TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2020.08.17

Episode Date: August 20, 2020

This week Marty and Matt discuss: - Ongoing bsv dust attack - OXT research alleged wasabi vulnerability - Strike adds cashback - Hash rate hits ATH then floods in Sichuan - Tor statement on recent exit node attacks - Tor proposal for possible DoS mitigations - cypherpunklabs.com allows you to easily fund Tor nodes - BitMEX adding KYC - Specter v0.6.1 - myNode v0.2.14 - Zeus v0.3.1 - BTCPay Server v1.0.5.5 - Lily Wallet v1.0.0 - lnd v0.11-beta - Schnorr explainer series by suredbits - Raspiblitz on bitcoinmagazine stream - Lancium sues Layer 1 - BlockFi raises $50M, rumored valuation of $400M - Cryptovoices monetary base update Shoutout to our sponsors: Unchained Capital. Check out their white glove vault concierge service that will take you from zero to secure multisig setup in no time. Use the code TFTC and receive $50 off that package that includes 2 Trezor Model Ts and $1,000 in your vault. Cash App. Start #stackingsats today. Use the promo code: "stackingsats" to receive $10 and contribute $10 to OWLS Lacrosse when you download the app.

was i really sounding that testy was i getting too testy was that it was it you were getting a little bit aggressive for a bit there was it the kid or the uh the hiatus from marijuana that's the question probably a little bit of both with some covid uh exacerbations mixed in yes yes uh yeah i've got my uh my fill of vitamin d this summer so maybe that's bringing my vibes up as well what are you drinking tonight today i'm drinking some claws i've got to go to a dinner after we record uh late dinner 9 30 dinner tonight um so i got interesting very european yeah i gotta ease into it do you realize that it's a celebratory episode today holy shit is this the anniversary of our first episode

it's our two-year anniversary holy shit to the day to the day it was august 20th 2018 was the first rhr episode 40 that makes sense because we did it on a wednesday didn't we or tuesday we started like the beginning of the week i don't know but the crazy part is that it was august 20th i looked it up i just looked it up coincidentally and i was like oh my fucking god it's been two years every week i think we skipped that one week we felt bad about yeah it was like a christmas break week or something like that but we had some doubles to make up for it yes yes we stimulus apps we we expanded our our episode uh monetary base during the first rhr was episode 40 when you interviewed me was episode 20 and

And yesterday's episode that we dropped with Leishman was 186. But all the numbers are fucked up now because RHR isn't included in the numbers. So we're really, like, way over 200. So cheers to that. 200, yes, in all. Yeah, cheers to you. Cheers to us, brother. It's been a great two years.

Flew by. Holy shit. Cheers to the freaks. Cheers to you freaks, too, for subjecting yourselves to this show. here's to many more years not just two yes lower your time preference i can't believe we haven't done it in person in quite a while where we're going to next week oh yes oh shit so we're gonna do a friday drop i don't know what we should do because we're recording on saturday and i put block boom so maybe we hit them with a double i don't know yeah is that a stimulus

package yeah this is this is classic matt and marty deciding on air what what we're gonna do because we didn't talk about it yet yeah we're very from the hip uh show we could do like a tuesday app and a saturday app because it might be a little bit ridiculous to do like a thursday app and then fly out to dallas and then do a saturday app it's a little bit ridiculous i like that i like that i'm sure there'll be plenty of news between now and next tuesday to wrap about there's actually some news it's not on the list now that it is developing that may be more clear come tuesday so we can chat about that then certainly ah two years two years it's crazy it feels like both yesterday and a fucking decade ago what block was uh was

Bitcoin I'm going to have to find that out August 20th how are you going to find that out Marty you can search blockstream.info has like good search parameters where you could but I don't think I had the time to go there how about this freaks August

20th 2018 first person to post in the twitter comments what block that was 50,000 what are you gonna give them 50,000 sats 50,000 sats i was gonna give them a shout out on the next podcast but you can get both 50,000 sats and a shout out on the next podcast over the lightning network send us an invoice and we'll send you 50,000 sats include it in the

tweet if you don't include it in the tweet you're not getting the sats so you don't have to you don't have to include it in the tweet uh this is true this is true because if you need to put like routing hints or whatever and it's going to get delayed, that's not, Marty's just adding extra requirements. If you get the, just the block,

just the block, block, just the block height first, then you win. Okay. I agree. I don't want to muff up anybody's privacy. What if nobody answers or if nobody cares enough?

If no one answers, then we're 50,000 stats richer and we'll have to look it up for next episode. We'll tell the freaks. We'll tell the freaks what block height it was. Yeah. We'll purchase 50,000 sats. Speaking of BlockHite, according to Clark Moody's dashboard, we are currently at BlockHite $644,595.

The price of Bitcoin is $11,872. That's 8,426 sats per dollar. We are between difficulty adjustments 525 blocks away from the next one. We're always between difficulty adjustments unless we're recording during the block that the adjustment happens. but we are 525 blocks away from the next one, which is estimated to be on August 24th, so that is four days from now, next Monday. Yeah, next Monday.

Estimated to be a 3.2% increase. My new favorite stat, the Samurai World pool unspent capacity. 1,361.86 Bitcoin at the moment. I've been tracking that lately. Also, I'm calling it a liquidity pool now because that's what the cool kids are. They're all obsessed with their liquidity pools. So the Samurai World Pool liquidity pool. We're farming privacy.

Yeah, we're farming privacy. uh the the it was at 1182 bitcoin on 1182 bitcoin on august 10th and now it's at 1361 so that's a nice little increase that number's been going up that's uh it's 15 to 20 percent between there it's pretty good pretty good increase in three weeks not too shabby not too shabby at all with 10 days um oh shit 10 days the fees right now if you're looking to get into the next block make sure you have 142 sat per byte transaction uh hour 136 and then if you're willing to wait a day you can pay three sats per byte so keep that in mind as you're moving your bitcoin spending your bitcoin uh 23 of the network is running bitcoin core version 0.20.0

the gptc gbtc uh premium is currently at around 15 and the qbtc.u premium is around 23.6 that's a canadian version of gbtc correct oh i have no idea pretty sure uh what uh publicly traded security that tracks a bitcoin portfolio's field is the premium does it have uh like a yeah dot u uh yes it's canada it's canada yeah dot use canada um right now one bitcoin is worth 6.1 ounces of gold it is 1.74 74 of the total gold market cap in bitcoin one bitcoin will buy 280 barrels of oil as we as it stands right now shout out to clark can you can you store that on a cold card uh no you can't you can't rodolfo when oil support cold card yeah he just said cold card just turns into huge ass barrels uh check out the rodolfo square on your bingo boards freaks

uh the mistake was letting us know what the bingo board said yeah and um the gptc premium may be off i'm checking the uh the status of clark doesn't matter data do you own any gbtc no but actually had somebody no coin to reach out to me asking about it and so if you guys don't know gbtc we've talked about it plenty of times but hey there may be some new freaks CRGBTC is a way for people to get access to Bitcoin via their brokerage accounts, but it's a very illiquid product. They have 12-month lockups, and it trades at a premium to the Bitcoin price, usually ranging anywhere between 5% to 40%, depending on where the price of Bitcoin is.

Again, right now it's around 15%. It's a fake ETF. Yes. if when we eventually get a bitcoin etf that premium will disappear overnight yes but if you're interested in buying some for whatever reason you should dm american hodl and he'll walk you through it yes and historically the game if you're trying to trade gbtc is the is to play that premium uh buy it when the premium is low sell when the premium is high get in and out um so just be aware you usually want to do that in a tax deferable account if you're gbtc is some

high time preference bullshit it really is i mean they they pretend it's low time preference because they say oh it's in my retirement account yeah but to me as as a bitcoin holder i think it's high time preference and it makes more sense just that that's what i told my friend who reached out asked uh i said yeah if you want to if you want to play that game trade that arb uh do it but make sure you have some bitcoin as well that you actually real bitcoin actually not bitcoin that barry silbert is owning for you yeah um hey clark got a clark got an advertiser hashtag buy them bitcoins it's a bit piggy yeah yeah shout out to far face our boy far face 2k ff2k what up dude you want to hit them with an ad

before this becomes a mid-roll well you just you just ruined it you got a segue into no we're not doing it unless you were looking to get some white glove vault concierge service from our good friends at unchained capital everything you need for $1,500 all right unchained as you guys know they've been

rolling out their otc desk it's in a few states right now but they're they're building this white glove service around that and uh their vault service and they will they will help you go from zero to multi-sig uh in a very smooth seamless process somebody will be holding your hand throughout the whole way um so the white glove concierge service comes with a one-hour video session with a member of unshamed capital's concierge team including step-by-step vault set up instructions and best practice operational security tips uh they're going to send you two trezor model t devices shipped directly from the manufacturer so and then when you get those there will be a 45 minute session with a member of unchained's team to configure hardware wallets

and understand functionality and then a thousand dollars worth of bitcoin will be deposited to the vault once uh the vault in the multi-sig is set up so again our friends at unchained capital are dedicated to providing bitcoiners with financial services and security products with security first and mindset they want to do it the correct way the bitcoin way they provide open source tools to the community the products they use they give back they open source it and they make it so that you can use it without unchained that's evidence with their caravan products so if you guys are interested uh in going from zero to multi-sig and having unchained uh walk you through this with a white glove handheld service go to www.unchained-capital.com slash the dash vault

dash concierge dash onboarding dash package obviously i don't expect you to remember that we will put a link to that specific white glove service in the show notes and if you just want to check out anything that Unchained Capital is doing beyond the concierge service, just go to unchained-capital.com. It's unchained-capital.com. They've got their vault product, collateralized loan product, and their blog, which is incredible. I actually shared Drew Bonsall's piece on Bitcoin in space in the concept of center of hash with somebody yesterday, and it was a good refresher a read read through that it's a very interesting one so if you haven't read that go check it out again unchained-capital.com uh this episode of rabbit hole recap is also brought to you by our

good friends at the motherfucking cash app matt did you see all the uh the dope glow-in-the-dark debit cards people have been sending us i almost bought one i you have to pay five dollars to get it like get your card changed yeah five dollars i i don't care about the five dollars but do you know how much money the fed's printing no but i didn't know like do i want you can get glow in the dark you can get white i i have the black one already and you can there's also like they have a designer one that's like 30 bucks that was uh done by a specific designer so i ended up uh freezing with decision anxiety and then i didn't purchase anything yeah decision paralysis yeah well what we're talking about here is the boost card and this is a debit card the cash app provides you

acceptable anywhere the visa is acceptable you can personalize it it's connected to your cash app and you can go spend money wherever visa is accepted and then on top of that you got their boost program where you can save a partner merchants you go to a partner merchants you hit the boost you go you save money then you can stack sats with that did you know that about the cash app motherfuckers you can stack sats with the cash app it's the easiest place to stack sats You can stack sats, send sats, receive sats, sell sats, if you so please. They're making sats a standard. Matt, you started this trend.

We're not buying whole bitcoins anymore. We're not buying fractions of bitcoin, excuse me. We're buying whole sats. And then on top of that, of course, they have Cash App Investing. You guys have heard the stonk spiel. If you're into stonks, you can go invest in slivers of stonks. Cash App Investing is a subsidiary of Square and member SIPC. as always when you download the cash app when you pick out your your boost card when you start

stacking sats uh via the cash app when you download the app make sure you use the code stacking sats that's s-t-a-c-k-i-n-g-s-a-t-s you're gonna get ten dollars and ten dollars is gonna go to our good friends at owls lacrosse that's owls lacrosse use the code stacking sats download the cash app and pray for that poor owl that just died on my deck not not a real owl pita don't come after us i didn't kill it it just died it seemed like it marty tried his best to resuscitate it was everything yeah i did i did in the episode it's uh two things there first of all i never really pointed this out but it's kind of funny that we went from fractions of a bitcoin to whole sats and then we went from like whole stocks

to to fractions of stocks right which is ironic and the other thing we never talked about i remembered every time we finished the episode is that we kind of weaseled stacking sats into joe rogan's podcast because we share a sponsor and and the his cash app read now is stacking sats which is just that's pretty awesome the power of a sponsor right there how's that feel for you personally joe rogan's you know uttering a phrase popularize it feels like a cheap shot uh because you know we kind of we kind of stacking sats like bought its way into the joe rogan pod like it'll be a true win when he just says it as part of his vernacular like when it becomes joe's lifestyle that's when we win but it's a nice it's a nice it's a nice little

win in the meantime it's a very big one i would say bitcoiners have a lot of influence in this world we do a lot behind the scenes that uh the mainstream doesn't realize uh we got bitcoin sign guy behind janet yellen uh we've got people infiltrating uh banks uh we've got i gave a a a presentation to a bunch of oil and gas execs today about bitcoin and and mining off of waste gas there's influence all throughout the space and joe rogan now has to utter words that matt o'dell popularized it's pretty sweet it's pretty sweet pretty sweet we're staying humble clear to be clear the freaks and all the bitcoiners out there popularized it you know they picked up what you were putting down around with it you know damn right let's fucking go yeah um speaking

of freaks we got three shout outs this week first one i feel like it happened as we were recording last week because this seems like two month old news at this point uh but here we go dudes i I haven't even seen the Portnoy Winklevice Cringe Fest, but fuck them. Portnoy was going for clicks over substance. Bitcoin Marty and Matt O'Dell would have schooled him proper. Don't ever change, guys. The freaks are on your side. That feels like years ago now.

Right. Anon. Thank you. I just want to be clear that I love Dave. I think he's fucking fantastic. Dude is just a special beast. You know, he was trolling the NFL today. He wants the naming rights to the Buffalo Bills Stadium.

I mean, we called on this podcast that, of course, he was going to move into shit coins. He was picking stocks out of Scrabble letters and then just buying whatever the Scrabble letters came up with. Personally, yes, I did come out roaring after the last episode when I actually watched that cringe fest. that was that video but i was really pissed off at the wink of eye twins um you know i i think they were they were given this platform and i expected more of them i was disappointed you know in them specifically more more i wasn't disappointed in portnoy like it is what it is yeah no it should be clear too that i have immense amount of respect for dave portnoy uh his but i also blame marty here because marty had the chance to red pill him properly you don't even understand think back

to the 2017 mania if you think like buying link and orchid or whatever the fuck he was buying last week uh was was something just just think back to 2017 when the ico craziness was going on i was literally there just to help set him up i gave him the advice like make sure you protect this don't lose the seed marty he might not have that's as you know maybe it's good opsec he knows how to lean yes uh but yeah no dave's an inspiration for the bent particularly and this podcast show up brick by brick uh blog never sleeps make content and if you show up every day maybe you'll have some success in the long run it's obviously worked out for him maybe we can uh we can copy that here at tftc we'll see the other thing that i appreciated about dave was that you know there's

a lot of similarities people are saying like he's this cycles mcafee like mcafee pretended like every shit coin was like the best shit coin ever uh like the like the best thing since sliced bread but poor noy came out and he was like this is a pump and dump i am trying to pump and dump this shit coin and just straight up said it now his lawyers have probably reached out to him and told him that most shit coins fall under securities regulation yeah uh so i wouldn't be surprised and they've been dumping since he bought them so i wouldn't be surprised if he has to hold on to them you know to to alleviate any pump and dumps and concerns but i did appreciate that he just specifically said it he's like in crypto we pump and dump yeah yeah i've responded to that video

a bold strategy because dave if you're listening uh these tokens are susceptible to securities laws so be careful the only one that's definitely not a security is bitcoin so if you if you want to if you want to pump one without any kind of repercussion that's the one to do yes run with us that's not securities advice no we're not lawyers we're not investment advisors this is not advice at all this is just two dudes shooting the shit exactly now dave you're not meant for prison all right stop stop uh you don't want that you don't want that um second shout out this one's a long one my bitcoin story for the freaks got married in 2014 and moved to the south for grad school there i went down the libertarian rabbit hole including austrian econ sound money and then

bitcoin i thought we could use the extra money and having free electricity in our 400 square foot university apartment i bought as many miners as would fit on our circuits it was very loud and very hot our ac never turned off except during winter as it couldn't keep up with the miners and the 100 degree days in total we mined in these conditions for over one year but the scarce excuse me but the sacrifice has been worth it i encourage the freaks to reject over consumption and make sacrifices now to make your family's life better in the future bitcoin helps fix this from reasonably long but it keeps going p.s it's z buddy not zbd it's a clever name for lightning company jesus gave james and john sons of zbd uh the name bonergers

bonerger spelled b-o-a-n-e-r-g-s bonerges bonerges uh which means sons of thunder pps stop watching porn lift weights love jesus start a family uh love you reasonably long i can co-assign that pps uh don't know what uh bonerges says though very loaded very loaded we love uh i'm now i'm gonna pronounce it wrong the zbd team zebedee great work zebedee zebedee shout out to andre and team out there um last and final shout out this week grow dank stack sats fuck the government and their commie fuckery and thanks to you guys for the contribution you bring to the movement love from south africa shout out to our south african freaks out there i know we had too many of those cheers yeah fuck yes um love you

guys thank you for the shout outs this week uh love doing those if you guys want to do them you can go to tftc.com we're not at dot com we don't have that kind of money tftc.io slash contribute they wanted 400k for that domain name so if you want us to have it you need to contribute i did ask them it's a really shitty it's a really shitty page if you go to it it looks like clip art like the whole thing i wouldn't be mad odell if i didn't add didn't cold email i'm trying to trying to get the domain yeah uh yeah it's it's really it's like it reminds me of the space jam website yeah exactly it's like straight 90s yeah all right we got through it all 24 minutes in and we're just getting to the list uh where's the beef where is the beef here it is

our boy ergo btc uh has been warning people of an ongoing bsv dust attack uh so if you've been lucky enough to receive a recent address dusting uh this entity does not appear to be malicious users with a wallet that allows utxo blocking should block these outputs so they're using it to advertise some bullshit bsv service um they just put an op return stuff in it or yeah there's like a message in there that tells you to i i'm not going to show what the service is it's bullshit let's let's use full anonymous anonymity anonymity c memo um yeah the services memo bsvs memo app or whatever yeah um the the freaks i just wanted the freaks to know what a dusting attack is it's it's where um you're sent and you might have seen this because this ongoing attack has been

hitting anyone who recently transacts if you transact recently a lot of coin join users have experienced it because they're coin joining often so that you know they're sending a lot of transactions and and their addresses are getting hit by it the idea of a of a proper dusting attack if it's not advertisement like this is you you hit wallets with you hit known addresses with small amounts of bitcoin and if your wallet doesn't have coin control if they if your wallet doesn't allow you to choose which when you send a transaction you're you're sending a transaction it includes a bunch of inputs in the transaction and if it includes if you don't have coin control you don't get to pick which outputs are included on the input side of your transaction then they

get combined automatically behind the scenes and it can link multiple addresses that are in your wallet your wallet's really a cluster of these UTXOs that are all different addresses so it can decrease your privacy so we've seen surveillance companies use it um as a way of doing that and this is one of the reasons why i think all wallets should have coin control um and unfortunately very few have it uh we've talked on this podcast before about how how all the lightning implementations except for i believe uh electrums and i think sea lightning has it but a lot none of the front ends for c lightning have supported it yet i know rtl is working on it have this coin control but right now we have electrum has coin control um wasabi has coin control samurai has coin control uh i

know blue wallet's gonna add it so i i really want this to to happen in this space i want to see it in as many wallets as possible and i do understand it's a ux issue uh oh casa has coin control um i understand it's a ux issue put it as an advanced option you know so that the users can go into the options and another important thing is here just coin control alone isn't isn't that great you need to have a labeling ability as well yeah like do not touch well so you can know which you know which utxo it is uh like which utxo is what um and on top of that that's what marty just said is samurai for instance has a do not spend tag you can put on the dust uh i think samurai actually automatically if you get dusted will will market do not spend but i'm not absolutely

positive on that but if if they don't you got you got to go in there and you got to market do not spend and that way you know it'll never get included automatically yeah it should be noted this is one form of a dust attack we've actually seen the bitcoin network uh attacked with dust in another form and actually laurent a good friend laurent from uh the oxt.me slash or from he created oxt.me is now part of samurai he did heavy research about the the dust attacks this summer i believe 2016 15 and 16 where uh people use dust to sort of clog up block space to to drive fees higher to potentially push 2017 yeah yeah um so yeah dust can be used maliciously in in multiple ways so just be aware and yeah hopefully the ux of these wallets improves to the point where you

can easily identify it and avoid it because dust and they're literally sending the the smallest amount that you can send at the protocol level which is what 546 sats because that's the dust limit we have a dust limit in bitcoin um and actually sergi sergi kotalar i've definitely pronounced his name wrong uh from bit refill is proposed recently to raise that dust limit to make it more expensive of an attack yeah and and the reason we call it dust is because to spend it uh it costs more in fees than you can actually spend it yeah than the amount you're spending so it's like not it's not a practical amount to actually spend because the more inputs you have on the input side let's say you have five utxos that are going into a transaction uh the higher

your transaction fees are yeah be aware freaks be aware the nuances of the bitcoin network there's a lot of them and this is one of them there's a lot to to dive into here and hopefully the the ux of the products built on top of the base layer will improve on this it's still early days if you know about these problems you are an early adopter speaking of oxt.me they put out a research report on um on wasabi vertib an alleged uh wasabi vulnerability that's out there again the samurai versus wasabi wars continue matt uh i will i will defer to you to to explain what's going on here okay so uh oxt which is a subset of it's the research arm of samurai um has has reported that they've they've found i believe two vulnerabilities in wasabi um this report

is just alleging the vulnerabilities they haven't disclosed the vulnerabilities yet they said they disclosed them to the wasabi team um and they supposedly a portion of that disclosure was they gave the full disclosure to the wasabi team and they said we are trying to do this in a responsible way we will give you time to fix it but we we want you to um tell your users not to use the coin join portion of the wallet until you fix it because their vulnerability supposedly your remixes don't help you is supposedly like the the TLDR of the vulnerability the summary of the vulnerability is that remixes don't help you your anonymity

set is only as good as your last round you've done which is not great I mean we have spoken on this pod many times that if you use wasabi you should set your default anonymity set to at least 101 so that you have at least two remixes because when you do the remixes it's it's multiplicative you the the odds the odds of trying to unwind that coin join round become way more difficult um if you go into just at least one more round um so but this is alleged we don't have the actual disclosure the disclosure is supposed to come out tomorrow so i've been in the wasabi chat room for the whole day basically trying to get you know because on there's so much toxicity in the space in the coin join arena flame wars you

got the hardware flame wars the coin join flame wars they're everywhere i spoke to the samurai guys and in like their defense they wouldn't give me any privileged information i tried to get some privileged information i was like is this legit they're like it is legit but we're not gonna tell you shit matt we're gonna release the actual disclosure tomorrow if like wasabi doesn't respond because talks between them have completely broken down um and really can never see yeah who would have guessed and then on the wasabi side uh on the wasabi side we have users coming out and saying like this is obviously fud from samurai but the thing that strikes me is the wasabi lead maintainers know this full disclosure that samurai has

right so if it is bullshit then why haven't they come out and just said it's bullshit like we just need a single tweet you know from no para or david molnard like this is bullshit like and that tweet hasn't happened they haven't said anything in the chat room which strikes me as strange so we will see tomorrow um you know watch watch social media channels uh watch no bullshit bitcoin or whatever and see if if something comes out from it watch oxt's twitter account but uh for now we don't really know we don't really know samurai's alleging this we have no there's no proof or

or or anything because they're supposed to be releasing it tomorrow but it is weird to me that the wasabi guys haven't come out and said you know it's bullshit if it is bullshit prepare for a play more on friday tomorrow i'm not prepared i'm happy i'm going to be on the golf course and i'll be able to miss it thank god smart um make sure if you get into the middle of it with the whole samurai wasabi thing tomorrow that you also at marty so when he's when he's trying to putt on like the seventh hole he like his phone's just buzzing non-stop and notifications just make sure you do that i'm a i'm a true true golfer and i leave my phone at home with my wife just let her go don't trust verify tag him anyway so if he doesn't do that then he gets hit with them yeah

ah they go on well you know what we've said it before iron sharpens iron um discover these vulnerabilities point them out and hopefully it makes this stuff stronger it just never seems to end never will end get used to it it's entertaining still super early you think we're early on bitcoin we're like even earlier on bitcoin privacy yes we're just so fucking early yes oh not on the list i saw you had a little tweet thread yesterday about uh like the funnel of bitcoiners and uh the number of you said around four million probably less like self-custody number oh right so yeah i still have my glass node subscription for the freaks uh which i pay like i think i pay like 35 a month for uh which is like it seems like a reasonable

price for the service they offer to be to be quite honest so i i keep paying for it but it's important for me to get my money's worth out of it so i fortunately they have they're very good about allowing us to a lot of these services they not only does like the chain analysis of the world charge like 150 000 a year to use their service you're not actually allowed to tweet out anything or share anything that you get from the service so what i like to do is to get my money's worth is like i like tweeting out the different paywalled shit that i have in there um to get my money's worth and one of the things is addresses that hold over a million sets and right now that sits at 8.5 million so I just tweeted that out I just sent out the chart and I was getting some shit

because they were like Matt this isn't bullish this isn't you know this and then someone else was like this isn't bearish this is bullish and they were like putting words in my mouth and I was like i just tweeted out a chart that that said what glass node is reporting of how many addresses are holding the shit and i was like you want my conclusions this is my conclusion my conclusion is my guess and this is just a complete guess right is that we have like 30 to 50 million bitcoiners right if there's only 8.5 million that are hold addresses that are holding over a million sats that is an upper bound on the amount of big corners that are self-custodying because it is including custodial services and it's including people like me and you that have many many

addresses right yes like so we have we have many addresses so that's a it's it that's an upper bound but it's like a ridiculous upper bound so we're talking in a like a conservative optimistic sense that there's probably now this where gut comes in there's probably less than four million bitcoiners that are self-custodying four million people that are self-custodying bitcoin like that's not that many people so you can look at it from two ways it is bullish in that we are really fucking early right and it's bearish in the fact that bitcoin is protest money and people aren't actually using it to protest well very few people are using it to protest i would agree that very few people are using it a self-custodial way but i think the act of buying

bitcoin even if it's held on an exchange again thinking about the user experience and the user journey is an act of rebellion and an act of it's a it's a vote with your dollars that you are okay that you are i don't disagree it's definitely a protest to just buy bitcoin and but i i would say it's a bigger protest to self-custody it because it makes it more 6102 resistant executive order 6102 when they took took people's gold by force and then i i would say it's even bigger protest to actually use your own node with it agree right which we don't have any hard numbers which is even way less than four million right because i got to say out of the four million probably the majority are using third-party

nodes overwhelming majority mostly ledger and trezor nodes probably um and then from there i would say it's an even bigger protest if you're providing coin join liquidity and that's an even tinier subset so i just want to see people trickle down that you said funnel i don't like the word funnel but i want to see people enhance the protesting of of this protest that's a funnel it's a step yeah and who popularized that on it now for what who popularized that i was gonna say aj towns he he had a good blog post earlier this year speaking of like the oh yeah that was good yeah no dan held had his marketing funnel that he did that uh i was thinking of aj but anyway there's a user journey it's going to get easier

absolutely i believe the number the numbers at the bottom of the funnel will only increase from here yeah i agree yeah i agree look i look i'm that i i i'm i i look at these numbers and i'm i'm bullish that were early is is how i is how i mostly interpret them but i just want like bitcoin twitter is and i think i said something like i said something like you're less than you're venturing you're venturing into some uh some territory especially considering today like even though i like a busy day i caught up on that drama we'll get to that after your comment i said less than 250 000 people are using their own nodes and people were saying to me it's way less than that and i was like that's not my point uh my my it's conservatively optimistic number

is what i said there right and i also said 50 000 people are coin joining less than 50 000 people are coin joining and it's significantly less than that most likely my point is is that bitcoin twitter tends to live in this bubble where they think way more than four million people are self-custodying way more than 250 000 people are using their own node and way more than 50 000 people are coin joining and it's way less than all of those numbers so i just i i want i want bitcoiners to be more realistic about where we stand here currently that we're you know i think bitcoin is inevitable but we're not you know we're not invulnerable you know we we're still we're still vulnerable here it's still early and and we need to keep improving completely agree

there and yeah i think i think it'll get better over time it has gotten better over time i would argue um i'm just gonna educate so let's put how early we are into context like how long do you think bitcoin will survive into the future that's a good question to ask well usually i just say forever right well forever is a totally fine answer so at least our lifetime i think i will die before bitcoin oh i think my great-grandchildren will die before bitcoin does i know but i mean let's not talk about our grand grandkids death i mean who knows what obviously obviously but maybe our maybe our grandkids are part of like the citadel elite that extend their life that's not the point we're trying to put the context of the temporal

relative temporal earliness that we are to this asset like if it is to be like i would i wouldn't be surprised if like a thousand to two thousand years and that sounds crazy that's a pretty long time it's a very long time so considering the fact that bitcoin is 11 years and eight months old we're very very early on that timeline and i think only i think 1990 years to go yeah i think people severely misunderstand just how early it is and how different bitcoin will be in the future i'd be very happy if that turns into like the mayan 2012 prediction it's like in 2000 years they're like marty bent predicted that bitcoin was gonna end it never yeah uh who knows who knows um after bob mackarath hopped on a call i was on a couple

weeks ago and really uh made me less wary about quantum computing he seems to not believe that it's possible the quantum computing bitcoin argument is what the asteroid mining bullshit is which is also why i was pissed off at the wink of eye is the asteroid mining bullshit against gold yeah hasu actually had a good point about that like you have to factor in the cost to bring it back to earth unless he could use it like in orbit yeah i mean it's just there's a lot of reasons that gold is a shit coin the asteroid mining stuff is just cheap fud that's what it is yeah number one reason that proves that gold is a shit coin is executive order 6102 completely destroyed the gold standard that existed for millennia

right then and there it's done it's not coming back any gold bugs that listen to this like oh we're gonna go back it's not happening it's not happening you can't easily send gold to someone for telling us the block height of our first episode no like there's an without a trusted third party no you cannot that's a good point reminder freaks find that block 50 000 sats on the line and a shout out next week whoever the freak is who got it has already done it this reminder was unnecessary um speaking of sats strike our boy jimmy mau our boy jack mallers announced right before we hit record that strike is adding cash back so you'll be able to use the strike app to get cash back um and so kind of weird it's not sats back still bullish still

bullish yeah i think it's like a regulatory concern i mean if you're if you're using the fiat side to pay for the sats that you're sending then it's basically the same thing anyway right yeah do you see the video release that they included with it yeah they put it on vimeo too which is very exciting. Why is it exciting that it's on Vimeo instead of YouTube? Because they're telling YouTube to fuck off. Fair enough. Why isn't Vimeo more popular?

Network effects? I feel like it's the search that hinders it. YouTube is like the second most visited website in the world behind Google. They're both owned by the same company. by the same company uh yeah this this ad is very sleek this is what we need like good design good like little 30 second spots so you can download the uh the strike app the app store the google play store it's available in the chrome web store too and hey this is a consumer app that's getting to market and shout out to our boy jack for for iterating on the product

so if you're a freak who's been living under a rock or you're just joining us now for your first episode if you are welcome uh strike allows you to pay any lightning invoice with a bank account or a connected debit card uh so if you go to bitcoin dev list.com there's a bunch of bitcoin developers there that have the ability to donate via lightning so if you have strike you can go rain some sats on them that'd be great uh i loved your response to uh james presswitch today bitcoin dev days destroyed should we touch on this like i feel like we should was he subtweeting corallo's tweet i think it was i think he was agreeing and it was a well you can agree via subtweet yeah i believe that was a subtweet of matt's tweet the other matt corallo um another

matt not the other matt um it's the matt then your response matt uh bitcoin dev days created with uh that's the one thing i wanted to point out is that's we that's the beauty as i've begin sponsoring more devs via the site that you created thank you very much for that shout out dennis ryman shout out dennis too it's just really cool like the dev will dm you or tweet at you and say hey thank you for supporting me and that's what anybody is out there who is not a developer and like these people working on bitcoin this open source repository or multiple repositories whether it be lib bitcoin bitcoin not yeah we include non-core devs on the site yeah if you're just working on bitcoin development whether that's in ux or actual you know code

whatever it is like submit a pull request on our github repo and i'll get you added on there yeah these people are building out the future of liberty via bitcoin and a lot of them are doing it for nothing and so the ability to be able to support them as easily as you can via bitcoin devlist.com is it's incredible and i feel great that i'm able to give back to these people who have contributed to something that's this podcast wouldn't exist without bitcoin the newsletter wouldn't exist without bitcoin the company i work for all it takes is one sat one sat and you've contributed more to bitcoin development than coinbase this is true this is true um but with that being said like i thought the whole drama today was like a little overblown i think people

very highly over index how much influence Bitcoin Twitter has. I love Matt, but I feel like he woke up on the wrong side of the bed today. Sorry. Matt, I love you too. Matt is actually... Huge friend of the podcast. He's actually the most... We've had him on many times.

He's the most tenured guest on this podcast. But yeah, that was... I mean, I think that was like... Maybe we'll have to have him on to get his perspective. We'll have him on. We've been due for another corallo episode but that basically his tweet was was was that bitcoin bitcoin twitter is so toxic that it pushes people to shit coins which is like the ultimate shit coiner excuse it's like we hear that all the time you know vitalik has used that excuse himself for why

he started ethereum yes yeah yeah it can can get toxic can get but it's also loving yeah it's uh it's a meritocracy it's again iron sharp sharpens iron a lot of people don't don't like the bullshit out there again i'm not a big i don't like a lot of bullshit either so sometimes i appreciate it i may not agree with the uh the tone or the the uh the execution of the criticism but appreciate the criticism you know look skin in the game practice what you preach right this podcast we shill projects with like projects that aren't sponsors of this podcast we show them a shit ton right if we if we think it's it's an important project if we think a dev is working on something really important we show it almost more than we do our sponsors like don't tell the

sponsors but like we do that because we love bitcoin we love our sponsors too absolutely but we we steal the shit out of stuff you know and and it that that that kind of part of the bitcoin community i like fucking love like people get around they like i don't know like there it's it definitely felt a little bit straw many you know yes yes i do know and matt if you're listening to this the blue mat um let's chat i want to hear your side elaborate on your side if you're if you're open to it um speaking i think you would love to elaborate on it yeah we'll have you on again um you have an open invite whenever you want to come just just dm us it has to be in person though oh it's harder with covid man who knows it doesn't have to be in person but i prefer if it

was in person matt i did too i like drinking uh ipas with you uh next on the list hash rate hit an all-time high and then sichuan province in china experienced some flooding and there were some videos again must preface this with the disclaimer that any information or i don't trust any of these videos right uh i mean any data coming out of china is hard to verify any data coming out of anywhere is hard to fucking verify especially china though um but thomas heller who's part of f2 pool so this is data you can verify is the fact that uh overall hash rate on mining pools that cater to chinese miners did fall pretty significantly earlier this week it is being attributed to the uh the rainfall in sichuan province which is west of huebe province

where wuhan is and the three gorges dam is uh and so the the floods are basically being attributed to the fall a temporary fall in hash rate as it rebounded yeah it did rebound i saw that sippa chart tweet earlier that you put out i kind of got into it with you and i love you both you know i love you both i just lower your time preference a little bit to put swan no but as minors we're like oh not that you see what i said when i posted the chart uh um barber posted he was like yeah it looks like the flood subsided i was like either that or you guys have been putting in work yeah well like we you have to remember we also hit all-time high right and then the price cratered a bit right so there's there's definitely some element there the price felt like 800 bucks

after like a two grand yeah i know i shame on me for saying cratered because it didn't i i kept seeing on twitter like buy the dip like oh you sold the dip whatever and then i kept i kept checking the price because i was like did it fall like what what happened the question i have would be if hash rate did fall and there were people with old s9s sitting on the sidelines that were were being very attentive to that that may have turned the back on that could have i heard anecdotes about that did you hear anecdotes about that i've heard some murmuring in back channels yeah yeah i had i had someone reach out to me who has miners hosted in sichuan who was like then they turned on miners somewhere else that was like older hardware yeah yeah um and i said to him i

was like not your miners not your miners i don't like i don't know what the not your keys not your coins but like yeah i i'm not i'm not very bullish on the idea of hosting miners with someone else specifically in another country especially you know across the world where you can't even see what the fuck's going on so i don't know about that but i did hear that yeah um and i wouldn't be surprised if that that did happen but if you had old s9s and the price goes down a little bit and you're like it because here's the thing it's like we have to weigh it with that hash rate drop too like there's a formula to it like right but people are emotional right so at when we were at 12 3 12 4 12 400 12 300 people were like hyper bitcoinization's upon us and then you drop 600

dollars and and and so in that situation they might be like we are willing to mine at at a loss because we're gonna hodl just for a little bit because hyper bitcoinization's upon us and we can wait and then you drop just six hundred dollars and then you say to yourself you know we're going to three thousand dollars because people are just emotional beings and so so that definitely it's not just a pure math equation there's definitely the gambler's dilemma is is mixed in there definitely agree with that and beyond the the uh the impact of this flooding on mining um again hard to verify any of this data but apparently the three gorges dam because again szechuan province is to the west of huebe where the three gorges dan is and actually i'm

not sure if it's in huebe whatever szechuan is west of the dam and so that's upstream somewhere in china it's upstream and all this water is flowing downstream towards the dam uh and there reports i believe the financial times reported on it today that the three gorges dam is at the highest limit that it's ever ever reached uh at some point in the last few days there's been a bunch of videos of a bunch of flooding again hard to verify um so you've had some bents about the three gorges dam failing yeah uh should we do you want to make a bet on it failing no no i don't want to make a bet on that there's too many lives that's i never want to bet on that i'm such a gambler stay humble matt i just you know i i'd be willing to bet that doesn't it doesn't fail

in the next six months i hope not um i can't say for sure i don't know um yeah it'd be bullish for bitcoin if it did i don't know i don't know i don't know i think there's a good argument to be made like if it fucks up the supply chain in china enough it could put the mining industry back considerable amount who knows if that yeah it could be a black swan for bitcoin if i tend to gravitate towards is it bullish for bitcoin yes it's bullish for bitcoin like just whatever you insert there is this bullish for bitcoin yes it's bullish for bitcoin yeah no i mean i hope to god it doesn't break that's i mean you go a dark corner of conversation like would that like diversify mining more i'm talking about i'm not like i'm taking this beyond mining into like the

ccp level like would it destroy the ccp no marty you want to bet on that the mandate from heaven dude people bring it up no i don't want to bet i don't want to bet on people's lives i don't want to bet on people's lives a dam breaking is not going to stop the ccp but a dam breaking in conjunction with a no it's an epidemic with a locust outbreak hopium we'll see this is hopium marty we shall see um we're not gonna bet on them regardless there's flooding in china apparently miners in sichuan i will bet on anything have uh have been flooded out uh But it'll be interesting to see what happens to Three Gorges Dam. There's reports that it is weakening.

We will keep you freaks updated as the story unfolds. Hopefully the rainy season ends, but I think they have, like, two more typhoons headed their way at least in the next month, which is not ideal. That hurricane that hit us was pretty hard early on in the season, too, talking about typhoons. Dude, there was a tornado that hit the island that I'm on. Oh, and the derecho, which I never knew was a term. Derecho in Iowa. Iowa in the Midwest. It even hit parts of Chicago.

It's like an inland hurricane, like winds. Apparently, they're still being affected by it. People are still out of power. It fucked them up hard. I spoke to some Iowan Bitcoiners. We have a very strong clan out in Iowa, and they got hit. They got hit pretty fucking hard. And no one's really talking about it.

Shout to Chris Stewart. I know you're not in Iowa. You're in Chicago, but a strong Iowan. I've been in contact with my Chicago friends. It's not terrible there. It was a little startling, but nothing too crazy. Yeah, they, like, freaked a little bit. But, like, Iowa got hit hard, man.

That's crazy. We got wildfires in California now. My sister's in Colorado. She was telling me that they have wildfires. What the hell's going on? the worst part about the wildfires now is like everyone who donated their n95 masks for the covid shit doesn't don't they don't have it for the wildfires which is like kind of crazy that production hasn't scaled up there that is but that's just a whole nother has there been reported

supply shortages yeah there's still i mean look try and buy n95 masks yeah shit um back that one you can verify very easily just try and buy some just go on amazon uh tour released a statement on the recent exit note attacks uh stripping the ss or um the https basically everything we knew but we're just going to link to the official tour statement on it yeah we've already discussed this pretty pretty in depth uh but then they also released another blog on how to stop the onion denial service attack as well which is separate yes what's going on this is we've seen this hitting the dark net markets and also if you use anything that's onion like within the tor network connecting to your node using onion or if you run your lightning node through through tor only

we've noticed slowdowns and denial of service attacks and the dark net markets have been getting hit super hard and one of the issues is is like we've talked about the failure of incentives of Tor like the way you mitigate denial-of-service attacks in on clear net on regular internet is basically centralization you'd start banning IP addresses and you and you have these big denial of service providers uh like cloudflare and akami uh definitely pronounce that wrong uh that we don't have that on the list but we have cloudflare on the top of mind we're going to talk about something after this no doubt i'll remind you um so tor is grappling with how they can deal with

this without like implementing like kyc or something like that um and they propose two ideas um one is anonymous tokens which before you all get triggered does not mean like blockchain tokens uh it they're they're just anonymous yeah authentication tokens that are anonymous that are served to good peers uh so that if you're a bad peer you run out of them really quickly if you do kind of denial of service which is interesting but the thing that bitcoiners would find i think really interesting is that they're contemplating adding a proof of work element um which i thought was pretty cool like a hash cash based or yeah like this idea that to do to do any kind of calls on the network you're you're doing a little bit of of work will there

be a difficulty adjustment no there's no difficulty adjustment but it was an interesting it's an interesting blog post anyone who relies on tor should give it a read um i'm not sure i i i dig where their head's at you know this is the right direction you know the guy who disclosed the exit note vulnerabilities was like we should just kyc all all mailing addresses of exit notes i was like no that's a non-starter for me like i i think this is like the more the correct direction where you want to go towards um and even though these are separate issues but these are the type of of thought processes that you should be going through yes and if you want something like tor If you want to contribute to better thought processes, you can go to cypherpunklabs.com, which allows you to easily fund Tor nodes.

So have you checked this out? Yeah, it's pretty dope. So our boy NixOps is running this. So I said last episode, I'm not going to ask you to run exit nodes because they have massive liability. He has gone through the legal trouble and whatnot of getting providers that will allow him to run exit nodes. So you can run a relay node, an entry node, which they call guard nodes, or an exit node, and it costs $10 and you can pay with Bitcoin. The main issue with a service like this is that he's running them, right?

So he's willing to provide some level of auditability, but there's always going to be trust involved there. Like, are you funding a malicious actor? I personally like this dude. i i think he's a good dude but like take that as you will you know like don't you know we're don't trust verified that you're you're stuck kind of in a loop here but i think that like if we support his service he wants to have 100 exit nodes up and running um i think it makes a significant improvement to the network so i personally am supporting it um i think other freaks should support it as well um so go check it out cypherpunklabs.com yeah i mean support his

bitcoin work too we talked about it a few episodes ago but what he's doing for the bitcoin stack above the protocol level to sort of reduce dependencies is pretty huge too wait this is what are you talking about nix bitcoin yeah this is different oh it's different his name is nix ops i thought it was the same person i don't i don't think so i don't think he's involved with nix bitcoin oh well anyway nick's bitcoin is pretty too to check yeah i think they're the same person i could have maybe it maybe i might be wrong i might be incorrect but either way i think you know i i i think he means well i think this is is in the right positioning and i do like that you can support and and basically sponsor an exit node uh without taking that liability on yourself

by by paying with bitcoin yeah all right this is the last topic before we get to software updates which will blow through because we're already an hour and five minutes in but this is probably a topic we'll talk about for a little bit r.i.p bitmex they're adding kyc most cypherpunk app to hit the bitcoin markets particularly financial based to date is bending the knee i guess uh the seashells the seychelles whatever you call it is the seychelles is not enough to protect arthur and crew from the long reach of kyc aml compliance are you pouring some out right now pouring some out for the homies look i think it was inevitable we knew it was coming you know just it hurts to see it hurts to see yeah i i think i think there'll be competing

bucket shops that will come out uh there always are there always are yeah that that are in kyc for a bit um i always thought they ran a good one uh i do appreciate that they're basically giving all their users advanced notice before they do it uh which is a strictly more admirable class yeah then like doing like shotgun kyc on people like you can't withdraw unless you do kyc so binance has been known to do that yeah a lot of services have done that so props to them for for not doing that and and yeah and beyond kyc is dangerous you guys know you guys know but beyond that pitmex i mean they're good actors in bitcoin they're supporting core devs their their research blog does incredible work i like that they allow you

to speculate on shit coins without ever owning any shit coins yes yes you can short them you can long them you can do all your degenerate behavior and the unit of account and everything the medium of exchange is bitcoin yeah and so the u.s users no more using a vpn to get access to this you're gonna have to show a license or something i imagine um but that's what it is it's a long harm of the u.s government because u.s users were not allowed to use that bitmex but there was no way to really prove they weren't just using a vpn unless you do kyc um and bitmex was kind of just turning a blind eye unless you were someone like tone or like posted your ref link one of the funniest moments in

bitcoin content history tone vase just getting his his bitmex account yanked because he was live streaming perp swaps but there is a learning experience here which is this is why trusted third parties are such an issue is because u.s financial regulation extends everywhere it doesn't matter where you're based um and if there's someone they can squeeze especially someone who's very rich and has a lot to lose like they're going to squeeze them and that person is going to inevitably comply eventually how much does that insurance fund have so much way too much yeah it's a little decrease now yeah or it won't increase at least well as much let's give a shout out to arthur hayes and crew for for what they what they accomplished before they got stuffed with the

long dick of the law the u.s law particularly um never used it but heard a lot of people who loved it never i heard that if you send bitcoin in you just never withdrew because you just lost in and gone um ah is this is this like a like signal that bitcoin's losing its cypherpunk lust or are we well i mean i wouldn't be so quick to put a cypherpunk label on them but it was definitely like anarchist and uh rebellious yeah cypherpunk i you're allowed to send bitcoin and lever it up and then get bitcoin out look i think this is just the cycle they just lasted longer than the use you know usually and like this is what people like in dex land of of ethereum mist is i think

a lot of them thought like the beauty of a dex is non-custodial that's not the key the key is no kyc right so you saw it with min pal you saw it with cripsy before min pal you saw it with uh bitfinex you saw it with polo you saw with all of them like the number one place binance the number one place to trade and obviously bimex is is is the ones without kyc and what happens is they get too big and they have a lot to lose and eventually regulators catch up to them and then someone else comes out and like the beauty of something like bitcoin is that it allows the competition to easily launch a service in some random ass jurisdiction and start gaining steam right especially when you have all these different questionable stable coins you know quote unquote

stable coins like tether that allow you to have some kind of quasi access to to usd without any kind of banking relationships so we will probably see a new usurper come up for this cycle that is like the prominent way to go and and most people will say like oh they'll never be stopped you know because that's you know how twitter always is uh but they will be and then a new one will come that's just how it is the cycle of life just keep stacking sats true that's the best way just hey just keep head down stack sats stay humble um we're transitioning be humbled right we're transitioning into the software update uh i don't see anything particularly that i want to stop and point out at but i will defer to you where should i stop on this list of one two three four five

specter is the first one yeah specter v 0.6.1 the big thing is they actually are providing binaries now so you can just easily install it oh yeah and i think specter is um and we also have the lily wallet update there i think specter and lily wallet are very they're both very promising multi-sig ways for you to um do multi-sig on your own uh specter is probably the most promising way as much as i love kevin uh so both of them combined i think are extremely bullish so you should definitely go check them both out yes and if you're already running their software uh the latest versions of specter is version 0.6.1 lilywada's version 1.0.0 it's a major release um also if you're running my node version 0.2.14 has been released our good friend evan calutas and

the open source team behind him have released version 0.3.1 of the zeus wallet btc pay server we all know and love shout out to them for their three-year birthday earlier this week uh three-year anniversary of the nicholas doria tweet against bitpay fuck bitpay uh btc pay server version 1.0.5.5 is out uh if you're running lnd version 0.11 beta is out it's a couple of jump wombo channels actually so we should probably that's also a big one yeah they're removing the 0.1677 the 16 million sat limit on channels by default has been removed yes which is massive wombo is here and if you listen to the they also have a new backup method that they're it's experimental which i think is a pretty big deal because right now the static channel backups

if you have to use them you have to close all your channels which fucking blows like imagine you spent like four years five years like channel management shit and you have hardware failure and like the only way to get your funds is if you just close everything you've fucking done so i i think new backups are that's a big one yeah so again version 0.11 um one more channel is huge if you guys listen to the episode we did with uh alex and andrew from river yesterday we talked about that for for quite a bit and that's a pretty huge upgrade and then like it brings a lot of questions with it too like how much uh how many sats are you willing to risk in a channel and how do you distribute that risk of your service i thought alex had some pretty cool ideas unique

ideas again don't know if i'm fully comfortable with them but interesting to see the one idea if you guys haven't listened to the podcast yet was distributing risk with users of your service by having them put up sats to put at stake to to run um a hot essentially a hot wallet or a lightning node and they would be able to or excuse me uh um they would be able to uh get the upside the risk and the reward yes exactly so the reward would be custodial staking is what it is exactly it all comes back to bitcoin bitches um that's it for the update schnor uh our good friend at Shored Bits, Ben the Car Man. I know you're in my DMs about next week at BitBlockBoom.

Yes, we will do an interview. I want to talk with you. I have not responded yet. Responding right now. I'm joining for that. Yes, you are. But Shored Bits has been doing a Schnoor Explainer series. We're going to link to that.

Go read it. Obviously, BipTapRoot, which includes Schnoor, which I believe is Bit340, is something many people are waiting for. So if you want to learn more about it and you're relatively new or haven't read up on Schnorr, the boss team at Shored Bits

is doing an introduction to Schnorr's signatures. It is a three-part series so far and I think they're adding more parts. So go check it out. Yeah. All their series are good. If you're interested, like discrete law contracts,

I don't know why they're always in my mind. Like this is a killer app for Bitcoin second layer. They have an incredible series on that. shout out to nadav cohen um for for putting a lot of work in on dlcs at short bits and shout out to chris stewart who already mentioned our friend from iowa living in chicago for putting that team together a very underscored team in um in the bitcoin world it's raspi blitz they were on the bitcoin magazine stream earlier this week three hours of raspi blitz content on the bitcoin mag stream so go check that out yeah good good check it still my favorite node implementation

i saw you have you been running ronin dojo on raspi blitz or separately oh no so i'm running that separately now i'm playing around with ronin i'm playing around with their new release uh which isn't out yet which has a companion desktop app which is baller as fuck boss shout out i just want to say that every wallet i i just want every wallet to be able to connect to your own node through tor by just scanning a qr code and that's you know one of the beauties of the dojo stack is that you can just scan a qr code just connects through tor that's it you're using your own fucking node ux baby it's important don't sleep on ux um yeah this is something i want to bring up just being in the mining industry lancian

which is what i would consider a pretty subpar mining company is suing layer one for patent infringement and they're claiming that layer one's infringing on their patent on basically energy load grid load system manipulations and so basically like layer one is deciding when it is economical to mine bitcoin versus sell wind energy to the grid and these technologies that determine whether or not you should do something like mining bitcoin an example would be uh aluminum smelting it's been around for decades or sell that energy to the grid and how to control that that distribution of load from the grid and the activity that you're uh that you're engaged in has been around for decades um can't say too much at this point but i i think

there is enough prior art within the bitcoin mining space to make make it so this this uh patent infringement lawsuit gets thrown out the patent troll yeah it's a patent troll this is alexander ligal's company do i pronounce his name right legal yeah legal uh that peter teal invested in yeah so they're they're basically using bitcoin mining as a load as a service for uh wind energy farms down there so in texas right texas yeah west texas so the thing about software patents this is what this is it's a software patent yeah and it's a software patent open source like grid system that everybody's been exposed to for like three decades or something like that the software patent system in america is fucked up like all

you have to do is some schmuck can just put together like a flow chart with like little bubbles that's like energy happens and then you don't release energy and you just you don't even need any code you just you provide this flow chart and then you have the software patent like it's a fucked up system it's held back software in globally but especially in america for for years it's just a fucked up system yeah it's anti-competitive it's anti-innovation and it's it just hurts people it's middleman activity and especially in this industry it's like fuck off with how early we are that's all i'll say um i'll always remember apple the swipe to unlock like they patented that shit right like fuck you just like pinch to zoom right it's like just

intuitive like if you're not going to have a keyboard like this is what you would expect no code no code just a couple bubbles good you got this off for a patent it's fucked um matt's favorite company blackfi has raised 50 million dollars uh in a series eight c round um but see like this is what a good dude i am like i had to put them in the list even though i despise the rehypothecation as a service hey i wanted this to be clear i love jack prince has been on this podcast a couple times he seems like a good dude he is a good dude he is a good dude he's a great dude yeah he is a good dude but 400 million dollar valuation on this company dude who knows i mean they're getting a lot of hey you may not like it but

people are using their service it's not i'm not shitting on the valuation it's not valuation doesn't not make sense it's not personally in my risk appetite but that's me like other people have different risk appetites and they're willing to risk it for block five services they're doing it i think they're onto something i think people want the six to eight percent or whatever they're getting on their bitcoin um i know binance is offering it i know coinbase is about to offer it we talked about this in the river podcast uh i i just it still rubs me the wrong way that they did not only how they handled the leak of of customer data but the fact that they are lending out this money uh so so you have to trust them on that so it's it's

additional custodial risk um but but that they required facial scans to to get your money after the personal attack after after their data leaked right so well let's let's put it into context they're based in new york they probably have a bit license and they're probably being forced upon them i mean i they could have there's much pushback they could have disclosed they could have done the disclosure much better i agree but the information they need to gather may be a product of the regulatory environment in new york state i think they're supporting a lot of shit coins and if if if if you're going to push back against that like you should push back for user privacy at the same time yeah and it was funny they were uh they sponsored the post for portnoy

was pumping and dumping coins yeah they're his sponsor now well gemini they use gemini as their back end they're going after coinbase they use gemini as their back end um gemini just invested in this round as well uh or maybe not gemini but the wink of i did maybe the wink of i did individually yeah i know pomp was was an investor i think through yeah morgan creek yeah which is pomp's firm uh hey invested and that's i mean this is an open source system may not be in your risk appetite may not agree i mean they're definitely not open source but they're definitely part of the permissionless aspect exactly yeah if you want to use block five use block five but you're a fucking idiot if you do that's my nicest way of saying it uh i'm trying to be nice you're

me trying to be nice i'll i'll take that i wouldn't yeah i would say it's not my risk appetite i'm not gonna tell anybody else hey who knows many people pulled sats off there made some money who knows uh marty told you that bitcoin is going to last for 2 000 years and you're going to try and get six percent in the meantime are you fucking kidding me hey hey not something i'm willing to do but we'll see uh crypto voices wrote about in the newsletter today sorry it was a late newsletter had a busy thursday they've been doing an incredible job of gathering and disseminating data of the the global base monies that exist and how much there there is floating around the world right now obviously

the second quarter of 2020 had a lot of central banks around the world printing a lot of money as the covid pandemic swept the world and lockdown swept the world and economies were shut down i highly recommend you go check out the thread that they wrote it is incredibly illuminating just to see how detached the global monetary system is from any anchor of value, whether it be a hard asset like gold or silver or something like Bitcoin. The amount of money that's been printed in ex nihilo

over the last 50 years is pretty astonishing. And shout out to Matty Mazinkshus and Fernando Ulrich for, it's hard work to gather all the data that they do. So they go in and sort of dissect the balance sheets of central banks and governments around the world and add up how much total base money there is around the world denominated in U.S. dollars. So I believe right now.

They are awesome. They really are. Every time I think of them, I just think of the dinner they hosted in Latvia. Such a good dinner. Yeah, I did not make that one, but it's worth subject. Right now there's $23.7 trillion of base money right now. I believe gold is the number one. even though it's not used as a base money if you're going to pretend that it is used as a

base money would be the number one base money in the world silver is somewhere far down the list bitcoin's number 12 right now um which is pretty surprising bitcoin number 12 as a base money with gold included number with gold and silver included number 10 without them included uh it wasn't on the list until 2016 at which point it it joined the list at number 31 so the fact it has been higher i believe it was at 11 in 2017 when we had the crazy bull market but right now it's hovering around 12 uh and i think that's bullish like bitcoin's on the stage it is considered a a base money asset that um that people were willing to get into and thinking about the the market cap of bitcoin compared to the other base monies in front of it and the

potential upside especially if you go into another bull market it is not hard to fathom that bitcoin will climb this list so i'm looking at the chart right now japan is number two how does behind gold right right and united states is number three and eu is number four and china is number five why is japan like how does that make sense that japan is number two i don't understand like how does that do you have any any insight here they started their qe in the 90s so japan's been printing money for three decades now or the u.s but it's total valuation it's total total valuation in u.s dollar terms so we're so the amount of yen is worth more than the dollar no there are more market cap the yen denominated in u.s dollar market cap yes has a bigger free

flow but take that with a grain of salt but then why are we denominating u.s dollars in yen why are we dominating yen in u.s you understand what i'm saying because you don't buy oil in yen you buy it in dollars use the petro like why isn't yen the global reserve currency if they're number two because people are in you like the yen has been printed and pushed in like the bank of japan and 75 of their etf market or 90 of their etf markets i'm like 75 of their stock market and so that's that's where those dollar denominated yen are living they're not permeating throughout the global economy they're getting pushed right into that those equity indices the japanese should just buy usdc from coinbase and they should put it in blockfi and then they can get eight percent

interest or whatever it is okay i just want to say with blockfi just i just wish like i would give them less shit if they just explain the trade-offs better like i feel like a new user doesn't understand the trade-offs so i have to scream my head off to try and get through to those new users so they know about the trade-offs if the trade-offs are just clearly obvious to the new user then i wouldn't i wouldn't have to say shit i could just keep my fucking mouth quiet yeah you keep that mouth quiet over there all right we don't need you starting shit i will not shut up okay i know nor should you ever don't ever listen to me speak your mind this is a

game of individuals welcome to the realm it's been a great episode of rabbit hole recap I had to go prepare for my dinner do you have anything you want to end it on Matt

stay humble stack sets peace and love okay