TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2020.09.28

Episode Date: October 1, 2020

This week Marty and Matt discuss: - BitMEX hit by CFTC and Department of Justice - KuCoin hacked for $150M - New Zealand tax authority seeking personal info from local exchanges - Chainalysis and Integra FEC receive IRS contracts for lightning and monero tracing - Pierre adds bounties to BitcoinACKs.com - September privacy newsletter by Janine - Murchandamus joins Chaincode - RoninDojo v1.7.0 - Sparrow Wallet v0.9.4 - nix-bitcoin v0.0.18 - The Eye of Satoshi v0.1.1 - BTCPay Server v1.0.5.6 - Aqua Wallet by blockstream - CoinOS web wallet with liquid and lightning support - Docusign competitor using bitcoin - Woleet - CalyxOS released - Taproot explainer by suredbits - HCPP this weekend - Ministry of Nodes also thinks specter is straight fire - PlanB Dox - Brian Armstrong fake woke 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.

What's up, freaks? It's your boy Marty here to introduce this rip of Rabbit Hole Recap. Obviously, we did not get a midstream read-in. A lot of news this week, jam-packed. I think you guys are really going to enjoy it. This rip of RHR is brought to you by Good Friends at Unchained Capital. They are building financial services products with this security-first mindset for Bitcoiners revolving all around multi-sig. they actually have a white glove concierge service that'll take you from zero to a multi-sig vault with somebody holding your hand along the way so the way it's it works you it's a fifteen hundred

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concierge service in the show notes but if you want to check out everything they're doing go to www.unchained-capital.com it's www.unchained-capital.com this rip's also brought to you by good friends at the cash app you should know all about them but if you don't know about them let me tell you about them you got to learn about them the cash app something you stack sats send sats receive sats and sell sats if you so please we're saying sats sats sats sats because they allow you to make sats the standard within the app uh again you're not buying fractions of bitcoins you're stacking whole stats on top of that they're allowing you to dca into sats so if you want to set it and forget it either daily weekly or bi-weekly you can set that up in the app so

You're just stacking sats in the background. You have that peace of mind knowing they're getting constant exposure to Bitcoin. On top of that, they have Cash App Investing, which lets you invest in slivers of stonks. You can stack slivers of stonks now on the Cash App as well, if you so please. I know a lot of you guys don't like the stonk market, but the optionality is there via the Cash App. If your favorite stonk is a little too expensive, you can invest as little as $1 via Cash App Investing. Cash App Investing is a subsidiary of Square, a member of SIPC. IPC and because all this is connected to your

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That's Owls Lacrosse. Enjoy this rip. you've had a dynamic where money's become freer than free when you talk about a fed just gone nuts all all the central banks going nuts so it's all acting like safe haven i believe that in a world where central bankers are tripping over themselves to devalue their currency bitcoin wins in the world of fiat currencies bitcoin is the victor I mean, that's part of the bull case for Bitcoin. If you're not paying attention, you probably should be.

We got a lot to get through here, freaks. This is Matt's trying to do a bottle quirk pop. I heard it. I heard it. I have a super old bottle of Glenlivet, so it's not making the pop noise, but I just opened it for you. This is a very interesting day to start sober October for your boy.

I'm going to attempt to make it to the night of the 31st before I imbibe alcohol. Wish me luck, freaks. Same. Big day. Big day, Matthew. I guess we should just jump into the news of the day. Let's not even powwow, shoot the shit here to start, because we've got a tight close around 5.15 p.m., 5.30 p.m.

Nobody knows what that means. That's like an hour and 15 minutes we have. Yeah. an hour and a half almost and uh long list with a lot of big topics the biggest of which we're going to start out with because it is breaking news uh today the department of justice announced that the cftc in conjunction with a couple other alphabet soup agencies including the fbi have charged bitmex uh with uh i guess an indictment i don't even know exactly what but uh for skating KYC AML

compliance in the past having allowed US users to access their derivatives platform without KYC them. This is big news. There's a double shot. And they

actually arrested the CTO Samuel Reed in Boston today. So he is currently in custody. I imagine he'll get out. CTO and co-founder. I imagine he'll get out on bail at some point in the next week or so uh but yeah we've been talking about this on this podcast particularly for some time the the risk of the u.s government attacking uh bitmex has always been there and today seems today that they they're taking their punch what are your initial thoughts

matt so first uh hoping for the best for sam reed uh he was he was in massachusetts when this all went down so they arrested him there um he's not only the cto but he's also one of the co-founders so so bitmex was definitely you know partially his baby as well even though arthur is arthur hayes is the most you know prominent one there this was a double shot so it wasn't just like a partnership between the doj and the cftc it was they both separately filed charges against bitmex for different things so cftc hit them with anti-money laundering violations violations right mostly stemming from the lack of kyc um and then and then the doj hit them with bank secrecy violations bank secrecy act violations which despite the name of the bank secrecy act it's

actually the banks are supposed to not be as secret it's the opposite of what the you would think the act is supposed to be they have to collect information and file all these suspicious activity reports which you found out from buzzfeed news last week don't actually are used for anything if you're a connected individual which brings up an interesting question if the bank secrecy act is being applied here are they considering bitmex a bank and if so that bank is solely collateralized by bitcoin are they officially recognizing bitcoin as money i don't This is just tangent here, but an interesting, like, does the Bank Secrecy Act actually have any power over BitMEX? I don't know. I mean, it's, it's, it remains to be seen.

I believe Sam was arrested for, per the DOJ charges, which is the bank secrecy violation stuff. You know, I'm not a lawyer. I think they they can they can hit these guys with whatever they want to hit them with, though, is usually my my, you know, non-expert take in this field. So so here's here's what's going on. The Department of Justice issued a statement talking about the FBI and the CFTC. So FBI Assistant Director William F. Sweeney Jr. said, as we allege here today, the four defendants through their companies and BitMEX cryptocurrency trading platform willfully violated the Bank Secrecy Act by evading U.S. anti-money laundering requirements. One defendant went as far as to brag the company incorporated in a jurisdiction outside the U.S. because bribing regulators in that jurisdiction costs just a coconut. Thanks to the diligent work of our agents, analysts, and partners with the CFTC, they will soon learn the price of their alleged crimes will not be paid with tropical fruit, but rather could result in fines, restitution, and federal prison time. So that was the FBI statement. So the FBI, CFTC, in conjunction with each other, Department of Justice is announcing this, and we shall see what happens.

They're trying to make an example out of them. Yeah, it's disgusting how hypocritical it is, especially considering the information that was divulged by BuzzFeed and other journalists around the world in relation to the suspicious activities report that are being held at FinCell, that the largest banks in the world facilitate some of the worst crimes and enable some of the worst criminals, the drug cartels, people trafficking humans. that Deutsche Bank was holding accounts for Jeffrey Epstein even after he was released on pedophile charges and people knew that he was involved in trafficking. They still had accounts open for him. We're allowing him to use that. And here's a tweet that perfectly summed it up from,

let me pull up a Twitter account here, Tyler Bull, Typer Bull, excuse me, at Typer Bull, T-Y-P-E-R-B-O-L-E, BitMEX 11 billion deposits from people who want to trade Bitcoin founders arrested big banks process trillions and known suspicious transactions as exposed in the FinCEN files get sweetheart deals fines accounting amounting to fractions of profits and a second chance to clean their act up this two-tier justice system has never been more clear than it was made today you know another thing here that's important to keep in mind is basically what the U.S.

government is saying what these government agencies are saying is you have to follow u.s laws for u.s citizens if you serve u.s citizens bitmex has historically not allowed u.s citizens on their platform but u.s citizens could use a vpn to get around those restrictions so basically what u.s government agencies are saying is any company anywhere in the world needs to do kyc which we already know on this podcast is dangerous um for users and ineffective they need to do kyc to weed out which users are u.s users to go out and block them otherwise the u.s government will go after you which is is is basically the u.s government saying that every single company on this planet needs to hurt the privacy of their users no matter where you are no matter where you

It's not enough to just say the U.S. users can't use it. I guess you could presumably say U.S. users can't use it and we're going to block all known VPN IP addresses, hosted VPN IP addresses. But still, in that case, you're hurting user privacy because users should be using hosted VPNs when they connect to these services. Yeah, it's completely fucked.

The empire is getting brash. I mean, we've been opining on this for quite some time now. uh apparently so i guess we should mention this while um it seems to still be true it seems that bitmex is uh processing withdrawals and they're doing it um in a manner that they have not in the past they usually do daily withdrawals at 8 a.m eastern and it seems that uh i guess is a sign to show that customers can still access their utxs 17 hours from now 18 hours yeah so they're processing withdrawals right now uh the way i understand it uh they hold funds in a multi-sig address held by the co-founders obviously one is in jail um so they have enough signers to process

withdrawals so if any of you international freaks are out there or just finding this out via rhr i would try to get that stuff off the exchange while you still can because i would imagine they shut down yeah the facilitation of of what you're all is pretty soon no if you have if you have funds on that exchange and you haven't fucking pulled them off already like go fucking do that right now and uh and and wait to see how it plays out you know not your keys not your coins um but with two things here with that it's very interesting is i mean from a user perspective you know mad respect to bitmex there right um getting users their funds also you know if if listeners were paying attention last month bitmex added kyc for the first time right and they also

gave users a window like a window in a window before they started implementing it they didn't shotgun kyc users which is you know obviously user hostile to shotgun kyc users but but regulators appreciate when you shotgun kyc they don't want you to give users a warning before you implement these practices and just like this like you know regulators are not going to be happy that they're that they're allowing withdrawals to go out right now i like it though i like it so it's a very punk rock move by arthur no yeah it's it's based but still like um you know i don't want to read too much into it we don't have an official bitmex response yet arthur has been silent um even though some people have been fooled by bit lord's tweets and others tweets i got it i got fooled by

it you got fooled by the bit lord tweet yeah i did yeah i should know by now um but arthur hasn't done it hasn't issued a response yet and bitmex hasn't issued a response yet but those withdrawals are going out so you know we we will be paying attention to this and and updates will go into the sad standard uh because i'm sure a lot's going to come out over the next next day or two as marty said we did you know they had a really long run i'm surprised it's gone on for this long um but uh to those that are not uh to those that are not having a sober october we should we should all you know pour one out for them and and have a drink to bitmex today yes who knows maybe they'll get through this uh i heavily doubt it yes i'm surprised the domain

hasn't been seized yet when we saw with one broker and btce they they have that seized screen that comes up maybe it will pop up while we're recording who knows um let's just yeah well pour some out for bitmex tonight let's give proper pop about proper props where proper where props are due proper props where props are due uh i mean they somebody just tweeted at me that BitMEX is the most DeFi application on the market right now. It was more DeFi than most DeFi that exists

today. But it wasn't decentralized at all. But neither is most of DeFi. It's actually like valuable decentralized finance. I mean, there's multi-sigs involved. There's smart contracts. Essentially controlled multi-sig.

all right i wonder just on that note beyond the point that's not what i want to say that's not the point i was trying to the point i was trying to make is that bitmex up to this point in time has been true to bitcoin's core ethos they've never touched they never touched fiat rails uh they were good good stewards of uh of uh managing uh their when they sent transactions again they sent it once a day at 8 a.m to make sure they weren't clogging up the blockchain too much one qualm we had with them is reusable addresses which we uh we thought they should have changed but other than that they've been a pretty based uh bitcoin company that's been built on bitcoin let's not forget they have the bitmix research arm which does incredible pieces they have

hdr global which gives out grants to bitcoin developers that contribute back to the protocol they've been good stewards of bitcoin uh and the environment that it's been growing up since they launched in 2014. It's just sad because they're truly innovative, right? Would you argue that their products are innovative? They're massively innovative. And I do agree more with Bitcoin ethos rather than... DeFi.

DeFi. Fuck DeFi. But yeah, 100%. Hopefully those dev grants have been paid out already. they don't get locked up selfishly speaking yeah because the uh doj announcement said they're seizing all their or of course applying this to all their subsidiaries um and yeah so and the other thing is so what i was going to say before is you know ftx and binance both um have lower tiers that don't require kyc even though um so i wonder if they go kyc across the board i wonder if this is going you know it we have talked in the last couple episodes i mean we've

been talking for months about this it does seem like like the regulatory chokehold is is in play here and and this this is seems like to me seems like the next you know the next grip they're they're they're moving in it should be it should be interesting to see how this plays out historically when they've hit an exchange like this you've seen other exchanges come in and start offering the non-kyc you know kind of bucket shop ish uh it's it's kind of offensive to call bitmex a bucket shop they were a little bit you know more innovative and professional than that but you usually see the no kyc options come in um to compete with it a new one uh after one falls but i'm not sure if if necessarily we will see that happen here so it should be interesting to see

it play out what does this mean is is uh one chapter of bitcoin's story being being ended another beginning are we entering a battle um it's a lovely phone did you have your uh did you have your mic off for that i muted the mic that the freaks heard but you heard the phone call okay good well and it's a call from so i hope uh nobody got that i'm currently with my grandmother i'm at my grandmother's house tell her i said just to just to talk about more positive news and she has a uh an audible caller id on her landline that that says who is calling which is not only extremely annoying is is is pretty poor for opsec so yes especially if you're recording audio in the same room yeah but i did i did

mute the mic when it when it came in so apologies freaks for that a family is important so appreciate your family yes uh is a new chapter in bitcoin's life starting are we entering a tumultuous battle against the regulators against the alphabet soup agencies for the ability to use bitcoin in the way that it was designed i kind of feel like it i hope not you know as a public Bitcoiner you know I like I love this country I would appreciate if they don't try and ruin my life I agree I agree we need Cynthia Lummis to get into uh to office sooner so she can help educate the people at these three-letter agencies great interview that was pretty woke yeah she's pretty based um just to note I I really like I think she might be the first U.S. politician to

accept bitcoin donations uh non-custodially not with with no custody because she's using btc pay server which i think is like particularly the most based of of that whole interview she gets it she gets it and um should we turn the page on the bitmex subjects and i'm sure there will be more in the coming weeks or should we should we riff on this a little bit more you know i'm well we're 17 minutes in i think that's you know we don't really have much more to say i'm shook right now this this news you know kind of it hit me only like uh yeah you didn't know when i when i uh messaged you yeah exactly so i was trying to catch up and uh i'm still a little bit shook we will end up probably talking about this for the next couple weeks um hopefully

the freaks didn't lose too much money uh i you know the the truth of the matter is anyone who sent most people who sent money into bitmex lost it anyway yes so you know stay humble stack sats and not your keys, not your coins. Keep that in mind. Exactly. There we go. We'll transition to the dashboard here because it actually has been surprising

how well the price has held up, all things considered. It was at $10,800-something earlier today. Right now, currently at block $650,831, the price of Bitcoin is standing at $10,580, according to Clark Moody's dashboard. It's not a big dump on this news, which is pretty big news. what do you think about that do you think is this bearish for the price is this bullish some people

are saying it's bullish for the price some people are like is this going to be like a gox type of situation i don't know uh the most bearish part of gox was that they seized the coins and started oh no no that was silk road the most bearish part of silk road was they seized the coins and like dump them over years like periods of years yeah so i want i wonder uh how intense the uh the multi-sig of the insurance fund is because that is what i assume they would attempt to seize and that's got like close to 100 000 bitcoin or something in it i think more than that yeah isn't like 200 000 bitcoin now maybe i don't know um it's high so that's the biggest risk i would say in terms of a bearish price yeah but well would the u.s government dump it this time

or do you think they'd hold it no they would dump it they should hold it but they would dump it yeah shame on them uh yes we'll we'll we'll stay up on that uh moving across the dashboard here uh seems that a little bit of hash rate has left the network since we met last week we're currently 336 blocks away from the next difficulty retarget which is scheduled to be on october 3rd so saturday uh east coast time uh difficulty change is estimated to be a negative 0.3 percent blocks are coming in at roughly 10 minutes and three seconds so relatively flat not a material reduction in difficulty if uh it stays at this pace uh there are currently 54,527 transactions in the mempool uh 11 rbf so i bet uh some people trying to get their fees off

of uh bitmex or bitmex is maybe using rbf to make sure that these transactions go through before before they get uh i don't think they use rbf no um i'm speculating here uh yeah immediate fee if You want to get in the next block is 101 sats per byte. If you're willing to wait an hour, it's 96 sats per byte. If you're willing to wait a day, it drops all the way to 3 sats per byte. And, Matt, we're still at 1 sat per byte for a week if you're willing to wait. Never going to see 1 sat per byte again. Samurai Whirlpool capacity, liquidity, excuse me, sorry.

Clark, note, change capacity, liquidity, is at 1,696.59 Bitcoin. It's approaching 1,700. We passed 1,700 earlier in the week. and drop back below, but I believe we were at something like 1,636 earlier this week. And Whirlpool volume this month was the second highest ever, with last month being the highest. Shout out to Whirlpool users.

Keep mixing, freaks. Or coin joining, excuse me. That's all we'll do for the dashboard right now. I'll just throw the ads in the beginning of the episode. Yeah, we're not going to mid-roll you, freaks. It's pretty late in the episode now. Yeah. Should we just go to the shout-outs and get that over with?

Yeah. Be excited, Marty. Oh, I am excited. We have to... So we... We got to read the conspiracy theory shout-out. Yeah, there's a conspiracy theory shout-out. You freaks may have...

May remember if you listened. I believe it was a couple weeks ago at this point. Two weeks ago? Yeah, two weeks ago at this point. We mentioned the fact that there was a freak who sent in a shout-out with some words for Jack Maulers and Strike. We were uncomfortable reading it because we thought it misrepresented what was going on

and we couldn't confirm at the time, but we can now confirm that it's misrepresenting what's going on. And it was filled with ad hominins. Well, they're about to hear it. Yeah, we're going to read it. Again, these aren't our words. Just to note, we've refunded the freak who sent it in, but we're still going to read it just to quell these theories

that people keep hitting me with. Yes. Okay, and you freaks can make a judgment call on why we chose not to read it at the time. Hey guys, just listened to Jack Mollers on Pump and felt the need to write in because of how misrepresented Strike, how he misrepresented Strike. In the past, Strike was made out to be a lightning wallet app which could accept fiat and was instantly turned into Bitcoin. He made it seem as if we'd hold our own coins in a connected wallet. But now on Pump, we find out that he'll just be accepting our coins and trading with them in the background to make his own profit off our capital like it's the Robinhood app. What if he loses money on his trades and ends up with less Bitcoin than everyone thinks they have put in?

What if people want to withdraw Bitcoin off strike and he doesn't have it? This is rehypothecation. What good is Bitcoin if we just use it as new foundations for the same old corrupt practices? And he has the nerve to criticize DeFi, which actually lets you connect your wallet and hold your coins in actual smart contracts on chains. What a joke, Jack, is the leftist simp Judas goat of Bitcoin. So a couple of things here. I don't think Strike's custodial at all. I actually downloaded it and used it this week and can't confirm that you send fiat, you pay.

You can't hold Bitcoin on it. No, I think you're getting Strike and Zap mixed up. He does have a non-custodial wallet under the Zap company that I use every day for Lightning. But yeah, you can't, he's not, he's not like using, since you can't hold Bitcoin on the Strike app, there's no way you could like take your Bitcoin and rehypothecate it and trade it. I did not listen to the podcast yet, but he's explained it to us. i think what he's doing the trading aspect he's just trying to hedge price risk that he's taking on like strike uh he's taking on a lot of risk particularly price volatility risk uh the way

strike is set up he's using his own bitcoin to pay on behalf of customers and he's trying to maintain the purchasing power and value of his bitcoin over time so he will it strikes bitcoin yeah it's and yeah strike is simply a fiat ramp where you can go back and forth but they're not holding your bitcoin no um they allow you to pay bitcoin invoices in fiat and it's not a privacy service it is strictly kyc and i think he's pretty clear about that yeah and he's definitely not a simp judas no he's our boy yeah and defy is definitely garbage so we're hitting all of these things you know and and this is why i didn't want to read it originally yeah yeah so there's another shout out that i'm about to read that has some ad hominins at it and just like

you guys can criticize businesses in the space please if you do make sure you're right about the facts uh so you don't put us in this awkward situation where we have to tell you that we're not going to read this because you're wrong uh because part of it was i didn't want to criticize the freak who paid for the shout out right like i because i love you freaks so if you're going to put us in the situation like do a little bit of research and be a little bit more eloquent about it and don't fucking hit us with the ad hominems i like debate ideas not people please okay continue yes all right uh so next one uh again so going forward you can you can uh criticize the companies please don't attack the people with ad hominems uh and then we'll talk about the merits of the

shout out from there so matt odell on september 21st 2020 reputation last week reputation is a long game especially in this space if you lose it there should be no forgiveness you'll lose that for good in the world of shit tokens you can make a lot of money so if you think this is wrong you need to keep calling them out in the same spirit a psa zach herbert foundation devices and obelisk ink are all failed shit coin hardware con artist after destroying obelisk ink's reputation zach and his team rebranded to foundation devices and is now targeting bitcoiners with stolen vaporware hardware satoshi help anyone who trusts foundation devices with their bitcoin keys uh okay it's a interesting opinion uh disclaimer here at great american mining we are investors in foundation

devices uh we we uh we have we have uh pumped a seed investment into the company because we really believe in what zach and team are building a couple things here they did not rebrand to foundation devices it's a whole new company uh and we have talked to zach and team extensively and they admit that uh obelisk was not the success they had hoped it would be they ran into some hard problems as it pertains to manufacturing hardware on u.s soil it became a little expensive a little slower and the managerial process between the factory floors turned out uh to be a bit of a hurdle for them uh i am bullish on foundation devices and the team they're building there with that being said uh like matt uh frequently recommends i would uh i would wait till their hardware hits the market

test it out before you put a lot of funds on it make sure you can trust them and it's well tested I do think they will deliver something that's pretty cool. I like the QR code standard they're rolling with. And then beyond the hardware wallet, the reason we invested in the McGams is because they're going to build hardware beyond wallets in the future. They may get back into ASICs. And even though while they were at Obelisk, there were some unfortunate events that took place. So we're confident that they're learning from those mistakes and we'll apply that to future products. that's what i'll say matt what do you think um so first of all the obelisk was a company that was

created by the sia founders sia is a shit coin that is designed to be basically like a decentralized dropbox and they set out to make asics and there was a lot of fuckery that happened there i did i have great dreads on it because i i did because there's a the sia team led by david vorick who's not who's not affiliated with uh foundation devices um where they were they were right on point about asics right which is what most shit corners aren't on point about asics which is that you want your chain to be dominated by asics it is the most secure situation for you to be in it enhances the loose game theory that secures these networks because the hardware isn't general purpose so if if if something happens to the chain that hardware becomes bricks they become

worthless the issue was they decided to then create asics and then bitmain beat them to the punch so they put a backdoor in their asics which were delayed in the first place that they had pre-orders for hardware pre-orders for which if bitcoiners historical bitcoiners um they know about asic pre-orders uh and and like butterfly labs you know like when is it going to come um asic pre-orders are like almost never a good idea uh but so so their asic was late it was underpowered and was beat by bitmain so they switched the algo and in their asics their their asics were able to switch algo but bitmains weren't so they brick they forked sia and they bricked bitmain asics and vorik and the rest of the team made it seem like they were being

virtuous it was like virtuous pro chain like everyone agreed with them well like obviously the miners that had bitmain miners didn't agree with them they they had their hardware it was bitmain and nk not miners i believe too right yeah so they they had gotten completely owned there um there was also something else about grin miners i think they got refunded um zach has spoken about some of this uh so so that that was all some shady shit like people shouldn't know about that i 100 think people should know about that um i also what i don't think zach was on the executive board when that stuff happened he like got he was cto wasn't he coo but he got asked to step up towards the end of obelisk's lifestyle to basically wind it down

i believe so yeah so he probably regrets doing that i would imagine um and then the other thing is like what i what i have a lot of issue with with foundation is pre-orders of of unreleased first generation product which you know we love cold card here the cold card first gen fucking was horrible the touch screen buttons like i still have three of them in my fucking shelf like no one i i don't think people should be ordering pre-order like you can order it if you want to fuck around you just love bitcoin you know but just don't have high hopes um and especially since it's way more expensive it's the most it's the most expensive hardware wallet on the market right it's like 300 um and then the other thing is cold card is gpl licensed um so the source

code is supposed to be released if you sell a product using that code and foundation is saying that they're going to release the source when they deliver the product. Before, I think Zach came out this week and said they're going to drop the code before shipments officially go out. Right, but the code should go out when the pre-orders start.

That's, you know, my nitpick. So I have that nitpick. And, yeah, you know, I users should people perspective customers shouldn't know all this background I think and I think Zach has done a decent enough job of of actually talking about it he talked about it on the podcast with you yes um so if you freaks want to go listen to that it's in the archives and and he has responded to people on on Twitter about it but uh it is what it is it is what it is but obelisk like there was some shady fucking shit that happened over at obelisk

yeah like david vork i was more most upset with david vork out of everyone because i actually thought like he had a good head on his shoulders yeah um it turned it became obvious when they bricked the other as6 that they were they were being so fucked up like wall gardened and trying to and i mean it was a a case study and the pitfalls of having a centralized governor in team for a decentralized blockchain stuff like that happens and uh sort of just destroys any sense of decentralization they are attempting to achieve yeah it's the same thing that we give like defy proponents shit for when they say defy but they have a kill switch or they uh or i mean and that's our next story with kucoin but you know we'll go into that after the next shout out but

like when they pretend it's decentralized just for marketing and it's not right and and in the case of sia you know they're supposed to be decentralized cloud storage but really like all you have to do is pressure the sia team and that you know the obelisk team and and you can you can have the chain do whatever the fuck you want there's no it's decentralization theater yes um so yeah take it with a grain of salt i do believe that uh people can redeem themselves i get it looks like foundation devices has an uphill battle uh again um i'm interested to see the hardware they put out and i'm rooting for them i hope they put out good good products i think more competition in space is good not saying that's certain to be one we'll see um but i think

they're working on interesting stuff and i will be testing out a foundation device a passport when it when it hits the market i do want to see more psbt compatible qr code wallets right because i'm super bullish on spectre and i think that's like the best model for it yes yeah um all right a little rosier shout out uh actually a good question sup marty matt got a question shout out i ran the numbers this week the get tx outset info output shows that the total coins in circulation is 18 million five hundred three thousand one hundred seventeen point one two six five zero three eight one how can we have eight figures after the decimal if bitcoin rewards have only or bitcoins of block subsidies i'm going to throw in a in an edit here to be specific have only ever been

as granular as 6.25 bitcoin it seems that coins in circulation should end in 0.25 0.50 or 0.75 or be a round number wondering what in the protocol leads that trailing decimal string thanks for all you do for the freaks cheers a humble runner of numbers and stacker of sats very good question uh this could uh i can easily see how this could throw people off like hey are there more bitcoin being printed than there should be at any given point in time so the way it works is when the subsidy is distributed uh it it's a max subsidy so you can uh like when the subsidy was 50 bitcoin you could the miner having found a hash below the current difficulty target putting transactions in a block and adding it to the network is allowed to claim the block subsidy

in the coinbase that is the coinbase reward and they have to uh they have to say how much of the reward they're claiming. Most smart miners who are trying to profit as much as possible claim the full reward, obviously, why wouldn't you? But in the past, some miners have messed up their software. And there have been dozens of instances where they have claimed less than the potential total subsidy. I believe there was an RSK miner that actually mined a block that got added to the network than to claim any of the subsidies. So we also have instances of miners doing it intentionally though i think this may not contribute to this stat mid magic at mid magic on twitter was the first to do this uh and like at block like 127 742 i believe is off the top of my head

um actually might be 271 742 um he intentionally uh made one satoshi of the potential subsidy unspendable so he burnt satoshi as homage to satoshi uh right around when he he left the project um but yeah no very good question uh very astute observation and so the answer to the question is miners uh have a maximum subsidy they can claim and some have accidentally or intentionally claimed less than the potential max. Miners claim full subsidy. Yes.

Scarce. You want it. But I appreciate it. It's a donation to all of us, so I appreciate it. Thank you for that. And thank you to the humble stacker of sats and runner of numbers out there for asking that question. It's a very good

piece of information to educate you freaks around. um i had a fun time reading into it yesterday some of you may have noticed i sent out a tweet with like five misspellings uh answering or asking a question about this uh it was cool to see the answers and run run through the archives i dig it you gotta run the numbers don't trust verify fact which is also why i love when the freaks do hit us with the hard-hitting shout outs like they did this week yes i love it too um don't love seeing exchanges getting hacked matt mentioned it a little bit earlier but i believe it was after we recorded last week became apparent

that kucoin a south korean exchange uh was hacked for 150 million uh dollars worth of tokens so ether bitcoin and erc20 tokens i believe were the bulk of what was taken they took 20 million tether and tether yeah that's the rc what was it the rc20 tether uh i believe so it doesn't really matter it all got frozen so this is so first of all not your keys not your coins um as the freaks know if you're in bitcoin long enough you will be taught a lesson if you don't keep custody of yourself you will you will end up losing you will end up losing some some of your money um with this it's particularly interesting because it was mostly defy shit that got hit and i'm trying to pull up the screenshot i have here um i did this so so a lot of people are

saying you know oh centralized exchange and we're actually seeing this with the bitmex stuff too and i mentioned this in the standard this week um centralized exchange you should use dexes right But what's really happening in the DEX landscape right now is the so-called DEX landscape is they're pretending the two main value props is supposed to be non-custodial and no KYC. But really what's happening is you have both custody and KYC happening. It's just happening out of the user's view. It's not happening front and center. You know, they're buying USDC on Coinbase. They're KYC-ing there.

They're custodying their U.S. dollars with Coinbase. and then they're sending it into the DEX. So it's happening one step away, and it's just basically an interoperability platform. And what we saw happen with this KuCoin hack is the overwhelming majority of funds that were stolen were ERC-20 tokens. The $20 million worth of Tether was immediately frozen.

They also took Orion Protocol, which, you know, invalidated the $8.5 million that they stole from there. these are all tokens i've never heard of but whatever covesting had 520 000 worth of tokens stolen they froze it cardia chain had nine million dollars worth of tokens they froze it uh velo labs had 122 million velo tokens which is not 120 million worth 76 million dollars they froze that uh vidit datalink freezes 14 million worth of oh no 6.4 million dollars with their vidt silent notary replaced all of its tokens with a whole different set of tokens

to remove the 95 000 dollars that was affected from the hack so none of this shit you know it's all decentralized only in name only for marketing purposes and also to try and do like a little bit of regulatory arbitrage where they pretend that they don't have control for regulators so they don't get bitmexed uh but it's all bullshit it's all fucking centralized they can do whatever the fuck they want you know they they can they can block you out at a moment's notice and and there's no regulatory censorship resistance there because they they have that power and regulators aren't idiots they they see this they know they have that power yeah it uh that's why ransomware attackers request bitcoin instead of uh these tokens they you know there's a greater chance

of them being able to uh get away with it with the stash not that it's a good thing or anything it's just a nature of bitcoin's decentralization and true censorship resistant properties uh no i think it's massively a good thing because that's the whole value prop like without that there's no value yeah i'm saying the ransomware attacks aren't like a good thing obviously without that yeah yeah of course but without that like you're just liberty reserve 2.0 and the government can just any government in the world can just shut it down at a moment's notice yeah but especially the u.s government so be aware do you have i don't know if you have this on the list but you have like the sec come down on kick um the kick token i don't think so um i do not that became

apparent this week and it seems like uh it seems like the sec is going to start attacking more and more of these icos uh for being for illegal securities offerings um so be aware if you've offered a token uh i forget exactly what happened i saw preston burn and a couple others talking about uh the kick uh trial that's going on right now and they were making fun of uh what's his face from union square ventures for saying it's not a security um uh uh fucking fred wilson yes that guy defend crypto.org yes defend crypto um yeah it's never a good idea to have a chat app and try to throw a token on top of it doesn't make a lot of sense to begin with um it was a hail mary it was a failed it was a failed uh company yes uh staying on we've had we're starting out with

news that makes us angry uh this week so much uh new zealand tax authority is seeking personal information from local exchanges so uh they are tapping into the exchanges on uh in the jurisdiction of new zealand and attempting to force them to give up information about their customers so the ird which i believe is equivalent to the irs the inland revenue department i guess they call it in new zealand yeah in new zealand um so it says it's why it's widening its net of the tax base and crypto assets or something that's definitely growing in popularity we're seeing a huge increase in new zealanders getting involved the requirement to hand over customers personal information was heartbreaking so it seems like

uh some of these exchanges are complying so any of our new zealand freaks out there any of the kiwis out there um pouring some out for you today too you know this this is just it's just go is the it's like it's like we're making this narrative but we're not making this narrative it is happening this is the worst told you so ever um but it's it's the devices closing in this is this is how you try and capture the ecosystem this is how you try and restrict its growth right I I don't think ultimately I don't I I don't think it's a death now for the Bitcoin Network the Bitcoin protocol I I the the token and the currency I I don't think but it's going to be a very painful couple of years um for bitcoin users around the world like

people are going to learn uh and just individuals even if you're not in bitcoin people are going to learn why privacy is important it's going to be very painful and they're going to learn and uh yeah i i just you identify you identify people you catalog them and then and then you and you proceed with attempted enforcement and some people are going to be made examples of this is why you hodl freaks another reason to hodl honestly um if you have the patience if you have the time preference the low time preference uh and you believe in bitcoin's potential future there's another reason to hodl and maybe try to out hodl the overbearing regulators uh who i think we will overcome at the end of the day but um it uh it's becoming obvious that they are they are

trying to uh eek as much revenue out of you freaks as possible out of all of us freaks um well that's why i actually think the east side is more vulnerable yeah they trade a lot and it's actually not even trade like how about all the yield farming and everything like i don't even you know it's just it's craziness yeah it's um yeah like i think it was funny a lot of the thought leaders uh coming from the ethereum camper uh throwing shout and freud at arthur hayes and crew because of arthur's penchant to call ethereum a shit coin i find this it is and i find it funny uh a lot of these types of people particularly the ones who uh run investment funds that are getting access uh to these coins are potentially on a non-kyc exchange too or back

room deals are throwing shouting for you because to think that they will not be subject to uh the law at some point in a similar regard is is laughable uh considering what's going on and um yeah i just thought that was funny yeah i mean there's some bitcoiners that i disagree with that think like the sec and government agencies should go take down ethereum i don't think so i think it'll it'll fall on its own merits no i lack of i mean i i'm not making a prediction i prefer if i prefer if governments allow these things to just play out uh i'm not sure if that'll be the case but i prefer if that was the case um and i i think i think that no one on either side should really be

cheering um pretty like inequitable government enforcement that just happens right and then and and that's the case right now and i think that that on the ethereum side they are being and we saw this with the kucoin hack but even more so with bitmex where they're being a little bit conceited about this whole defy thing and i think this is like how you learn you know this is how people will learn that it's not actually decentralized they're going to learn the hard way unfortunately there are some influencers and thought leaders on the ethereum side that realize that's the case and they're actively lying to people misleading people about and they can go fuck themselves um but i think there's like an overwhelming majority of people over on

the ethereum side they don't even realize like they're gonna realize like as these defi teams get hit one by one and as the users get fucked you know one by one imagine if infura gets hit it's so easy you just hit infura you know kyc the notes right it's uh moving on and less ethical bitcorner than me might take a big consulting gig from the government for that one but if they're listening they can just kyc the notes speaking of government grants chain analysis and integra fec have received a contract from the irs to uh to crack the tracing on the lightning network and monero um thank you for the archive link uh matthew so it's basically chain analysis it's the same thing like anyone who goes to that fucking link is not a good

yes uh so it's just the government contracts website for this pilot irs cryptocurrency tracing award they're going to give out an award uh so chain analysis 600k to each of them Yeah, so Chainalysis and Integra FEC. And I've never heard of Integra. Neither have I. And I don't think, this doesn't necessarily mean that they can break Lightning or Monero. Yeah, why don't they just make an open...

They've at least been awarded the contract. Why wouldn't they just make an open bounty? I don't know. Maybe that's not how the government does things. Yeah. Yeah. Maybe the idea is they pay them and then they're supposed to develop the software for them.

Yeah. Yeah, so be aware. Just continues to add to that narrative that we're building. Yes, it does. Bitcoin is under attack. Yes. That's okay. You know, like this is not FUD.

No, no. It's reporting the news here. And you know what? We've always said it. Bitcoin is going to get attacked at the end. They should expect it. If it's not attacked, it's not worth existing, right? It is in existence to be a direct affront to the global vampire squid banking system that has revolved around the central banking system, the Federal Reserve, the ECB, the Bank of Japan, and their counterparts around the world.

It seems like they're scared. They're coming down after the innovative products. They're trying to squeeze out taxpayers, scare them. and now they're trying to make it so these users can be tracked on the blockchain or with Lightning on the second layer. So this is a good transition into our next topic, which is the fact that Pierre Rochard added bounties to BitcoinAxe.com. So we need to make sure that the code that makes Bitcoin run at the protocol level

is as secure and reviewed as possible. and Pierre, who launched BitcoinActs.com a couple years ago, I believe. I forget when it initially launched, but it's been around for a while. It's a site that allows individuals to track the activity in the Bitcoin GitHub repository, Bitcoin Core specifically, excuse me. You can basically filter PRs, topics, reviews, the types of PRs that the labels of the PRs and sort of filter and figure out what's getting the most attention, what's getting the least attention, what needs the most review. And last week, Pierre added a button that allows you to put a bounty on particular PRs. yeah i mean so this is a really cool fucking integration uh pierre's site was already dope

bitcoinax.com dope ass site really cool interface um as the freaks know i have bitcoin dev list if you want to contribute to devs this is instead of dev focused it's specifically pull request focused so the dev and it's only btc pay so the dev can integrate their own btc pay it's opt-in if they want to if the pull request gets merged then the dev gets paid out the bounty um it's non-custodial so it is like an honor system for what it's worth like you are you're vouching i'm gonna i'm gonna pay this dev this many many sats but i'm not actually sending it until it happens it's custodial you mean no it's non-custodial like there's no way to enforce it yeah yeah so so so pierre's not like if i say let's say i say like taproot gets merged um i'm gonna pay 500 000 sats if taproot

gets merged right to the devs involved um when it gets merged inevitably hopefully when it gets merged i will i would have to manually push that payment that payment does not auto doesn't automatically go so i could be full of shit you could have a bound you know so which isn't like the most ideal thing right like i think in in my mind when i'm running it through my head like the most ideal would be if it was like held in some kind of i guess you can't like fully decentralize it but if it was like held in some kind of like liquid-esque federation multisig where you had like a 16 person multi-sig uh and it took like eight keys to to send it right or something like that i don't know because you also don't want pierre to hold all the funds either so there's

no like there's a lot of nuance here there's no super clean way to do it but i think it's i think it's a really cool project i really love what he did with it and it's very clean it's very clean how it looks yeah and it throws an interesting dynamic into the way code is prioritized within the bitcoin core repository it allows individuals who may not necessarily be developers to to draw focus to certain areas so that's an interesting new aspect and variable to the development of bitcoin core specifically and also someone mentioned that uh review is sorely needed which i feel like comes up every time this topic comes up and he supposedly has something in store for review as well some kind of way to incentivize

a review of these different pull requests so we'll see what he has in store for us but i appreciate regardless on a completely separate note both the nakamoto institute and noted podcast twitter handles have been unbanned um due to due to individual attention by jack so it's good to see that happen hell yeah um we have breaking news bitmex has issued a statement a blog post united states cftc and doj filing in response to reports of the u.s commodities futures trading commission and department of justice's decision to file charges against hdr global trading limited and related parties we have the following statement we strongly disagree with the u.s government's heavy-handed decision to bring these charges and intend to defend the

allegations vigorously from our early days as a startup we have always sought to comply with the applicable u.s laws as those laws were understood at the time and based on available guidance in the meantime the mimex platform is operating entirely as normal and all funds are safe to allay Any potential customer concerns pending withdrawal requests were processed at 745 UTC in line with our standard procedures. We will process another off-cycle withdrawal at 8 o'clock UTC, October 2nd, 2020, and then 1300 UTC as usual. If you have any further questions, please contact BitMEX support. So what do we think of that? let the fight begin you know it's they have one of their own in in custody right now you know yeah

innocent until proven that's their best leverage the best love because because historically it's the fiat that can really you can really turn the nails on um a lot of people are talking today about Poker Black Friday in the U.S., where they went after all the U.S.-serving poker websites. The way they did that was they went after the MasterCard visas, they went after the payment processors, they went after fiat, which was one of the bull cases for me with Bitcoin. It was what made me realize why Bitcoin could be valuable

was because they couldn't easily do that. They couldn't easily turn the screws on the traditional centralized third-party fiat. uh so with bitmex they don't have any of those connections which is was part of the genius genius of their product to begin with but they do have the cto and co-founder and presumably like good friend of uh the other two co-founders so it should be interesting to see how it plays out but uh it appears that they're not willing to go down without a fight would you respect yeah i would assume uh sam reads reader reads read i think i think it's read who's in custody right now maybe he's based maybe said hey if they ever take me in

keep fighting who knows that insurance fund maybe hopefully they could put it to use for some of these uh some of these legal bills that it seems they're about to incur um it's october 1st so our good friend janine has dropped her uh privacy newsletter even though she updates it ongoing uh the month has officially ended so september privacy newsletter by nageen nageen janine uh is out there this month uh it includes uh stories on schnor uh eff calling for coinbase transparency uh the wasabi wallet developer meeting fidelity's crypto privacy conference which matt was a part of uh samurai opens beta testing for soroban uh and do-it-yourself coin joins with fully noted so there's a lot of great information what i just mentioned and a

bunch of other stuff we're going to link to that obviously so go check it out love it it's fantastic as always uh another appreciate you janine no follow janine on twitter as well yes uh i don't there's like a zero and bob i can't say it off the top of my head right now and the other thing is with with janine's newsletter what i really love is you know here at tftc we are purveyors of newsletters uh but uh janine does it in a way that tries to respect your privacy um so you either have to go on to you you have to subscribe via rss she doesn't have like a big email list that she sends it out which i mean i respect i respect her trying to do the grind um it turns out that it's a lot easier if you don't uh you know if you if you take shortcuts

in terms of your users and uh so i i just appreciate everything she does yeah it's uh it's a based uh newsletter uh i cannot say that we have the same type of privacy policy for our newsletters here at tftc well no the reason i bring it up is so so like look if if If the freaks don't want us to have their email addresses, they can view the newsletter at tftc.io. We do have one Google tracker on there, so they should use an ad blocker if they don't want that Google tracker on there. It's like a basic analytics thing. I meant to talk to you about that because I was talking to Janine about that. She did do a search on our website, so maybe we should remove that.

I would like if we remove that, but we were supposed to talk about that off air. we're not we we haven't but anyway hey this is a live tftc business meeting yeah it's like that much traffic anyway i don't really look at the google analytics to be honest so no i know but google does that's why we have to remove it yeah uh but anyway the the the the reason i bring it up is because zcash had a stripe tracker stripe the payment company on their website because of their newsletter and she called them out on that because they're supposed to be a privacy focused it was zcash foundation there's supposed to be a privacy focused foundation and they have a tracker on their fucking website and they said to her um they they said to her like

you it's it's a newsletter isn't worth like you know dotting your i's and crossing your t's and privacy for newsletter recipients and meanwhile she is literally putting out a newsletter that does that right so like they it was like a complete slap in the face to her and i just felt like it should be called out that she you know she really embodies you know she practices what she preaches i just tons of respect there yes yes um shout out to janine go check out uh this newsletter we're going to link to it obviously uh some good news today uh merch who is one of the maintainers of bitcoin stack exchange uh he's been working at bitco for a few years on their custodial products he has officially joined chain code labs

to focus on bitcoin development um so chain code has another solid developer should we should we should we bring out what michael falkerson's thread that we were talking about the other day uh yeah i mean we should but first cheers to merch completely deserved he was at bitco before now he's at chain code and a great addition to the team so yeah um no but there has been some discussion about chain code on twitter particularly uh and i should preface this but we love chain code labs we are friends with our boys we're friends with a lot of developers there but i think just to be uh true to the ethos of bitcoin and being adversarial thinkers michael falguson brought up some interesting points in a twitter thread the other i think it was last week

or earlier this week um i think basically asking uh chain code to be more transparent with their process i believe yeah he just i think he wanted more transparency in general right yeah i I think his main hot take was, and also we love Michael Fulkson, his main hot take was that anyone who was worried about Blockstream having too much influence, he thinks Chaincode has more influence than Blockstream did a few years ago when all the Blockstream fuck was happening. Yes.

Yeah, I think that. Which is probably true. It's probably true, yeah. Yeah. And the main thing he was saying is the main way to become a like a valued core contributor is to go through chain codes residency program which is also true yes i guess the yeah he was saying are we getting to a point where if you want to contribute to the code base you need to go through this this particular um developer lab um to to contribute

earnestly uh it's a good question to ask it's a conversation it's a conversation that should be had i think his conclusion was no not yet but like we could get there very easily yes and we have to be wary of it and i i tend to agree with that yes and i think he was talking about uh developing a similar uh but distributed uh lab to what chain code is running i mean i don't even think it needs to be distributed it'd just be nice if we had multiple labs that i mean we do overall together becomes distributed right like that's the idea you have square crypto now you have digital garage you have block stream block stream still yeah they're still heavyweights they're powerful as fuck yeah um something to pay pay attention to

be aware of beware freaks uh all right we're into the software update part of the show we're just going to blow through this matt if there are any significant updates just stop me and mention what's going on vernon dojo version 1.7.0 has been released sparrow wallet version 0.9.4 has been released nix bitcoin version 0.0.18 has been released the is satoshi area is probably something to mention version 0.1.1 has been released by talia talia talia labs i don't know how to pronounce it uh no idea uh aya satoshi is the first uh live watchtower implementation on lightning correct uh i released it might be number two uh but it's it's the most uh it's the most real implementation it's the most stable implementation

yes so that is most practical i guess practical is the proper word we we will talk about it more in the episode that gets dropped tomorrow actually we uh we've recorded with uh yost yager uh who posted a thread in the medium post last week about uh potential vulnerabilities on the lightning network and how to uh secure the network against potential attacks it's it was an incredible dense one hour conversation oh it's such a good conversation yeah um i think the freaks are gonna love it yeah so be on the Look out, we gave you five pods this week, Freaks. Don't say we don't work hard for you, okay?

That's crazy. I'm even behind. I haven't even listened to them all. You know what? Don't feel compelled to listen. This is going to be there. Come to them when you get your chance. I'm hustling.

I'll go for a jog tonight, and I'll listen to another one. BTC Pay Server version 1.0.5.6 has been released. We're going to link to the official blog post from BTC Pay Server, which looks like it moved to Ghost. um it's got a big thing here is automatic utxo labeling wait a second that is huge i know i know the big for tftc there's a different big thing but the big thing here for privacy is automatic utxo labeling which is i want to see wallets have utxo labeling in general where a user can label a transaction what that transaction is themselves manually what btc pay now is going a step further

than that and they were putting automatic labels on top of it which is fucking awesome and now i will let marty grandstand on the other aspect i'm not gonna grandstand here i just want to give a shout out to marty shout out to our our developer djc it's uh uh rockstar dev hinted at it a couple months ago i believe that they're working on a shopify integration with btc pay server uh dj took some code that uh uh rui gomes from open node wrote and rui pointed out a workaround to implement btc pay server on uh shopify i don't know if they ever implemented but dj took those notes and implemented it so i think we at tftc were the first to have btc pay checkouts on shopify absolutely i'm pretty sure and it seems like they have officially merged that into btc pay

server which is pretty sweet uh are we contributing to the the uh closed loop economy the circular economy at least at least dj is and uh we help pay his rent so we have that going for us yes so shout out to dj i mean we matt and i i just basically said hey can you make this work on shopify and he went and did it so massive props to marty for for that task that he that he placed on dj um yeah no i mean it was pretty cool we got mentioned in the blog post uh so i look we love btc pay server i'm wearing my btc pay hat um one of the most important projects in the space i will reiterate though this automatic utxo labeling like no offense but this automatic UTXO labeling is the best feature

in this release. I would agree. I would agree. It is huge. We talk about labeling a lot on this podcast. I was trying to do my best Kanye there for what it's worth if the freaks didn't get it. So go download PTC Pay Server version

1.0.5.6 if you haven't done so already. This isn't necessarily an upgrade but a product launch, Aqua Wallet by Blockstream. They announced it during a vr meetup last week i believe and it's just a seamless bitcoin and liquid wallet it's basically a stripped down version of green is my understanding it's iphone only so i haven't tried it yet uh freaks marty promised us that he's gonna try it and he's gonna report back next week all

right i'll try it i agree while i might as well download aqua yeah it's basically like a stripped down single sig version apparently and they're gonna have both they're gonna have both at the same time oh and the and one major difference is that it is going to allow you to buy in the app uh through through a wire integration which we've seen other apps use as well what w y r e which is like apple pay and debit card yes with kyc obviously so i will be testing out that i'll be testing that out this week and i'll let you freaks know what i think about it next week on the podcast uh this was cool we actually talked about it on the podcast releasing tomorrow uh it's interesting product coin os web wallet with liquid and lightning support

so coin os.io is the website and it's basically a service that allows you to have a web wallet that could be custodial or you could point it at your own server and sort of self-host it it's an option for bitcoiners when you use lightning network and liquid The UX seems pretty cool. What are your thoughts on it, Matt? I think it's pretty slick. It's a pretty cool idea. The developer behind it looks like a baller.

I read his page, first of all. So I appreciate you. Hopefully you're a freak. It would be an honor if you're a freak. I think it's cool that the code is open so you can run it. uh you can you can run it yourself for others if you want and you can run it as a hidden service as an onion onion site a tour site uh which he has he has a tour site and a clear net site and yes it's custodial not your keys not your coins 100 believe that uh but for smaller amounts

there's some interesting play here because it is as marty said a combined wallet so you can send in for instance an on-chain transaction and you can send out a lightning transaction or you can send in a lightning transaction and you can send out a liquid transaction and it's all seamless based on which address you put in so if you just have this combined balance sitting there in this in this custodial wallet that can be run by anyone there could be a million coin os instances in the world and whatever address you put in it'll pay out on that on that on you know on that network so you put in a liquid address it'll automatically pay with liquid you put in a lightning invoice it'll automatically pay out with lightning you put in an on-chain segwit address or whatever

it'll automatically pay out on chain and that seems pretty massive to me like i know this whole time we've been saying like oh you know liquid's useful to traders or whatever i've been waiting for like something that made me think that maybe like liquid could be useful um and this is kind of that type of product that may be you know that the interoperability there where you can like seamlessly move between them even though it's custodial like maybe there's there there feels like there's something there low fee instant you know you don't have the capacity restraints that you have with with lightning it is confidential transaction but it is custodial so you know you want to keep small amounts it's interesting it's an interesting concept i i i kind of dig it to be

honest yeah let's go to coin os.io to check it out obviously i'm curious i'm sorry you're curious about what i'm curious what the freaks think about it so hit us in the comments let us know don't hold anything back not that i need to tell you that clearly uh i'm curious i'm curious what you think and marty you haven't tried it yet right no no it's pretty cool it's slick it's slick as fuck to be honest i'm uh i'm uh usually not a late adopter but like a lazy adopter i think that's probably a better term um this web wallets are something we saw in the bitcoin space way more in the beginning like there there's been a dearth of them we haven't seen them recently like it's pretty much just all been mobile wallets right so it's kind of cool to see a new one what would

jewel be the last one that i can remember i guess but it's not really it was like a web interface right because the wallet wasn't on the web it was connected to your node yeah i agree um yeah so go check it out this is pretty cool too i'm actually pretty pumped i might try and like make it so we use these products this product particularly woe we um which is a docusign competitor that uses bitcoin i guess to hash signatures onto legal documents um so if you're if you use uh docusign it's basically a similar product to that and um the gentleman who's the other is it giles is that his name geese geese carion i know he's french so i'm probably butchering your name geese

uh but shout out to geese and team for uh launching woly woly.io that's another one so i'm product on right now so if you want to support a bitcoiner uh and somebody building on bitcoin you're gonna product hunt upvote that right now it's currently uh number 654 on product hunt i love the concept as someone who uses docu sign all the time which i presume you do as well marty um you know the main the bullish case of docu sign and the main negative of docu sign is that you're completely locked into their ecosystem like the like the coolest part of docu sign is you know you open up docu sign you see every single document your organization has sent out and gotten signed and every document you signed it's all there it's all it's got got the

proofs that you need to bring into court to use it in court if you have a legal dispute and it's all there the cool thing about well elite uh is that it's it's an open standard it's it uses the bitcoin chain which we think is going to be there forever to basically hash this proof in that that the document has been signed and it uses public key private key cryptography to prove that it assigned by a specific person um that is the ideal i think that's the future we strive for i think that's what we will see ultimately inevitably but it's going to take some time and it's going to be all the power to them i wish them the best of luck but it's going to be hard to monetize because it is a game of motes and docusigns moat is very strong and even if we'll

lead is successful uh the beauty of it is that it's open so it's like how do you keep them like on like using Woleet instead of signing it with public key you know private key separately right like

and and hashing it into the chain so it should be interesting to see play out but I respect the fuck out of it and I I've been hoping to

see a product like this for a while so it's good to see if anybody on the Woleet team is listening and wants to reach out we'd love to have you on

the podcast talk about the product it's a very interesting one 100% same with coinOS uh galaxy os was released uh i have not like i have to opine ignorance here i've not been up to date with this what's going on here okay so katan our boy katan red pilled me here

um as the freaks know i've been kind of a graphene maximalist lately uh calyx is i guess it's a first of all it's a foundation with a membership model which is pretty cool so it's a membership model you pay them like a hundred dollars two hundred dollars a year and you become a member of the institute and they're a privacy focused organization um the founder got like completely fucked by the patriot act and he's like made it his mission for more privacy um so now they have and one of the cool things they have is like if you pay them like, $300 a year as part of the membership, you get, like, a 4G hotspot, a privacy-focused 4G hotspot with unlimited data, which I think is, like, that's pretty cool. I think it's

just a cool membership model concept. So now they released their own Android OS. And basically it sits in between, like, Graphene and regular Android. So it's not as hardcore. Like, one of the issues with Graphene is that anything that uses Google services you can't use. Specifically, the big one that i've talked about a lot is the camera because uh pixel cameras google phone cameras they use a lot of software to make the pictures look better and if you don't have run google services you don't get that so on graphing your camera is always worse your photo quality is always worse it's it's workable it's usable but it's always worse um the other big ones are like uber and lyft you can't use if you don't have google services like the banking apps so calyx

has the option to use something called micro g which is like an open source version of the google services to basically trick these apps into allowing you to use them so you can like oh gmail is another one you can't use gmail and graphene i'm using the the chrome app like the web app for gmail which fucking gets the job done but it fucking blows let's be honest um it's frustrating so it's in between graphene is way more privacy and hardened um calyx is a huge improvement over stock but you're not like throwing the baby out with the bath water so and and they do have 4a support which graphene doesn't yet and i do have a 4a here so i have i have graphene on my 3a uh the 4a is the newer pixel so i'm going to install calyx on my 4a

which katana is already done by the way because he's just a crazy person and just you know installs new s new os's on his on his daily driver he did on his 3a but he just fucking flashed it right away and he's loving it so i'm gonna do it on my 4a i'm gonna report back maybe we'll get you a guide uh but in general it's just good to see um oh and the other thing is there was one there's one other os called lineage uh that sat in the same middle ground but it didn't have this secure boot on the pixel devices and calyx figured that out which is a big thing which is the physical security uh if if someone gets your device if they want to install new software on it to try and take your shit it needs to be it needs to auto wipe and that's what

secure boot does if you if you try and install new software on it it auto wipes if a malicious actor tries to do that so so it's a big step up in terms of physical security versus the existing alternative that gave you micro g i don't know if the freaks understood did you understand what i just said marty yes kind of i was i'm picking up what you're putting down okay good okay good so i probably explained it decently yes um rolling on here and dob cohen from short bits put out a beautiful taproot explainer the taproot upgrade goes through a bunch of things that would have be included a tap taproot how they affect the protocol and the types of things that you'll be able to do it do with it excuse me so we're

gonna link to that go check it out hcpp is this weekend so this is a um a famous hackers uh conference hackers congress uh paralelny polis is what it's called uh it starts tomorrow i believe and goes through saturday and sunday there's gonna be a bunch of uh bitcoiners it's in prague there's gonna be a bunch of i thought it was digital remote well so it's historically have you ever been to prague marty i have not i have uh hopes of getting there one day here prague is a dope ass city yeah fucking love it i was supposed to go to hcpp this year but corona you know whatever um so this year they're doing a half virtual half meat space and the virtual

aspect is completely separate so there's a free virtual aspect that has nothing to do with the well nothing it's a completely different it's 58 hours of live stream that's completely different from the the in-person event then you can buy a virtual ticket instead of the free which you get a virtual view into the in-person event but they're they're having both a virtual event and in-person it's a combination hell yeah um so check that out this weekend if you're bored laying in your bed looking for something to stream this will be something interesting to pay attention to moving on ministry of nodes we're just talking about katan stefan a couple segments ago uh they also believe that specter is fire so they have uh

released a a blog post uh explaining why they believe that basically specter is a very cost effective uh way to use bitcoin with a hardware wallet and uh yeah to develop your to develop your own hardware wallet and node essentially um so they have an extensive blog on that we are obviously going to link to that and you can intro the last two topics because i'm starting to uh have my mouth go dry i need to sip on some water here marty's fading it's because of sober october um first of all specter i fucking love specter i think it's a fucking massive game changer um and i should have a guide up on tftc guides when i'm in between my road trips so i i should have that up that's going to be the next guide um so we have two things uh first let's

start with the plan b docs um so both of these are twitter focused uh bitcoin twitter focused and they kind of leaked into mainstream a little bit um the plan b doc situation between him and Corey Klipston, I might have pronounced his last name wrong, CEO and founder of SWAN. Corey mentioned his alleged graduation age, graduation year, in an apparent attempt to discredit him. This is clearly a doxing situation where you're giving out private information of someone who's clearly attempting to maintain privacy using a NIM, which should always be respected. So, I mean, I think that is just, it's wrong. You should not do that. You should respect NIMs. You should, as I said earlier in this episode, you should debate ideas, not people.

Here at TFTC, we're very clear on that aspect. I think even if you're a public person, as we are, specific private things that we have not divulged ourselves that might have been divulged in private conversations or through people meeting us for a beer or something should also not be divulged. You should try and respect people's privacy in general. On a positive note, Corey has come out and said he was wrong about that. And I think that's extremely good to see, right? Like that's that's exactly what you want to see um there have been some accusations that he used his position at swan to have that private information plan b is not a customer of swan um plan b from his own admission lives in europe and swan is u.s only um so those are the facts that's my opinion

you should not you know you should respect people's privacy marty do you have any comments here i just thought the story was complete noise i really don't care it was noise but twitter freaked out about it and um we hold ourselves here at tftc to higher standards so sometimes we talk about things that we would prefer just to not even bring up but we bring up because we hold ourselves to those higher standards and they should be at least acknowledged and i i take a lot of pride in that fact um and that goes back to those earlier shout outs yeah on the next topic It's a topic that I very much enjoyed, which is why I wanted to close on this topic. Apparently, the Bitcoin community that I always am upset with for lacking nuance decided that the one person I hate most in this space,

they were going to have some nuance for and have been giving Brian Armstrong credit for being so-called woke for his blog post about not wanting politics at his company. after selling surveillance software to the fucking DEA that was sourced from a hacking team which has tons of human rights abuses. So I will let you lead with this, Marty. Let me say that the irony of saying we like to talk about ideas and not people and transitioning to this topic is not lost on me, but...

It was lost on me a little bit. but I appreciate you putting me in my place. Stay humble, Matt. No, I mean, I think it's pretty well known. I've called Brian Armstrong a naked mole rat and talked about his person personally many times on this podcast, but I'm in the crowd. It's like, oh, got to get props where props are due.

I thought this was... I mean, I don't think... still do not recommend coinbase as a uh as a service and i would not buy bitcoin from them considering the facts that you just laid out particularly around the hacking team but i think it's an important time especially in america to to uh try to rid businesses corporations companies that are trying to build specific products of the political discourse that is frankly holding

back America at the moment it's confusing a lot of people and it's distracting and not productive I guess that's what I'll say at the end of the day I thought it was something that goes against the grain in Silicon Valley which is historically frowned upon

yeah but with that being said I'm not going to be revamping no fuck him he's full of shit he's full of shit Marty it was a pr bullshit blog post that is it backfired it backfired though it didn't backfire he also offered an exit package any employee that disagrees a very a very nice exit package i might say myself uh to to any employee that wants to leave based on his statement so by the

way people gave me shit about attacking coinbase employees over this you know selling surveillance offered to government agencies while pretending they were for open finance so-called open finance those employees now have a very lucrative exit package they can take so you have no excuse coinbase employees if you disagree with his policies you can leave and and as i said earlier even without this exit package you can pretty much go to any company in the space you want to go to like you're you're a very valued employee base over at coinbase you know the coinbase so the so-called coinbase mafia over there um so so you have no excuse if you stay there and you support this this organization the second thing i would say is i made a very active attempt to to seek

out the employees of coinbase when i saw coinbase acting unethically okay and now he has open revolt in his company so if he wants to fucking he brian armstrong is the king of virtue signaling okay he virtue singled virtue signaled about black lives matter and then sold surveillance software to the dea then he got shit on about it so now he's virtue signaling about being woke that is what's happening here and people are falling for it hook line and sinker all right and then i like they shouldn't fucking fall for it and i i am i love that silicon valley the employees and the investors are fucking eating him alive because you know we got to take what we can take and and You can't just stop the war midway through.

You've got to fucking continue, guys. I like that take. Pile on. I guess I just have this internal struggle because I have very strong disdain for Silicon Valley culture and the virtue signaling and perceived moral superiority that a lot of the assholes out in San Francisco in the Valley claim to have

over the rest of America. And so to see anybody, even Brian Armstrong, sort of throw a punch at that culture does interest me a little bit, but you do make good points. Maybe it was a political move and not with earnest intent behind it.

But did you see Dick Costello's response to this? Oh, yeah. I mean, he could go fuck himself. Yeah. It's a former CEO. I didn't even know who he was. I didn't know he was a former CEO. i thought he was like a producer based on his banner photo i thought he's like the producer of

uh silicon valley the hbo show me too that's all i knew banner photo yeah and uh yeah so actually ceo twitter uh in a thread with uh jason calacanis and parker something the dude he hates bitcoin original twitter parker who has like pt at pt or whatever yeah and he hates bitcoin he's actually historically shit on bitcoin yeah he hates bitcoin because people got in early yet he has like the most dope twitter handle because he got in early so i just my my famous argument was that we should take away his twitter handle yeah well anyway i got to the point where dick costello former ceo of twitter uh really took his mask off and said uh me first capitalist i can't wait until me first capitalists are lined up against the wall and shot i'll be happy to record a video of it when it

happens during the revolution during during the revolution so very very strong communist speak there uh no surprise blue check mark former ceo of twitter uh basically advocating for the murder of capitalist uh via communist uh not banned from twitter yet i reported the tweet i recommend that you freaks go find the tweet and report it as well even though this asshole was the ceo of twitter for a few years uh twitter has been banning conservatives for far uh far less egregious threats and none no one should get banned yeah no one should get banned but if you're gonna the irony here is the irony here is we're offended by it and this guy's worth like 300 million dollars he's worth 100 x worth on a good day you know it's like fucking ridiculous

like he's the capitalist you know in that situation but he he thinks that that's not gonna be the case yeah it's like fucking ridiculous dick newsflash they're coming for you first asshole like you're gonna be they're not they don't stop uh just because you're trying to side with the the woke communists of the world uh they're gonna use you as a pawn to get what they want and they're gonna blow your fucking brains out first chance they get so see is that all right that we said that now i don't think that's all right right we shouldn't i didn't say i want that to happen i didn't say i want that to happen he said he wanted it to happen yes this is this is how the communist uh takeovers happen uh this is what i'm talking about i don't i want i want to

make it clear i don't want that to happen to you dick costello i hope you enjoy the profits you made off your capitalist endeavors and you live a happy life uh you think dick's a freak um i uh i but this is what i'm talking about right like i don't i don't want cancel culture um i think it's unproductive i think it's um short-sighted i think the focus is in the wrong place um but if it leads like it's gonna happen regardless it is happening regardless we are suffering from it regardless right we see it happening every day if brian armstrong enemy of the people is getting gutted by his silicon valley allies and his eth allies this is not the time for us to defend brian armstrong this is the time for us to pile on and take the benefit that we get out

of all this bullshit the single little benefit we get you fucking take it and i want to go farther than this like i think i think google and their corporate surveillance is fucking racist i think facebook and their corporate surveillance is racist i think all corporate surveillance is inherently racist let's just go let's just fucking go for it you know that if it's gonna happen anyway we might as well use this tool to our advantage and and and the truth of matter is it is it is inherently racist the whole idea the whole concept of it is to catalog catalog people and buy and sell them and and put them into different things and and sell them based on their identity, so-called identity

that they're basing them on. So if they want to do that, then we're going to fucking play ball. The data slave trade. We're all a part of it. I didn't want to say that, but yes, it is the data slave trade. We, uh... Our data's being... Yeah. We don't own that shit. These corporations do.

We gotta run, though. I got dinner soon. It's been a great rep. Matt, what do you want to end it on? Stay humble, StackSats. Love you all. Peace and love. Okay! Thank you.