1 00:00:00,000 --> 00:00:15,580 Welcome in to This Week in Bitcoin, episode 98. 2 00:00:15,880 --> 00:00:21,360 My name is Chris, ChrisLAS.com, JupiterBroadcasting.com. 3 00:00:21,560 --> 00:00:23,280 Okay, let's just get this out of the way. 4 00:00:23,820 --> 00:00:26,140 No April Foolin' in this episode, I promise. 5 00:00:26,580 --> 00:00:28,580 There's just way too much going on for that. 6 00:00:28,580 --> 00:00:32,940 But if you do see some funny Bitcoin-related April Fools, boost them in. 7 00:00:33,520 --> 00:00:35,200 We could have a good laugh next week. 8 00:00:35,360 --> 00:00:38,780 But this week, I think the joke's kind of on everyone else. 9 00:00:39,300 --> 00:00:42,020 The mood in the wider market is shifting fast. 10 00:00:43,000 --> 00:00:46,200 It's like a new existential panic is setting in. 11 00:00:46,600 --> 00:00:50,880 And it might be the creeping realization that you just can't fight the waves of history. 12 00:00:51,300 --> 00:00:53,880 But what I find remarkable is during all of this, 13 00:00:53,880 --> 00:00:58,720 Bitcoin demand is being built by the chaos itself, one event at a time. 14 00:00:59,360 --> 00:01:02,160 And this week, more groundwork was laid for that future demand. 15 00:01:02,220 --> 00:01:03,380 And I'll get to that in a second. 16 00:01:03,480 --> 00:01:09,440 But first, we have to go to the start of this week, when Fed Chair Powell sat down during 17 00:01:09,440 --> 00:01:13,440 a little Q&A and gave perhaps his clearest warning yet. 18 00:01:14,140 --> 00:01:19,580 The U.S. debt is on an unsustainable path, and he used the most plain language he's ever 19 00:01:19,580 --> 00:01:19,920 used. 20 00:01:20,340 --> 00:01:23,080 Before I play that, just a little context. 21 00:01:23,880 --> 00:01:32,360 We just hit April, so as of March 2026, the U.S. national debt now sits at over $39 trillion. 22 00:01:33,240 --> 00:01:39,420 Just constantly fueled by a flywheel of chronic deficits and rising interest payments. 23 00:01:39,420 --> 00:01:55,360 Well, this flywheel of problems, well, you see, it's not the Federal Reserve's problem. 24 00:01:55,920 --> 00:01:59,260 Oh, no, you see, they have their mandate, and they're doing everything right. 25 00:01:59,680 --> 00:02:01,680 At least, that's according to J-PAL. 26 00:02:02,440 --> 00:02:06,360 What's clear is that our debt is growing much faster. 27 00:02:06,360 --> 00:02:12,760 The federal government debt is growing substantially faster than our economy, and that ratio is going up. 28 00:02:12,940 --> 00:02:16,000 And, you know, in the long run, that's kind of the definition of unsustainable. 29 00:02:16,400 --> 00:02:20,660 The level of the debt is not unsustainable, but the path is not sustainable. 30 00:02:21,140 --> 00:02:21,900 We'll come back to that. 31 00:02:22,560 --> 00:02:28,080 And so it's really important that we get back to we don't have to pay the debt down. 32 00:02:28,080 --> 00:02:37,240 We just need to have primary balance and begin to have the economy actually growing better, growing more quickly than the economy. 33 00:02:37,740 --> 00:02:42,500 It will not end well if we don't do something fairly soon. 34 00:02:42,600 --> 00:02:50,940 This is not the Fed's job, of course, and I pretty much limit myself to those high-level points, which essentially everyone ignores. 35 00:02:51,120 --> 00:02:55,960 Okay, you said a couple of really important things in there, but first I just have to address the irony of it all. 36 00:02:55,960 --> 00:03:00,240 It's as if the central banks all over the world have not been enabling their governments. 37 00:03:00,240 --> 00:03:02,240 Just look at during the COVID years. 38 00:03:02,340 --> 00:03:09,100 The U.S. government ran massive deficits via stimulus packages like the CARES Act, the American Rescue Plan, etc. 39 00:03:09,540 --> 00:03:16,940 The Treasury issued trillions in new debt to fund payments for business bailouts, unemployment boosts, and more. 40 00:03:17,680 --> 00:03:20,840 And so the Federal Reserve didn't just sit there from the sidelines and just do nothing. 41 00:03:20,840 --> 00:03:27,560 It stepped in as the buyer of last resort through quantitative easing at an unprecedented scale. 42 00:03:27,820 --> 00:03:30,560 They printed about 40% of the money supply. 43 00:03:31,380 --> 00:03:36,260 And their balance sheet exploded from $4 trillion pre-COVID to about $9 trillion. 44 00:03:36,980 --> 00:03:39,460 And what that did is it suppressed interest rates. 45 00:03:39,580 --> 00:03:44,660 And it kept borrowing costs artificially low for businesses and for the government. 46 00:03:46,260 --> 00:03:50,820 So without the Fed vacuuming up all that debt, yields, they would have spiked. 47 00:03:50,840 --> 00:03:55,440 they would have made deficit spending way more politically expensive. 48 00:03:56,280 --> 00:03:58,220 Instead, it was politically free. 49 00:03:58,820 --> 00:04:03,280 So it's not like central banks are completely blameless here, 50 00:04:03,360 --> 00:04:05,200 but I guess they're technically correct. 51 00:04:05,720 --> 00:04:07,420 Powell is right on the economics of it. 52 00:04:07,940 --> 00:04:10,600 The Fed's mandate is price stability and maximum employment. 53 00:04:10,740 --> 00:04:12,420 Yes, they have two primary mandates. 54 00:04:12,880 --> 00:04:14,100 Not fiscal policy. 55 00:04:14,220 --> 00:04:15,600 That's Congress. 56 00:04:16,240 --> 00:04:19,680 But pretending like the Fed was a passive bystander? 57 00:04:19,680 --> 00:04:24,680 It just ignores how all the central banks have become the de facto backstop for government borrowing. 58 00:04:25,220 --> 00:04:26,540 So the governments just keep going. 59 00:04:27,320 --> 00:04:31,040 It's this classic case of how the central bankers, they want credit for when things are stable. 60 00:04:31,300 --> 00:04:36,920 And then they want no blame when the long term math doesn't work in their favor. 61 00:04:37,620 --> 00:04:38,780 If they do this all the time. 62 00:04:39,120 --> 00:04:43,060 But there's an unspoken aspect of this that was in the room. 63 00:04:43,720 --> 00:04:47,980 And it didn't really need to be said out loud because everyone is on the same page. 64 00:04:47,980 --> 00:04:54,440 And that is with the war in Iran, the math for the wonks is looking real bad. 65 00:04:54,780 --> 00:04:57,820 So let's bring in NBC's business correspondent, Brian Chung. 66 00:04:57,940 --> 00:04:58,920 Brian, good morning. 67 00:04:59,060 --> 00:05:01,080 So we've crossed the threshold now, $4. 68 00:05:01,420 --> 00:05:03,400 How much higher do people expect these to go? 69 00:05:03,560 --> 00:05:06,200 Yeah, we were just talking yesterday about the possibility of breaching this. 70 00:05:06,260 --> 00:05:06,880 And here we are. 71 00:05:06,960 --> 00:05:12,600 First time we've seen prices over $4 a gallon on average nationally since August of 2022. 72 00:05:13,040 --> 00:05:15,860 As you point out, in a number of states, it's already well above that. 73 00:05:15,860 --> 00:05:22,220 states like Arizona, California, Florida, just I think $4.12 this morning. Again, what's so 74 00:05:22,220 --> 00:05:27,300 remarkable? I would kill for $4.12. It's funny how Washington never gets a mention. About this, 75 00:05:27,400 --> 00:05:31,200 though, is the speed by which this happened. The war has been going on for about a month or so, 76 00:05:31,240 --> 00:05:35,580 but gas prices during that period of time have risen by over a dollar per gallon now. 77 00:05:35,960 --> 00:05:40,400 Actually, the real issue, I mean, gas prices that hurts consumers, it matters, but what really 78 00:05:40,400 --> 00:05:44,440 impacts the economy is diesel. I want to point out that all of this has to do with the Strait 79 00:05:44,440 --> 00:05:48,580 of Hormuz. Looking forward, the question about whether or not gas prices will continue to rise 80 00:05:48,580 --> 00:05:51,900 from where they've already risen. Well, the question is whether or not more ships are going 81 00:05:51,900 --> 00:05:55,900 to be able to travel through the Strait of Hormuz, as you see on that live map. There's just not a lot 82 00:05:55,900 --> 00:05:59,560 of action there. And now that we're hearing that the president says he's willing to end this war, 83 00:05:59,860 --> 00:06:04,300 even if the Strait of Hormuz remains closed, will furrow a passageway where 20 percent of the world's 84 00:06:04,300 --> 00:06:08,520 oil goes through. That means prices could remain elevated, if not even go higher from here. 85 00:06:08,920 --> 00:06:13,580 So with oil and gas increasing, what about some of the wider ripple effects that you think might 86 00:06:13,580 --> 00:06:16,980 play out here. Yeah, well, if you think prices at the pump are crazy, take a look specifically 87 00:06:16,980 --> 00:06:23,840 at diesel costs, where prices are on average well above $5 a gallon. They're above $6 here. 88 00:06:24,140 --> 00:06:28,500 I do see a couple of places where it's like $5.96, but I've seen multiple places where diesel is over 89 00:06:28,500 --> 00:06:34,760 $6 a gallon. $1.70 from where it was prior to this war beginning. And you think about diesel, 90 00:06:34,880 --> 00:06:39,500 that's what those big rigs that transport things across this country, food, things at your local 91 00:06:39,500 --> 00:06:44,720 retailer. Well, if the cost of transporting gets more expensive, then guess what? So will everything 92 00:06:44,720 --> 00:06:50,020 else. So what they're focused on is sort of the inflation anxiety of this entire thing. But I 93 00:06:50,020 --> 00:06:55,760 think really gas prices going up, that matters. It could be a temporary, temporary could be six 94 00:06:55,760 --> 00:07:01,620 months, temporary could be a year, you know, but it's temporary. But what it does do is it puts a 95 00:07:01,620 --> 00:07:07,460 drag on GDP growth. So even when the U.S. pulls out, it's not quite clear how the flow will be 96 00:07:07,460 --> 00:07:12,420 after the U.S. pulls out. What JPAL was saying earlier that I said we wanted to come back to 97 00:07:12,420 --> 00:07:18,560 is they don't really care that the debt is $39 trillion. It's not the number that matters, 98 00:07:18,560 --> 00:07:23,900 even though $39 trillion scares the pants off me. It's about the ratio of debt to GDP. 99 00:07:24,820 --> 00:07:30,200 And that's why everyone is on the edge of their seats right now, because we need GDP to grow like 100 00:07:30,200 --> 00:07:34,240 crazy, because we know debt is going up like crazy, and there ain't no stop in that train. 101 00:07:34,240 --> 00:07:51,440 We know that. But we don't know what GDP looks like for 2026 yet. We don't have that data. It was going in a good direction. But with the Iran war spending, higher fuel prices, that drag has not been factored into the GDP price yet. We haven't gotten solid numbers yet. 102 00:07:51,440 --> 00:08:01,200 So the panic that's setting in for the market is that this could get to be a much worse ratio very soon, depending on how bad the situation in the strait goes. 103 00:08:01,900 --> 00:08:05,100 And that's why they're all having a bit of an existential panic. 104 00:08:11,120 --> 00:08:15,500 But as Bitcoiners, we had this figured out a long time ago. 105 00:08:15,640 --> 00:08:18,580 This is a casino style rat race that all these people are in. 106 00:08:18,620 --> 00:08:20,660 Today, it's an energy shock that everybody's concerned about. 107 00:08:21,140 --> 00:08:25,220 Last week, it was government shutdown and, of course, Middle East conflicts. 108 00:08:25,520 --> 00:08:29,040 The week before that, it was AI might be too good, software is over. 109 00:08:29,300 --> 00:08:33,220 The week before that, it was panic that AI might be total crap and it's a bubble. 110 00:08:33,780 --> 00:08:35,500 Right. It's just ridiculous. 111 00:08:36,160 --> 00:08:37,320 Bitcoiners figured it out. 112 00:08:37,420 --> 00:08:41,020 You buy Bitcoin, you hold it and you don't worry about the markets. 113 00:08:41,480 --> 00:08:49,300 And it would stand to reason that the banks would, A, see the upcoming financial situation and understand the math. 114 00:08:49,300 --> 00:08:52,340 I think that's a reasonable thing these banks could be doing, at least some of them. 115 00:08:52,900 --> 00:08:54,620 I think that's a reasonable assumption, A. 116 00:08:55,020 --> 00:08:59,640 And I think, B, another reasonable assumption is banks like making money. 117 00:09:00,000 --> 00:09:04,940 And they're going to find a way to sell a solution to any economic problem they can. 118 00:09:05,640 --> 00:09:11,520 And this weird alignment of your incentives and their incentives is what's building a market for Bitcoin. 119 00:09:11,980 --> 00:09:14,120 It starts to create more and more demand. 120 00:09:14,300 --> 00:09:17,780 And the inevitability of the fiscal situation becomes more obvious to people. 121 00:09:17,780 --> 00:09:18,940 It creates even more demand. 122 00:09:19,300 --> 00:09:25,080 So right now, people like you and me, we're the ones talking about these problems, not regular folks. 123 00:09:25,520 --> 00:09:27,760 But that is already beginning to change. 124 00:09:28,600 --> 00:09:30,620 Think about before COVID. 125 00:09:31,620 --> 00:09:36,300 Normies never talked about interest rates, inflation, the Federal Reserve. 126 00:09:36,300 --> 00:09:38,420 People didn't know who Jerome Powell was. 127 00:09:39,140 --> 00:09:41,060 All of that has begun to shift. 128 00:09:41,160 --> 00:09:44,000 There's a real Overton window that is shifting here. 129 00:09:44,460 --> 00:09:48,140 With yields, this is Fannie Mae prepares to accept crypto-backed mortgages. 130 00:09:48,740 --> 00:09:51,960 Diana Olick has the details on what crypto-backed mortgages are. 131 00:09:52,080 --> 00:09:52,340 Diana. 132 00:09:52,820 --> 00:09:53,760 That's right, Dom. 133 00:09:53,820 --> 00:09:58,960 It's not the first crypto-backed mortgage, but it is the first to comply with Fannie Mae requirements for purchase. 134 00:09:59,420 --> 00:10:07,220 Better Home and Finance, together with Coinbase, are offering a new mortgage that would allow homebuyers to use their crypto assets as collateral. 135 00:10:07,220 --> 00:10:14,020 It falls under Fannie Mae guidelines, so it can be bought and securitized by Fannie like any other conforming mortgage. 136 00:10:14,400 --> 00:10:15,360 All right, how does it work? 137 00:10:15,440 --> 00:10:16,020 It's a little tricky. 138 00:10:16,020 --> 00:10:25,020 The borrower takes out a regular mortgage with better and then a second loan backed by either Bitcoin or U.S. dollar coin and held in a Coinbase account. 139 00:10:25,340 --> 00:10:28,300 I believe she said Bitcoin. I'm pretty sure she said Bitcoin. 140 00:10:30,500 --> 00:10:33,240 I love that. I did not hear that the first time. 141 00:10:33,240 --> 00:10:46,640 This is what I'm trying to get at here is a big deal because you've got you've got Fannie Mae that is introducing a Bitcoin adjacent product that's baking it into the cornerstone of the American dream, the mortgage. 142 00:10:46,800 --> 00:10:49,480 I'll back it up a little bit because I got distracted by the Bitcoin. 143 00:10:49,900 --> 00:10:54,860 And I want you to kind of absorb what this means at a larger financial signaling level. 144 00:10:55,200 --> 00:10:57,640 ...by Fannie like any other conforming mortgage. 145 00:10:58,060 --> 00:10:58,240 All right. 146 00:10:58,280 --> 00:10:59,020 How does it work? 147 00:10:59,100 --> 00:10:59,680 It's a little tricky. 148 00:10:59,680 --> 00:11:08,660 The borrower takes out a regular mortgage with better and then a second loan backed by either Bitcoin or U.S. dollar coin and held in a Coinbase account. 149 00:11:09,060 --> 00:11:12,640 The second loan would fund the down payment on the first loan. 150 00:11:12,940 --> 00:11:15,240 That way, the borrower doesn't have to sell their crypto. 151 00:11:15,720 --> 00:11:20,420 Both loans are held by better and the crypto assets once pledged cannot be traded. 152 00:11:20,820 --> 00:11:27,640 Even if the value of the crypto falls, nothing changes on the loans as long as the borrower keeps making the monthly payments. 153 00:11:27,640 --> 00:11:32,080 You know, I've seen versions of this where people take out a mortgage and then another loan. 154 00:11:32,320 --> 00:11:35,680 And I forget what those are called, but it's tied to the mortgage loan to pay for the down payment. 155 00:11:36,180 --> 00:11:40,960 And then you essentially have two payments you're making per month, but you hope that the overall payment is still affordable. 156 00:11:41,280 --> 00:11:45,400 And I guess that aspect, the down payment now, is going to be done with secured Bitcoin. 157 00:11:46,060 --> 00:11:51,500 And so you could, you know, if you had $50,000 worth of Bitcoin or $30,000, whatever it would be for a down payment. 158 00:11:51,620 --> 00:11:53,040 I don't know, probably a lot more than that with a modern house. 159 00:11:53,040 --> 00:11:58,020 But you could use your Bitcoin, you could put it down as collateral, and you don't have to sell it. 160 00:11:58,280 --> 00:12:02,800 And there, of course, is a period of time where they have it on lockdown, so that way you can't trade it. 161 00:12:03,280 --> 00:12:04,740 But you do get it back eventually. 162 00:12:04,980 --> 00:12:10,720 The crypto falls, nothing changes on the loans as long as the borrower keeps making the monthly payments. 163 00:12:12,020 --> 00:12:17,900 We have now finally created the infrastructure rails to enable any tokenized asset in America 164 00:12:17,900 --> 00:12:22,560 to be able to be pledged to help someone afford to buy a home. 165 00:12:23,040 --> 00:12:32,620 So it starts with Bitcoin, starts with USDC, but going forward, it can be Apple stock or Amazon stock or any publicly traded mutual fund. 166 00:12:32,940 --> 00:12:45,888 Now why do you suppose they need to do this Because the dollar is not serving this function anymore So you going to see experimentation like this This is just going to be one of many products In fact it one of many that is already in the works that are just experimenting with different 167 00:12:45,888 --> 00:12:50,428 iterations on this idea. It's probably going to be years before there's a version of this that 168 00:12:50,428 --> 00:12:56,328 appeals to you and myself. That's just the reality of it. But Fannie Mae getting into the game is 169 00:12:56,328 --> 00:13:00,848 definitely a signal to other players. And we're going to see more and more of these kinds of 170 00:13:00,848 --> 00:13:06,128 products. The system is going to be incentivized to let you use whatever scarce thing you have, 171 00:13:06,428 --> 00:13:11,648 and Bitcoin is going to be the purest version of that. This is just going to be a market demand 172 00:13:11,648 --> 00:13:16,308 created by the macro conditions. And here's the ironic part. I got to get the bell out for this. 173 00:13:17,088 --> 00:13:22,048 The ironic part is most people are not even going to understand the dynamics that are driving them. 174 00:13:22,548 --> 00:13:26,268 They're going to respond to protect their resources, and they're going to go where their 175 00:13:26,268 --> 00:13:31,408 resources are treated best and where they can get the most. For a lot of people, that's going to be 176 00:13:31,408 --> 00:13:37,128 Bitcoin. Not for everybody, but for a lot of people. And I really want you to understand the 177 00:13:37,128 --> 00:13:41,288 inevitable market that's building. Even if Bitcoin's trading below its all-time high right now, 178 00:13:41,968 --> 00:13:46,528 and even if it were to decline a bit further, it doesn't mean any of these fundamental market 179 00:13:46,528 --> 00:13:51,168 conditions have changed. And Lynn Alden was on Peter's podcast recently. I'll put a link in the 180 00:13:51,168 --> 00:13:56,868 notes. And this clip is a collection of moments from that podcast where I think Lynn really 181 00:13:56,868 --> 00:14:01,948 zeroes in on the point I'm trying to make here. Do you believe we're living through a 182 00:14:01,948 --> 00:14:05,988 slow financial collapse that the majority of people don't even recognize is happening? 183 00:14:06,748 --> 00:14:09,908 I do. Yeah. And people kind of look around and say, why does it seem like everything's 184 00:14:09,908 --> 00:14:14,308 more expensive? I'm still earning money, but it just doesn't feel like it goes as far. 185 00:14:14,708 --> 00:14:19,648 And a lot of times they're right. Every currency system in the world has to grow or die, 186 00:14:19,648 --> 00:14:21,388 at least the way they're currently designed. 187 00:14:21,868 --> 00:14:23,808 People feel it not just through taxes, 188 00:14:24,028 --> 00:14:26,188 but then through their wages getting debased 189 00:14:26,188 --> 00:14:27,468 and their savings, 190 00:14:27,648 --> 00:14:29,928 if they're holding currency and bonds getting debased. 191 00:14:30,168 --> 00:14:32,908 And you kind of keep adding new layers to the system 192 00:14:32,908 --> 00:14:37,188 until by the end, it resembles theft. 193 00:14:37,448 --> 00:14:40,208 The best product Coca-Cola ever sold was their bonds, 194 00:14:40,688 --> 00:14:41,328 not their Coke. 195 00:14:41,448 --> 00:14:42,348 And what they're basically doing 196 00:14:42,348 --> 00:14:44,008 is they're shorting the currency. 197 00:14:44,468 --> 00:14:45,508 You know, they're literally shorting 198 00:14:45,508 --> 00:14:47,368 the thing that you're holding your bank account 199 00:14:47,368 --> 00:14:49,128 and that you're saving in 200 00:14:49,588 --> 00:14:50,448 Governments are shorting it. 201 00:14:50,588 --> 00:14:51,628 Corporations are shorting it. 202 00:14:51,788 --> 00:14:53,008 Wealthy individuals are shorting it. 203 00:14:53,168 --> 00:14:58,208 The system is based on having people hold the currency in the bonds while other people 204 00:14:58,208 --> 00:14:59,088 are literally shorting it. 205 00:14:59,428 --> 00:15:04,448 And the least able to short it are ironically those at the bottom of the income stack. 206 00:15:04,548 --> 00:15:07,508 They're kind of getting the full damage of the inflation. 207 00:15:07,508 --> 00:15:14,748 So they're socializing the debt that the private sector has built up onto the public 208 00:15:14,748 --> 00:15:18,848 to protect the private sector to keep the economy going. 209 00:15:19,128 --> 00:15:24,468 take the risk away and lock in all the gains you've had and socialize the losses. 210 00:15:24,908 --> 00:15:28,008 Once you get to the part where there's this much debt on the sovereign ledger, 211 00:15:28,008 --> 00:15:32,328 there's really no way out of it other than they're going to default. 212 00:15:42,408 --> 00:15:46,108 The lever you have pulled breaks is not in service. 213 00:15:46,508 --> 00:15:47,628 Please make a note of it. 214 00:15:47,628 --> 00:15:50,728 The course is locked in and the math, unfortunately, doesn't lie. 215 00:15:51,448 --> 00:15:54,348 It's just going to take time for people to realize they're being slowly boiled. 216 00:15:54,688 --> 00:15:58,728 And Bitcoin will be a cold glass of non-sovereign risk. 217 00:15:59,348 --> 00:16:10,788 You know, and the thing is, is like we can't underestimate the power of the ability for people in this situation to buy fractions on their phone or earn this through their work or receive it as gifts. 218 00:16:11,388 --> 00:16:15,268 You're going to be able to do that more and more as they tokenize absolutely everything. 219 00:16:15,568 --> 00:16:17,308 But that's native to Bitcoin. 220 00:16:17,308 --> 00:16:32,008 It always will be. There will always be copycats. But this is a native aspect. The fractional aspect of Bitcoin, the sovereignty, the scarceness of it, the fact that there are so many ways to get it safely and securely on your phone or, of course, through a web browser. 221 00:16:32,508 --> 00:16:41,728 This stuff makes a difference and it will all add up as more and more demand gets developed just simply by the inevitability of the macro situation. 222 00:16:41,728 --> 00:16:47,468 All right, I got a question for you. I'd like you to boost in and give me your take. 223 00:16:48,228 --> 00:16:53,328 This week, David Sachs announced that his time as Trump's crypto and AI czar has ended. 224 00:16:53,828 --> 00:16:58,488 Trump's AI and crypto czar David Sachs said his role as special government employee came to an end, 225 00:16:58,748 --> 00:17:03,108 but he will remain as part of the president's Council of Advisors on Science and Technology. 226 00:17:03,828 --> 00:17:09,248 Sachs told Bloomberg Thursday that he had, quote, used up his 130 days as special government employee 227 00:17:09,248 --> 00:17:12,408 and is joining the President's Council of Advisors on Science and Technology. 228 00:17:12,888 --> 00:17:13,788 Here's a quote from Sachs. 229 00:17:13,848 --> 00:17:14,368 He said, quote, 230 00:17:14,948 --> 00:17:17,608 I think moving forward as co-chair of PCAST, 231 00:17:17,928 --> 00:17:20,648 I can now make recommendations on not just AI, 232 00:17:21,488 --> 00:17:23,528 but an expanded range of technology topics. 233 00:17:23,788 --> 00:17:27,028 So yes, this is how I will be involved moving forward. 234 00:17:28,068 --> 00:17:30,528 Okay, so we have David transitioning to a new role, 235 00:17:30,728 --> 00:17:32,048 and he didn't even mention crypto. 236 00:17:32,548 --> 00:17:34,928 And then he had an interview with Bloomberg shortly after this, 237 00:17:34,928 --> 00:17:38,548 and he never mentioned crypto in the entire 10-minute interview. 238 00:17:39,248 --> 00:17:43,008 And yet he's leaving when the Clarity Act and other reforms are still unresolved. 239 00:17:43,368 --> 00:17:46,448 We never did get a count on the U.S. government's Bitcoin balance. 240 00:17:46,928 --> 00:17:51,648 So all of this feels like maybe a shift in priority from the Trump administration. 241 00:17:52,348 --> 00:18:01,948 And just as people were speculating about that, your buddy Donald Trump took a moment in front of the microphone to seemingly try to signal that they're still thinking about Bitcoin at least. 242 00:18:02,348 --> 00:18:05,648 And Bitcoin, superpower of the world, Bitcoin's very powerful. 243 00:18:05,868 --> 00:18:07,148 It's all becoming powerful. 244 00:18:07,148 --> 00:18:09,828 So many people now, they want to pay you in crypto. 245 00:18:10,008 --> 00:18:11,088 They want to pay you in Bitcoin. 246 00:18:12,128 --> 00:18:18,148 And we have to be at the top of it in all of these, call it an industry. 247 00:18:19,108 --> 00:18:20,148 So let me have it. 248 00:18:20,668 --> 00:18:24,868 Let's give David Sachs a TWIB exit interview as the crypto czar. 249 00:18:25,328 --> 00:18:30,988 How do you grade the U.S. government's first ever and maybe only ever crypto czar boost in? 250 00:18:31,128 --> 00:18:31,888 And let me know. 251 00:18:31,888 --> 00:18:37,228 I'll read it in next week's episode along with your favorite April Fool's Bitcoin jokes. 252 00:18:37,608 --> 00:18:40,528 Should be a fun boost segment if you actually do it. 253 00:18:41,148 --> 00:18:45,208 I'll try to remember to put it in the show notes because I'd love to hear your take on David Sachs' tenure. 254 00:19:01,888 --> 00:19:10,168 Well, coming up on the show, it's your boost, a little FUD busting, some big updates, and a final clip of the week. 255 00:19:10,508 --> 00:19:14,348 So I'll just mention, you can support the show just by doing what you're probably already going to do. 256 00:19:14,588 --> 00:19:19,108 If you want to start stacking sats with River in the U.S., use my link in the show notes. 257 00:19:19,168 --> 00:19:20,748 It's a great way to stack sats in the U.S. 258 00:19:21,108 --> 00:19:26,468 If you're in the U.S. or Canada and you're all about self-custody, you don't even want the service to have a wallet for you, 259 00:19:26,588 --> 00:19:30,288 check out the Bitcoin Well, an amazing automatic self-custody Bitcoin platform. 260 00:19:30,288 --> 00:19:35,888 If you want to stack sats while you're paying your bills and doing your whatnots, it's the fold card link in the notes. 261 00:19:36,388 --> 00:19:41,928 Now, if you've got some sats on Lightning and you want to convert them to a gift card in just seconds, the Bitcoin company. 262 00:19:42,408 --> 00:19:47,968 Others offer this, but the Bitcoin company only does Bitcoin and they let you log in via Lightning so you don't have to create an account. 263 00:19:48,428 --> 00:19:55,508 And if it's time to get access to your Bitcoin value, your liquidity, without selling your Bitcoin, check out Salt Lending. 264 00:19:56,008 --> 00:19:58,668 They have some nice features in case the market gets a little rocky, too. 265 00:19:58,668 --> 00:20:00,888 Link for all of that in the show notes. 266 00:20:01,268 --> 00:20:03,588 Thanks for supporting the show just by doing what you do. 267 00:20:08,868 --> 00:20:11,488 All right, let's get to some of them boosts. 268 00:20:12,748 --> 00:20:17,328 And now, as the French say, it is time for le boost. 269 00:20:17,588 --> 00:20:23,508 And hybrid sarcasm is our baller booster this week with 50,000 sats. 270 00:20:23,508 --> 00:20:24,968 Hey, rich lobster! 271 00:20:28,668 --> 00:20:34,868 Ha! Sending you some of the sats I earned from my River cash dash in March. 272 00:20:35,108 --> 00:20:35,968 Thanks for the great show. 273 00:20:36,188 --> 00:20:38,628 Well, thank you, Hybrid, and I'm glad that's working out for you. 274 00:20:38,968 --> 00:20:40,708 I think that's one of the great features of River. 275 00:20:41,028 --> 00:20:43,608 And thank you for thinking of the show. Really appreciate that. 276 00:20:44,368 --> 00:20:47,428 Bobby Pin comes in with 21,000 sats. 277 00:20:47,548 --> 00:20:49,928 1.21 gigawatts! 278 00:20:50,528 --> 00:20:52,988 I loved having an episode with Wes and Brent. 279 00:20:53,128 --> 00:20:55,348 Now I have so many more things I want to do with my node. 280 00:20:55,568 --> 00:20:57,508 Yeah, it's a one-off. It was a one-off, 281 00:20:57,508 --> 00:21:01,128 but I really wanted to kind of capture some of the more advanced node operation stuff 282 00:21:01,128 --> 00:21:03,748 available for Bitcoin nodes and Lightning nodes right now. 283 00:21:04,268 --> 00:21:08,708 Now, why we did not get to beginner stuff, well, I'll talk about that in just a moment. 284 00:21:09,448 --> 00:21:12,448 Gene Bean's here with 4,896 sets. 285 00:21:12,828 --> 00:21:13,808 Everything's under control. 286 00:21:14,248 --> 00:21:18,408 This episode was fun to listen to, but I'm still hoping to hear one on setting up and running a node. 287 00:21:18,688 --> 00:21:21,328 Keep up the good work. This podcast always jumps in front of my listening queue. 288 00:21:22,028 --> 00:21:25,608 So, the reason why I opted not to do that, because that was my original plan, 289 00:21:25,608 --> 00:21:32,488 but it is a very it depends solution. 290 00:21:33,488 --> 00:21:35,528 There isn't a go-to, 291 00:21:36,428 --> 00:21:38,868 I don't just recommend you use Start9 292 00:21:38,868 --> 00:21:41,348 or just use Umbral or just use NixBitcoin 293 00:21:41,348 --> 00:21:43,488 or just have AlbiHub Cloud, right? 294 00:21:43,528 --> 00:21:44,808 Like it really depends. 295 00:21:45,068 --> 00:21:46,028 And so the problem is 296 00:21:46,028 --> 00:21:48,908 that is a research and discovery journey 297 00:21:48,908 --> 00:21:50,588 people kind of need to do on their own. 298 00:21:50,928 --> 00:21:52,328 But what I wanted to demonstrate 299 00:21:52,328 --> 00:21:53,848 is once you have a node 300 00:21:53,848 --> 00:21:55,248 and Lightning node operational, 301 00:21:55,608 --> 00:21:59,428 There are new modern ways to manage it that are really not all that bad. 302 00:22:00,348 --> 00:22:01,288 I hope that makes sense. 303 00:22:01,368 --> 00:22:03,468 And it's not that I'm opposed to doing the newbie episode. 304 00:22:03,768 --> 00:22:10,928 I'm just not sure how to do it in a way that's useful and actionable, but is also agnostic to any particular implementation. 305 00:22:11,428 --> 00:22:11,728 You know what I mean? 306 00:22:11,748 --> 00:22:12,448 It's a really tough one. 307 00:22:12,848 --> 00:22:14,748 So that's kind of where I'm at. 308 00:22:15,128 --> 00:22:17,088 That's kind of where I'm at, but I'd like feedback on that. 309 00:22:17,548 --> 00:22:18,368 Gene Bean continues. 310 00:22:18,448 --> 00:22:19,448 Well, let's hear it, good buddy. 311 00:22:19,448 --> 00:22:24,048 In Linux Unplugged, you've been talking about the possibility of age verification stuff coming to Linux and elsewhere. 312 00:22:24,628 --> 00:22:27,028 What do you see this as a potential impact for Bitcoin not operators, 313 00:22:27,128 --> 00:22:29,428 if at minimum Umbrell and the likes have to start doing that? 314 00:22:30,268 --> 00:22:32,768 So the age verification stuff I've seen in Linux 315 00:22:32,768 --> 00:22:36,688 is more about creating an identifier in the user space 316 00:22:36,688 --> 00:22:39,408 and not really at the server level. 317 00:22:39,628 --> 00:22:41,988 So the implementations that probably are going to be the most common 318 00:22:41,988 --> 00:22:43,148 are going to be like SystemD, 319 00:22:43,248 --> 00:22:46,188 and it's a field for a user account not at the OS level. 320 00:22:46,928 --> 00:22:50,108 So I don't really think you're going to see much implementation at all 321 00:22:50,108 --> 00:22:52,448 on Linux server side, is my take on it. 322 00:22:52,448 --> 00:22:54,628 And then he had one more. 323 00:22:54,828 --> 00:22:55,368 He's a good guy. 324 00:22:55,588 --> 00:22:56,568 He's a real good guy. 325 00:22:56,728 --> 00:22:57,388 No, he's a great guy. 326 00:22:57,828 --> 00:23:03,208 I was recently thrown off by several lightning channels being opened inbound to my self-hosted Albie Hub. 327 00:23:03,308 --> 00:23:06,268 I thought something totally different was happening, and I closed them. 328 00:23:06,788 --> 00:23:09,288 Mad props to the team at Albie for helping me understand what's going on. 329 00:23:09,568 --> 00:23:11,108 Yep, that can happen, and it's a good thing. 330 00:23:11,188 --> 00:23:12,108 I'm glad they sorted it. 331 00:23:12,248 --> 00:23:12,968 That's really good to hear. 332 00:23:13,068 --> 00:23:15,888 Thanks for that report, Gene, and thank you for the boosts. 333 00:23:16,888 --> 00:23:18,468 JPEG81 is here with 2,000 sats. 334 00:23:19,328 --> 00:23:21,608 No message, just a value, which I always appreciate. 335 00:23:21,608 --> 00:23:22,968 Oh, Gene came in on another one. 336 00:23:22,988 --> 00:23:24,008 I wonder why I didn't get caught. 337 00:23:24,268 --> 00:23:27,708 But Gene Bean came in with 4,762 sats. 338 00:23:27,808 --> 00:23:28,428 Hey, oh, Gino. 339 00:23:28,588 --> 00:23:30,008 Coming in hot with the boost. 340 00:23:30,108 --> 00:23:31,088 Another hot boost. 341 00:23:31,828 --> 00:23:37,588 I've got a bid axe coming later this week, so I thought I'd drop a note here asking about the mining pool and any tips for getting it going until it's ready. 342 00:23:38,528 --> 00:23:39,208 Adversaries, what? 343 00:23:39,388 --> 00:23:39,768 Let's see. 344 00:23:39,868 --> 00:23:40,728 We talked about it. 345 00:23:40,748 --> 00:23:41,508 I wonder what I should say. 346 00:23:42,148 --> 00:23:43,328 There is something in the works. 347 00:23:43,448 --> 00:23:45,248 It's dependent on something upstream. 348 00:23:45,768 --> 00:23:46,828 Maybe I can say that right now. 349 00:23:47,688 --> 00:23:49,468 And maybe adversaries can update us soon. 350 00:23:49,868 --> 00:23:50,488 Or I will. 351 00:23:50,488 --> 00:23:56,268 but either way we'll have more gene continues i just read that tether was born on bitcoin 12 years 352 00:23:56,268 --> 00:23:59,468 later it's coming back and it sounds like some important things regarding lightning are happening 353 00:23:59,468 --> 00:24:04,008 particularly related to the first companies mentioned that is true and you know there has 354 00:24:04,008 --> 00:24:10,008 been work to to move tether again on lightning not that new it's been going on for a while 355 00:24:10,008 --> 00:24:15,928 and i think it's not a bad idea actually you know that's probably what a layer two is good for is 356 00:24:15,928 --> 00:24:19,988 that kind of if you want to experiment with that stuff do it on a layer two it's probably perfect 357 00:24:19,988 --> 00:24:24,088 for that. All right. Thank you again, Gene. I really do appreciate it. You're the best. 358 00:24:25,148 --> 00:24:30,348 Lee, Lee, Lee, Lee, Lee, Lee is here with 5,000 sats. I am programmed in multiple techniques. 359 00:24:30,968 --> 00:24:35,108 Moving from one digital asset to another digital asset is always a taxable event, 360 00:24:35,208 --> 00:24:38,388 regardless of whether you're gaining or losing based on a trading pair directly. 361 00:24:38,868 --> 00:24:42,848 The key is the cost basis for the asset at which you move. Let's say you bought some Bitcoin at 362 00:24:42,848 --> 00:24:48,528 100,000 and sell a portion of that Bitcoin for 110,000. Then your gap gain would be based on 363 00:24:48,528 --> 00:24:53,048 the difference between the original cost basis and the value at sale. That example would be a gain, 364 00:24:53,128 --> 00:24:59,808 however, if you buy some Bitcoin at 100 and I think it got cut off. Right, right, right, right, 365 00:24:59,868 --> 00:25:03,548 right, right. I'm thinking about that through, right? Because you could peg in at one price and 366 00:25:03,548 --> 00:25:08,028 peg out at another price, I suppose. We need to see, now that would be great clarity. Speaking of 367 00:25:08,028 --> 00:25:12,088 the Clarity Act, that's something that they really, well, at some point they're going to have to come 368 00:25:12,088 --> 00:25:22,535 up with actual clarity around that kind of stuff because swapping and pegging in and out are pretty common practices especially in the DFA which they seem to care a lot about Thank you Lili Lili 369 00:25:22,795 --> 00:25:23,915 Appreciate that clarification. 370 00:25:24,915 --> 00:25:26,015 You're doing a good job. 371 00:25:26,555 --> 00:25:30,736 Kiwi Bitcoin guides here with 4,657 Satoshs. 372 00:25:35,075 --> 00:25:36,175 I love that format. 373 00:25:36,175 --> 00:25:38,376 This would be a great model for a member's feed, I think. 374 00:25:38,476 --> 00:25:39,655 The next step on my node 375 00:25:39,655 --> 00:25:41,595 is to set up AlbiHub and NostraWall Connect, 376 00:25:41,595 --> 00:25:43,675 and then get it connected to my Primal wallet. 377 00:25:44,455 --> 00:25:45,175 Yeah, buddy. 378 00:25:45,636 --> 00:25:47,915 I'm still not zapping on Nostra yet, I know, shame. 379 00:25:48,535 --> 00:25:50,335 But I would like to hear more about OpenCode. 380 00:25:50,675 --> 00:25:52,755 Do you run that in a terminal or with a GUI? 381 00:25:52,876 --> 00:25:54,015 Which models do you connect to? 382 00:25:54,116 --> 00:25:56,595 You said you SSH into your node to review configs and settings. 383 00:25:56,675 --> 00:25:58,896 I'd love to hear more about how you're using OpenCode to manage your nodes. 384 00:25:59,835 --> 00:26:04,655 Okay, well, Kiwi, OpenCode is a terminal app, 385 00:26:04,655 --> 00:26:07,015 but it's a beautiful terminal app, very easy to use. 386 00:26:07,095 --> 00:26:09,455 It's what you call a TUI, a terminal user interface, 387 00:26:09,575 --> 00:26:11,476 but it's the very high end of them. 388 00:26:11,595 --> 00:26:12,855 So it's practically a GUI. 389 00:26:13,396 --> 00:26:20,035 And the brilliant thing about open code is there are several providers that are free. 390 00:26:20,455 --> 00:26:25,015 They're not the highest end model and they do have usage limits, but they give you a 391 00:26:25,015 --> 00:26:25,335 taste. 392 00:26:25,575 --> 00:26:30,955 And then once you get hooked on the token sauce, you can subscribe and then put your 393 00:26:30,955 --> 00:26:34,435 provider's API key in open code and get access to those models. 394 00:26:34,935 --> 00:26:39,755 And you could think of it as, you know, a prompt environment that runs locally on your 395 00:26:39,755 --> 00:26:39,995 machine. 396 00:26:39,995 --> 00:26:43,616 So you can actually tell it, use SSH and connect to this system. 397 00:26:44,175 --> 00:26:45,595 And I have SSH keys. 398 00:26:46,195 --> 00:26:47,835 And log in and check on things. 399 00:26:47,955 --> 00:26:50,415 And it will execute that command and go in and do it for you. 400 00:26:50,835 --> 00:26:52,935 And then come back with a nice, pretty formatted report. 401 00:26:53,655 --> 00:26:54,435 That's, you know, get started. 402 00:26:54,535 --> 00:26:55,476 Get OpenCode installed. 403 00:26:56,175 --> 00:26:58,595 Play around with the free Zen models that it provides. 404 00:26:59,175 --> 00:27:01,315 And see what you can figure out. 405 00:27:01,515 --> 00:27:02,915 And plan mode is your friend. 406 00:27:03,535 --> 00:27:05,015 Good luck, Kiwi, and let me know how it goes. 407 00:27:05,835 --> 00:27:08,775 Paranoid Coder's here with 2,000 SATs. 408 00:27:08,775 --> 00:27:10,716 because I'm the win 409 00:27:10,716 --> 00:27:13,455 no message just value though 410 00:27:13,455 --> 00:27:15,355 thank you very much appreciate that 411 00:27:15,355 --> 00:27:17,616 and Radman's here with 5000 412 00:27:17,616 --> 00:27:19,655 sats that's not possible 413 00:27:19,655 --> 00:27:21,656 nothing to do that oh Radman did 414 00:27:21,656 --> 00:27:23,035 he says great show 415 00:27:23,035 --> 00:27:25,335 and don't change a thing well thank you Radman 416 00:27:25,335 --> 00:27:27,455 appreciate that thank you everybody who supported that was 417 00:27:27,455 --> 00:27:29,435 definitely a one off I didn't expect even this much 418 00:27:29,435 --> 00:27:31,555 support and of course we are rounding 419 00:27:31,555 --> 00:27:33,535 the corner to 100 so I would 420 00:27:33,535 --> 00:27:35,555 love a little 100 celebration if you got 421 00:27:35,555 --> 00:27:37,495 it in you but let's say thanks to the people who 422 00:27:37,495 --> 00:27:43,195 supported episode 98. We had 28 of you stream stats as you listened, and you had a nice, you guys are 423 00:27:43,195 --> 00:27:49,255 actually the baller booster this week. You stacked 66,325 stats, you streamers. Thank you very much. 424 00:27:49,335 --> 00:27:53,236 Sometimes you are a baller, and I appreciate that. When you combine it with everybody who sent a 425 00:27:53,236 --> 00:28:02,775 message, then our grand total this week is 196,412 satoshis. Not too shabby. This is a value for 426 00:28:02,775 --> 00:28:07,795 value podcast. I give it out for free. There's no advertiser, but my focus is to make the audience 427 00:28:07,795 --> 00:28:12,476 the number one customer. And we do that with a boost. Fountain FM makes it real easy. You can 428 00:28:12,476 --> 00:28:15,435 also become a member in Fountain FM and put your support on autopilot. 429 00:28:15,435 --> 00:28:33,355 also a big shout out to the jupyter party members as part of your jupyter.party subscription you get 430 00:28:33,355 --> 00:28:38,476 access to twib and keep the show going and keep it ad free as well and of course you can boost 431 00:28:38,476 --> 00:28:41,915 with albi hub and choose from a plethora of applications or just boost from the podcast 432 00:28:41,915 --> 00:28:48,075 index website. Or if you really want to be a baller, try out Boost CLI. Not necessarily easy, 433 00:28:48,435 --> 00:28:51,736 but it's rewarding. Thank you, everybody, for supporting episode 98. 434 00:28:55,075 --> 00:28:59,976 And with that out of the way, what do you say? Should we get into a few updates? 435 00:28:59,976 --> 00:29:17,736 you might have noticed a lot of chatter about a new quantum research paper from google and the 436 00:29:17,736 --> 00:29:25,035 findings of this paper are that quantum technology could break bitcoin sooner than expected here's 437 00:29:25,035 --> 00:29:28,455 the main takeaway quote google just told the bitcoin and cryptocurrency industry 438 00:29:28,455 --> 00:29:32,195 that it has less time than it thought to prepare for quantum computing. 439 00:29:32,476 --> 00:29:36,136 In a white paper published on March 31st, 440 00:29:36,435 --> 00:29:38,835 Google quantum AI researchers demonstrated 441 00:29:38,835 --> 00:29:41,855 breaking the elliptic curve cryptography protecting Bitcoin, 442 00:29:42,495 --> 00:29:44,055 Ether, and most major cryptocurrencies. 443 00:29:44,636 --> 00:29:48,195 And it could require fewer than 500,000 physical qubits 444 00:29:48,195 --> 00:29:51,595 on a supercomputing, superconducting quantum computer. 445 00:29:51,595 --> 00:29:56,675 That's roughly a 20 times reduction from prior estimates, 446 00:29:56,675 --> 00:29:59,495 which pegged the figure in the millions. 447 00:29:59,656 --> 00:30:04,156 So they went from millions of qubits to 500,000 qubits. 448 00:30:04,835 --> 00:30:06,675 Pretty, pretty big reduction. 449 00:30:07,535 --> 00:30:10,275 So let's talk about the realities of this 450 00:30:10,275 --> 00:30:11,755 because before I get into this, 451 00:30:11,855 --> 00:30:12,976 I've always maintained, 452 00:30:13,136 --> 00:30:16,035 I do think it's worth us researching quantum solutions. 453 00:30:16,736 --> 00:30:17,855 Blockstream is doing so. 454 00:30:17,935 --> 00:30:20,156 There are other individuals that are actively doing so. 455 00:30:20,156 --> 00:30:22,935 Sailor set up his quantum superhero club. 456 00:30:23,396 --> 00:30:24,876 So there's progress being made. 457 00:30:24,876 --> 00:30:30,455 And I think it's really important we understand no quantum computer can execute this attack today. 458 00:30:30,955 --> 00:30:35,435 Google's most advanced chip, Willow, has 105 qubits. 459 00:30:36,175 --> 00:30:41,055 And this research paper is proposing 500,000 qubits. 460 00:30:41,675 --> 00:30:45,495 And our best, most advanced chip right now, 105. 461 00:30:46,156 --> 00:30:51,495 So what they're going to tell you is it's a big deal because Caltech recently showed off a 6,000 logic qubit array. 462 00:30:51,495 --> 00:30:54,295 Oh, 6,000. That's a lot more than 105. 463 00:30:54,876 --> 00:30:57,896 But what they don't tell you is those qubits were not entangled. 464 00:30:57,896 --> 00:31:03,195 And without entanglement, you're not running Shor's algorithm. 465 00:31:04,175 --> 00:31:07,955 So it's really kind of like all theoretical. 466 00:31:08,216 --> 00:31:09,876 I mean, it's important to pay attention to. 467 00:31:10,396 --> 00:31:15,515 But the actual state of art for entangled logical qubits is 96. 468 00:31:16,695 --> 00:31:17,376 96. 469 00:31:17,716 --> 00:31:18,195 That's it. 470 00:31:18,315 --> 00:31:18,915 Do you understand? 471 00:31:18,915 --> 00:31:26,116 they have a 6,000 logical qubit array that is not entangled in the works, 472 00:31:26,295 --> 00:31:33,396 and they need 500,000 physical qubits. And they need them to be entangled logical qubits. 473 00:31:34,156 --> 00:31:38,835 And right now they have 96 of those. And they have to hold their coherence for days in order 474 00:31:38,835 --> 00:31:44,815 to crack Bitcoin. And right now, these 96 state-of-the-art qubits, they last for about 475 00:31:44,815 --> 00:31:49,236 one to two seconds. That's how long they hold their coherence. So this new paper from Google 476 00:31:49,236 --> 00:31:54,275 says the algorithm that they designed would have to run for days and would need 500,000 477 00:31:54,275 --> 00:32:00,415 entangled qubits. So to get from where we're at to something that actually threatens Bitcoin, 478 00:32:00,976 --> 00:32:07,175 it's not a small improvement like the paper kind of tries to position. It's more than 100x 479 00:32:07,175 --> 00:32:13,636 entangled logical qubits than they have right now. And then they need coherence sustained 480 00:32:13,636 --> 00:32:19,595 for roughly 100,000 times longer than what they can do right now. 481 00:32:19,775 --> 00:32:21,136 I went and looked all these numbers up. 482 00:32:21,216 --> 00:32:21,995 It's bonkers. 483 00:32:22,995 --> 00:32:25,175 This is not a near-term engineering gap. 484 00:32:25,636 --> 00:32:28,376 It is practically an unsolved problem. 485 00:32:28,716 --> 00:32:33,636 We're nowhere close to breaking Bitcoin, no matter how breathless this paper sounds. 486 00:32:34,055 --> 00:32:39,255 So why is the paper focused on Bitcoin and not other low-hanging fruit? 487 00:32:39,795 --> 00:32:41,415 That's the question you should be asking. 488 00:32:41,415 --> 00:32:44,315 And the answer is, yeah, mostly headlines. 489 00:32:44,495 --> 00:32:45,896 They get engagement for sure. 490 00:32:46,775 --> 00:32:50,636 And the paper is co-authored by someone employed by the Ethereum Foundation, Justin Drake. 491 00:32:51,136 --> 00:32:59,116 And this paper happened to also drop on the same week that Ethereum launched and announced its quantum resistance portal. 492 00:33:00,195 --> 00:33:03,636 So appearances are that Google coordinated with the Ethereum Foundation. 493 00:33:03,636 --> 00:33:09,476 and isn't it interesting that this paper concludes that ETH is better longer off 494 00:33:09,476 --> 00:33:13,815 because it has a governance that can make unilateral decisions 495 00:33:13,815 --> 00:33:19,636 and Bitcoin is worse because there's no coordinated response, no central management 496 00:33:19,636 --> 00:33:25,095 and it doesn't even really address the fact that ETH's consensus protocol 497 00:33:25,095 --> 00:33:28,376 is vulnerable to a quantum attack and Bitcoin's is not. 498 00:33:28,376 --> 00:33:31,055 the issue with Bitcoin would be old keys 499 00:33:31,055 --> 00:33:32,376 and it would be, you know, 500 00:33:33,015 --> 00:33:34,095 several million of them. 501 00:33:34,455 --> 00:33:35,455 Where with ETH, 502 00:33:35,535 --> 00:33:37,315 it's the entire consensus protocol. 503 00:33:37,535 --> 00:33:39,415 But the paper concludes that ETH is better off 504 00:33:39,415 --> 00:33:41,195 because it has central management. 505 00:33:42,075 --> 00:33:43,976 And the narrative just conveniently lands 506 00:33:43,976 --> 00:33:44,835 hardest on Bitcoin. 507 00:33:45,595 --> 00:33:46,376 Isn't that interesting? 508 00:33:47,216 --> 00:33:48,416 I don't know what kind of crap 509 00:33:48,416 --> 00:33:49,136 Google's putting out. 510 00:33:49,236 --> 00:33:49,995 I think it's really, 511 00:33:50,455 --> 00:33:51,555 you know, I think honestly, 512 00:33:51,736 --> 00:33:53,335 it's people with an agenda 513 00:33:53,335 --> 00:33:55,236 and a company that just wants to make headlines 514 00:33:55,236 --> 00:33:56,455 and look like a market leader. 515 00:33:56,455 --> 00:33:58,876 well the tau 516 00:33:58,876 --> 00:34:01,376 pain will continue until 517 00:34:01,376 --> 00:34:03,595 the degens get wrecked 518 00:34:03,595 --> 00:34:05,195 guys I could play you a dozen 519 00:34:05,195 --> 00:34:07,255 clips of various rich investors and 520 00:34:07,255 --> 00:34:09,175 former ETH heads that have been burned out 521 00:34:09,175 --> 00:34:11,356 and given up on ETH that are now pumping tau 522 00:34:11,356 --> 00:34:13,295 and if you didn't hear last week's update 523 00:34:13,295 --> 00:34:14,916 segment you need to go listen to that 524 00:34:14,916 --> 00:34:17,015 so I'm only going to play you one this week because 525 00:34:17,015 --> 00:34:19,115 it also hits on a classic 526 00:34:19,115 --> 00:34:21,235 anti-bitcoin trope that I 527 00:34:21,235 --> 00:34:23,215 think we should address in this episode 528 00:34:23,215 --> 00:34:25,235 so in this clip we got Jason 529 00:34:25,235 --> 00:34:31,995 Calacanis again on This Week in Startups, and he's laying out some classic FUD that Bitcoin 530 00:34:31,995 --> 00:34:35,715 often gets to pump Tau. And I think we should talk about it. 531 00:34:35,715 --> 00:34:41,956 One thing I've learned in 40 years in tech from the 80s till today is that everything gets 532 00:34:41,956 --> 00:34:47,775 replaced at some point. Or almost everything gets replaced at some point. A better version 533 00:34:47,775 --> 00:34:53,635 of almost everything comes out. Whether it's BlackBerry giving way to iPhone, giving way to 534 00:34:53,635 --> 00:35:00,876 android yeah whether it's you know the you know craigslist giving way to you know facebook 535 00:35:00,876 --> 00:35:04,635 marketplace it's always going to be competition there was a time things will let people were 536 00:35:04,635 --> 00:35:09,396 like friendster in myspace that's it there's never going to be another social network after 537 00:35:09,396 --> 00:35:13,835 friendster in myspace right man how many versions of this conversation have you heard 538 00:35:13,835 --> 00:35:20,755 god it's it's incredible that we are still saying these same things it's all dharmok 539 00:35:20,755 --> 00:35:26,655 and Jalada Tanagra. And we just repeat it back and forth to each other. Anyways, I think you can 540 00:35:26,655 --> 00:35:30,535 see what's happening here. So we're making a subtle equivalent. We haven't gotten there yet. 541 00:35:30,575 --> 00:35:34,755 They haven't landed the plane yet, but we know it's coming. They're making an equivalent that 542 00:35:34,755 --> 00:35:41,335 technologies often get disrupted. And you see it with Facebook disrupting the MySpaces and whatnot. 543 00:35:41,956 --> 00:35:45,795 And Jason makes a comment that, you know, he's been in tech since the 80s, although it's funny 544 00:35:45,795 --> 00:35:49,595 because he often claims that he wasn't a nerd and that anyways. But anyways, he's been watching 545 00:35:49,595 --> 00:35:54,376 tech since the 80s and the 90s, and it's just a universal truth that you see this happen over and 546 00:35:54,376 --> 00:35:59,876 over again, right? That's the case they're making. So it's not heresy to say something will come 547 00:35:59,876 --> 00:36:04,896 along that's better. Now, what you have to understand is what time frame and how long does 548 00:36:04,896 --> 00:36:09,675 the network effect last? Because there are moats in technology. One of the moats in technology is 549 00:36:09,675 --> 00:36:15,416 brand, okay? AOL had a great brand for a while. You said online, it meant AOL. But then sometimes 550 00:36:15,416 --> 00:36:22,476 the performance and the actual better mousetrap is what is defensible. That would be the internet 551 00:36:22,476 --> 00:36:29,896 and broadband. Sometimes it's the combination of, you know, the brand, the network effect, 552 00:36:30,376 --> 00:36:32,315 like Uber or DoorDash, right? They have... 553 00:36:32,315 --> 00:36:35,835 So you can see what we're continuing to do, right, is we're making equivalents to products, 554 00:36:36,095 --> 00:36:39,695 tech products. He got there almost for a moment when he talked about broadband. 555 00:36:40,755 --> 00:36:45,175 The products, if you look at it in that sense, yeah, Internet Explorer eventually gets 556 00:36:45,175 --> 00:36:51,456 replaced with Chrome and then Edge comes along. Like products only last for so long. Protocols, 557 00:36:52,195 --> 00:36:59,995 platforms, that's a bit different. TCP IP has been around since the 80s. HTTP has been around 558 00:36:59,995 --> 00:37:05,075 since the 90s and late 80s, right? These are protocols that everything else has been built 559 00:37:05,075 --> 00:37:09,755 on top of. They are a layer, a foundational layer that things get built on. They don't get 560 00:37:09,755 --> 00:37:29,356 They don't get replaced. They get adopted. They get wider and wider adopted and people build on top of them. He should be thinking of Bitcoin as TCP IP. But he's thinking of Bitcoin as MySpace and Facebook because in his world, crypto is just a tech stock. It's just another tech thing you invest in. 561 00:37:29,356 --> 00:37:36,936 And for large portions of the crypto industry, quote unquote, that would be true. 562 00:37:37,115 --> 00:37:40,956 And so you could understand how a VC like himself would get that impression over time. 563 00:37:40,956 --> 00:37:47,735 Are we at that point, whatever number of years later, 14, 15 years later, that a better version could come along that would be more exciting? 564 00:37:47,815 --> 00:38:02,123 Now when I say it better I think it better at an incentive system to provide value to consumers He talking about Tau versus Bitcoin here To businesses That what I think it better at And I think all that compute will at some point 565 00:38:02,643 --> 00:38:08,583 let's say, Lon, Templar provides a better use case 566 00:38:08,583 --> 00:38:12,783 for compute and transport on the internet than Bitcoin does. 567 00:38:13,323 --> 00:38:14,963 What do you think Bitcoin miners will do? 568 00:38:15,323 --> 00:38:16,943 They'll take 10% of their compute 569 00:38:16,943 --> 00:38:19,463 and they'll move it over to Templar or to another subnet 570 00:38:19,463 --> 00:38:22,323 and say, okay, yeah, let me see if I can make more money here. 571 00:38:22,643 --> 00:38:24,063 That's the rational thing to do. 572 00:38:24,163 --> 00:38:26,783 I think that's the moment that we're in right now 573 00:38:26,783 --> 00:38:29,183 is that people are going to start looking at their infrastructure 574 00:38:29,183 --> 00:38:31,123 and say, hey, maybe I should put infrastructure, 575 00:38:31,603 --> 00:38:34,423 bandwidth, storage, compute towards this project. 576 00:38:34,503 --> 00:38:35,183 I feel like that's- 577 00:38:35,183 --> 00:38:36,403 Well, especially as people pump it, 578 00:38:36,463 --> 00:38:37,743 that will happen to a degree, right? 579 00:38:37,763 --> 00:38:39,303 Because you're going to have companies 580 00:38:39,303 --> 00:38:41,023 that they're not Bitcoin companies. 581 00:38:41,323 --> 00:38:43,183 They're making money mining Bitcoin 582 00:38:43,183 --> 00:38:44,983 and they've become large corporations 583 00:38:44,983 --> 00:38:46,863 and they're going to chase whatever makes them money. 584 00:38:46,863 --> 00:38:53,383 but the bitcoin mining system is designed for these ebbs and flows and it's designed to respond 585 00:38:53,383 --> 00:38:59,283 to that lack of mining or increased mining demand but again he's misunderstanding because he's 586 00:38:59,283 --> 00:39:03,883 thinking of now like it's like it's an amazon web services product another disconnect that's 587 00:39:03,883 --> 00:39:08,563 happening here a lot of people you know they're seeing you talk about tau is so interesting i like 588 00:39:08,563 --> 00:39:14,443 all these subjects and they assume that you're doing the pump and dump meme coin rug pull trick 589 00:39:14,443 --> 00:39:18,203 which is like, you know, like Hawk to a girl starts a coin. 590 00:39:18,563 --> 00:39:19,503 They start selling the coin. 591 00:39:19,583 --> 00:39:25,803 But then before anybody else gets a chance to sell, she dumps all of her coins and then makes the money and then walks away. 592 00:39:25,903 --> 00:39:27,663 Like, no, no, not doing that. 593 00:39:27,743 --> 00:39:28,443 Never doing that. 594 00:39:28,503 --> 00:39:29,183 Of course not. 595 00:39:29,603 --> 00:39:30,023 No, no. 596 00:39:30,103 --> 00:39:30,483 We know. 597 00:39:30,583 --> 00:39:31,803 Let's move right along from that. 598 00:39:31,843 --> 00:39:32,043 Right. 599 00:39:33,163 --> 00:39:34,603 Here's an interesting update. 600 00:39:34,763 --> 00:39:38,443 Bitcoin Core 31 is making some mempool updates. 601 00:39:38,583 --> 00:39:44,363 In fact, pretty significantly, the mempool has been re-implemented with a new design called Cluster Mempool. 602 00:39:44,443 --> 00:39:47,643 to facilitate better decision-making when constructing block templates, 603 00:39:48,103 --> 00:39:51,763 evicting transactions, reanalyzing or relaying transactions, 604 00:39:51,963 --> 00:39:55,223 and validating replacement transactions, a.k.a. RBF. 605 00:39:55,683 --> 00:39:57,743 So just to really quickly break this down, 606 00:39:58,143 --> 00:40:00,803 the old ancestor and descendant limits are out. 607 00:40:01,223 --> 00:40:03,023 Core now thinks in clusters. 608 00:40:03,783 --> 00:40:08,983 A max of 64 transactions, a max of 101 kilobyte V-size by default. 609 00:40:08,983 --> 00:40:10,243 Of course, you can change these things. 610 00:40:11,003 --> 00:40:14,283 Mining, relay, and eviction decisions are now based on how transactions pay 611 00:40:14,283 --> 00:40:17,403 as an entire package, not just one by one anymore. 612 00:40:17,843 --> 00:40:19,603 There's also been some cleanup around RBF. 613 00:40:20,123 --> 00:40:23,723 Replacements only pass if they make the mempool's fee picture 614 00:40:23,723 --> 00:40:27,263 look better overall, which is better for you as a node operator. 615 00:40:27,943 --> 00:40:30,063 There's some new tools for node nerds in there as well. 616 00:40:30,603 --> 00:40:31,883 So I think, you know, it's funny. 617 00:40:32,323 --> 00:40:34,063 The world hasn't come to an end, 618 00:40:34,063 --> 00:40:37,343 and Core 30 seems to be well adopted, 619 00:40:37,603 --> 00:40:41,103 and 31 is making some improvements to mempool policy that, 620 00:40:41,583 --> 00:40:43,083 I mean, it's really a whole new design. 621 00:40:43,083 --> 00:40:45,343 I think it looks pretty decent, and I'd like your take. 622 00:40:46,743 --> 00:40:51,523 Lightning got a major adoption boost that officially went live on Monday. 623 00:40:51,743 --> 00:41:00,043 Square began automatically enabling Bitcoin Lightning payments for millions of eligible U.S. small businesses that use the Square terminal already. 624 00:41:00,383 --> 00:41:02,343 It's just on by default now. 625 00:41:02,823 --> 00:41:06,903 Miles Sutter, which is Block's head of Bitcoin product, confirmed the deployment on X, saying, 626 00:41:07,383 --> 00:41:12,583 Sellers who accept the cryptocurrency will receive fiat by default, so they don't even really have to care about it. 627 00:41:12,763 --> 00:41:14,963 However, they can go in there and switch however they like. 628 00:41:15,243 --> 00:41:19,443 He said, quote, we're making it easier for millions of businesses to accept Bitcoin. 629 00:41:19,843 --> 00:41:25,583 This is how Bitcoin, this is how Bitcoin as everyday money begins, he said. 630 00:41:26,143 --> 00:41:27,163 It's pretty darn cool. 631 00:41:27,743 --> 00:41:29,263 I have not yet seen this. 632 00:41:29,263 --> 00:41:33,843 If you see one of these in the live, in the wild, I suppose, let me know. 633 00:41:33,943 --> 00:41:35,883 And when I do see one, I'll report back on the show. 634 00:41:36,903 --> 00:41:52,323 This final clip of the week, and yes, we're here already, is from James Lavish. 635 00:41:52,323 --> 00:41:57,483 And he talks about an age of information symmetry that we find ourselves in. 636 00:41:57,803 --> 00:42:04,943 And really kind of encapsulates from kind of that meta level what I've been talking about this entire episode. 637 00:42:04,943 --> 00:42:11,543 What we are experiencing right now, Danny, is an information or a knowledge arbitrage. 638 00:42:11,843 --> 00:42:21,503 And so people just do not yet understand how Bitcoin is different and why it is the ultimate store of value and the ultimate debasement asset. 639 00:42:21,923 --> 00:42:23,643 They just don't understand it yet. 640 00:42:23,823 --> 00:42:24,763 There's a lot of confusion. 641 00:42:25,583 --> 00:42:31,563 The mainstream media puts out confusing and hit pieces about it all the time. 642 00:42:31,563 --> 00:42:34,903 They commingle it with all the other cryptocurrencies, 643 00:42:34,903 --> 00:42:37,063 and they just call them all the same thing. 644 00:42:37,063 --> 00:42:38,063 And so I have friends who say, 645 00:42:38,063 --> 00:42:40,063 oh yeah, I own that, I own Bitcoin. 646 00:42:40,063 --> 00:42:42,403 I own the Solana one. 647 00:42:42,403 --> 00:42:44,403 And it's like, they just don't get it. 648 00:42:44,403 --> 00:42:46,403 And it's okay, it's not their fault. 649 00:42:46,403 --> 00:42:51,323 They're just not interested in doing the research themselves. 650 00:42:51,323 --> 00:42:52,623 They're listening to mainstream media 651 00:42:52,623 --> 00:42:55,323 and getting their news off of Facebook 652 00:42:55,323 --> 00:42:56,623 or their research off of Facebook. 653 00:42:56,623 --> 00:42:57,723 They're just not getting it. 654 00:42:57,723 --> 00:43:00,423 And so there is an information arbitrage 655 00:43:00,423 --> 00:43:02,383 that you and I are experiencing right now. 656 00:43:02,663 --> 00:43:05,703 It feels bad and it makes you feel like, 657 00:43:05,703 --> 00:43:06,743 am I an idiot? 658 00:43:07,383 --> 00:43:08,823 Am I just stupid? 659 00:43:09,263 --> 00:43:11,143 How early am I here? 660 00:43:11,903 --> 00:43:13,663 And the answer is you're still pretty early 661 00:43:13,663 --> 00:43:16,503 because I think that Bitcoin is going to trade 662 00:43:16,503 --> 00:43:19,283 above a million dollars in early 2030s. 663 00:43:19,883 --> 00:43:22,703 2032, 2033, I would be very surprised 664 00:43:22,703 --> 00:43:24,703 if we're not touching million dollar Bitcoin. 665 00:43:25,883 --> 00:43:26,703 That's me. 666 00:43:26,943 --> 00:43:27,763 That's my thesis. 667 00:43:27,963 --> 00:43:29,843 That's where I believe this thing is going. 668 00:43:30,423 --> 00:43:36,503 But I also believe that part of that is that knowledge arbitrage will close. 669 00:43:36,503 --> 00:43:55,163 And as that does, you're going to have the Harvards and the Yales and the University of Texas and the CalPERS and the Texas teachers and every pension and fire fund out there taking positions in Bitcoin as a core asset. 670 00:43:55,163 --> 00:44:00,843 And when they do that, that's when that knowledge begins to really spread. 671 00:44:00,923 --> 00:44:02,843 And people are like, oh, so Bitcoin is different. 672 00:44:02,903 --> 00:44:04,063 Okay, so Bitcoin is different. 673 00:44:04,163 --> 00:44:05,743 It's not just this moonshot thing. 674 00:44:06,223 --> 00:44:07,643 It's digital gold. 675 00:44:07,803 --> 00:44:09,463 Okay, then I should probably own some. 676 00:44:09,983 --> 00:44:14,963 And funny enough is I think that that's going to be a much healthier rise for Bitcoin in 677 00:44:14,963 --> 00:44:16,603 price and a much more stable rise. 678 00:44:16,863 --> 00:44:19,263 It's not going to be this massive, volatile thing. 679 00:44:19,323 --> 00:44:21,243 It's going to be like, people are like, oh, I get it. 680 00:44:21,263 --> 00:44:22,163 Okay, I get it. 681 00:44:22,503 --> 00:44:23,203 Oh, okay. 682 00:44:23,283 --> 00:44:24,163 I understand now. 683 00:44:24,163 --> 00:44:24,603 I understand. 684 00:44:24,603 --> 00:44:25,903 I understand how it's different. 685 00:44:26,663 --> 00:44:37,363 And then we'll feel vindicated and, you know, we'll look like we're 143 years old when we're just in our 50s or, in your case, 30s. 686 00:44:48,103 --> 00:44:50,663 Let's check in on the state of the network. 687 00:44:50,663 --> 00:44:55,163 I'm wrapping up at block height $943,254. 688 00:44:55,823 --> 00:45:00,783 The price for one Bitcoin in U.S. dollars is $68,080. 689 00:45:01,003 --> 00:45:02,563 But here's something pretty great. 690 00:45:03,243 --> 00:45:09,703 13 years ago this week, Bitcoin reached $100 for the very first time. 691 00:45:10,643 --> 00:45:12,183 So that's what it was doing 13 years ago. 692 00:45:13,243 --> 00:45:16,863 Satoshis per dollar right now, $1,468. 693 00:45:16,863 --> 00:45:21,603 All-time high was 176 days ago. 694 00:45:22,183 --> 00:45:24,123 Retarget date, April 3rd, 2026. 695 00:45:24,623 --> 00:45:29,003 And our estimated difficulty adjustment is an upward adjustment of 4.5%. 696 00:45:29,003 --> 00:45:31,843 Nodes on the network still declining a little bit. 697 00:45:32,083 --> 00:45:33,823 23,081. 698 00:45:36,223 --> 00:45:40,403 Core 30.2.0 has the largest share by far. 699 00:45:40,743 --> 00:45:42,283 And that is the state of the network. 700 00:45:42,403 --> 00:45:43,603 And it is strong. 701 00:45:46,863 --> 00:45:56,863 Well, if you made it this far, I got links in the show notes for you over at thisweekinbitcoin.show. 702 00:45:56,963 --> 00:45:59,203 Sometimes some stuff I didn't get to is also in there. 703 00:46:00,083 --> 00:46:02,643 And additional context around some of this stuff. 704 00:46:02,983 --> 00:46:04,603 Also, let me know how I did with the boost. 705 00:46:04,683 --> 00:46:07,663 I try to focus on what's really going on and not get distracted by the emotions. 706 00:46:07,663 --> 00:46:12,203 Focus on the signal for your friends, your family, your future, yourself, whatever it might be. 707 00:46:12,523 --> 00:46:14,163 Let me know how I did with a boost. 708 00:46:14,163 --> 00:46:21,163 Also, I want your grade report on how old Saxipoo did as our first and maybe only ever crypto czar. 709 00:46:21,363 --> 00:46:22,903 You can send that in as well. 710 00:46:23,323 --> 00:46:23,543 All right. 711 00:46:23,603 --> 00:46:24,783 That's it for me this week. 712 00:46:24,843 --> 00:46:26,803 I'm going to wrap you up with the value for value track. 713 00:46:26,903 --> 00:46:29,503 If you boost 95% of the sats, we'll go to the artist. 714 00:46:29,983 --> 00:46:32,843 And this week, it's I Need a Little by the Retrograde. 715 00:46:44,163 --> 00:46:50,363 I make the music in my head 716 00:46:50,363 --> 00:46:52,743 That makes you want to tap your shoe 717 00:46:52,743 --> 00:46:57,623 I paint the feelings in my shed 718 00:46:57,623 --> 00:47:00,143 47, 80, cobalt blue 719 00:47:00,143 --> 00:47:05,303 Ooh, my love, I'm picking up 720 00:47:05,303 --> 00:47:07,723 The things we used to do 721 00:47:07,723 --> 00:47:12,443 Ooh, my love, oh, my heart 722 00:47:12,443 --> 00:47:14,603 I guess that's over too 723 00:47:14,603 --> 00:47:18,183 One time 724 00:47:18,183 --> 00:47:21,383 I need a little 725 00:47:21,383 --> 00:47:23,403 I need to get up 726 00:47:23,403 --> 00:47:25,023 Strong and over nothing 727 00:47:25,023 --> 00:47:26,743 Keep me by your side 728 00:47:26,743 --> 00:47:28,663 I need a little 729 00:47:28,663 --> 00:47:30,663 I need to get up 730 00:47:30,663 --> 00:47:32,263 Trying to race for someone 731 00:47:32,263 --> 00:47:33,763 You can never hide 732 00:47:33,763 --> 00:47:36,063 Do you tell me that you want it? 733 00:47:36,283 --> 00:47:37,903 I'm always thinking of it 734 00:47:37,903 --> 00:47:40,323 Never leaving it behind 735 00:47:40,323 --> 00:47:43,223 I need a little 736 00:47:43,223 --> 00:47:45,223 I need to get up 737 00:47:45,223 --> 00:47:46,823 Never mind 738 00:47:46,823 --> 00:48:05,943 If it's enough for choosing 739 00:48:05,943 --> 00:48:07,903 You never want it 740 00:48:07,903 --> 00:48:09,683 Then you're falling chain 741 00:48:09,683 --> 00:48:13,983 And now I don't know what to do 742 00:48:13,983 --> 00:48:16,583 When you tell me I'm the one to blame 743 00:48:16,583 --> 00:48:21,683 Ooh, my love, I'm thinking of 744 00:48:21,683 --> 00:48:24,203 The things we used to do 745 00:48:24,203 --> 00:48:28,823 Ooh, my love, oh, my heart 746 00:48:28,823 --> 00:48:31,523 I guess that's over too 747 00:48:31,523 --> 00:48:33,603 Too tight 748 00:48:33,603 --> 00:48:37,783 I need a little 749 00:48:37,783 --> 00:48:40,423 I need to get out of something 750 00:48:40,423 --> 00:48:43,183 Open up that keeps me by your side 751 00:48:43,183 --> 00:48:45,003 I need a little 752 00:48:45,003 --> 00:48:47,023 I need to get out 753 00:48:47,023 --> 00:48:50,143 Try to raise your soul but you can never hide 754 00:48:50,143 --> 00:48:52,343 Till you die without your warning 755 00:48:52,343 --> 00:48:54,263 Always thinking of it 756 00:48:54,263 --> 00:48:56,703 Never leaving it behind 757 00:48:56,703 --> 00:48:59,583 I need a little 758 00:48:59,583 --> 00:49:01,563 I need to get out 759 00:49:01,563 --> 00:49:03,303 But never mind 760 00:49:03,303 --> 00:49:09,543 Till you take it back to say 761 00:49:09,543 --> 00:49:16,803 I will never fly away 762 00:49:16,803 --> 00:49:24,723 No, no, I won't take all the blame 763 00:49:24,723 --> 00:49:29,503 If you go 764 00:49:29,503 --> 00:49:32,303 I need a little 765 00:49:32,303 --> 00:49:34,323 I need to get up 766 00:49:34,323 --> 00:49:35,863 Something over nothing 767 00:49:35,863 --> 00:49:37,723 Keeps me by your side 768 00:49:37,723 --> 00:49:39,563 I need a little 769 00:49:39,563 --> 00:49:41,583 I need to get up 770 00:49:41,583 --> 00:49:43,103 Try to race no soul 771 00:49:43,103 --> 00:49:44,703 But you can never hide 772 00:49:44,703 --> 00:49:46,983 Till you tell me that you want me 773 00:49:46,983 --> 00:49:48,803 Always thinking of me 774 00:49:48,803 --> 00:49:51,263 So I don't believe in me behind 775 00:49:51,263 --> 00:49:54,223 I need a little 776 00:49:54,223 --> 00:49:56,103 I need to get up 777 00:49:56,103 --> 00:49:57,783 Never mind 778 00:50:02,303 --> 00:50:17,843 I need a little, I need a little 779 00:50:17,843 --> 00:50:25,343 I need a little, I need a little 780 00:50:32,303 --> 00:51:02,283 Thank you.