want to see the upgrade happen,

so we'll see what goes down here. we'll keep covering on our well i want to i want to see it happen because i think it makes obviously we focus on privacy a lot here also privacy focus on scalability and then utility right so this i've talked about it in the newsletter on this pod if you have your bingo boards i've said that like four times already this podcast but um selfishly like i think it would aid in my theory about jevin's paradox being applicable to bitcoin utxos because it would give with Schnorr, Taproot, Grafroot, many scripts all working together.

It gives users more utility with their UTXOs. You can write more complex scripts in it. You can do more complex transactions with it, which, if my Jevons paradox theory is correct, would drive more efficiency per UTXO and therefore more usage of the Bitcoin network developing this fee market that people are under the impression will not develop.

And if I'm not mistaken, it brings the cost of multi-sig down, right? Yes, but I think that comes with like cross input. Do we need SIGAG for that? I think so. And that would come after, but this is a stepping stepping block towards that either way what i want to see is people smarter than me having like i've like been waiting for like someone smarter than me to have like a really good uh dissenting opinion on it that's what i've been waiting for um and i just haven't

seen it yet and like full disclosure like i was a fucking big blocker back in the day like before the whole fight went down and like i was swayed in the other direction like i read dissenting opinions on that and i yeah i came around and learned got educated never knew you're a big blocker did you follow lop down like the xt path or something like that you know i thought gavin was like great fucking dude i did too at one point do not think that anymore uh you know i didn't understand like the externalities and like the cost and the idea that like if you're just pushing off cost on nodes um and you're centralizing the network and no matter what like those blocks are

going to get filled up regardless um it was a very glamorous thing to begin with right like it was very simple like you just increase the block size yeah remember the uh and then remember the two four you get more transactions at lower fees like it seems simple enough right yeah the hong kong 248 deal was a big right so it was i was a big blocker before that okay like i came around like pretty early but what are you gonna do yeah hey you live and you learn live and learn you live and you learn um go learn about taproot and a potential activation pass and shout out to our boy uh jkl he responded to yesterday's email asking like how can i how does one join the conversation

It's as simple, I mean, just find any communication path. JK, I'll have to respond to your email, so I'm sorry I'm a little late on that. But it's as simple as getting on Twitter and speaking up. Obviously, it's not the only communication method to use. You can get on Reddit. You can pop on Bitcoin IRC. IRC. Yeah.

Mailing list. Mailing list. Obviously, approach it. try to educate yourself as much as possible before jumping into that like IRC and mailing list so that don't spam the mailing list for you

come with educated with a background don't join the mailing list and be like hey what is Taproot can you explain it to me let's talk about something that I know more about Zap came out and Jack admitted, Jack Mollers admitted that they raised

or like announced that in April they raised $3.5 million from I think Oak Ridge Capital was the lead investor there. Nope. Green Oaks Capital and Morgan Creek was involved too which is Mark Yusko and Pomp. So I mean that's obviously mostly for the strike element of zap but that's all bundled together so congrats on that fundraise 3.5 mil making zap zap wallet better blockchain commons released their animated qr code demo did you see

this how fucking cool is this it's really cool i actually had the opportunity to talk to zach herbert about it um for a while yesterday he's building foundation devices and it really makes a lot of sense like there's no we talk about standardization a lot here like hwi psbt standardization lightning developer kit bitcoin developer kit standardization and what they're trying to do at blockchain commons shout out christopher allen and team who've contributed to fully noted as well they're trying to create like a qr code standardization across wallet implementation so that um it's just easier to to sort of add these functionalities qr code functionalities to wallets particularly so if you watch the demo which we'll link to

he's got different yeah so the way zach described it to me like the qr codes can hold a certain amount of data in them and depending on the resolution of your um your wallet or a phone camera uh it sort of has to break those messages up into multiple qr codes and so just being able to dissect that message through a camera is what the standard's trying to to produce i believe it's more than that right like so like you can only send so much data through a qr code a static qr code right so these qr codes are those boxy things that you see that like bitcoin addresses are which are what bitcoiners know it as or you scan it with your phone camera or some kind of camera device your your computer they're particularly useful for transferring data through

air gap devices so you don't have to connect them to each other right right now we have the cold card can does does sd card uh air gap um qr code is great in theory but it just doesn't transfer as much data. So like these new PSBTs, especially after that vulnerability that got announced where they have to transfer more data than before, it's just not practical to send them through a single QR code. So what they did was they did animated QR code. So they can send an unlimited amount of data and you just keep your camera just pointed at it. So if we have hardware wallets and computers that are transferring information back and forth, they can transfer basically unlimited amount of data.

And if it misses things in between, it also knows where it is in it. So it can go back and fill in the blanks. It's pretty slick. Yeah. The demo is very aesthetically pleasing too. It's got nice noises to it. If you're an ASMR, I imagine the clicking

uh of receiving parts of the the message via qr code would would get you off um but yeah so you're against porn but you're cool with asmr no no i said if you are cool like i don't listen to asmr but uh um yeah stop watching porn freaks uh shout hello freaks how's it going um but yeah a team that's really had their nose to the grindstone uh doing stuff chris round and team at the blockchain commons um very underscored in the space right now so pumped to see them release this and hopefully again back going back to the standardization uh topic like this is incredible to see if we can get a qr code standardization it's just one other area that more people can coordinate and build using which is which is

great for the overall ecosystem and optionality for users at the end of the day putin putin's mad at bitcoin yeah so we're an hour and a half in so let's wrap this baby up you want to wrap it up i can go two hours dude wow i love it marty i love it russian activists are using bitcoin coindesk did a uh not an expose i don't know fucking a focus on it not a focus spotlight on it uh and the main the main russian activist is um what's his name again you just said it Navalny, Alexei Navalny, who's run for president a bunch of times, been in jail a bunch of times, and they've stopped his political donations a ton of times, but they can't stop his Bitcoin

donations. And what's really interesting here is just the fact that he can receive Bitcoin donations protects his fiat donations, because when they block the fiat donations, the Bitcoin donations go up which is one thing we've talked about on the pod here many times is when there is a need people figure it out though they will they will figure it out so it provides cover it's like and this is one thing that we've actually talked about with with shit coins um a lot of these shit coins wouldn't exist if bitcoin wasn't as you know censorship resistant as it was right it's so censorship resistant that governments are not incentivized to go after the low-hanging

fruit because they're like well we you know we we can't actually kill anything here they'll just move somewhere else yeah and not i mean and this really drives the point of i think we talked about last week with or the week before venezuelan government accepting bitcoin payments for passport uh services and then the citizens of venezuela actually using bitcoin it'll be interesting to see how these governments weigh the opportunity cost right like is allowing their citizens to use bitcoin outside of the state jurisdiction um worth putting up with if you can also use it yourself and it seems that russia in this example is not is not too happy about it so the jurisdictional arbitrage in this regard will be interesting to watch play out as well

as citizens under despotic governments uh utilize bitcoin while they're utilizing it as well i mean like but putin will never say it officially but like he loves bitcoin so he's not going to fucking go after the network he'll try and go after the users in russia um but he's he's limited in that respect uh and and the other thing here which is interesting is like the spokesperson for his campaign said to coindesk that um it's it's a negative that they can't do automatic reoccurring donations like i just i hear this a lot you know no automatic subscriptions no automatic donations like this is like old world thinking you know like like that's a feature not a bug like there's no first of all it will never be solved i'm sorry it's just you're never gonna

have the ease of just pulling money out of people's credit cards and bank accounts but that's good you know like people should pay you when they want to pay you i i don't i i think we gotta we got to get past this this idea of it as a negative of bitcoin and other cryptocurrency like this is a this is overwhelmingly a positive switch your models to yearly or monthly instead of daily or whatever it is and they'll pay you when they want to use it or when they want to contribute i think our favorite vpn is a great example of that mulvad like i just re-upped my mulvad yearly subscription earlier this week and i just got a notification like hey you're one year you're one your tokens running out like you need to re-up it's pretty simple yeah and if you don't do it

like you don't get vpn service yeah right like that's a pretty good incentive and and one thing with that is you know with vpn specifically it's like you really want to do it while you still have vpn service so you can use the vpn to pay it because you don't want to do it on clearnet well that's if you're paying over your browser with a debit card right or paypal i gotta pay with bitcoin well even if you're paying with bitcoin it's nice to connect to mulvad with a vpn so they're getting paid from their servers that's interesting yeah yeah because otherwise your isp knows you're going to mulvad to pay them yeah that's a good point i mean you could use tor browser and um

that lightning tool that Carl Dong made oh yes which is accessible through Tor he has an onion streaming payments for it shout to Carl Dong legend of the game doing his best to

make sure Bitcoin has secure reproducible builds geeks builds my last three topics here are all state surveillance stuff well that's two topics right Microsoft and oh yeah but I mean

I was including the Russian activists Microsoft's fucking did you see this article yeah they're like partnering with police forces loading up facial recognition stuff to Azure

what else are they doing meanwhile they're virtue signaling about like being pro BLM and shit see we're not just angry at Coinbase like if you sell surveillance fucking software like you're an enemy of the people that's just what it is even if you're microsoft even if you're microsoft microsoft gonna fuck themselves

yeah bill gates not a part with them anymore but um what the hell man what the hell so this article was by the intercept they do great work on this in this topics um they have this microsoft domain awareness system which is a pretty crazy they have screenshots from it which is pretty crazy it's it helps police uh aggregate all of their surveillance cameras and whatnot they have microsoft's connected officer for internet of things surveillance they have all these different police tools and then on top of that their cloud is a government certified cloud that runs a bunch of other subcontractors shit uh meanwhile they virtue signal like crazy pretending like they're just like helping the world

so hypocrisy at its finest yeah i think switch to linux let's use it as heuristic if these major corporations are um are really on your side or for a certain cause it's probably not really revolutionary they want to maintain their

status as stalwarts of industry and crony capitalism so if they're championing causes you can use a heuristic to say hey this may not be revolutionary or it may not bring the change that we hope it will swore it to the wise this other one's pretty scary as well how do you pronounce this miter

meter have you ever heard of them no i mean that's the point of the article it's like hush hush i've never heard of them before i think that's the point i think shout out to uh this forbes reporter thomas brewster uh for bringing this story to light it seems that the u.s government department of homeland security particularly uh is working with a third party to track anybody not even u.s citizens people come across the border people at protest uh people who may or may not have covid um basically hacking smart watches they're tracking metadata and sharing it with collecting human fingerprints from social media websites how is that possible that's like the i think it's like pictures like if you take a picture with a glass or something

and your fingers are showing or like your fingerprints on the glasses are showing like you're like cheers and like on the on the beer glass your fingerprint is there i don't know it doesn't really explain how but that's fucking crazy right how do you pronounce this company mitre mitre mitre mitre mitre i think that's part of it mitre yeah one of the interesting things they mentioned in here is they were actually integral in taking down uh ross olbert and uh silk road they were participating in that as well free ross which has the bitcoin connection free ross um fuck man it's a fucked up it's a fucked up expose it is it's a fucked up world right now dude like these ppp loans are about to run out the extra six hundred dollars in

unemployment support is about to run out the end of this week i believe for next week we were talking about it before we hit record like this fall is going to be interesting man um i'm uh i'm surprised you know like i wasn't one for ubi but like if you're gonna force close businesses and this is what we've talked about this before like if you're gonna like force close businesses like the government's got to step in and and they got they got to give people money like that's that that's just like that should be the tit for tat like you're gonna close it so i'm really surprised that we haven't seen trump bucks more trump bucks uh and i think it just is like an

automatic win for him in the election you know like it just that that's obviously will build support if if you give people money people like getting money uh they don't care about the long term whatever it is and the other thing is like uh what was it alissa milano yeah posted about just printing money and giving it to people she posted the wikipedia link to quantitative easing yeah a bunch of people got triggered by it and like we're arguing with her in the twitter comments um i don't have to argue with her in the twitter comments because i have bitcoin that's the point right like well you know they can i i guess this is like the accelerationist in me showing right but like whatever like you do you and i don't have to get triggered by that and i don't have

to argue with you because i have money that you can't do that with yeah no i mean i think i and a lot of the freaks out there listening completely agree with you but and actually i mean ubi obviously among bitcoiners is taboo and the antichrist but i mean if you're going to shut down the economy it i think it makes more sense to inject the working and middle class with capital instead of the corporations who have done stock buyback i I mean, if you're going to print money, like give it to everyone instead of just giving it to like a select few at the top. It's like that's a pretty simple. That seems pretty simple to me.

And then like if I get it, like I'm going to buy Bitcoin. Same. But like full disclosure. But it's like this is where like the Alex Jones tinfoil hat Marty comes on. Like, are they like controlled destruction of the middle and working class? Like it is. It is. Like, but is it controlled?

And I don't think that's Alex Jones. I mean, we've already seen. But is it a scene without you? but is it a concerted effort to like is it a concerted effort or is it is it malice or incompetence i'm trending towards malice it's mostly malice but it's not like there's like i don't think there's like this secret cabal i think they're just like like our buddies at the top like in the like will all benefit from our policy that's a cabal you just described a cabal i guess but i'm just saying like it doesn't have to be like it's not super complicated no

you know it's just it's it's i they're also at the top so like i'm benefiting myself you know it's a it's greed like humans are greedy right like that's the beauty of bitcoin is that is that the incentives are set up that you if you're greedy it's good for the whole system well then that's the question though like if that is the case and the working and middle class and lower classes are just getting bled dry are they just waiting to bleed us dry to a point where we can't fight back like what's it like we were discussing before we hit record what's this fall going to be like

with the systemic unemployment and and there's actually a forbes article came out today made a great case that the shutdowns may actually do more harm to people's health in the short to medium term than the actual virus uh well especially without ubi without ubi like people aren't going to get checked to see if they have cancer people are having strokes and mini heart attacks and not going to the hospital out of fear that they'll get covid and at what like what i think we're at the point where the opportunity cost is is way out of whack we fucked up and and to to give a hat tip towards potential incompetence rather than malice it may just be like a sunk cost fallacy from a from a policy standpoint where politicians and the people that

they've allocated power to are just so dedicated to their solutions and their reputation that it's maybe they're too far gone too much sunk cost and the shutdown that it's they have too much ego to backtrack on that who knows i think it's mostly malice and greed and it is what it is that's you know it's it's broken incentives the incentives are fucking broken and you know i try not to get too caught up in it because that's why i bitcoin um there's one of the reasons i bitcoin at least um it is an insurance policy and i i would push back on the idea that they could break us uh from from fighting back like i mean if that's the plan like they got a long way to go still that's you know i i don't think dude have you looked at the

permanent unemployment numbers yeah but it's you know i i mean look we'll we'll see how it plays out it's not it's not a positive situation it's it's i mean look all you have to do is see the unemployment numbers and see stock market go up right and that is you combine those two things together and that's the rich getting richer and the that's why i refuse to like uh berate the berate the robin hood class of traders right because they're just trying to get their take right right and then they don't hate the player hate the game right the game is broken the incentives are broken uh and you know maybe maybe we need like a little bit of chaos before it all works out better you know and is that going to be good no like that'll fucking suck but like

the status quo is fucking broken it's like so fucking far gone so like that's that's my state of reference and and you know i'm bullish on bitcoiners the the groups of people that we surround ourselves with all the time um fortunately not enough recently at least in person uh give me help and i'm gonna see a bunch of bitcoiners tomorrow so that's good so there you go we're at oh i i'll mention to you after the pod i was supposed to bring it up to you privately okay um we are not talking about it now on the podcast i uh no i agree i mean just thinking of not letting like an economic collapse happen but letting like true cleansing of the system happen that may be in our near future and it's not going to be pretty

it will be tumultuous you gotta rip the band-aid yeah yeah but in the meantime you know if you're going to print the money you might as well just send me a check that's like send me a check turn that into bitcoin we'll pull it up put it in cold storage find your citadel uh subscribe to this podcast go rip your neighbor's nest uh surveillance system off off their doorbell uh do your part be an uncle jim uh rate subscribe share the podcast share the newsletter um share the tutorial videos one man at a time one mind at a time it's the mission we're on here bitcoin is protest money stack that shit that's all we got this week peace and love freaks