TFTC: A Bitcoin Podcast - Rabbit Hole Recap: Week of 2020.10.26

Episode Date: October 29, 2020

This week Marty and Matt discuss: - FEE FOMO IS REAL - Cryptocloaks release triton case - First monthly nodl call - Travel rule fuckery intensifies - If you wish to submit a comment - Statechains for privacy? - JoinMarket status update - Marathon announces purchase of 10k AntMiner S-19 Pros - New round of Ledger user phishing attempts - Anthony Towns on Taproot activation - Largest bank in Singapore to launch bitcoin exchange - JoinMarket v0.7.2 - JoininBox v0.1.13 - BTCPay Server v1.0.5.9 - Lightning Terminal v0.2.0 - Fully Noded Desktop v0.1.96 - Atomic finance launches DLC based bitcoin betting tool - BlockFi discloses 5% position in GBTC - Sounds like the NSA is still putting insecure backdoors into our favorite products - River adds hardware wallet account - Kucoin hacked bitcoin going through ChipMixer - Iranian government announces intention to use bitcoin to circumvent import sanctions Shoutout to this week's 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. BitcoinBlackFriday.com Now if you sign up for early access for the Fold card on Bitcoin Black Friday you will be entered into a raffle to win a whole Bitcoin.

freaks I gotta be up front with you I'm sorry we forgot to do the shout outs so if you're one of those freaks who skips the ads in the beginning because you don't like them because you don't like supporting our podcast just kidding

don't skip through this Matt and I got so heated in our rip today we got so lost in the content so lost in the topics that we were discussing we forgot to get to the shout outs And so it would be remiss of me to completely forget them. I know it's not what you expected.

So if you purchase one of these free shout-outs and you were angry, we can reread them again next week or do a free shout-out via DMs. But I feel it is imperative to stay true to the nature of the shout-out and the ethos of the shout-out that I read them for this episode since you paid for them. Here's the first one. it is a balmy 72 degrees fahrenheit tonight in three-way arizona three-way arizona like three ways common in three-way arizona this is like me riffing off the name of of this city i'm assuming

why is it three-way arizona are people having many three ways in three-way arizona it's a bit hedonistic if you are having three ways in three-way arizona think about just like a monogamous relationship you know just kidding i'm not going to imbue my morality on you back to the shout out tonight in three-way arizona we have a light breeze coming in out of the northeast at two miles per hour out here in the desert we are sitting in an absolutely delightful 26 percent humidity do yourself a favor get out of the cold get out of the snow and come down to see us in balmy three-way arizona happy dirtbag friday from skeef second shout out's a question very good question i actually had to look this one up uh to to make sure i could answer the question correctly

who is more corrupt the biden family or carl mark force the fourth sincerely john doe sincerely sincerely john joe john doe if you can tell we drank some whiskey during this recap so who is more corrupt the biden family or carl mark force the fourth who the fuck is carl mark force the fourth you may be asking i'll be asking myself that question when i first read this shout out earlier this week i had to look it up on wikipedia and carl mark force the fourth is one of the fbi agents uh in the silk road case who hid some bitcoin and and set ross albrecht up with the uh the i believe so i believe this is correct in saying that he sort of set about one of the classic fbi setups for the the hit um so i believe he stole some bitcoin from that case and then was

integral in getting ross a more harsh sentence because he set him up in in a in a hitman type situation which he probably wouldn't have done if carl mark force the fourth the fbi agent did put him in that situation so who's more corrupt the biden family or carl mark force the fourth I think if the allegations against the Biden family are true which hey this is what I believe you can believe what you want to believe with the information presented over the last few weeks I believe that the Biden family is considerably corrupt and when you compare the Biden family to the Karl Marx fourth situation I just think because of the amount of people that are affected by the Biden family corruption if it turns out to be true which I think it may I think that's

that's more corrupt because it affects more people that's how i would decide that and last but not least our third shout out ha ha you're bloody well right you know you're right to say yeah yeah you're bloody well right you know you're right to say me i don't care anyway alves of the cross i believe that was a reference to super tramp i don't think that's like the exact lyrics of the show all right right you bloody well right you know you got the right to say right oh right you got the right you got the bloody right to say i had a shout out or excuse me a final thought yesterday uh where i said uh super tramp is an incredible band uh so if you freaks don't know about super tramp i believe they're 80s british rock band i believe they're around the 80s early

90s uh that was one of the mainstays the best of super tramp was one of the mainstays and the bent family car growing up and just a huge fan you know it's like uplifting music uh i think they're underrated band i said that final thought yesterday i believe that's what this shout out is referring to i could be wrong um i believe so so shout out to alice of the cross john doe and uh our boys skeef for the shout outs this week sorry we did not get them live in the rip again matt and i got caught up in the topics uh if you guys are displeased with the the delivery of the shout outs and the fact that i'm delivering them myself without any feedback from matt let me know we'll work something out you know where to find me enjoy it

stuff freaks it's your boy marty here to introduce this episode of tales from the crypt rabbit hole recap edition is that how we're saying it now whatever we're just gonna go with it all right this episode of rabbit hole recap is a good rip matt and i spoke for about two hours a lot of intense topics you get very passionate cuck mentality is brought up a couple times but you know what it's a given pool here so we're gonna be raw with you at rhr okay we'll always promise you that on top of that this episode is brought to you by good friends at the motherfucking cash app you freaks all know you freaks already know all about them if you don't know about them let me tell you about them let me stack

stats send stats receive stats sell stats and if you want to dca in the stats either daily weekly or bi-weekly the catch app is letting you do that too remember that our good friend matt odell is daily stacking daily stacking at 5 a.m so we need you freaks to wake up at 4 30 a.m and front-run Matt O'Dell because he's trying to front-run the East Coast of America with his 5 a.m. stack. We cannot have him front-running. We need you guys to front-run him. You can do that via the Cash App.

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Parker Lewis writing gradually and suddenly Will Cole writing about the products, Buck Purley writing about products as well Phil Geiger writing about why we're defending the 21 million Bitcoin limit and a bunch of other stuff shout out to Dhruv and Joe Kelly

Dhruv Bansal and Joe Kelly who started this company, huge fans of Unchained Capital go to www.unchained-capital.com check out everything they have but if you want to check out the concierge service specifically i'm linking to that in the show notes hope you guys enjoy this rip matt and i had a lot of fun love all y'all rate review spread the love fight for your freedoms fight for your freedoms it's important no cock mentalities anymore we don't we don't have the

ability to have cock mentalities anymore fight for your freedoms Take care. You've had a dynamic where money has become freer than free. When you talk about a Fed just gone nuts, all the central banks going nuts. So it's all acting like safe haven. I believe that in a world where central bankers are tripping over themselves to devalue their currency, Bitcoin wins. In the world of fiat currencies, Bitcoin is the victor. I mean, that's part of the bull case for Bitcoin.

If you're not paying attention, you probably should be. Matthew, what a week, what a day. I feel like today, pretty huge day in many regards, not just for Bitcoin, but for a lot of reasons. we were talking before we hit record i'm a bit heated about what's going on with glenn greenwald the co-founder of the intercept forced out via censorship i mean they didn't force him out he resigned because they they censored a article he wanted to write about uh the hunter biden laptop i guess it's pretty crazy pushing out or forcing out via resignation I guess Glenn Greenwald is a very principled man, couldn't stand for that.

One of the best journalists in the world, in my opinion, right now. I don't always agree with him, but I think he's, in terms of being a good journalist, one of the best out there. Obviously, dropping the Snowden leaks, gets huge props for that. Crazy day. yeah i mean glenn glenn got uh glenn got a hall of fame legendary status for snowden leaks period yeah end of day that that that that's it and he started the intercept afterwards because he released those leaks through the guardian and he was getting so much pushback at the guardian to the point where not only was he getting pushback inside the Guardian,

the UK government raided the Guardian's offices and took a bunch of their hard drives and shit like that while they were reporting on the Snowden leaks. It was like crazy shit. I remember his partner, he's gay, his partner was traveling to the UK and the UK has horrible encryption laws and they detained the partner for like 10 hours and they tried to get him to give up the passwords

to the encrypted hard drives that he was traveling with. So I have tons of respect for Glenn. Yeah, I mean, at a high level, right, the difference between being forced out and being treated to a point where you feel you have to resign is there's no real difference, right? Yeah, yeah. I think his partner is officially his husband now.

um but astonishing i tweeted it out like 20 minutes ago i think i mean we've been calling this for a while but i think this instance particularly is the official death of journalism in the media industry as we knew it before we're gonna move to i don't know about that individual journalists posting um self-published blogs i think that's that's the way forward i mean i i think corporate journalism is already fucked um the intercept was a weird beast to begin with because it was like kind of this halfway step to this he's moved to substack which isn't fully self-hosted but basically like this idea of that every person including tftc has like their own blog and their own rss feeds you know here at tftc we have three rss feeds we

have this podcast we have marty's bent and we have the sad standard all three rss feeds that you can subscribe to if you have an app um it's an open standard and you can get all of your rss feeds there um which is probably the closest thing we're going to get to like a distributed network at least for now um and it exists currently but with the intercept it was interesting because it was like a half step there because it wasn't really corporate media it was it was rich man funded media so so glenn glenn co-founded it but really all the money was one of the paypal founders yeah out of me are something like that right and he was just this rich guy who who helped co-found paypal um and he just bankrolled the whole fucking thing right like i don't to this

day like intercept doesn't have a business model i don't know like how they didn't make any money i don't think they ever made any money um so it was it was to me to say him getting pushed out of the intercept intercept was never corporate media right intercept was this like half step towards basically where we're going anyway yeah well paypal's corporation funded by corporate i know but he's not a corporate you know i i know it's a little bit different right than like like a like an intercept is is a way different model than a new york times or cnn i agree but i think fox news i think it's more of the corporate media mindset that forced him to leave like hey don't go against the grain what the narrative is now he wanted to publish something about the biden

laptops and they said no you can't you have to take the stuff out about biden before you can publish this and that is may not be specifically corporate media in a structural sense but uh from a mindset certainly is right don't go against the grain stay in line make sure you're you're parroting the party line yeah but i mean crazy to see but i mean i think everyone has bias right so you know i i think it's it's probably them protect i mean i haven't really read into it but i it's it's what is this guy's name the paper the the the main bank roller of intercept he's like protecting his bias is what he's doing right uh but i don't think times as does okay but i don't think that going like independent media

protects from bias like we're gonna have tons of bias the the key for people is that they're gonna have to use fucking critical thinking and have personal responsibility and try and understand what all these different biases are and take them into effect take them into account right like like independent media does not solve that uh no and i don't think i don't think that's what i'm trying to say either because we we admit that quite a bit on this podcast like we have a very uh public bias that we like bitcoin super pro ripple podcast yeah just wear it on your sleeve and be up front with it and let people decide from there uh i guess the gatekeeping The narrative gatekeeping, the publishing gatekeeping of the traditional media is eroding in front of us, and they kicked out one of their best.

I mean, again, don't always agree with Glenn's politics, but I think it's impossible to deny that he is an incredible journalist that actually does stuff the way a journalist probably should go about reporting on events. no I mean I love Greenwald I'm a huge I'm a huge Greenwald fan I just yeah I just I think it's important to realize like I just I think regardless of how this played out the intercept was an important step towards basically the direction we're going to is what I'm saying right like the intercept is a direction away from corporate media towards more independent media and and we're never going to cure bias or corruption or whatever but but the idea is if if we can have many voices heard and many different options for people to listen to then hopefully people will you know use critical thinking and take some responsibility and and fucking find out the

facts for themselves right but we're never going to be able to it's impossible like part of the reason why we're in the corporate media hellhole that we're in right now is because people lack social uh personal responsibility they they're people are soft like there's no you can't hand hold people on the truth like never gonna happen like that there's no easy solution there like people are gonna have to fucking take some responsibility yeah no i mean this was written in the sovereign individual some some bitcoiners love this book including myself it's incredible how pressured it was in the information age the onus is on the individual to discern what is true and what is false and that dictates that you must be able to think critically separate the signal

from the noise if you will so it's interesting things are getting more and more chaotic we haven't even talked about bitcoin yet let's jump to clark moody's dashboard get right into it i don't know how you pay attention to all this bullshit marty when like bitcoin bitcoin is like so much exciting shit is going on right now in the bitcoin land like i just i've uh like this whole like we're having what right now a hash rate like the looks like the difficulty is going to drop 15 percent um in the middle of a bull market like i know that that we have these seasonal things happen in china where the rainy season ends we i don't think we've ever seen anything like that before have we uh i mean we've seen this the largest yeah difficulty downward difficulty

adjustment i think was like around 20 at some point and was that during a bull run or was that during like after having like in like a bearish kind of situation let's see i'm going to your your favorite website to check this stat which is ptc.com like i can't help but think like if we were gonna see some type of like chinese attack like this is like what the front of the chinese attack would look like you know like if they're like the chinese mining fud bullshit we always hear like this is the type of situation you would see where you just see insane fee pressure in the middle of a bull run and all of a sudden just hash rate just drops off the fucking network in the middle of a difficulty period um give me a sec we had a negative 18 percent difficulty adjustment

2011 uh actually inconsequential that we can't even use that as any kind of data exactly exactly nine years ago almost on october 30th 2011 next biggest one after that i believe is negative 15 which was december 2018 yeah so bear market lows um and since then we had a negative 16 drop in march of this year after that bear market that price crash having and bear market having price crash not bear market necessarily but having in price crash that was before the halving so it wasn't the having right but like having coming up with a price crash yeah well miners would be incentivized to keep their it was more the price crash the weird thing here is we've had a post-halving situation price is surging fees are surging and hash rate is

dropping right well yeah i don't want you spreading fud that is like a chinese attack like so i'm not spreading foot i don't think it's a chinese attack being in some of the minor groups on telegram and other messaging so the way it works with the chinese wet season with the rainy season is which i didn't realize this until earlier this week the minors and it makes a lot of sense like how did i not think of this they signed power purchase agreements essentially locking in and the power purchase agreement contracts uh came to an end last weekend i believe so you can actually go on i forget what the site is but there's a site that monitors self-reported caveat here self-reported hash rate from mining pools and if you look at all the chinese mining

pools last weekend there was just a considerable drop in hash rate um some people are estimating 25 to 35 has fallen off since last weekend they are currently trying to mine or excuse me move their miners to other areas where energy is cheaper than the increasing power costs at the hydroelectric dams as the rainy season ends so i wouldn't actually be surprised like today tomorrow we see hash rate sort of going back up because it's been about a week uh in the miners have been in transit in the mining channels that i'm in the the consensus is that the transit takes like five to twelve days depending on any particular miner so um people should start replugging those in some not all of them will be replugging in some of them will be selling um selling

someone else who's going to replug yeah it's the same difference yeah so that would take but that would take a little longer to replug them in uh yeah and there's another interesting thing too like i would imagine a lot of these chinese miners just the product of being in china and being close to the manufacturing of the newest minor models it's pretty popular rumor well known i think you could say it's like a well-known dirty secret that a lot of the chinese miners get access to the the newest hardware first or even some of the manufacturers will self-mine with the the latest hardware and so if that's true they were using the most efficient asics on the market and they're pulling those off so that that would actually affect hash rate a little bit more severely as

well um but yeah it has been interesting the but i've been i've been tracking the fees as a percentage of overall reward and it's been increasing uh pretty pretty steadily over the week right now according to clark's dashboard it's at 30.86 predicted next block reward is 9.04 bitcoin so that's um that's 2.76 bitcoin 6.25 is the fixed reward plus yeah there's just a couple things here nine we we have the the the this mining this seasonal you know wet season thing is has been known it's the thing that happens every year right never seen it to this scale before like where we were hitting like all-time highs and then we come back down i'm not saying that's an attack i'm just saying and i don't think it's an

attack this time i'm just and i i find it and i don't think the bitcoin network's at risk i find this shit exciting because when it comes to chinese mining fud this is what an attack i think would look like right on the surface this is what an attack would look like it would be like in the middle of a difficulty adjustment you just like the government just starts pulling hash right they like just force people to pull hash and they use some excuse or whatever i don't think that's the case the second thing which you did touch on which i think is really interesting is one of the coolest dynamics with bitcoin is part of this death my and before i hit this we've been we called this on the rhr before it happened i mean besides my one sap per byte meme that we had been

saying for weeks we specifically said the rainy season thing before the fees spike so if you were listening on rhr last week you knew it was going to happen okay the other thing is people this is where the death spiral fud comes in right mining death spiral and the idea is that bitcoin miners start pulling off hash and it creates this horrible death spiral where we never hit the difficulty adjustment period because if people say difficulty adjusts every two weeks to bring back mining in line with every every 10 minutes we get a block right now we're at like 15 minutes per block um right like 11 okay whatever okay thank you that's actually a big difference thank you for telling saying that but anyway um where where we get into this 11 40 okay 11 40 where we

get into this uh this this death spiral where we we'd never hit the difficulty adjustment period because the difficulty adjustment period is measured by blocks not actually by weeks so so we're watching as right now as hash rate falls off the network the difficulty adjustment period is going farther and farther away um from where we are like right now i think it's like tuesday is when it's when people think it's gonna happen right monday november 2nd but before it was like saturday or sunday but anyway the key is is as the fee pressure increases miners have an incentive to come back on the network because they can make more money because the fees are backlogged and are increased. So it's this really cool dynamic that prevents that from happening. And in this case,

as Marty touched on before, the reason we really haven't seen that happen is because presumably a lot of these miners are either in transit or in between contracts or trying to sell their miners to someone else who's going to plug them in. So they literally can't plug them in again to take advantage of the increased fee pressure, which is just a really interesting scenario that creates this and then you mix that with the bull market that just creates more transaction demand and we get this ridiculous fee spike that just took off like it just fucking came out fucking swinging like on sunday you could confirm a two sat per byte transaction now i have like 160 sat per bat transaction in the mempool that hasn't confirmed for

three days you know they're just like it just keeps running away from us yeah so looking at clark's dashboard right now and i think this has to be i don't even think it's accurate it's definitely not accurate media fee 281 sat that may be accurate hour fee 267 you say in a day you can get it in at three sats per bite which i find no way i mean it's never gonna happen yeah um we may never see three seconds we probably will i'm just fucking around with deep freaks yeah no it's like you explain the game theory perfectly like that is the beauty of bitcoin like people uh two two avenues of fud with fees usually uh bitcoin death the mining death spiral which like we're seeing it now fees are making up 30.82

of the reward right now you're going to be able to get considerable amount of bitcoin um so that highly incentivized miners to plug in like matt said a lot of these chinese miners particularly are currently in transit to plug their machines back in and then the other one which is one of my favorites i'd love to talk about love to debate people about is will a fee market ever develop and we're seeing it right now like this is a fee market developing and that's so that's actually i wrote about it in the bent a couple days ago it'll be interesting to see once these chinese miners do plug back in those machines that were unplugged from the hydroelectric dams taking advantage of the rainy season get plugged in whether or not it's in china or somewhere

outside of china uh it will be interesting to see where the fee market stands after that especially after difficulty adjustment uh was this pressure being driven purely by hash rate leaving the network and slowing down blocks or is it a combination of that and the fact that there's increased traction transactional demand um that is also aiding in that so will there be uh maybe the fees as an overall percentage of the reward won't be at 30 after the next adjustment after more miners plug in but will it be like a higher a higher low than it was i believe last few weeks on rhr it's been around two percent so to see it at 30 it's pretty crazy i mean it's a combination it's a combination and we're also going to have uh what i like to call

user ptsd which is basically what happened to me where on like tuesday i sent 150 sap per byte transaction and fees just went out of hand from there and it just never confirmed and this is what we kind of talked about last week it's like who's that middle ground you know between the person who's willing to wait and the person who wants next block i don't know like there isn't that much of a middle ground because it can run away from you so you want to overestimate so it's going to take a while for things to get back to uh if if transaction demand if if transaction demand is all else equal it's going to take a while to get back down i think no matter what in a week after difficulty readjust fee pressure will be lower no matter what the question

is does does the backlog fully clear and how long does it take for it to fully clear no one really knows in that case and i just want to do a quick shout out to our boy katan who says he only sends one sap per byte transactions we've learned as of today earlier today the default setting on on mempools across bitcoin core if you run the standard on bitcoin core is 300 megs um that that means that once we have a backlog of over 300 megs worth of transactions actually less because there's some overhead there so about like 200 megs worth of transactions you end up in a situation where they drop the lowest fee transaction so one separate bytes got dropped and had to be rebroadcast um so you know people said that wasn't going to happen so quickly and

here we are yeah if you guys want to learn about that rebroadcasting stuff our episode ameasy Amidi, excuse me, Amizi on Twitter. Amidi Uthwar. We talked about that rebroadcasting specifically. I think we should hit the freaks with some actionable advice here on how they should proceed with this current free market. If you have Bitcoin on an exchange, I would send it in one or two big UTXOs to cold storage.

If you have a bunch of small UTXOs, uh, I would try to consolidate maybe if you're low time preference, don't have to send a transaction, wait till after the difficulty adjustment, take this, uh, this week as a warning and a shot across the bow to say, all right, I need to get my UTXO management under control. Uh, wait till after the difficulty adjustment when the likelihood of fees going down is probably, uh, it's likely that fees will probably go down after that. not a guarantee of course but i would guess that they would uh take action after that to consolidate utxos and uh if you want to especially if you want to do long-term storage like get your

stuff in long-term storage and forget about it for 10 years um if you have like a spending wallet maybe get a a utxo threshold that you're comfortable with it with and get a get a number of utxos at that threshold in your wallet so that you can spend them in the future um that's that's what i got off the top of my head i think that's all very good actionable advice um i would add um if you consolidate your transactions well first and foremost if you don't have to make a transaction right now let's just wait a week reassess that's what i'm doing just let's just hold the line just wait a week reassess um and and see see what happens after the difficult de-adjustment because like we said it should definitely it will definitely reduce fee pressure

the question is how much um if you consolidate your transactions your utxos you will have reduced future fee burden because the input side of the transaction is pretty much what determines how big of your fee is. You pay 20 sats per byte for five inputs on the input side versus 10 inputs. The 10-input one is going to be way more expensive. Keep in mind, though, when you consolidate, you are obviously linking all of those UTXOs together. That is bad for privacy. If you have an existing transaction that's unconfirmed and you're on the receiving end, if you trust the sender, no funds are at risk. Worst comes to worst, it goes back to the sender, and he can send it or he or she can send a new transaction to you with a higher fee or just wait

or rebroadcast in the future so you don't really have to do anything if you trust the sender if you don't trust the sender they if they broadcast if they originally sent an rbf transaction with some wallets default to replace by fee they can increase the fee on their side if they won't do that or they didn't enable it in the first place you can do something called a child pace for parent where you basically take that unconfirmed transaction you send it to your own receive address a new receive address with a higher fee and it will confirm um that doesn't need to be enabled or anything you're literally just taking that unconfirmed transaction and sending it to yourself that is way easier in wallets that offer coin control not all wallets offer coin control

here at rhr and tftc we've been very vocal about wallets having coin control at least as an advanced option this is one of the fucking reasons why guys um if you don't have it in your wallet and you can't specifically select that unconfirmed transaction you have two choices you can do the shitty privacy method um where you just send all to your own trend your own your own um your own receive address which will include the unconfirmed transaction or you can import it into a wallet that offers it something like specter electrum uh samurai wasabi um so yeah oh and also um you can if you have funds on cash app which you shouldn't um they are still paying your fees so you can get uh you can get them to pay your fees if you send from cash app

yes very good actionable advice do not do not panic hopefully you've been listening to rhr for a while and uh feel more prepared than other people who have not listened to this podcast i don't want to toot our own horn here but we do talk about this stuff a lot be prepared don't freak out i assume most of you listening to this are long-term hodlers but i know many of you do use bitcoin transactionally and in your everyday life so think about opening lightning channels to be wary about opening those lightning channels uh think about the fee you may need to pay in the future if you close those channels take that into consideration when you're opening i would open up channels that are that are relatively big so that you don't have to

manage them as much uh if you're a trader moving funds between exchanges maybe think about liquid but you have to have the exchanges implement that too so that may not be actionable advice that might just be a pipe dream still no one's using liquid i was if you look at block stream it's like two transactions a block like if anything's going to do it'll be this kind of fee pressure it has increased a little bit which is good to see on that note what marty said yeah lightning and coin join are really important to set yourself up now like if the fees subside and and look this is why i've been incessant about talking about coin join and lightning before this happened fees should subside hopefully you learned your lesson get that shit fucking done

before fees before we have like a sustained high fee situation forever for the foreseeable future right and and like coin join gets in insanely more expensive in a sustained high fee environment you got to do it before the high fee environment to save yourself some money as marty said with lightning you want big channels a few not that many channels very big like right now i actually woke up this morning i said to myself fuck didn't think about it my lnd node got a shit ton of on-chain utxos i'm a lot freaks over a thousand it's bad it's not a good situation i you know it's for the cause i'm i'm if the fees never go back down my ass doesn't get saved then it's just it's just donated scarcity to the to the rest of the fucking network but but you don't want to end

up in that situation and and just with lightning in general the best method and you know i like learn by doing and i guess i did um is is is as few channels as possible very very large yes and i know some of you freaks out there actually work at exchanges in the industry uh if you do and your exchange has not implemented these second layer solutions please laid a fire under the ass So the decision maker, maybe you are the decision maker, hopefully this week has lit a fire under your ass to start taking advantage of these solutions that could help alleviate fee pressure for your users.

We're not even off the dashboard yet. We're at block 654,688. I suck. One more thing on this fee bullshit. There's going to be some very interesting things about Lightning here. lightning has never been stress tested in a high fee environment okay and and i was already you know my my non-genius mind was already running through there's all these different scenarios that we have not accounted for when fees are like fucking over 200 sats per byte and going crazy

and uh renee picard himself uh one of the the premier lightning devs uh said today he said pre-negotiated fees might not be sufficient for your commitment transaction to be included in the case of a force close new updates might use really high fees as five times of current fees are the recommendation which kind of says to me like they were not prepared for this kind of high fee environment so so i think there's like a bunch of edge cases that we don't really know about where lightning fails in this these within this high fee environment that no one has even considered like someone asked me like what am i concerned about i'm concerned about what i'm not concerned about like i don't know what i'm supposed to be concerned about and i feel like i should be

concerned about it i'm less concerned particularly after a conversation i had last night for the podcast with ryan gentry from lightning labs who's their new head of business development i think they got some good minds working on it it is it's still experimental but definitely look out for that podcast next week um lnd particularly has some really cool things coming out that hopefully can alleviate all the shit that's going on this week but it's not shit it's just the nature of the protocol this is the beauty of an open source monetary system that anybody can use at any given point in time uh that is dependent on distributed stakeholders including miners who have a very sensitive profit margin in mine and will unplug and move if need be.

And we're seeing a culmination of just interesting timing with cheap energy prices in China and an increase in price and transactional volume on-chain. very good very interesting case study in in bitcoin economics and in fee market dynamics and in block production dynamics it's i'm not worried at all this is uh again if you're a hodler out there you shouldn't be stressing at all but we are still at block 654 688 uh there are currently 142,916 transactions at Clark Moody's dashboard. 16.1%

of them are using RBF replaced by fee. Next block, it's been 15 minutes 20 seconds since the last block. Next block is predicted now to have 32.26% fees making up the reward.

It's predicted to be 9.23 Bitcoin. So almost 3 Bitcoin in rewards. It's pretty crazy to see almost one-third uh the next retarget again is scheduled or estimated not scheduled estimated to be on november 2nd 2020 so monday it's 512 blocks from now and currently estimated to be a negative 14.2 percent uh adjustment and blocks are coming in at 11 minutes and 39 seconds on average during this epoch um let's see how this is affecting samurai oh it is unspent capacity down to 1560.23 bitcoin i believe it was above 1600 last week no it wasn't you sure it wasn't i think it was i have the like i have the chart let me i've been actually just i've been keeping

track like on my own um i mean unspent values about the same anyway with the 21 million you know they have a they have a bunch the the whirlpool transactions are going through they're just all they're all in the mem and they're all in mempool um they're all unconfirmed just sitting there it seems like the the volume's still there i mean as as long as it's the long term that really fucks us um or it doesn't fuck us but it just and it's expected like we know it's going to happen but it just becomes very expensive yeah i guess what was it october 22nd we did it yeah you're right we were over 1633 but on on october we were at 1633 on october 21st but on october 25th we were at 1588 which was like right when the fee spike happened yeah we're currently sitting i

I think mostly it was the price increase. $470. I think it was the price increase. Because think about it, right? You have a bunch of UTXOs that are remixing in Whirlpool at your fixed fee. You paid the fee when you entered, right? And then Bitcoin goes up 30%. Then all of a sudden in your hot wallet, you have additional is 30% more, right?

So of course, people are going to pull out. It's more of that than the fees, I would say, at least right now. That's my take. It's a good take. Speaking of the price increase, we're at $13,484. $1 is going to get you 7,416 sats. One Bitcoin is going to get you 7.2 ounces of gold. Currently above 2%, 2.07%.

Bitcoin's market cap is 2.07% of gold's total market cap. And you can currently buy, wow, this went up a lot since last week. You can currently buy 386 barrels of oil with one Bitcoin. Oil's a shit coin. What can I say? Yes. Interesting. Not that we'd like to focus on price talk around here too often,

but I think it is interesting that if we close above, I believe, $13,880 on Saturday, that'll be the highest monthly close since January 2018, and it would coincide with the 12th anniversary of Satoshi dropping the Bitcoin white paper on the cryptography mailing list, which would just be a bit poetic in my mind. Exactly. It's like almost exactly three cycles.

Yeah. Yeah. It's pretty crazy. I mean, for all intents and purposes, we're at all-time high. I think from a realized... There's like 30 days where people could have bought above the price that we're currently at.

Yes. Yes. And if you were stacking sats, it's almost impossible that you're underwater right now yeah like i i haven't run the numbers so pierre please forgive me but uh like i'm pretty sure that as if you've been buying weekly there's like no point in time where you could have started and you're underwater right now yeah it's um it's a beautiful time to be alive should we just throw the ads in front or should we rip it just you can just throw them in front we're 36 minutes in right now you know what i'm

going to read one to give them a mid-roll because they're a new sponsor uh we'll throw the others in the front uh because i just want to give this new sponsor you have people come support you you want to scratch their back this week we're scratching the back of bitcoinblackfriday.com our good friends at BTC Media are bringing back Bitcoin Black Friday. I want to tell you guys about this. Bitcoin Black Friday is a project from the team behind Bitcoin Magazine and the Bitcoin 2021 conference in LA. Bitcoin Black Friday is a celebration of the growing Bitcoin economy. They're really trying to contribute to the closed loop economy of Bitcoin, get people spending Bitcoin, buying things with Bitcoin and supporting people in the Bitcoin industry.

So on the site, again, BitcoinBlackFriday.com, you can find active deals for up to 50% off your favorite Bitcoin gear and other merchants that accept Bitcoin. However, it doesn't stop with spending Bitcoins. Bitcoin Black Friday also lists over 65 charities that you can support with Bitcoin and a stacking stats page with great ways to earn Bitcoin. So they're going to educate you about how you can help charities out with Bitcoin if you want to do that for tax purposes or just out of the kindness of your heart. and they're going to actually have a page that teaches you how to stack sats in many different ways. If you're a Bitcoin accepting merchant, go to BitcoinBlackFriday.com to add your products to the list. We just added ours today. We're going to have a 25% deal on the whole merch store from Friday to Sunday of Thanksgiving weekend. So we're not just doing Black Friday. We're going

do Black Friday, Saturday, Sunday here at TFTC. If you want 25% off merch, we're going to be doing that then. And if you want to take advantage of discounts and sat stacking opportunities, sign up for free email updates at bitcoinblackfriday.com. And the much awaited Bitcoin back reward card from Fold is almost here. And the Fold team is teaming up with Bitcoin Black Friday to bring you a special promo for the much awaited sat back card. If you sign up for early access to the fold card on bitcoin black friday you're going to be entered into a raffle to win one whole bitcoin 100 million sats all right you're gonna if you get into this early access for the fold card uh at bitcoinblackfriday.com you're gonna be entered into a raffle in which

you could win 100 million sats uh and you'll eventually get the rewards card which is pretty dope too uh while you're at it check out the other great deals from awesome merchants like cold card or good friends of cold card on chain capital bitcoin magazine my node kobo vault ledger bovada and many more so shout out to the bitcoin magazine team the btc media team uh for for reviving bitcoin black friday go check it out if you want to support individuals in the space merchants in the space is a great way to do it and do it while saving some money it's a great initiative bitcoin circular economy here we come yes i think what people don't realize is like in 2013 2014 all the talk was like merchant adoption

merchant adoption merchant adoption and it was a false start because the merchant adoption was convert to fiat immediately it wasn't really paying with bitcoin it was the merchant was just receiving fiat it was just like markets selling your bitcoin for goods you know but nowadays we're gonna have a real drive because it's gonna be the merchants want bitcoin the merchants want to stack sets right when we receive bitcoin for our merch we hodl it we've never you know we've never actually moved any of the funds any of the bitcoin you've ever come to the merch store if you ever donated to us bought a shout out bought merch you can go check the transaction that you used to do that, it has not moved. Just straight huddled it. And I think that

is the real movement, right? The movement is that, is that there's going to be merchants around the world that realize they want KYC free Bitcoin, um, and they want to stack sats and they're going to, they're going to accept Bitcoin for that reason. And eventually we're going to start seeing, you know, discounts for that purpose. You know, if you pay us in fiat, you're going to have to pay us you know a higher price than if you pay us in bitcoin because we want that bitcoin so badly and that's sustainable that's what we actually see and that's a complete difference from from the merchant bullshit that we heard in 2013 2014 yeah and here's some business advice just from tftc if you're a cash flow positive business you have a fiat bank account with cash

in it and you set up these you sell merch particularly or potentially other services where you're obviously selling the merch at a profit it's actually a great way to accumulate bitcoin at a discount where if you have enough cash in the bank account somebody buys merch from us we pay a certain amount to to get that merch delivered and we have some profit on top and so basically we're able to buy 30 worth of bitcoin for for like 25 bucks which is like an interesting way to to buy bitcoin at discounts if you're thinking from a business perspective how to do that stuff it's uh actually pretty cool when you think about it and yeah if you've ever bought anything on tftc.io slash merch or slash contribute you can go check we've never moved anything

however we will be consolidating utxo's moving stuff at some point in the future but maybe we can figure out a way to make that transparent as well yeah i mean in hindsight like probably should have done some better utxo management there huh marty yeah but again marty's marty's lazy and busy not not lazy busy that's what i'm saying you know like fucking our boy mandrick posted on twitter he was like um did you take the time during the low fee environment to get ready and i responded in all caps i thought i did but i didn't and like i think that pretty much sums up most people in this space like i've i've been i i i think i've been very low time preference and thinking ahead of time in terms of my preparation and i was not prepared if if fees

don't come back down i was not ready you know i i was close but there's there's shortcomings i think we'll we'll see one sat per bite fees again at some point i think so too the next month and that'll be a point at which to take advantage of that but possibly briefly it could be very briefly learn your lesson make it happen guys yes uh let's get to the list we haven't gotten to the list yet our good friends at crypto cloaks they dropped their triton case for uh specters for specter correct no no no no this is for notes oh oh yes oh i saw this is the double node i was thinking of this is their dope new case that's like three weeks old and i'm we should have brought this up three weeks ago it kept forgetting it just kept missing the list

you know but it deserves to be up here front and center it's fucking gorgeous probably the nicest fucking node case i've ever seen you know but like it might have it might have displaced the buccati of nodes the the noddle dojo red case which i fucking love i thought you were gonna say the dan held node oh you know um and and this one is like very affordable it's 65 dollars um and it's pretty cool you have different face plates it has a transparent thing on the side and you can run two nodes in it you can run two raspis inside of it two distinct nodes like i didn't even i i said on twitter i was like i didn't even know this was something i wanted but now i feel like i needed it you know i just it's just fucking awesome so shout out to the to our

boys at crypto cloaks this is pretty cool crypto cloaks.com this is not a sponsored ad or whatever but like they that gets fucking dope as fuck yeah shout out to crypto cloaks they're putting out dope stuff uh go support i'm sure they'll be on bitcoin black friday too go support them um i'm gonna get a trident case i'm gonna go buy one really cool i mean he's i need to get i need to get a specter node that's on my list to make so the cool thing about specter i'm a specter maximalist now um if the freaks haven't noticed is that i feel like these single board computer nodes you know like what you would put in a uh what you would put in this trident case is almost more important for

coin join and lightning because you need it always on right um as far as my cold storage situation uh whether you go multi-sig or single sig with like a cold card um specter makes it super easy to just run bitcoin core on your computer you run specter on your computer and you're good to go you don't need a single board computer because you can even run it pruned you just need 10 gigs on your fucking computer on whatever computer you want and the keys are stored on the fucking cold card or if you do multi-sig on on you know it's split between multiple external devices but you don't have to trust your you know you only have to trust your computer with the privacy so like you don't even need a single board computer we've leapfrogged

that we we were specter now allows you to just fucking install it on whatever your existing computer is and it's fucking beautiful i am so excited about it boss it's awesome it's fucking beautiful it's so good um i wonder how hot that thing gets especially if you're running a bunch of apps what's razz pies on the trident yeah well it supports two fans the razz pies the hidden secret about the razz pies is you can run them super fucking hot and they don't fucking break and if they break it's 75 it's like whatever who the fuck gives a shit well hopefully you don't have your seeds backed up on it back up your seeds yeah the seeds are never on the device they're not in the computer what or sometimes they are but they're not the

only copy at lightning it's kind of an issue yeah exactly lightning it's an issue coin joint is not as much of an issue you know just limit the limit the amount of apps that you run uh bitcoin focused mempool.space honestly love love the product love the team shout out wiz running that conjunction with some other apps on a Raspi. It gets CPU usage up pretty considerably. Well, they have the new 8-gig Raspis you can buy. Look into it. Matthew, how was the first monthly not-all call?

You hopped off it right before this. That was fun. Four to three hours ago. It was an hour. We even hit a bingo. There was a Rodolfo mention. Was there? Boss.

Well, just, hey, get your boards now, freaks. We just hit it on TFTC, too. um uh it was for the announcement of not a cloud and not a dojo sales are restarting not a cloud is something i've been waiting for dj put it in your mind yeah we're gonna move tftc to not a cloud um when we were getting shilled to do that when not a cloud was just a dream and now it's coming out um yeah so the idea is basically monthly calls monthly not all calls open to the community i really dig this idea i want to see more bitcoin companies do this um i think it it goes with the ethos really well um and they invited me on so of course i drank

during it because you know that's what i was there that's that's why you're all that's why i'm geared up right now that's why you're all hyped explains a lot yeah look look how much i've had this is a decent amount this is a fresh bottle when the noddle call started um but yeah it was a good time uh we uh just on that tangent uh because rodolfo got brought up the block clock mini is now being sent out um did you get your email about it i did and rodolfo i actually have to uh we need to we need to talk outside of this medium okay i made a miss i made a mistake okay he made a mistake but um if you pre-ordered a block clock mini you get to finalize you're shipping today if you didn't pre-order one you can still get into batch two if you go to

blocklockmini.com i believe is the domain because he just loves buying uh vanity domains um yeah i'm pretty i'm pretty excited for my block so i've been like daydreaming about it like so i have oh much i want to dox my personal situation right now but i am uh living an in-laws vacation house saving money on rent but i have uh dreams of getting a studio and having like the block clock on the wall right behind me exactly at some point that's the dream and like there's a bed behind him right yes before that before that dream uh is brought to fruition i i can't wait to just set up my block clock in the dining room and just like look at it like Oh, what's the price?

What's the block? It's such a sweet little device. I mean, the original Block Clock. It's like $4,000, which is a sweet device. Yeah, but the attention to detail that went into that. We are very blessed to have Rodolfo Novak building hardware in the Bitcoin space, whether it be a hardware wallet.

I guess an OpenDime is a hardware wallet, too. Just a different type of Block Clock. you got to add hardware on you can get to add things into your shipment for your block clock and i bought i bought like 12 more open dimes i got a cold oh so so there's a conspiracy that they're a hidden sponsor secret sponsor of us i paid rodolfo 450 today uh yeah that's actually is a reverse sponsorship actually paid the invoice twice by accident that's it open here like reverse fucking sponsorship um we do have we still have a free block clock mini that we're supposed to fucking like i don't think we've ever made the freaks aware of this

no we have a couple times bit block boom yeah we have to what are we gonna do how are we gonna how are we gonna get them like how do we raffle this off i don't even know because i don't want to do it in like an engagement way you know to make somebody pay for a shout out so you get a block cock mini for $50 instead of $300 but what do they you have to answer a specific question before anyone else

yeah and they have to pay for a shout out yeah that's a little bit garbage is that scummy what is it we take we could take the shout out and we could we could donate the funds from the shout out to HRF so we don't keep the 50

and then we give them a question and they have to answer the question before anyone else but but there's going to be overflow of people answering late and we keep their funds or do we donate those to hrf as well oh that's a good question we donate all the funds we receive to hrf to take away any improprietary improprietary i don't know if that's the right word to take away any um scumminess let's just say scumminess yeah we don't want to yeah i don't want to you know we could easily do like retweet follow like tag three friends i don't do that shit that's buying engagement i'm not cool with it but while we're on the point of engagement if you guys like this

podcast you find it valuable go to your local podcasting station and give us a rate a review goes a long way especially if you're going to this bull market again we want to make sure people getting quality content good information we love you freaks all the help goes a long way on these platforms we uh we are not as shameless as some other people out there too we're above paying you for it but we're not above asking for it yes agreed there's a difference i kind of like that idea that they have to do a shout out and if they're if they're late if they're late then we we donate it regardless we donate all every we donate everything to hrf the winner and the late people so then the question is what is the question are we gonna do what should we do

next episode or should yes i think i think i think we should get some feedback okay from the freaks after this conversation in the comments let us know except that guy marty except the owl except marty's owl we don't want to know from you no i like he's right here behind me we can ask him right now did you see someone asked like what's your favorite podcast it was like marty's gonna kill me if i answer anything else i did not do that and i will kill you peter remember who feeds you uh i like that idea and rodolfo can give us feedback too it is it is crazy how how many parody accounts we have of this show you freaks are crazy it's uh it was actually a leading indicator to the bitcoin bull run i actually called that out too i had a shout out to al's

lacrosse i had uh i'm playing in my men's league uh tennis tournament uh tennis league again this year as i've done every year and it's outdoor platform platform tennis yeah i thought that was too above the freaks to understand what that was um and i wore my um i wore my blue steel joe dirt uh hat custom hat that i was across war and i had like three people asking me what it was and i was like blue steel joe dirt and they're like ah i could see it i could see it i get it i get it i have to give official shout out to al here now uh as well al gifted my wife and i a an al noisemaker for our son and it is a lifesaver.

It's on all the time. It helps conk my son out at night when he's ready for bed. So Owls Lacrosse AL, apostrophe S, gifted my wife and I an owl noisemaker for our child.

It's very family oriented here at TFTC. He actually gifted it through me. I was the trusted third party. This is true. This is pre-Rona times. Yes. I actually had dinner with him well we're blowing too much smoke up our own asses right now let's get to the topics the people that come here to hear us blow smoke up our ass matthew that came for the hard-hitting news topics and this is one we're drifting into news that makes us angry i don't know if the rest

the rest of the topic certainly aren't all news that makes us angry but this topic particularly makes us very angry and it's just travel roll fuckery intensifying uh fin sen fin sell excuse me, the people at FinCell announced earlier this week that they're going to lower the threshold at which information between service providers needs to be shared from $3,000 to $250. So if you go to the grocery store and you buy groceries for two weeks, not that this would incite this like we're just trying to quantify how menial of a task could or what small tasks could incite this exchange of data between uh financial service providers from

three thousand dollars to two hundred and fifty dollars it's absurd these people it feels like now they're just fucking with you like hey you're never gonna have financial privacy ever again but this is what i'm fucking talking well first of all the important thing here is they announced this right after rhr last week which had to be if you know the the u.s government financial agencies are deciding when they're announcing things based off of when rhr gets released they're like oh they gotta wait a week so much things go on they're not going to talk about it next to rhr there's bull market you know everyone's super bullish and they're not going to talk about it here we are we're talking about it okay it doesn't matter when you release

the second thing is people say we got a reason with these motherfuckers they're just going to turn the knife on us over and over again it's it's 250 we need a reason with them people people the people are the people are telling us didn't john carvello tell us last last week that we're supposed to like it's like a reasonable like businesses have no choice like we just gotta fucking take it and just like understand like it's it's business i don't know if that's exactly what john said but i don't think we should take it well people have told us that we're supposed to reason with them and like it's it's really like there is no reasoning no matter what they're just gonna it's gonna get worse and worse and worse and worse and i'm sorry it fucking sucks

i don't want it to happen you know i'm not i this is this is not this is not me fudding this is the reality they don't fucking give a shit okay they're gonna take as much as they can fucking take and and my question is is like how far does it go do do we see a de facto ban on self-custody do we see them go after people what about the what about all these people that are using custodial notes like what like what about the people like i i actually you know i had some freaks reach out to me and i'm they're completely correct like i i went a little bit easy on on on ledger last time being a part of the working group um because there's a lot of a lot of people there that i think are working for us um and they are non-custodial so they have a carve out but what

happens when they don't have a carve out what happens when they have to report every single utxo that's going through their notes what happens when trezor has to report every single utxo that's going through their notes what happens when blockstream has to report every single utxo this goes through their notes they're boiling us in water and it's going to get worse and worse and worse and worse and we have to be ready to fucking push back like there's no easy way to say it that's the reality yeah it's like what yuri bezman of warned america about turning it slowly into a socialist country but applied to bitcoin like they're normalizing this stuff oh get used to it hey you know what we're gonna lower the threshold to 250 don't worry don't worry it's okay you have

to comply this is something we just have to give in to like this is as far as we're gonna go uh and then they're gonna get into demoralization like all right now you can't even fucking send your utxs to your wallet now actually if you have a ledger or treasure or use uh blockstream green wallet you know what they're actually going to be sending us your data too you know if you're okay with lowering the threshold from 3 000 to 250 what is taking it from 250 to us collecting all the addresses that you're sending your utxos in personal custody to yeah it's like a slow erosive order of events it's like hey let us do this let us do that you know what don't worry yeah yeah

yeah don't worry don't worry and then one day you wake up and you got the fucking long dick of the law on your ass and you can't even fucking self-custody your utxos without reporting it to the proper authorities it's fucked ask your father what he would say if every single transaction over 250 cash had to be reported to the fucking polity bureau like as ask him how how he would feel about that okay their generation was not cool with this shit our generation should not be cool with this shit it is fucked up it doesn't actually stop criminals it just it just fucks it just fucks the average law-abiding citizen is what it's doing that's like the most fucked up thing about this whole thing is these same people implementing these egregious over overbearing regulations and

laws and compliance on individuals they are the ones at the end of the day who get greased to let the actual criminals conduct their criminal activity like they're not trying to stop criminals the criminals are getting away with literal murder and pedo shit and drug murders and shit like that like they don't care it's ah it's infuriating with that being said the threshold has technically not been lowered from 3000 to 250 uh there is a commenting period you could submit a comment i have already uh and i think mirage uh from coin center made a very good point if you are going to submit a comment try to be respectful with it like be like don't like be like fuck you what are you fucking doing like be respectful in your comment by ripple and

mature and and let them know like hey this is an encroachment on personal liberty and privacy in the united states which should be uh givens like you were literally encroaching on people's financial privacy this should be something that is not possible if anything they should be raising the limits it goes back to the bank secrecy act that was signed in 1970 and the threshold then was ten thousand dollars uh and if you adjust for inflation even if the threshold was at ten thousand dollars like back then in 1970 dollars i'm pretty sure like in today's dollars i'd be like 70 grand and like now they want to lower it to 250 dollars in today's dollars which is fucking insane like it used to be 500 million sats and now it's less than 80 yes like so we're

going to link to all this coin center made a comment um they made a comment you should donate to coin center fucking bitcoin businesses you have an option fucking push back i don't want to hear this cuck mentality bullshit i want i want you to push back look if you if you fail at pushing back i understand comply you have no fucking choice whatever okay but i've watched it up i've watched you guys fucking fight for the the right to fucking dump unregistered securities on retail for the last three four fucking years let's see some fucking fight for user privacy and and for any patriot out there if you think like you're an actual american you're making us vulnerable to the enemies like you're like you by by putting this you're you're putting this huge

fucking centralized data ball of all of our financial transactions and we can't protect them like we suck at that shit and and and our enemies are going to be able to see every transaction we've ever made so so if you're if you're if you truly if you're truly a patriot like you should you should be completely against this solely from making our country strong like making our citizens as as the least vulnerable as possible because that's what this does this this this kind of these kind of rules makes us super vulnerable and what fucking country are we in anymore like does personal liberty and privacy even exist anymore like is it even a priority like is this do we actually live in a free country anymore

what the fuck is this bullshit dude this is what i you know i kind of said this martin you said it was a cuck mentality what no the cuck mentality came up where where did the cuck mentality come up it was something to do with china yeah it was pushing back well it was that this country is we're self-sabotaging ourselves we just keep shooting ourselves in the foot and i feel like i feel i feel powerless aside from bitcoin and encryption like i feel i feel like you know i i i want the freaks to post comments but i just want you to also realize like your comments don't matter like they don't give a shit about you like they don't care they don't care about your anonymous comments they're just gonna fucking fuck us anyway and and you gave me you

gave me a cuck mentality on that just because i'm super frustrated not on that i didn't throw a cuck mentality american hollow is hysterically laughing right now he's like he's like matt still hasn't fucking let it go he still hasn't let it go yo i'm just i don't hold it against marty i hold it against our own government who's actively working against us it's fucking ridiculous like i don't care you can do all the corrupt shit you want to do in government don't fuck with my livelihood like my people leave my people alone like let's let's let's fucking work let's be productive you know that's all i agree i agree like what the fuck are we doing in america like and that's i think this is what came up because i said referencing whitney webb's

article in april my timing's right like that's about it was like she wrote back then which is now being confirmed eric schmidt came out this week and said we need to beat china in the ai race and by saying that you basically mean we need to beat china in the surveillance state race subjugation race yes and so you have the founder of google one of the most powerful individuals one of the most wealthy individuals in the world pushing for that and he's very buddy buddy with very high up government officials he is partnering with new york city in new york state to bring surveillance technology to your schooling system and he wants to beat china's surveillance state to a superior surveillance state like these technocrats are racing to make this happen

and we need to fight back so we need to go in the opposite direction especially if you want to pretend like america is a bastion for freedom and liberty i agree anymore i agree right now i agree i would concede that a hundred percent but i would note that many individuals within america including yourself and myself i would argue do believe in the principles that this country was founded on and we need we can't depend on these technocrats and these politicians to defend these freedoms and these liberties for us like we need to take it and you do that with bitcoin with encryption technology like they are not going to give it to us we need to start taking it get your utxos get your yes but particularly here in america

no it's global it is global but like i'm i'm thinking like i think america's still from a mentality perspective i think we have the least cuck mentality uh populace really i disagree well let me finish my point you got to take it they're not going to give it to us get your utxos into personal storage start using keybase start speaking up and telling these motherfuckers to fuck off it's time like they're taking it from it they're trying to actively and they're again they're lulling us into a false sense of security and hey we're gonna go from 3000 to 250 don't worry don't worry like that slow lulling and lulling it's like when you fucking wave your hand over the eyes of a crab and that's how you put it to sleep they're

basically the intelligence apparatus technocrat apparatus the political apparatus are like waving their hands above the populace putting us to sleep like hey don't worry it's gonna be okay it's going to be okay uh we're going to protect you no you need to wake the fuck up and take back your your liberty and freedom in the digital age it's going to be a fight are you willing to fight that's the question i mean actually i'm torn on my previous comment look i have a lot of i think you know i love america i love americans um i think we have a lot of brothers and sisters around the globe uh and i think this is a global fight for for individual rights um and i think it's important that we hold that dear that we realize you know this is happening on multiple

fronts around the world simultaneously and and in a lot of in a lot of cases these governments are working together um to to basically create as much of a unified front as possible uh yeah i mean i i'm just you know i i think i think what people fail to realize is basically in early 2017 i came to the conclusion that i could walk away and not be a public figure and not talk about this shit and probably cover my family's ass just myself and my family's ass I could have kids we could probably be pretty prosperous you know get some land in some bumblefuck area of America um and be fine uh be mostly fine uh there'd be some transgressions but we'd be mostly fine I couldn't stand with that and I

wanted to be outspoken because I think that having outspoken voices and uniting across borders is is how we have real change right and and and that's why i'm here right now so and now that's done now i'm very public and marty's very public and we are here we are public like if when this fight happens we are going to be like fucking the front lines like for my own doing you know it's whatever um so i just want people to care you know like that's why that's why i'm here is because people should care and people need to realize. I agree.

I co-sign that. That's why I'm here. That's why I started all this stuff. And I think talking about it gets a little contagious too. You give somebody else a little confidence. Hey, these guys are talking about it. Maybe I have had that lingering thought

in the back of my head but never vocalized it because I was a little nervous. Like, oh, maybe they think I'm a freak. Maybe they think I'm a weirdo. Don't be nervous. Don't be afraid to vocalize it. I think you'll be surprised at how many other people have those lingering

thoughts in the back of the head. It's not natural to be subjugated in the way that the state is attempting to subjugate us in our modern times. Like I would argue that most people have these lingering thoughts in the back of their head. They just don't think to, to act on them. They're too shy for some reason.

Her mentality, her mentality exists. It's real. And it, it, it forces people to self censor. are we gonna get too depressing can we go to like more positive i mean i'm super bullish all right everybody market sell right now you heard it here super bullish man

and look the world is fucked but at least bitcoin's pumping guys right we got that going for us yeah but is the world really worth it if all right bitcoins are look we knew bitcoin was a lifeboat you don't need a fucking lifeboat unless the ship is sinking so i like it is what it is it's you know bitcoin has no value if everything's fucking hunky dory it's true it's true um speaking of hunky dory this is something that made me very excited because it's something i wrote about geez at this point um june of last year it's october that's 14 months 16 months can't do math 16 months ago uh reuben sobson uh bitcoin developer one of the co-hosts of the unhash podcast

he released a proposal for a second layer solution known as state chains it would basically enable you to move utxos on a second layer basically passing along private keys without touching the main chain i thought that was an interesting proposal last june and other than people just talking about hey what if we do stay chains uh nothing really tangible has come to market since then until last week the team at commerce block announced the fact that they are building a product called mercury wallet which is now live on bitcoin's test net and this is i believe i could be wrong but i believe it is the first implementation of a state chain in software form uh that may be coming to market soon uh so this this was announced last week

last friday i believe actually uh and so mercury wallet if you guys want to test it out if you want to experiment with uh state chains uh it is live on bitcoin's test net and it is really cool privacy uh and uh the quickness of settlement and ease of uh basically privacy and quickness of transactions are sort of the priority there one of the trade-offs are that you need uh i think i think you need equal uh inputs to you need equal amount of bitcoins that you're willing to trade with a counterpart so that may be one of the one of the um i don't want to say limiting factors but one of the uh variables that take into consideration but everything runs through tour uh it'll help with scalability and privacy particularly

matt what are your thoughts um so first of all uh we're going to have tom tom right okay yeah i was i was looking up his name tom tom is going to be on uh the founder of commerce block yeah yeah is is going to be on on tuesday we're going to have him on i don't know when we're going to release the episode but we're going to record with him on tuesday um state chains in general like the the concept my my understanding of the concept is um let's say that marty is the state chain uh maintainer um i make a multi-sig with marty and then Bob makes a multi-sig with Marty and then we both swap our tokens with each other

and then we settle. So the idea is that you have these two two-of-two multi-sigs where Marty can't steal directly from you but if he conspires with Bob then he can steal from you. So it's an interesting trust model but it creates the situation where we can do these swaps off-chain

and then settle back on-chain while being non-custodial-ish. And it kind of comes back to, and I'm kind of hyped on this. I think it's a very cool concept. And I want to state two things, is Mercury is both a state-chain implementation and then they have Mercury Wallet,

which is the wallet that interacts with that implementation. So it's two things there. But it's important to realize, and it's coincidentally kind of what we talked about on RHR last week, is that you have these situations where we're talking about basically like legal custody because of the situations that regulators have put us in. but if you had a state chain entity that acted purely malicious um and we had roast beef uh in your comments uh talking about this on twitter um that was purely malicious like basically what that state chain actor would do would they would be bob as well right so like imagine marty is pretending he's just an honest state chain uh actor and then he's also participating on both sides of the multi-sig and then you swap with him he could steal your funds um but but if he's an

honest actor he can't based on like a legal subpoena or something and i think that's an important distinction because really if there was no regulators around where we would probably be is we would have custodians that had reputation systems but because because custodians are the ones who get hit we can't have that so we have to build these like little silos uh where where we separate that out and and like the custodian can't get legally compelled to to provide anything but if they were a malicious actor there's we're still trusting the state chain there's no recourse yeah the the person running the state chain we're trusting them implicitly we're trusting them but if they're acting in good faith they can't steal our funds if they act in bad faith they can steal

funds but the thing that roast beef and he did admit to it later when i called him out on it is that a lot of the non-custodial you know air quotes wallets and lightning operate on the same exact trust model where where you're you're implicitly trusting the the provider of the wallet or the provider of your routing your routing node that you're using to provide your channel you're implicitly trusting them but if they got a legal order they couldn't steal your funds and it's a very it's a very similar model in that respect but it's very interesting i'm very excited about it it has a low fee pressure um which is important in a future high fee environment which we expect i look forward to natively running through tour natively running

through tour at least mercury wallets implementation again it's something that excited me when ruben first proposed it last june and i'm just excited to see somebody ran with that idea and implemented it and I don't know if it's going to be successful I'm just excited to see it tested in the wild and again optionality is key with all these scaling solutions and let a thousand scaling solutions bloom and let's see what the best one is and we just had another one bloom and we'll see how it does I don't know I'm not going to guarantee its success or failure we'll see how it does and I'm excited to see how it does so be aware it does seem like it does seem like it requires more trust than

if you ran a full lightning node or if you like it definitely both lightning and state chains require more trust than something like the coin join implementations where they like strictly cannot steal your funds they can they can they can see your

privacy but they can't they can take your privacy but they can't take your funds yeah so we'll see we'll be paying attention to it we'll keep you freaks abreast as that product comes to market and people start using it. This was interesting to see.

J.P. Morgan shilling Bitcoin, calling it better than gold. I believe citing particularly that our generation, millennials, and then the generation behind us, Gen Z, are probably more likely to invest in a digital store of value and be more comfortable

with an internet-native currency than gold. so just you have uh i almost said jp morgan yeah jamie diamond the ceo of jp morgan chase uh only years ago saying that bitcoin would be nothing and basically shitting on bitcoin while his daughter's buying it um and then his analyst at jp morgan was actually probably a testament to uh the fact that you don't have a dictatorship at that company like you have to concede that your analysts are working on a particular problem and the analysts are saying hey bitcoin's probably better than gold moving forward uh on many assets a better digital store value it's better store value overall um so that's cool to say have you ever seen john wick

i have i actually all of them it's one of my fit i've seen the first two i've it's it's one of those movies whatever yeah there's three um it's held up it's pretty good it's great yeah it's fantastic it's one of those movies where i'm like no they should not have killed his dog and it's one of my favorite uh i don't say tease my wife but like whenever she's like going through through netflix like i'll get her every once in a while i'll be like let's just watch john wick she's watched it right yeah yeah so i just had my lady watch all three uh i i had watched a first two but i hadn't watched the third and i was like okay so we'll watch the first two together so i re-watched the first two and then we watched the third together um why do i bring this up

freaks is it relevant that was the coolest use of gold that i've ever seen from a gen z point of view i'm not gen z but i imagine from a gen z point of view where he like he sledgehammered his floor with the and then he opened it up and he had guns and like gold coins right that was the closest they ever got to gen z using gold and they like they came close they they almost made it but they they didn't quite fucking make it gen z gives two shits about fucking gold as a store of value gold is a fucking shit coin okay sorry safe i love you gold's a shit coin not gonna happen never gonna happen it's over bitcoin is the future i don't think safe would defend gold oh well so funny story in riga uh first time i ever met safe uh no second time i met safe i met

him in dallas last year and then i met him in riga and we're having we're having drinks in like a really cool little latvian bar and i turned to him i'm like four drinks deep and i turned to him i'm like gold is your shit coin and he just like walked away from me but we're still friends i did it for the freaks yeah i mean gold is bastardized 6102 fucked it up yeah we gotta get we gotta get ripping here i got bedtime soon so not not me for my son no not he's gonna go to bed guys i'm slacking as well uh join market status update this is actually interesting i saw this earlier this week they're trying to uh get away from irc right and create a different messaging layer yeah they should look into what uh samurai's doing they got soraban

which is a purely tour messaging letter layer which is interoperable it doesn't matter where you plug it in yeah so that's i believe adam gibson i forget where it came up but i remember reading it this week adam gibson posted the update did he but like i i thought i saw people talking about on twitter or somewhere um like so coordinating join market all goes through irc right now and it's not really scalable it's like kind of it was like hacked together and stayed that way yeah i mean look what we want the reason sorban is existing on samurai is because the idea is to use it for two two-person three-person uh coin joins and that's what we want right we want i want every wallet to like these coordinated coin joins are great and i want them as well

um but you know these like five-person coin joins are earn wasabi like if they improve their implementation like larger coin joins um but what i really want is i want every wallet to support two of two coin joins and three of three coin joins right and so like you like hit up marty you hit up bob and like your friends and you all coin join together right and if every wallet supports it and it's interoperable that's fucking massive right so let's let's make that happen yes i agree with that no i'm happy to see that number one they're they're conscious of the the ceiling that coordinating the irc creates and then trying to to solve that problem not that they haven't been focused on it for a while shout out to the the joy market team and everybody

working on that and um well i like the idea of gibson posting i want adam to post more updates you know to his blog right yeah adam if you're listening i am subscribed to rss i'm i'm receiving your updates so just keep posting them boss uh graphene adds pixel 4a support this is beta correct massive they're calling it experimental everything's beta in graphing land this is huge let's go why is it huge the 4a is so much better you have the 3a it's fucking a piece of shit uh phone uh this phone is just it's just a nicer phone it's it's just it's just really nice hardware for what you pay you pay like 400 for it it's fantastic hardware i'm holding in my hand while i speak this things if you uh freaks have a 4a out there and you want to experiment with graphene

you can now do that i have the 3a and the 4a in my hand right now it's just a better phone just a better phone yeah 3a is like i can feel like i could like if i just like squeeze my hand hard enough i could break that plastic yeah you know it was it's it was a good value for the price when it came out you know two years ago yeah next up we got a marathon patent group they announced the purchase of 10 000 ant miner s19 pros earlier this week they're marketing like they're gonna have one of the largest mining operations in north america at some point uh they'll be adding 1.1 exahash to their existing operations and to put that in the perspective that's a little less than one it's probably like it's probably like 28 of what slushable has right now doing the math

my head um so again they just put in a big order 10 000 s19s uh let's see if they can collect that order number one uh number two not have many defective machines in that order because bit bitmain's uh bitmain's uh delivery of miners that's come with a high failure rate in recent months and number three um that they can actually attain that uh hash rate level oh this is big i actually got dms about i got an email about this where i felt fucking terrible and the freak hasn't messaged me back yet but ledger has had a crazy amount of phishing attempts recently it's been via email via text i've seen it done via text text is so fucked up right um so i guess some data's leaked from ledger it's the july hack it's the july hack

was way worse than they pretended it was yeah so people are getting text emails like legit phishing emails where it's like hey go update your ledger live click this link download this repository from github uh and it's it's malware and it's always submit your seed right yeah i'm like no i think it's always seed it's always seed like don't never put your seed in the computer and you should be good i have an email from it's always the seed it's always asking you to put your seed in your computer they haven't gotten so far to get like there's no like uh there could presumably in the future be like bad firmware that they get you to load but that has not happened yet it's it's it's at some point whatever they make you download asks you to put in your 24 words do not put

your 24 words into the computer ever i don't think it's that um here's one of the so here's phishing email that got forwarded to me and somebody thought that they were like alerting me of like an actual ledger announcement we've got to inform you ledger has experienced a security breach affecting approximately 85 000 of our customers and the wallet associated with your email address is within those affected by the breach namely on saturday october 24th 2020 our forensics team has found several of the ledger live administrative servers to be infected with malware at this moment it's technically impossible to conclusively assess the severity of the scope of the data breach due to these circumstances we must assume that your cryptocurrency assets are

at risk of being stolen if you're receiving this email it's because you've been affected by the breach in order to protect your assets please download the latest version of ledger live and follow the instructions to set up a new pin for your wallet and then it leads you to a button that says download the latest version i think they asked you for your seat but regardless this freaks first of all go buy a cold card second of all don't like don't update your hardware wallet unless you hear about it on rhr seems like a pretty good i'm not gonna toot my own horn but i we're gonna we're gonna let you know we'll let you know if there's any hardware updates or exploits that are gonna happen nothing's gonna nothing's too important that

is gonna happen within a week period uh as long as your shit's offline now i'm confused i don't know if that was like a legit ledger email that wasn't that wasn't no okay all right good no never click links that are in your emails emails no regardless of bitcoin just don't even do it for your work accounts or anything never put your seed in the computer and if there's a real update you should go to ledger's actual blog and it should be there um like type it into the computer yourself or just wait till our hr and we'll talk about it and we'll let you know that you need to update that's that's what we're here for that's why we do this week week from week um but this is fucked up this is this was because ledger's store got fucking compromised um in july and

ledger didn't realize how bad it got compromised they contacted the people they thought got compromised but it's way more people i think it was everybody it's bad it's really bad like everyone's talking about it and it was a lot of personal information yeah i mean i had people very close to me getting texts yeah hey should i do this and i was like what the fuck no and this is the danger of kyc right it's because now the attacker and anyone they've sold this information to and anyone who's gotten this information knows your email address they know your phone number we know that much they they know your full name they might know where you live they know you own bitcoin and that's fucked up that's that's super fucking dangerous all you have to do is add one more

factor which is that you're using ledger's node so they know how much bitcoin you own and then all of a sudden it gets really fucking bad you know and uh shake my head michael saylor for saying how much fucking bitcoin he owns um fred that's not on the list $17,000 $230 million worth of Bitcoin personally that he owns allegedly

he didn't sign a message but allegedly he didn't but he could pay for security too and he's not holding his keys so technically he doesn't own any Bitcoin that's a good point do you think he's self custody it's all on a ledger

I doubt that no it's all on the custodian he should at least look into putting some into self-custody just in case like put like a nice 20 million dollar nest egg into self-custody mike yeah diversify diversify which we recommend there's gonna be a time where we're gonna go just we're just me and marty is just the whole episode is gonna be told you so told you told you so told you so and this is gonna be a custodian's just gonna take everyone's bitcoin or they're gonna lose it or something it's just we're gonna be told you sawing you the whole episode and we're not gonna lie we're probably gonna get some pleasure

out of it no we're gonna we're gonna stay humble marty um talking about humble anthony towns uh shout out to anthony aj towns uh well i don't think we're fucked i just think we can be like all right aj like we're not waiting four years for a timeout period this is what i was saying right it's like seppuku like we're just fucking we're creating a controversy over non-controversy like what the fuck yeah so for you freaks are unaware aj towns uh he basically did a survey of developers getting their opinions on activation routes for bip taproot bip 340 341 342 got a bunch of feedback we're going to link to his blog post in the show notes and basically in the conclusion he gives some recommendations one of which being like if you don't get signaling

um if you don't if it's after the first attempt at signaling if it's not successful you have a four-year timeout um that allows for a new soft fork every four months on average without having overlap yeah and i think the developers in this case are just being way too conservative Anthony particularly like a four year timeout is untenable at this point like

PTSD yeah I don't blame them either that's one thing you have to realize about the stakeholders within the Bitcoin network the developers

being one of those stakeholders who are actually working on the code that makes all this stuff work extremely important arguably the most important to an extent

they don't want culpability at the end of the day we don't never want like the reason this very important network fucks up to be uh to be blamed to be laid on them which i i can totally grok but i think this is a situation where users have to have to be more vocal uh and say hey or you know what these things make a lot of sense they're going to create more utility more scalability more robustness to the bitcoin network uh if you guys have been working on these for years or officially merged in the core and we just need to activate it hey i think me personally i'll speak for myself i think i'm comfortable being vocal saying all right it's time let's start signaling let's get the stuff in

like i want to use the stuff and reap the benefits of these upgrades it's gonna be the same thing as last time we're gonna have some names gonna package this for us right i hope shallan for come back if you're listening shallan foray we don't even need him to come back we just need someone else to pretend he's them you know whatever we're just gonna have we're gonna have a name that's just gonna package it and we're just gonna make this fucking thing happen because no one wants to put their name on it and this is way less controversial than last time and we just gotta make it happen i'm not waiting four years uh don't tell me to lower my time preference right

no cause cause you think about it if the network does what it has done in the past in terms of increased adoption you just make it a harder decision down there like in four years arguably be much harder

to push this through you're fucked we're just shooting ourselves in the fucking knee yeah or foot knees worse yeah I'd rather be shot in the foot uh go go read it's interesting yeah it is um largest bank in singapore bds i believe the name

is or dbs bitcoin derangement syndrome why did you give the archive link to this because they deleted it they took it down yeah they took it down i forgot about that it's dbs uh they're launching they're launching a digital exchange to allow you to buy bitcoin and other cryptocurrencies Bitcoin Cash, Ethereum, Litecoin, and Ripple, I think. No, don't mention those. They're launching a Bitcoin exchange, and they put a launch page up, and they removed the launch page right away.

They are the biggest commercial bank in Singapore. Which is big. Singapore is the most powerful citadel in the world, and it's good to see them launch this. And now we get to run through some software updates. It's JoinMarket version 0.7.2. if you're out there running join market upgrade it join box uh which our boy open noms is working on if you've been using that version 0.1.13 has been released upgrade to that btc pay server

version 1.0.5.9 has been released a bunch of bug fixes in that one i know that from reading the release notes a few days ago uh lightning terminal version 0.2.0 alpha has been released this is a a major release and i think uh there's actually going to be another push next week that will be even bigger um this is a huge upgrade to uh the lnd um actually lightning lat it's the terminal so it's a huge upgrade to their terminal how you interact with your node it's lightning yeah um it's not lnd specifically it's the no it's lnd it interacts with lnd yeah interacts with lnd i mean now you can use remote lnd it used to be you have to be packaged with lightning terminal now it can interact with remote lnd so anyone who uses lnd can use this now

it's just a really pretty interface to interact with your lightning node and lightning loop which is their service for rebalancing your channels hell yeah um accidentally just clicked out of our fully noted desktop v 0.1.96 is released it's fully reproducible and he signed it with his pgp key after i called him out i love you bro i'm glad this is out um this is also his first donation where you can get it through mac app store um for free or you can download the fully signed version um and pay him a bitcoin donation to use it uh he's trying out this new revenue model and it's a bitcoin donation you're good forever after you you give them the donation to be clear it's not a one bitcoin donation it's a donation denominator i don't know how much it is

because i don't have a mac anymore um i went through my like eight month phase of my whole 30 years of life uh with a mac but i do not have one now um what's interesting here is in his uh description he said that he is looking into coin joint as a future implementation edition and i think behind the scenes he said he's going to add whirlpool which i'm pretty excited about it could be the first he could beat hexa he could beat hexa to the first iphone implementation whirlpool which i think would be pretty pretty awesome this is coming from a hexa advisor yeah it's true i have i have a very small amount of equity our good friends at atomic finance

matthew black and tony sai uh they launched a dlc based bitcoin betting tool earlier this week you can be the uh creator of a bet if you want to uh we i had matthew black on a few weeks ago we talked about this it's finally launched there's a lot of people making election bets right now jimmy song pierre rochard jason williams and our boy ck uh from bitcoin magazine are currently up there making uh bets on the election if you guys want to do that i think you can make bets outside the election as well no it's just election this is just the election misspoke there as part of if you want to use a dlc to bet on the election if you have a counterpart that's willing to meet you on the atomic.finance website to to bet with bitcoin in a non-custodial fashion

atomic.finance is there we're going to link to the in the show notes blockfi this was interesting they disclosed a 5% position that they took in GBTC Zach Boyzak Prince announced it earlier this week this was interesting to me it came out of nowhere I never would have thought that BlockFi would buy in

to a significant would you see me going back and forth with the freak on Twitter on it yeah about arbing I mean I think it's an arbitrage play right like they were they were taking advantage of the premium right because they were they were probably bought their shares with bitcoin they were deemed bitcoin for their shares so they came in at a regular price

and the premium is what's the premium it's on clark's index it's currently at no it's not on there anymore i'm out to check so let me check gbtc gbtc is at 1526 what is that 1526 we're at 13 500 right now that's does that mean 15 000 yeah um that's a little bit less it means a little bit less right because they keep taking their management fee out of it but let's say it's 15 thousand instead of fifteen thousand two hundred thirteen five fifteen hundred that's a nice fifteen hundred dollar arb right there yeah so so i think the play was an arb um i mean i i know the usd it's actually higher the usd value gbtc right now sixteen thousand five dollars i'm on trade block right now um the equivalent is sixteen five yeah it says it's twenty five hundred dollar okay

whatever right there's there's an arb there there's a there's a gap there between what bitcoin actually costs versus what it costs in gbtc uh block fives in the situation where they're completely regulated and a regulated financial entity that has a large amount of bitcoin and they can move it into gbtc and redeem it right so they're they must be playing that arbitrage opportunity right they must be trying to make fifteen hundred dollars of bitcoin whatever two thousand dollars of bitcoin three thousand dollars whatever the fucking arbitrage is it's a sizable opportunity and at five percent they have to fucking tell people that they did it so they've been doing it i don't think this changes anything really to me i did i i would never own gbtc i would

never have a block by account and get my six percent interest would while giving them custodial and kyc risk like i would just never do it to some people they might want to do it to those people i don't think this adds that much risk to them in either kind of situation i don't think it adds risk to gbtc people i don't think it adds risk to block fight people the risk was already there no risk has been added they might as well be the same company as far as i'm concerned i'll tell you uh contrarian to you view here i think it's a good risk management strategy for who uh for block fi why because they're they're taking advantage of a premium so here's really what dictates whether

or not it's a good risk management system or good risk management play by block fi is how liquid the secondary market for those gbtc shares are so if you freaks are unaware gbtc if you buy it directly is it's pretty illiquid you have a 12 month lock up but i'm pretty sure there are secondary markets so you can trade the shares that you own. You don't have to wait on the 12-month lockup to liquidate. And if you're able to take advantage of that secondary GBTC market to play that premium in the meantime, you've got to take advantage of that as a fiduciary, I would argue.

No, I mean, look, there's definitely money to be made. I'm just saying as a user, I don't think it really changes anything. The risk for BlockFi... The platform would be safer in that case if they're executing a good risk management system. The risk for BlockFi is that if there is an ETF, there's an argument to be made that GBTC goes the opposite way. Instead of having a premium, they go to a discount

because a proper ETF will have proper redemption instead of a GBTC where you can't redeem. So theoretically, if there's ever an ETF, like they'll probably will never i don't know there's not gonna be an etf anytime soon so i completely i guess i respect the decision but but if there was an etf like gbtc will probably trade below bitcoin's actual price instead of above bitcoin's price yes and the reason would be that that lockup and it would happen instantly it would be like one day it was just like fucking drop 30 percent or whatever yeah and that secondary market where you could trade those

locked up yeah nobody would nobody would engage in that um matthew i just got like a call your grandmother text just popped up on my laptop like i'm like now and i feel compelled to tell you freaks to call your grandmothers call your grandfathers they're still alive um i just gotta call your grandmother text make me feel like an asshole we gotta wrap this up we gotta wrap this up freaks call your grandmothers um nsa still putting insecure back doors into our favorite products juniper what is juniper it's a vpn provider uh and the nsa supposedly that is a supposedly told my favorite senator wyden uh that uh they wrote a a a report about what they learned from it but they lost it and so they put it they put a back door in 2015 we already knew about this

they put a back door in juniper vpn it got compromised by someone they won't say who probably the chinese government bang bang back doors are unsafe if you if you have a back door we can't secure it you there's no encryption there there's just you just it's it's it's a ban on encryption and then and and the argument is right now is when we see these encryption bans happening like fuck you like you're just making us vulnerable you're just you're just screwing us over yes um this is pretty cool river added hardware wallet account support so and they got like a lot of flack for this like why would i dox my hardware wallet utxos to you it's already happening i think they just added like better tracking support like if you are doing

that yeah i mean encouraging you to take custody of your own utxos again river is a service a bitcoin exchange plus service that is trying to educate individuals buying bitcoin how to properly secure it and they're encouraging people to take self-custody and this is one of the the light nudges in that direction like hey as you take self-custody we'll help you get peace of mind with this this wild account software yeah so i mean i put them together i put river and casa adding their bank account buying support with wire partnership uh which which casa was was already partnered with wire but they were using debit cards so their limits were way lower now it's twenty thousand dollars a month um and basically the the idea here is if if you add your

hardware wallet to your kyc account uh that and they don't know about those utxos you just dox the shit out of your utxos like don't do that like do not do not attach your hardware wallet that is is is not attached to river or ready to river but if you're buying from river they already know all your UTXOs, you're best off storing them in your own hardware wallet. So now River's making it very easy for you to do that. Casa is making you very easy to do that. You are trusting both of them with your privacy. You are trusting anyone they have to share that private information with, with your privacy. Know that. But it is strictly superior to a custodial option. Like we want to see as many on-ramps that go straight to hardware wallet as possible. That is a significant

an improvement it's strictly an improvement you are trusting them with your privacy they will share that with governments that compel them to keep that all in mind better than custodian with them yes but then you also even if they do that like you have you still have control of your utxos at the end of the day yeah like you have control you're not in a situation where they can freeze your utxos which is not ideal but certainly better than than the latter situation but i think with river specifically like don't don't connect like a a hardware wallet that you've been using a shit ton but to to river yeah get a new one and make it your river hardware wallet and and just use that and and same with casa right like you create a wallet it's your casa wallet buy to that you're

good then they only know about what they already knew about completely co-sign that kucoin the hack when was that it was earlier this year right yeah um or last year it was just going through a custodial mixer chip mixer yeah what an idiot fucking so yeah the hacker is sending um their stolen funds through chip mixer which is a centralized bitcoin mixer similar to the one i got take it down yeah like which is more so than like because wasabi and samurai centralized but not custodial they can't steal your funds what uh what does that say about samurai wasabi you think these these hackers just don't know about those products no it doesn't so custodial privacy is strictly better if you trust the custodian so so so coin join is inferior from

a privacy perspective than me sending you bitcoin and you sending me new bitcoin if i trust you marty but the problem is is that you could be a honeypot that's the problem with every custodial mixer is that the custodial mixer you have to trust them every single person that says my x pubs to samurai like it's the same it's the same idea but even worse way worse you know is is like this idea that that you can the the the scent the custodial mixer knows exactly what where your transactions go and they can steal your funds but on chain it's fantastic on chain it's they gave you completely different bitcoin not coin joined bitcoin not smelted new utxos that go in and they see it goes into completely different bitcoin you send them a transaction they send you completely

different bitcoin it's way better on chain but you have to trust the the party that does it significantly um so obviously these people trust chip mixer i've never heard of chip mixer but supposedly after this article bopped it's like the it's this is the most popular custodial mixer right now by volume all right good luck good luck good luck who kind hacker uh i know not what you pretty big news i mean yeah it was like a facetious good luck uh biggest news of the day i would argue uh article dropped this morning that there's legislation on the floor of the iranian parliament or government or however they pass their laws that would uh force the miners that being provided energy that is subsidized by the government to send their bitcoin to the iranian

central bank so that they can then use that bitcoin to to purchase imports for the country obviously iran is a country that the u.s government does not like it's been heavily sanctioned and they are using or it seems thinking about using again the legislation has not been passed yet coin does say they amended the law but if you actually read like the iranian news source it says it's still on the table so i'm not sure exactly if it was passed or not any of you iranian freaks who are listening right now who have better information shout out arbed out please let us know if we're wrong but the way i understand it's not law yet but um so this would basically mean that officially i think it's the first like official announcement of a central

bank intending to accumulate bitcoin to evade sanctions like we've talked about venezuela a lot like it's pretty obvious that venezuela is accumulating bitcoins north to korea but they've never been vocal or public about it something that you just hear via back channels but this would be like the first instance of actually like legislation uh saying like hey we're going to accumulate bitcoin to evade sanctions specifically it's usually been hush hush this is the first overt um action by by government it's been sanctioned uh away from the u.s dollar to turn to bitcoin and i wrote about in the bent today i think it says a couple of things number one bitcoin game theory bitcoin game theorists are being proven right like if you back uh somebody

into a corner and you don't allow them to access the traditional financial system you're going to seek alternatives and bitcoin is the best alternative and so that is a check in the hey bitcoin is serving uh the use case that it needs to and then number two potentially lead to the next big battle that bitcoin faces you have brad sherman's of the world who hate bitcoin and you are dumb if they if you think they're not going to use this headline uh in this legislation out of iran to poo poo bitcoin and try to shut it down so be prepared freaks it's coming yeah i mean you add oil rich countries energy rich countries uh with sanctions and bitcoin is a match made in heaven i think we've been talking about this on tftc for a while

i've definitely been talking about this on twitter for a while um you're just an idiot if you're not doing it uh venezuela already kind of set up the model iran is formalizing it Pretty much they not only legalized Bitcoin mining But now they are saying that the Bitcoin miners that are legal Have to then use that subsidized electricity which they're mining Bitcoin with to then sell the Bitcoin back to the central bank So the central bank can then facilitate Subverting sanctions international trade. Yeah, they're formalizing the fuck out of it um this will be a problem for big corners uh we knew this was coming uh if you were paying

attention you just didn't have your fucking head in the sand like we knew this was coming and you know that's what happens with better money you know better money is used by bad people as well as good people like bad people realize at first usually uh so it is what it is and to be clear the iranian people are not bad people the no the iranian government is bad people yeah the iranian government is terrible people this is being used by the right the good people of iran are not selling their bitcoin to the central bank that's true um to be clear and the good people of venezuela aren't selling their bitcoin to maduro right for his stupid ass petro dash fork pre-mine bullshit yeah so i guess not saying that we're trying to shift narratives or

reform narratives here you have to fight for those individual iranians and venezuelans being subjected to their despotic governments who actually benefit from bitcoin like i believe those benefits far outweigh the negatives of yeah i believe just like true freedom the true freedom of the network does a much better job at benefiting the individuals under those despotic governments than it does aiding the despotic government if you can block a dictator then the dictator can block his dissidents that's what it comes down to if we can block a dictator then the dictator can block his dissidents and we can't have that you know and overwhelmingly

it's a net benefit and and that's that's basically where we stand um i think we skipped over reason finished their fourth episode of Cypherpunks Write Code which is a video series a video documentary. It comes out to about 45 minutes 50 minutes. Go watch that

that's what it's all about. I watched that. I was super hyped that's what it's all about. Shout out to Jim Epstein. Number one for putting out this documentary. Number two he's been a supporter of the newsletter and the podcast for quite a while number three reason and jim's dad why is jim's dad's name escaping me uh gene epstein uh he

runs the soho forum in new york and they have oh shit i didn't realize that connection yeah father son gene epstein does an incredible job of running an incredible debate series in soho in new york well at least before covid um that we've been to many times before it's pretty cool when you're a fan of both the father and the son you don't realize that they're related right yeah um so just shout out to the epstein family reason.com uh the reason foundation for putting out that documentary series i read about in the bent last week the first two parts but the last two parts are very uh very good as well definitely go check that out our boy bitcoin sign guy gets a considerable tick towards the end of the last part part four

yeah and actually considering the considering the Iran topic that we just talked about I think Tim May particularly in part four of this documentary series has very good points like this technology exists you just have to put up with

the fact that people you people you don't like are going to use it deal with it yeah it's for the better yeah shout out to that we're two hours in now dude this was a rip i love you all stay humble stack sats don't fucking fee fomo and just be good to your fellow human yes i love you freaks peace and love