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Welcome in to This Week in Bitcoin, episode 122.

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My name is Chris.

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Chris, L-A-S dot com.

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Jupiterbroadcasting.com.

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This was not my week.

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Not only did my kids get me sick the moment they returned to school,

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And it seems to be like a bad one taking out the entire family.

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But I finally had my number count come up in this week's Bitcoin AI vulnerability bingo.

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The liquid situation got me, guys.

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I'll tell you more about that in a little bit.

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But hasn't been a good week.

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And if you're an Alba user, it could potentially be a bad week.

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So you'll want to stay tuned to the end of the show.

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In fact, there's just so much important stuff to talk about this week.

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I probably would have taken it off because I feel like crap.

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But there's stuff you guys need to know about.

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So let's start with the macro news.

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It's been fascinating watching the collective oh crap develop over the last, I'd say, about eight days around the war with Iran.

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The problem is six months is not two weeks.

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And the promise was this would be a two week war.

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And it feels like, at least to my estimation, that we are further away from a resolution than ever.

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And the pressure on energy prices appears to be going up.

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But let's begin with the action in Iran driving oil and fuel prices higher again today.

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Eamon Javers is in Washington with the latest.

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Eamon?

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Hey there, Kelly.

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The U.S. military over the weekend struck three Iranian crude oil tankers in the Persian Gulf region.

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The U.S. said this was in response to Iranian Revolutionary Guard launching ballistic missiles toward two U.S. Navy warships.

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The military said that the aircraft carrier and guided missile destroyer targeted in that attack evaded the attacks and no Americans were harmed.

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CENTCOM issued a statement last night saying at least one of those Iranian vessels sank, they said, thanks to the precision and professionalism of American service members.

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The motor tanker Kylo sank in the Gulf of Oman today and joined Iran's navy at the bottom of the sea.

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Meanwhile, Houthi rebels in Yemen, who are closely aligned with the Iranian government, launched attacks against Saudi Arabia today,

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hitting oil infrastructure and utility targets and wounding as many as 70 people, according to local authorities.

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The Saudi energy ministry said that operations at oil facilities and utilities in the southern region of Saudi Arabia have been temporarily suspended as firefighters work to extinguish those blazes.

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And here in Washington, Kelly, the U.S. Treasury announced additional sanctions targeting the Iranian aviation industry this morning.

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I asked officials on a briefing call today if they are seeing any impact on Iranian decision making as a result of this stepped up economic pressure.

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One official said the U.S. is seeing what he called anecdotal evidence that the campaign has been effective.

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But I'm trying to share any details of that evidence.

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Kelly, back over to you.

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And so we have a situation where our oil price is going up, but Iran's money is running out of fact.

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I mean, that's what I read this morning is that they might have only a couple months left.

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So it's this it's kind of a war of attrition, I guess.

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Who's going to blink first?

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Yeah, absolutely. It's eyeball to eyeball economically.

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in both countries have enormous economic stakes on the line. What President Trump is betting

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is that the United States has a larger capacity to absorb the economic challenges. And he's doing

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that ahead of these midterm elections, which are crucial for his Republican Party. So he is

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gambling here, but so is the Iranian regime. And the question is-

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Yeah, what they're gambling is that perhaps with support of outsiders, they can outlast

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the U.S. because six months in, this thing is just getting more expensive.

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This bet is getting more and more risky.

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And today, Buffalo Besson announced he's buying up more bonds.

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Mike.

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Hi, Ed.

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Well, all of our bond market friends are getting the information they were looking for.

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The Treasury is going to buy back $6 billion worth of 10 and 20 year notes.

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The question had been, would they go above the $4 billion that they suggested, which was

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double the normal $2 billion amount?

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And they have gone over that maybe to send a message that they are serious about all of this.

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Starting on September 10th, they will raise the size to $6 billion.

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Tomorrow we get the first buybacks of the day.

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And you can see the debt distribution right now of what we have out there that people can pick and choose to try to sell back.

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These will be off-the-run treasuries.

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All right, so let's pause here.

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So the size of these buybacks, I mean, they're biggish.

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This is not like some sort of historical, unprecedented thing that's happening.

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I mean, it is a little unusual.

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So we have this $2 billion.

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Well, we're only going to spend $2 billion.

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You might remember when I covered that on the show initially.

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And then as of like three weeks ago, it was, well, it's going to be at least $4 billion.

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Guys, it's not a big deal, but it's going to be like $4 billion just to, you know, provide some buyer pressure here.

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And then this, well, today, it was announced that it's going to be $6 billion now.

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still small outstay versus the outstanding debt right because we're talking tens of trillions of

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dollars so still overall a drop in the bucket but it is large compared to any single 2000 to 2002

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operation it's larger than average for sure but what's big is the noise they're making around it

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that's the unusual part it seems to me like they're making a lot of fuss about this trying

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to get people to notice it. And I don't know what that's about. I think a lot of people are reading

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it as Buffalo Besson hubris. I don't know so much. The bond market just said, screw you. And literally

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on the news, the yield rallied higher. So like on the news, like just did the opposite of what the

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treasury wants. So it seems to me the bond market is quite literally fighting Buffalo Besson right

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now. And as the Iran war continues and the 10 year note is getting higher and higher, if they don't

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have some sort of pressure release valve here, we could see next week the 10 year yield rise above

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five percent. And I say that because I pulled it up on a chart today and we're up 100 basis points

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since the Iran war began on the 10 year. It's just doot, doot, doot, doot, doot, doot, doot.

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It just keeps ticking up on like a clock.

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It's just block by block almost.

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I mean, it's impressive.

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So we're on track here for something that ain't so good.

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The economic war is getting real and the U.S. is starting to struggle.

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They didn't get their Stablecoin Act, which was going to provide a trillion dollars worth of buying to the bond market.

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They didn't get that.

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Congress screwed the pooch because their political fights prevented them from seeing the bigger macro picture of the dollar structure issue here.

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one of the biggest myths in Congress, I think in 2026, because you're talking about the financial

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stability of the United States and the dollar system. And they were too concerned about Trump

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making a couple of Billy on selling some Trump coin company. Unbelievable fumble, unbelievable

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fumble. And so now Besson doesn't have that trillion dollars of buying and he has got to fill

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the gap. And that's why just 30 minutes before I sat down, he's on X pleading with Congress to get

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when they come back to pass it, which is would be unprecedented before a midterm. It would be

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unprecedented if they pass the Clarity Act before the midterm. Then there was some kind of memo that

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went down that said, you get your butt in that seat and you vote, because otherwise it would be

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unprecedented for it to pass before the midterms like this. And they desperately need it. And they

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Cannot wait, because if they get past the midterms, then guess what?

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The Democrats are going to run the House, and they're even projected at the moment to run the Senate.

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There ain't no way they're going to pass any bill that's positive for Trump at that point.

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They've already proven that, regardless of what it means for the dollar system and the stability of the bond market.

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They don't care, right, because they don't get it.

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They don't realize that.

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They think it's about crypto scams.

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Well, maybe it is.

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It's so funny.

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So Besson has to run around trying to patch this thing.

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best he can and the market just not taking it And so he got to just keep stepping up Well what people are reading is hubris I think it him trying to project confidence but the bond market is skeptical It a long term problem is the issue the Treasury faces They are currently printing

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two trillion extra dollars. And the Congressional Budget Office says that is rising, you know,

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infinitum to three point six trillion in 10 years. And so if the government is printing that much

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money, it really, it's just, you know, kind of papering over the cracks to buy a couple billion

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here or there really doesn't do anything. And I think this has really ignited a rally in things

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like Bitcoin and other hard assets like gold, because it really highlights there isn't a real

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way out for these countries like the United States. Think about it, you know, the US is the

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largest net debtor in the world. Like, how can it pump, quote, make markets in bonds when it's the

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one that has to be forced selling of $2 trillion a year. And I think that's what's driving people

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into crypto. There's 21 million Bitcoins. You can't print more of them. And so all of this

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really is highlighting a problem that's hard to see where it goes. And inflation is already

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3.4%. And that debases 90% of your purchasing power over your life. So if you have the choice

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to own something hard like Bitcoin or a U.S. piece of paper money, you know, Bitcoin has

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historically gone up about 70% a year and paper money is debasing at 3.4% a year.

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You love hearing the narrative work its way in. You love people finding the market fit here.

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And what he's talking about is something that people are processing as this war with Iran

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stretches out, as the energy prices go higher, as the stress on the yen continues, and as he has to

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continue to bail out the bond market little bit by little bit, he has to project confidence because

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this is an economic war. Whenever people say, oh, well, Treasury Secretary is taking a risk,

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well, it's my dream. I have asymmetric information. I am the house now.

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You know, people are reacting extremely strongly to him saying, I am the house now.

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I get what he's saying, but it breaks the illusion. It says the quiet part out loud. It breaks the fiat illusion of bank independence that a lot of this stuff is pinned around.

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It's my dream. I have asymmetric information. I am the house now. When we intervene with the Japanese yen, I have pretty good insight into what the Japanese, what the Bank of Japan is going to do, what Japanese policymakers are going to do. And you can bet against me if you want.

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See, the hubris that people are reading in there is it's understandable. And what we like to do in the fiat marketplace is just pretend like this isn't the case. Really. They just like to go around telling themselves that the Treasury Secretary of the United States doesn't have asymmetric information about the Bank of Japan and Japan policymakers.

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They like to go around telling themselves that they're actually independent and that Japan's bank isn't a vassal system of our system.

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I'll play a little bit of this fiat wonk just so you can kind of enjoy the little games that they play.

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And they all just do this together, just like they all parrot the CPI number.

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They all parrot the PPI.

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They all parrot this kind of stuff.

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These like, oh, yeah, the banks are independent.

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Because if we all believe it, then we can trade on it.

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Joining us now is Bloomberg's at Fenn.

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Pretty unusual verbal intervention there from the Treasury Secretary.

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I do like the term verbal intervention.

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As verbal intervention goes, you know, shorted in C, will it work then?

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Well, it is working for the moment, Vani.

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I think it's, as you said, it's highly unusual for him to say something like he has asymmetric information on what the Bank of Japan is going to do.

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at once that raises a lot of uncomfortable questions, not least of which is going to be

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the fact that is the BOJ's independence compromised here if he already knows what they're going to do?

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And how is he going to know what an eight or nine member panel is going to do ahead of time?

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So very disturbing questions indeed.

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Oh, yeah, yeah, yeah.

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This guy, either he's really naive or he's just pretending.

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I think it's notable that Bitcoin is slightly down on the expanded buyback news.

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You know, we had a really pronounced rip when a smaller buyback was announced three weeks ago, which caused a squeeze, which then I think was like one of the best three day pumps in Bitcoin's recent history.

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So to me, it suggests that rally we saw might be more of an announcement premium and not really the sign of a bull market.

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If we saw Bitcoin, I think get above current levels, get up to 80, that would sort of improve my opinion there.

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It's just so hard to say these days.

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here are some of the things that quote unquote investors or traders are worried about. I say

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quote unquote because anybody that's just buying and selling Bitcoin like it's a tech stock or

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something like that, they don't understand what they've got. So I don't actually consider them

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an investor, but they do. So on the 11th, we get a new CPI print. So we get the new gospel.

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Traders are going to watch that because if CPI is up, that's an indication the Fed's going to

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raise rates. On September 15th, corporate tax and settlements are due. The Treasury is going to get

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a little bit more money thanks to that,

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but it also likely means you're going to see

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or probably are seeing right now

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a pullback on corporate Bitcoin purchases

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because they got to pay some of their taxes.

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And then, of course, next week,

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we have the FOMC meeting.

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That's when Warsh gets up there

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and tells us what the price of money will be.

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The banks estimate that there's a 60% chance

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of a rate hike next week.

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People are freaked out that that will destroy

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the AI pump if that happens.

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So I'm not so sure, but that's next week's problem.

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I also think at some point, Buffalo Besant is going to need to refill the TGA, the Treasury checking account.

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And if they want to keep this up, they may need to go above their trillion dollar balance line.

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That, if it happens, would likely put a multi-week liquidity drain on the market as they issue bonds and whatnot.

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That would probably land right around the midterms too.

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Not ideal.

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So, you know, not exactly the way I see it really bullish for the short term.

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I still think with what he's talking about on the buybacks, if he starts really ramping them up and issuing more treasuries or T-bills at the front end, which might at first, when we start to see that, we'd probably come under a bit of pressure in Bitcoin and risk assets generally.

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but if we start to see that funding pressure like we had like in q4 of last year then i think you'll

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see the fed step up the rmp purchases and then that's when i think will really fly because i'll

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be all right now now you're just really monetizing all of this so i we we're building into that

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ultimately it'll end up in in sort of loads of dollars being pumped into the system

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yeah and so i'm kind of looking at some point bitcoin's gonna fly i kind of look at it like

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this myself. Bitcoin's been building for this moment. And then the world is just moments away

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now from finding the market fit as this realization clicks more and more. You know, it's sort of one

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of those things where everything that's been happening so far has been in preparation for,

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I don't know, the next 20 years. Are going to have to somehow manage their spending. So effectively,

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if their money is going to pay interest, there's only two options. One is they have to cut back on

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other spending, or they're going to have to print money. And if they print money, that creates

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inflation, and that's going to create a different kind of feedback loop. And people forget that

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there's a massive stock of government debt and debt around the world, which is a flip side to

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the fact that people have borrowed. And higher rates, and defaults for that matter, will result

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in losses on existing holdings for any investor. And interestingly enough, central banks, because

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of quantitative easing, own a lot of these bonds. And I actually had a look earlier this year. The

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US Federal Reserve has unrealized losses on its holding of US government debt of just under a

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trillion dollars. And that's obviously going to be higher now because the interest rates have gone up

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and globally the losses are four to five times that amount. And so that's the one side of the

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equation. And the other side is we all know that asset prices around the world are overstretched,

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whether it shares whether it properties In fact if it art it all overstretched And as interest rates move up and you discount back those cash flows to today clearly you going to have to

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adjust in some way. And essentially, that is the process by which all crises start. And that is

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The trajectory we are on, and I see no reason that that's going to change in the near term.

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Yeah, so buckle up, kids, because this is a ride that lasts the rest of your life.

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Nothing is longer than a nation-state fiscal train ride.

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The first 30 years was a different conductor.

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But don't worry, the train might not arrive on time, at least when you expect.

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But the Fiscal Dominance Express has left the station, and destination Japanification awaits us all.

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So this concept that you've talked about quite extensively,

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physical dominance, this train has no breaks.

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How long, and obviously it would be a period, as you mentioned,

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where cash and bonds perform rather poorly over a long period of time

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and scarce assets do quite well.

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How long do you expect this period to last?

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Is it like a five-year thing, 10-year, 20-year?

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How long?

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So that's partially a political question.

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And the trade-off there is kind of like duration versus magnitude.

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I mean, like in say World War II, they held the yield curve,

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like short end rates were nearly zero.

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The long end was 2.5%.

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And at one point you had 19% inflation.

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And they just completely held the yield curve down at those rock bottom levels.

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So you inflate away faster when you have that bigger gap.

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Now, they also had a better excuse back then.

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I mean, that wasn't frontline news.

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compared to, you know, what's going on in the Pacific, what's going on in D-Day and all that, right?

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And so, you know, then there's a time kind of political unity where people were kind of putting aside their differences and saying,

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got to kill the Nazis first. And so, you know, they can get away with that kind of faster approach.

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In general, when the problem is like structural entitlement issues, bloated DOD and no major war other than the ones we start,

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kind of, there's just less overall appetite for it. And so my expectation is it's a very long

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ordeal. I mean, this has arguably been going on since, I mean, really since the global financial

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crisis, but the more recent wave of it, I would say, started in kind of 2019 or so, right before

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COVID. And obviously COVID then accelerated for a period of time. I mean, I think this will at least

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be going on in the 2030s and perhaps longer because it's a slower motion type of train wreck

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rather than a more imminent type of crisis.

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Now, there have been economies in the past,

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like, you know, I think Israel had like triple digit inflation

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for a period of time, and then, you know,

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they kind of had this really big, rapid move.

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Obviously, other countries struggle with it more persistently.

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They have both magnitude and duration, you know, Turkey, for example,

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super high inflation and pretty persistent.

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Those are, you know, those are emerging markets,

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at least Turkey's an emerging market.

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And so for a developed market,

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I think it's more of a long-term grind, similar to what we've been seeing out of Japan.

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I mean, Japan's ahead of the curve on this.

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And I think we're going to see more countries go the Japanification route.

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Well, the Liquid Network has a pretty serious recovery problem on its hands.

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On September 6th, someone exploited a bug to create roughly 4,000 liquid Bitcoin

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with no Bitcoin backing it.

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Then they were able to withdraw

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nearly 4,000 real Bitcoin

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from the Federation's reserve.

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If you're not familiar,

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Liquid is a side chain

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that pegs in and out to Bitcoin.

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A $320 million hack

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of the Bitcoin-linked Liquid network,

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another dent to crypto's reputation.

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But luckily,

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most of the money

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was returned to investors.

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Let's get the details

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from Bloomberg Intelligence

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senior crypto analyst,

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Dushan Sharawat.

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He joins us for this week's edition

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of Money Rewired.

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Dee, I do want to start with that hack.

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It's just the latest.

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And the space, if we think about,

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I don't know, vulnerability perhaps

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when it comes to this space in your view.

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So what Bitcoin and other areas,

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but we're in the domain of Bitcoin.

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What Bitcoin's going through

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is they're on the front lines

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of advanced AI models

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that are capable of finding flaws

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that humans would otherwise miss.

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So you can point a fairly competent model

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at, say, GitHub, ask it to go through the recent issues, potentially find something before it's

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been patched everywhere. That was possible before, but just not achievable at scale. And then, of

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course, to develop the corresponding exploit with it. That's what's going on. This is not unique to

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Bitcoin. Bitcoin is on the front lines because you get real money when you create an exploit. But as

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we tighten up our defenses, they'll move on. So ask yourself, as you listen to this clip, if you

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think they'll speak about all of the other industries that inevitably go through this

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with the same tone? Just, you know, an observation. What do we know about the details and what damage,

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if any, does it do to the ecosystem? Sure, Tim. I mean, this is the biggest publicly disclosed

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crypto hack of 2026, $320 million, absolutely a big dent to the credibility of the infrastructure

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that holds up in this entire space. So what actually happened in this case was this wasn't

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the case of some hackers stealing funds away, it was actually a software bug in the code itself.

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And it happened in one of the entities called Blockstream, which is bulletproof technology.

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So whether the money is returned back or not, apparently 90% of the money has been returned

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by white hackers, but it does the damage to the credibility of this space, which we've seen over

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the last many years. Ironically, the technology underpinning all of this crypto stuff is getting

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better over time, but all these hacks obviously don't help. It's clearly a big hit to the

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confidence, but I think, you know, what's unique here, what's important to note is this wasn't

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about customer funds being stolen. It was a software bug that created almost kind of fake

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Bitcoin, which then got drawn away from the account. All right, let's tap the brakes. We

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don't want that spreading anywhere. Jeez, that's a bad analysis. Liquid Bitcoin can be traded or

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pegged out for Bitcoin. Real Bitcoin was claimed. No Bitcoin was created. Unfortunately, real Bitcoin

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was taken, 4,000 Bitcoin, much of which was returned, except for about 15%, roughly 598.5

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Bitcoin remains with the person controlling those funds. 3,400 Bitcoin actually came back.

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So let's sort of reset and tell you what happened. On the software side, there was an update to

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elements, 23.3.4, which is out now, which includes additional protections and whatnot.

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It corrects also another issue. Liquid's history doesn't undo a Bitcoin withdrawal. There's nothing

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they can do about that, but they can have better practices around redemptions, which I'll get into.

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There's also the sideswap element of this. So what has happened is the Liquid network has been shut

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down and all peg-ins and peg-outs have also been shut down while they try to recover the funds

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and then improve the security of the network.

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Sideswap's account of what happened,

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I think, is particularly interesting in this case.

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They put out a blog post today.

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They say, our payout key was kept online

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and payouts were automatic.

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Sideswap's payout authorization key

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was held online on our server

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and every federation payout was forwarded

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to the customer automatically in the same Bitcoin block.

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That design is what turned a reversible event

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on liquid into an irreversible payment on Bitcoin. Had the key been kept offline, the funds would

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have remained under Sideswap's control and could have been returned. We should have run it the

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right way, and we did not. We did not have adequate checks on peg-out orders. Our peg-out

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pipeline processed the order automatically with no limit on size, with no limits or rates on

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velocity, cap relative to the total supply of liquid Bitcoin, and no check on the age or history

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of the depositing wallet. An order for roughly 4,000 liquid Bitcoin, a very large share of all

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00:25:45,421 --> 00:26:02,692
of the liquid Bitcoin in existence placed from a wallet only hours old was handled with no human review and nothing to hold it Straightforward volume velocity and origin checks would have caught it We had none in place So I kind of appreciate that they owning that element of it

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which I think is good,

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because it was the sideswap service that was used in this.

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Now, they do explain why it worked like this.

341
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We pre-funded the PEGs as far as we could

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so that users did not have to wait the 102 Bitcoin confirmations

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a PEGIN normally requires.

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So if you run the elements node and you do a, you can pay, anyone can peg into Liquid.

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But like they say here, it takes 102 confirmation.

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So a lot of people would use something like bolts or sideswap.

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Only, however, to peg out, you have to have permission from a federation member.

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So anyone can peg in, but peg outs are, what do they call it?

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I'm too sick to remember, but peg outs are authorized, right?

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They're not just given.

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And so now peg outs are also off.

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The choices served users for five years across the large majority of liquids peg activity.

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They also removed the human checkpoints that would have held this order.

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That is the tension we had not resolved and are resolving now.

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It's our priority.

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They also add a couple other details here I thought was interesting.

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When the vulnerability was identified, we were not told of its details,

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nor asked to change how we operated our pegout key, nor asked to pause the pegouts.

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The security bill that we were asked to run did not prevent the attacks either.

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So there will be a time to look at what Blockstream could have done better here, but it seems like Blockstream knew of this issue potentially, tried to resolve it, maybe didn't fully resolve it, and didn't fully warn Sideswap, even though the whole Federation was aware of how their pegout authorization system worked.

361
00:27:33,592 --> 00:27:34,172
It was obvious.

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the peg out requires the federation's own signatures 11 of 15 they were given to a single

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order of roughly 4 000 bitcoin a very large share of all liquid bitcoin in existence without any

364
00:27:45,852 --> 00:27:49,752
check on its size or plausibility the network level controls that could have caught this with

365
00:27:49,752 --> 00:27:54,692
the federation as much as any member that's probably fair what happens next now this is

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important block stream and the liquid federation are leading the network level response including

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the fix, the restart, and the status of the liquid Bitcoin backing. The Federation has said it will

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carry out a full security review of the network and the PEG process. We welcome that and will adopt

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policy frameworks that come out rather than making our piecemeal changes on our own. Now, here's the

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important part. We will not resume PEG-IN or PEG-OUT until the Federation are confident the process is

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safe. We will say plainly what has changed before we do. PEG-IN and PEG-OUT will remain offline,

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until the Federation security architecture is in place.

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However, once the Liquid network is back online,

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side swaps markets will return to normal.

375
00:28:41,452 --> 00:28:45,332
Okay, so what they're saying is some of the other trading services

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that use Liquid will be back.

377
00:28:47,632 --> 00:28:49,392
The concern I have with that,

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00:28:49,472 --> 00:28:52,092
and this really comes down to the timing of all of this,

379
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is that could create a discount window for Liquid Bitcoin.

380
00:28:56,492 --> 00:29:00,512
So right now, liquid Bitcoin is valued at the cost of Bitcoin.

381
00:29:00,612 --> 00:29:05,152
So 100,000 sats in liquid are worth 100,000 sats in Bitcoin because of the peg.

382
00:29:05,692 --> 00:29:10,772
If the peg is unavailable, then that doesn't set the price anymore.

383
00:29:10,912 --> 00:29:14,772
What sets the price is what the market is willing to pay you for your liquid Bitcoin.

384
00:29:15,552 --> 00:29:19,392
And the market might be wanting to pay you like a 15% haircut right now.

385
00:29:19,732 --> 00:29:24,012
And the longer this gap goes where the liquid network is online and trading services are

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00:29:24,012 --> 00:29:29,132
online, but peg services or not, the higher the run, they run the risk of this discount window

387
00:29:29,132 --> 00:29:35,612
opening. So I don't, I don't love that. Hopefully the ideal scenario here is they get one-to-one

388
00:29:35,612 --> 00:29:40,072
backing again and they don't have to really do that. That would help close that discount window.

389
00:29:40,172 --> 00:29:43,932
If someone can buy liquid Bitcoin cheaply and redeem it for a full Bitcoin, there's incentive

390
00:29:43,932 --> 00:29:49,312
to do so. So they will do so. As of September 19th, as I record, there still isn't a way to

391
00:29:49,312 --> 00:29:55,792
exit liquid to Bitcoin. And we are seeing more and more phishing attempts. Aqua Wallet users and

392
00:29:55,792 --> 00:30:00,532
Blockstream have been putting out warnings today. The users are receiving phishing attempts about

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00:30:00,532 --> 00:30:07,812
ways to recover their funds that are not legitimate. So here's where it got me. The risk profile that

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00:30:07,812 --> 00:30:13,492
I think a lot of us have looked at liquid was in the Federation members. 15 key holders, you need

395
00:30:13,492 --> 00:30:18,592
11 to peg out. They have to have a certain amount of liquidity. So you watch the amount of liquidity

396
00:30:18,592 --> 00:30:22,432
available, you make sure the network's operating normally, that the members are online,

397
00:30:23,152 --> 00:30:27,352
that's your security threshold. But it turns out the actual security threat was

398
00:30:27,352 --> 00:30:32,892
Sideswap. And there's a real humbling here because that's always the weakest link in all of this.

399
00:30:33,252 --> 00:30:40,112
You can have the most sophisticated setup, right? You could have the Blockstream app on Liquid with

400
00:30:40,112 --> 00:30:46,052
Jade protecting your Liquid Bitcoin. But if Sideswap has an issue that gets taken advantage

401
00:30:46,052 --> 00:30:50,712
of, then the Bitcoin that backed your peg is gone. And that's where we're at right now.

402
00:30:51,452 --> 00:30:58,992
And what happened to me was when the cold card bug hit, I had to move quick. And I opted

403
00:30:58,992 --> 00:31:05,512
to sweep my funds to Liquid, then jumped on air, recorded a podcast. And by the time I was done

404
00:31:05,512 --> 00:31:10,272
doing the show, I thought to myself, I'm going to wait a beat for Sparrow. I'm going to wait a beat

405
00:31:10,272 --> 00:31:14,932
for Sparrow to have an update because it's coming. All of these wallets are, it's coming for all of

406
00:31:14,932 --> 00:31:20,812
these wallets. And so I thought, I don't want to put my funds on an exchange, right? Because that's

407
00:31:20,812 --> 00:31:26,832
a one counterparty risk. And at least with Liquid, it's a 15 counterparty risk, right? It's like

408
00:31:26,832 --> 00:31:34,532
putting, it's like an exchange run by 15 different companies. So it's not one bad actor could really

409
00:31:34,532 --> 00:31:40,192
rug you. Well, turns out I was wrong. Now it's not all my funds, but it's the largest amount of

410
00:31:40,192 --> 00:31:45,932
my phones. It would be one of my largest wipeouts if it doesn't work out. And it sucks. It sucks

411
00:31:45,932 --> 00:31:51,472
because I was moving quick and I was right. Sparrow did have a security update, pretty major security

412
00:31:51,472 --> 00:31:58,212
update, and just didn't move back to Sparrow fast enough. So now we wait. But I think really

413
00:31:58,212 --> 00:32:04,132
we're learning over and over again. It's main chain is safe. It's the software and the services

414
00:32:04,132 --> 00:32:08,332
around this that are weak. And there's going to be a real humbling as we find more and more of

415
00:32:08,332 --> 00:32:14,772
this stuff. So I congratulate Sideswap for at least returning the 4,000 Bitcoin that they got

416
00:32:14,772 --> 00:32:20,972
in this fee for this transaction. That's something. It doesn't close the 500 Bitcoin gap that's

417
00:32:20,972 --> 00:32:28,332
missing. And now the discussions online seem to have gone badly with Blockstream and the attacker.

418
00:32:29,052 --> 00:32:33,832
And they're calling Blockstream having hubris for not patching and spending enough money

419
00:32:33,832 --> 00:32:37,872
protecting this. And it doesn't sound like they want to give back the 15% that they have.

420
00:32:38,332 --> 00:32:39,792
Hopefully, we'll figure this out.

421
00:32:39,872 --> 00:32:42,052
Blockstream currently states the plan as this.

422
00:32:42,132 --> 00:32:44,112
The recovery plan remains under active development

423
00:32:44,112 --> 00:32:48,012
and may be revised as testing and validation continues.

424
00:32:48,492 --> 00:32:49,692
Based on current assessments,

425
00:32:50,172 --> 00:32:51,432
the anticipated stages are,

426
00:32:51,552 --> 00:32:53,552
number one, resume block production

427
00:32:53,552 --> 00:32:55,452
while peg operations remain suspended.

428
00:32:55,972 --> 00:32:58,912
Number two, replay transactions verified as valid.

429
00:32:59,312 --> 00:33:01,412
And then I suppose number three is start pegs.

430
00:33:02,432 --> 00:33:05,292
Jeez Louise, this has been a bad couple of weeks.

431
00:33:06,132 --> 00:33:07,532
So I got a question for you.

432
00:33:07,532 --> 00:33:13,292
boost.jupiterbroadcasting.com. What is your threshold for an emergency podcast around these

433
00:33:13,292 --> 00:33:20,452
things? I use the term kind of in jest, but you know, like I debated doing a podcast the moment

434
00:33:20,452 --> 00:33:25,892
the liquid news came out, but there wasn't really anything you could do. And I don't have the sense

435
00:33:25,892 --> 00:33:29,792
that a lot of you are big liquid users. I could be wrong on that. I'd be curious to know if that's

436
00:33:29,792 --> 00:33:34,172
not the case, but when would you like a quick dedicated episode was, cause I think we're

437
00:33:34,172 --> 00:33:38,552
probably going to see more of these security events come up. And so I don't know. Don't know

438
00:33:38,552 --> 00:33:44,252
what the threshold is. I have a sense that I would probably like the cold card one was obvious. But

439
00:33:44,252 --> 00:33:48,612
outside of that, I kind of like to know your threshold for, hey, heads up, you might need,

440
00:33:48,672 --> 00:33:52,172
especially if it's something where you need to move funds. That seems like probably anyways,

441
00:33:52,372 --> 00:33:56,732
let me know boost.jupiterbroadcasting.com and we'll figure it out together.

442
00:34:04,172 --> 00:34:18,312
Well, you can support the show just by doing what you do.

443
00:34:18,412 --> 00:34:22,792
If you want to buy yourself some sats and stack on river, use my link in the show notes.

444
00:34:23,292 --> 00:34:25,392
One of the best ways to stack sats in the U.S.

445
00:34:25,912 --> 00:34:28,072
Would have been better just having my sats on river all this time.

446
00:34:28,152 --> 00:34:30,792
The Bitcoin well, an automatic self-custody platform.

447
00:34:31,032 --> 00:34:31,792
They don't have the wallet.

448
00:34:31,952 --> 00:34:32,292
You do.

449
00:34:32,292 --> 00:34:34,732
And if it's time to go from light

450
00:34:34,776 --> 00:34:38,536
to a gift card. Shout out the Bitcoin company. They refresh the website. It looks great.

451
00:34:39,096 --> 00:34:42,136
Sats to gift card in just seconds. You can even log in with your Lightning credentials.

452
00:34:42,576 --> 00:34:45,736
Yeah, you've got Lightning credentials. Fold card. Fold card lets you stack

453
00:34:45,736 --> 00:34:50,256
sats passively as you're paying your bills, doing what you do. Fold card.

454
00:34:50,776 --> 00:34:54,336
Salt lending and strike. Both ways to get access to your Bitcoin without selling it.

455
00:34:54,336 --> 00:34:58,276
Different options. Both great. No official relationship with these companies, but have used them all.

456
00:34:58,556 --> 00:35:02,616
Do recommend them. And you can support the show by using the links in the show notes.

457
00:35:04,776 --> 00:35:21,896
Stay a while and listen.

458
00:35:21,896 --> 00:35:28,296
Ask not what your podcast can boost for you, but what you can boost for your podcast.

459
00:35:28,296 --> 00:35:36,296
It is time for Boots, and Bobby Pins kicks us off as our baller booster with 110,000 sacks.

460
00:35:36,376 --> 00:35:37,736
Hey, rich lobster!

461
00:35:39,596 --> 00:35:40,716
All right, Seth.

462
00:35:43,956 --> 00:35:45,236
Thank you, Bobby Pin.

463
00:35:45,316 --> 00:35:47,056
Thank you for being our baller this week.

464
00:35:47,616 --> 00:35:50,276
Bobby Pin says, rip, bip, 110.

465
00:35:50,556 --> 00:35:51,676
Glad we're done with that.

466
00:35:52,196 --> 00:35:55,716
Next we get over clarity and how much of a nothing burger that's been.

467
00:35:55,716 --> 00:35:58,116
I think you're right, and the macro factors mean much more.

468
00:35:58,296 --> 00:35:59,516
Hope you've been doing well.

469
00:35:59,576 --> 00:36:01,936
My summer has been crazy, but there's light at the end of the tunnel,

470
00:36:02,135 --> 00:36:03,476
and it's glowing orange.

471
00:36:03,616 --> 00:36:04,016
Oh, good.

472
00:36:04,056 --> 00:36:05,476
I'm glad it's not a fast-approaching train.

473
00:36:06,076 --> 00:36:09,316
I would say I was doing well, and then I got the one-two sick

474
00:36:09,316 --> 00:36:10,676
and the liquid thing, man.

475
00:36:10,736 --> 00:36:11,596
It's been rough.

476
00:36:12,196 --> 00:36:13,316
It has been rough.

477
00:36:14,036 --> 00:36:14,676
Do not want.

478
00:36:14,756 --> 00:36:16,656
The whole family is down and out right now.

479
00:36:17,256 --> 00:36:18,116
Who wants that?

480
00:36:18,476 --> 00:36:19,775
But I do appreciate the baller boost.

481
00:36:19,856 --> 00:36:20,476
Thanks, Bobby Penn.

482
00:36:21,135 --> 00:36:24,436
Hybrid Sarcasms here with a very generous 50,000 sats.

483
00:36:24,516 --> 00:36:27,016
I hoard that which your kind covet.

484
00:36:27,016 --> 00:36:30,796
Coming in with the coveted and limited boosty, boosty, boost.

485
00:36:31,276 --> 00:36:32,556
Boosty, boosty, boosty, boost.

486
00:36:32,756 --> 00:36:33,436
Thank you, hybrid.

487
00:36:33,856 --> 00:36:34,936
Appreciate you.

488
00:36:37,436 --> 00:36:40,256
A-Train's here with 25,000 sats.

489
00:36:41,556 --> 00:36:42,936
Thanks for all the quality info.

490
00:36:43,076 --> 00:36:44,176
Finally got my Jade Wald.

491
00:36:44,296 --> 00:36:45,616
Warming up the dice as we speak.

492
00:36:45,796 --> 00:36:46,696
Bye-bye, cold card.

493
00:36:47,156 --> 00:36:47,996
Nice, A-Train.

494
00:36:48,216 --> 00:36:49,235
Very well done.

495
00:36:53,536 --> 00:36:55,015
I do like that, Jade.

496
00:36:55,116 --> 00:36:55,636
Well done.

497
00:36:56,036 --> 00:36:56,916
Glad to hear it.

498
00:36:57,015 --> 00:37:00,775
OB is here with 23,222 Satoshis.

499
00:37:00,976 --> 00:37:01,336
Hmm.

500
00:37:01,715 --> 00:37:02,195
Hmm.

501
00:37:03,015 --> 00:37:03,415
Hmm.

502
00:37:03,676 --> 00:37:04,715
Let's hear it good, buddy.

503
00:37:05,135 --> 00:37:07,436
He writes, do you know what's up with RHR?

504
00:37:07,495 --> 00:37:08,856
Just thought you might have some inside info.

505
00:37:09,396 --> 00:37:12,896
I think they're just Matt needs to take a break after the cold card incident because

506
00:37:12,896 --> 00:37:17,396
they were, you know, big advocates of cold card, buddies of MVK, sponsors.

507
00:37:17,956 --> 00:37:20,835
And I think Matt O'Dell has just been having a tough time with that.

508
00:37:20,835 --> 00:37:23,036
I am seeing them prop up more and more stuff, pop up.

509
00:37:23,275 --> 00:37:24,316
So I think it'll be back soon.

510
00:37:24,316 --> 00:37:30,276
value of the currency even bitcoiners lose sight of this current price of bitcoin is 77 359

511
00:37:30,276 --> 00:37:37,215
i asked lumo what it is and what it would be inflation adjusted to the year 2020 it's at 99

512
00:37:37,215 --> 00:37:43,776
800 with inflation of 29 whatever numbers you input we aren't higher in purchasing terms jeff

513
00:37:43,776 --> 00:37:49,196
booth is good follow for how to look at bitcoin price it has not been a great like five years

514
00:37:49,196 --> 00:37:53,056
really i think however i don't think that i mean it's really your matter of perspective

515
00:37:53,056 --> 00:37:55,196
I wouldn't have it any other way at the same time.

516
00:37:55,296 --> 00:37:56,356
I'm glad to be sacking stats.

517
00:37:57,016 --> 00:38:00,136
But, you know, we took it in the chin this last year.

518
00:38:00,896 --> 00:38:04,816
PJ's here with a row of McDucks, 22,222 Satoshis.

519
00:38:04,916 --> 00:38:07,076
Things are looking up for old McDuck.

520
00:38:07,176 --> 00:38:08,896
Hard to find a way to move stats without bolts.

521
00:38:09,076 --> 00:38:11,896
I used swapmarket.github.io, and it seemed to work.

522
00:38:12,116 --> 00:38:15,836
Some newer services are popping up as well, so I'm finally back to boosting.

523
00:38:16,056 --> 00:38:16,416
Yay!

524
00:38:17,076 --> 00:38:17,735
Well, you were.

525
00:38:18,235 --> 00:38:18,916
Probably not now.

526
00:38:18,916 --> 00:38:25,095
interesting swapmarket.io is not loading for me at the moment oh and if they're oh there they go

527
00:38:25,095 --> 00:38:31,436
do they have liquid in here they do liquid huh huh what if i wanted to go from liquid to big

528
00:38:31,436 --> 00:38:35,636
how can they be doing that i wonder if it's working at the moment could not connect to

529
00:38:35,636 --> 00:38:39,516
the provider's api please try again later yeah it might not be working at the moment

530
00:38:39,516 --> 00:38:45,396
i wouldn't be surprised swapmarket.github.io so when it is back it's another alternative to bolts

531
00:38:45,735 --> 00:38:46,235
Thanks, Jeff.

532
00:38:46,956 --> 00:38:49,575
MDS is here with 21,000 sats.

533
00:38:49,836 --> 00:38:50,836
It's a long city of me.

534
00:38:50,956 --> 00:38:52,296
21 gigawatts!

535
00:38:52,576 --> 00:38:53,236
Win Lambo?

536
00:38:53,536 --> 00:38:55,176
I think I'll have an answer for you at the end of the show.

537
00:38:55,796 --> 00:38:56,915
So stay tuned for that, MDS.

538
00:38:57,016 --> 00:38:57,336
Thank you.

539
00:38:58,836 --> 00:39:01,755
Code 27 is here with 5,000 satoshis.

540
00:39:01,936 --> 00:39:02,496
Oh, I'm in.

541
00:39:03,195 --> 00:39:04,296
No message, just value.

542
00:39:04,415 --> 00:39:04,856
Thank you, Code.

543
00:39:04,915 --> 00:39:05,636
Appreciate that.

544
00:39:05,975 --> 00:39:08,396
User 54 is here with 4,000 satoshis.

545
00:39:09,516 --> 00:39:10,255
No message.

546
00:39:11,376 --> 00:39:12,076
Just crickets.

547
00:39:12,436 --> 00:39:12,996
No, I get it.

548
00:39:12,996 --> 00:39:13,596
I appreciate that.

549
00:39:13,656 --> 00:39:14,336
Thank you very much.

550
00:39:15,096 --> 00:39:19,216
And Kronk-a-Donk the Doggo is here with 11,111 sats.

551
00:39:19,296 --> 00:39:20,576
The traders love the vol.

552
00:39:20,816 --> 00:39:22,556
No message, just value as well.

553
00:39:22,636 --> 00:39:23,036
Thanks, guys.

554
00:39:23,476 --> 00:39:24,776
Amy, you don't always have to have something to say.

555
00:39:25,216 --> 00:39:30,576
Budget Eye Stormtrooper is here with 12,345 satoshis.

556
00:39:30,695 --> 00:39:31,756
Yes, that's amazing.

557
00:39:31,856 --> 00:39:33,376
I've got the same combination on my luggage.

558
00:39:33,736 --> 00:39:36,056
Nothing really jumps out at me to comment on, so here's a boost.

559
00:39:36,176 --> 00:39:36,956
Keep on keeping.

560
00:39:37,476 --> 00:39:38,136
Thank you, sir.

561
00:39:38,136 --> 00:39:38,996
Appreciate that.

562
00:39:39,656 --> 00:39:53,524
Reed BTC is here with 6 satoshis This is the way I discovered Twib on onlyboost It a great weekly bitcoin news podcast and has great takes check it out only boost yeah i guess that a good way

563
00:39:53,524 --> 00:40:00,304
to discover boosted shows i like it thank you read btc appreciate that so hangs here with a row of

564
00:40:00,304 --> 00:40:07,844
ducks 2222 sats did you know the idea that pre-money humans bartered for services is a myth

565
00:40:07,844 --> 00:40:09,424
propagated largely by Adam Smith,

566
00:40:10,204 --> 00:40:11,764
anthropodologist, whatever,

567
00:40:12,344 --> 00:40:14,224
suggests that reality was closer

568
00:40:14,224 --> 00:40:15,504
to community pooling of resources

569
00:40:15,504 --> 00:40:17,224
and trading favors instead of cows and sheep.

570
00:40:17,584 --> 00:40:18,704
Oh, I believe that to be true.

571
00:40:18,824 --> 00:40:18,964
Yeah.

572
00:40:19,684 --> 00:40:20,924
I'm sure there was a lot of that, right?

573
00:40:21,444 --> 00:40:23,564
Probably a lot of reliance on the family structure

574
00:40:23,564 --> 00:40:24,904
and sharing inside the family

575
00:40:24,904 --> 00:40:26,924
and passing things down generationally as well.

576
00:40:27,344 --> 00:40:29,924
No doubt then initially developed into what would be,

577
00:40:29,924 --> 00:40:31,364
I think we would consider capitalism.

578
00:40:31,844 --> 00:40:32,744
I think that's probably,

579
00:40:33,144 --> 00:40:34,744
both things could be true at the same time.

580
00:40:35,024 --> 00:40:35,384
I like it.

581
00:40:35,424 --> 00:40:35,644
Thank you.

582
00:40:35,704 --> 00:40:37,824
So digital farmers here with a row of

583
00:40:37,824 --> 00:40:42,964
Ducks. Got some bonus stats from the Bitcoin Well for DCA and weekly since last year. Thought I'd

584
00:40:42,964 --> 00:40:47,684
pass them on because it's a great show. Oh, well, thank you. Appreciate you thinking of us. Ace

585
00:40:47,684 --> 00:40:53,384
Ackerman's here with the Row of Ducks. In response to Sir Gene about Bitcoin for Kids, Turtle Twins

586
00:40:53,384 --> 00:40:59,724
cartoon produced by Angel Studios has two episodes that talk about Bitcoin. They also have books that

587
00:40:59,724 --> 00:41:04,364
discuss economics, the Constitution and stuff. Ah, well, there you go, Gene. And thank you, Ace.

588
00:41:05,284 --> 00:41:07,604
Jones Tones is here with 3,000 sats.

589
00:41:12,944 --> 00:41:14,544
Great work as always.

590
00:41:14,604 --> 00:41:15,164
Thank you, Joes.

591
00:41:15,564 --> 00:41:17,164
Appreciate that and your tones.

592
00:41:17,704 --> 00:41:21,844
Kiwi Bitcoin Guide is here with 4,567 satushers.

593
00:41:21,844 --> 00:41:24,184
Oh my God, this drawer is filled with fruit loops.

594
00:41:24,764 --> 00:41:26,744
You've played a few clips of Bitwise lately.

595
00:41:27,464 --> 00:41:28,624
That would be Matt Hogan, I think.

596
00:41:28,984 --> 00:41:30,224
When the ETS first launched,

597
00:41:30,284 --> 00:41:32,124
they put themselves out there as real Bitcoiners,

598
00:41:32,124 --> 00:41:35,024
not touching the S-Coins and donating to FOSS developers.

599
00:41:35,624 --> 00:41:36,864
But a lot of that has changed.

600
00:41:36,964 --> 00:41:38,444
So now I'm a bit worried of them.

601
00:41:38,944 --> 00:41:43,044
They got a S-Coin ETF and didn't support the devs on the way they originally said they would.

602
00:41:43,124 --> 00:41:44,164
Yeah, I was wondering where that ended up.

603
00:41:44,264 --> 00:41:46,204
I thought they ended up giving some money to a project.

604
00:41:46,684 --> 00:41:50,064
I'm very skeptical of any claims made by anyone claiming to be Bitcoin adjacent now.

605
00:41:50,144 --> 00:41:51,384
And this is just another one.

606
00:41:52,024 --> 00:41:53,904
I think there's two ways you can look at this, Kiwi.

607
00:41:54,164 --> 00:41:55,184
And yours is one of them.

608
00:41:55,704 --> 00:42:00,504
I don't know if your standard will apply in the era of Wall Street assets

609
00:42:00,504 --> 00:42:08,164
and digital assets because they don't look at it as a lump sum singular game.

610
00:42:08,324 --> 00:42:14,164
They don't look at it as the future of money and they don't look at it as fix the money,

611
00:42:14,324 --> 00:42:15,004
fix the world.

612
00:42:15,164 --> 00:42:20,364
They look at it as an asset to trade and they look at adjacent assets as beta trades to

613
00:42:20,364 --> 00:42:21,024
that potentially.

614
00:42:21,964 --> 00:42:26,764
So you can have individuals like Matt that might be Bitcoiners, but institutions that

615
00:42:26,764 --> 00:42:27,804
are multi-asset.

616
00:42:28,324 --> 00:42:29,924
A block is an example of this.

617
00:42:29,924 --> 00:42:35,084
Jack Dorsey, you know, some people think he's Satoshi, just pointing that out. But Jack Dorsey

618
00:42:35,084 --> 00:42:41,904
has been a staunch Bitcoin advocate. And yet Block, despite his preferences, is getting more and more

619
00:42:41,904 --> 00:42:45,884
involved in stable coins. We have some news on them coming up in a little bit. So it's just,

620
00:42:46,044 --> 00:42:51,404
I think, the nature of the Wall Street beast. And so when you measure by that standard, I think you

621
00:42:51,404 --> 00:42:55,864
just have to take their individual takes. That's my opinion. But I like the way you're thinking.

622
00:42:55,984 --> 00:42:56,704
Keep it up, Kiwi.

623
00:42:57,524 --> 00:42:59,744
Sleeks, I always struggle with this one.

624
00:43:00,304 --> 00:43:03,864
Sleestack sats comes in with 15,000 sats.

625
00:43:04,584 --> 00:43:05,864
Yeah, let's give him another one.

626
00:43:05,944 --> 00:43:06,564
Give him another one.

627
00:43:06,804 --> 00:43:07,284
There we go.

628
00:43:07,924 --> 00:43:09,404
Concerning Bitcoin teaching aids,

629
00:43:09,644 --> 00:43:12,304
ah, Conor's Boyax, Turtle Twins,

630
00:43:12,364 --> 00:43:13,404
ha, has some good stuff.

631
00:43:13,744 --> 00:43:15,924
There's blockchain memory game called Shaw Memory,

632
00:43:16,164 --> 00:43:17,484
and I have a graphic novel,

633
00:43:17,584 --> 00:43:19,564
and I have seen a graphic novel teaching aid,

634
00:43:20,024 --> 00:43:21,564
well, a while back.

635
00:43:21,984 --> 00:43:23,744
I'm in the process of trying to figure out

636
00:43:23,744 --> 00:43:25,344
lightning waltz for my eight and 10-year-old.

637
00:43:25,344 --> 00:43:27,384
a way to pay allowances via Lightning Network

638
00:43:27,384 --> 00:43:29,784
so they can watch their stack grow.

639
00:43:29,884 --> 00:43:31,564
See, I would have said a while ago

640
00:43:31,564 --> 00:43:32,724
that's a great use for Liquid too,

641
00:43:32,804 --> 00:43:33,864
for small things like that.

642
00:43:34,344 --> 00:43:35,184
Because that's what I did.

643
00:43:35,424 --> 00:43:36,904
I put my kids' allowances in Liquid.

644
00:43:37,324 --> 00:43:38,584
Not big amounts.

645
00:43:38,724 --> 00:43:40,284
I do rotate those out to wallets.

646
00:43:40,444 --> 00:43:42,244
But, you know, it's been a few months.

647
00:43:43,004 --> 00:43:45,504
Yeah, I think Lightning's probably the way to do it.

648
00:43:45,804 --> 00:43:47,284
I think, you know, eCash,

649
00:43:47,364 --> 00:43:48,924
there's going to be other technologies.

650
00:43:49,044 --> 00:43:50,484
I think that's the message I'm taking away.

651
00:43:50,544 --> 00:43:51,664
It's time to learn the new stuff.

652
00:43:52,124 --> 00:43:53,404
Start looking at some of the new stacks.

653
00:43:54,024 --> 00:43:54,504
You know what I mean?

654
00:43:55,284 --> 00:43:55,844
Probably the lesson.

655
00:43:56,384 --> 00:43:56,804
Thank you, Sleeks.

656
00:43:56,924 --> 00:43:57,584
Appreciate it.

657
00:43:58,364 --> 00:43:59,184
Summer's turf?

658
00:43:59,564 --> 00:43:59,724
No.

659
00:44:00,324 --> 00:44:02,104
Some rest turf.

660
00:44:02,344 --> 00:44:03,344
Oh, you guys, I'm sick.

661
00:44:03,824 --> 00:44:04,724
Why are you throwing me?

662
00:44:04,784 --> 00:44:06,404
Why are you throwing me for curveballs?

663
00:44:06,584 --> 00:44:06,984
Jeez.

664
00:44:07,324 --> 00:44:09,384
That's a spicy meatball.

665
00:44:10,064 --> 00:44:11,024
I just tease.

666
00:44:11,124 --> 00:44:11,904
I appreciate the boost.

667
00:44:12,264 --> 00:44:14,844
7,777 sats.

668
00:44:15,004 --> 00:44:16,924
Did you buy that from a certified vendor?

669
00:44:16,924 --> 00:44:21,644
For my normie friends, I've started referring to TWIB as a timely macroeconomics class with

670
00:44:21,644 --> 00:44:22,684
Bitcoin sprinkled in.

671
00:44:22,684 --> 00:44:24,564
I think that's a compliment.

672
00:44:25,364 --> 00:44:26,384
Well, I'll be damned.

673
00:44:26,704 --> 00:44:27,844
Thank you very much.

674
00:44:28,404 --> 00:44:32,104
Department of Lulz comes in with our first Fiat boost, $100.

675
00:44:36,844 --> 00:44:41,324
Thank you, Department of Lulz.

676
00:44:41,384 --> 00:44:44,064
Says, I listened to the show from three countries this year,

677
00:44:44,224 --> 00:44:46,864
and it was the one constant value for value from Australia.

678
00:44:47,064 --> 00:44:47,584
Cheers, Chris.

679
00:44:47,964 --> 00:44:49,904
I really appreciate that, especially today.

680
00:44:49,984 --> 00:44:50,984
Thank you very much.

681
00:44:51,544 --> 00:45:05,172
805 Sats also comes in with 100 fiat dollars Hey rich lobster 805 Sat says

682
00:45:05,252 --> 00:45:06,992
I usually pitch the Thousand Oaks meetup group.

683
00:45:07,092 --> 00:45:08,892
Decided to try send some support on my own.

684
00:45:09,032 --> 00:45:09,872
Thanks for what you do.

685
00:45:09,932 --> 00:45:11,012
Well, thank you very much.

686
00:45:11,092 --> 00:45:11,992
I appreciate that.

687
00:45:12,552 --> 00:45:13,272
Thanks, you guys.

688
00:45:14,032 --> 00:45:14,412
Man.

689
00:45:14,592 --> 00:45:16,772
You know, it's funny, too, because when did that come in?

690
00:45:17,652 --> 00:45:20,012
The third and the other one came in on the second.

691
00:45:20,712 --> 00:45:22,012
And I must have checked.

692
00:45:23,012 --> 00:45:23,272
Huh.

693
00:45:23,772 --> 00:45:27,352
I didn't, I didn't, I must have checked at some point and didn't see those.

694
00:45:27,372 --> 00:45:30,292
And I thought, oh boy, it's going to be kind of a light episode this week.

695
00:45:30,572 --> 00:45:31,152
Thanks guys.

696
00:45:31,432 --> 00:45:32,972
Zinner comes in with $50.

697
00:45:34,672 --> 00:45:35,772
Hey Chris and crew.

698
00:45:36,192 --> 00:45:36,932
Also very much.

699
00:45:36,992 --> 00:45:37,312
Thank you.

700
00:45:37,372 --> 00:45:39,752
I hoard that which you all kind cover.

701
00:45:39,792 --> 00:45:40,972
Thanks for all the podcasts over there.

702
00:45:41,072 --> 00:45:43,732
Self-hosted was a great show and Twib isn't far behind and gaining.

703
00:45:44,932 --> 00:45:45,512
Thanks Zinner.

704
00:45:45,632 --> 00:45:46,372
Appreciate that.

705
00:45:47,032 --> 00:45:49,152
The Ever After comes in with $20.

706
00:45:50,112 --> 00:45:50,792
Let's go.

707
00:45:51,272 --> 00:45:52,252
Keep fighting the good fight.

708
00:45:52,332 --> 00:45:53,032
Thank you, sir.

709
00:45:53,032 --> 00:45:54,012
Appreciate that.

710
00:45:54,132 --> 00:45:54,792
Yes, sir.

711
00:45:54,932 --> 00:45:56,212
Sirty, sir, sir, sir.

712
00:45:56,392 --> 00:45:56,792
All right.

713
00:45:56,832 --> 00:45:59,092
That's all our above 2,000 sats.

714
00:45:59,192 --> 00:46:01,072
And we didn't have any member boost this week.

715
00:46:01,172 --> 00:46:02,492
So thank you, everybody.

716
00:46:02,572 --> 00:46:04,052
That really turned things around, though.

717
00:46:04,492 --> 00:46:08,972
We had 25 of you stream sats as you listen to the show on a podcasting 2.0 app.

718
00:46:09,412 --> 00:46:13,552
You sat streamers stacked 49,627 sats.

719
00:46:13,852 --> 00:46:15,592
This is a tasty burger.

720
00:46:15,712 --> 00:46:19,372
When you combine that with our Fiat boost and our baller boosters,

721
00:46:19,372 --> 00:46:28,052
The show stacked a really, you know, surprisingly strong 745,996 Satoshis.

722
00:46:36,212 --> 00:46:37,472
Thank you, everyone.

723
00:46:37,632 --> 00:46:40,652
That was way better than I was expecting and very much appreciated.

724
00:46:41,232 --> 00:46:45,972
I had to restart this episode three times just because my brain is such mush.

725
00:46:47,572 --> 00:46:48,912
So we'll see if I get it out.

726
00:46:49,372 --> 00:46:53,552
effort. Effort was put into this one, so that is very much appreciated.

727
00:47:02,892 --> 00:47:08,552
Boost.jupiterbroadcasting.com or Boost in the podcasting app. Also, you can become a member,

728
00:47:09,172 --> 00:47:12,612
jupiter.party, or in the Fountain app and put your support on autopilot.

729
00:47:12,612 --> 00:47:15,712
Okay, now we do have some really important updates to get to.

730
00:47:19,372 --> 00:47:29,292
If you haven't already, update your AlbiHub.

731
00:47:30,392 --> 00:47:35,352
Albi confirms a critical vulnerability in older versions of AlbiHub.

732
00:47:35,672 --> 00:47:41,772
This fix has been out for a while, so if you updated semi-recently, you're probably okay.

733
00:47:42,492 --> 00:47:49,072
Albi writes, we have confirmed a critical vulnerability in AlbiHub version 1.70 through version 1.18.5.

734
00:47:49,372 --> 00:47:55,832
So releases prior to August 2025, when the Albi Hub is publicly accessible from the Internet.

735
00:47:56,312 --> 00:48:03,792
The vulnerability could allow an attacker who could reach the Hub's management API to gain unauthorized access and send funds.

736
00:48:04,292 --> 00:48:10,332
Albi Hub version 1.19.0, released August 29th of 2025, or newer, is unaffected.

737
00:48:10,792 --> 00:48:14,452
So check your installed version. You want to update to 1.24.0 immediately.

738
00:48:14,452 --> 00:48:22,132
If you run an affected version which was accessible from the internet, you need to update your unlocked password and delete app connections after the update.

739
00:48:22,612 --> 00:48:28,372
If you're not affected by the issue, they still recommend updating the latest version as it includes additional security issues as well.

740
00:48:29,272 --> 00:48:32,732
Woo, dodged that one. Thankfully, I've been keeping my LB Hub up to date.

741
00:48:33,392 --> 00:48:36,172
But I do appreciate them kind of getting that information out there.

742
00:48:36,492 --> 00:48:40,372
We watched this sort of develop online last night and then they came out with the information today.

743
00:48:40,992 --> 00:48:44,532
Here's another story that I think has some really long-term ramifications.

744
00:48:45,472 --> 00:48:48,812
Block, you know, Jack Dorsey's Block, they want to build a bank.

745
00:48:48,812 --> 00:48:55,452
Block has applied to establish Builders Bank and Trust with the OCC, which would provide

746
00:48:55,452 --> 00:49:01,292
a federally regulated custody and financial services for Bitcoin and stablecoins bank.

747
00:49:01,472 --> 00:49:05,372
Not a checking and savings bank, not with loans and branches.

748
00:49:05,372 --> 00:49:11,512
In fact, it would have no branches, but it would hold asset and execute buy and sell orders on behalf of customers.

749
00:49:12,092 --> 00:49:19,752
Builders Bank would consolidate custody work that Block now runs in more than 50 state money transmitter licenses.

750
00:49:20,252 --> 00:49:21,392
One consolidation.

751
00:49:22,092 --> 00:49:24,172
Builders Bank would be headquartered in South Dakota.

752
00:49:24,812 --> 00:49:31,232
All five proposed directors live elsewhere, and Block has asked the OCC to waive the rule requiring one to live within 100 miles.

753
00:49:31,992 --> 00:49:38,372
Jack Dorsey himself is not among the organizers, directors, or senior executives, and only

754
00:49:38,372 --> 00:49:40,632
appears in the filing as Block's co-founder.

755
00:49:41,552 --> 00:49:45,672
That, I mean, really, I think, though, shows you the ambition that Block has there.

756
00:49:45,672 --> 00:49:47,752
I think they have some serious ambition.

757
00:49:48,492 --> 00:49:50,132
Where this takes us, I don't know.

758
00:49:50,532 --> 00:49:53,672
All right, final clip of the week time, because I'm falling apart.

759
00:49:54,072 --> 00:49:58,712
Speaking of Bitwise's Matt Hogan, I've noticed he's been pretty consistent with his 2030

760
00:49:58,712 --> 00:50:03,912
prediction, but where I'm still kind of short-term bearish, I hope to be wrong, but I'm just a little

761
00:50:03,912 --> 00:50:17,180
worried about the short Matt is both short and long bullish He thinks the market has figured it out and now when they get back from as they are getting back from summer break he thinks it going to be game on

762
00:50:17,500 --> 00:50:20,480
By 2030, I think it'll be substantially higher than that.

763
00:50:20,580 --> 00:50:24,640
So our long-term prediction is we get to 1.3 million by 2035.

764
00:50:25,180 --> 00:50:28,180
I think we have a good chance to get back up to 100K this year.

765
00:50:28,460 --> 00:50:30,220
I think the conditions are extremely bullish.

766
00:50:30,220 --> 00:50:32,800
Remember, we're just getting traditional Wall Street

767
00:50:32,800 --> 00:50:35,700
back in their seats after their August break.

768
00:50:35,700 --> 00:50:41,240
I think as they come into their seats and they look at this macro setting, they look at crypto forming a nice bottom.

769
00:50:41,620 --> 00:50:42,940
They're going to want to start allocating.

770
00:50:43,080 --> 00:50:44,440
So I'm bullish on the short term.

771
00:50:44,720 --> 00:50:46,340
I'm very bullish on the long term.

772
00:50:46,440 --> 00:50:50,600
I think 1.3 million by 2035, it's going to be relatively easy for Bitcoin.

773
00:51:01,680 --> 00:51:05,200
All right, let's check in on the Bitcoin network before I get out of here.

774
00:51:05,200 --> 00:51:09,700
I'm squeaking by at block height 966,267.

775
00:51:10,200 --> 00:51:13,420
The Bitcoin price to US dollar 78,260.

776
00:51:13,540 --> 00:51:18,200
That puts our sats per dollar at 1,278 satoshis to $1.

777
00:51:18,960 --> 00:51:27,180
We are currently down 38% right on the money, 38.0% from our all-time high, which was 338

778
00:51:27,180 --> 00:51:28,400
days ago, you animals.

779
00:51:28,400 --> 00:51:35,760
estimated retarget date for the bitcoin difficulty adjustment is september 19th

780
00:51:35,760 --> 00:51:41,920
2026 so about 10 days away an estimated difficulty adjustment at least at this point of an upwards

781
00:51:41,920 --> 00:51:51,440
adjustment of 4.5 percent 26 560 bitcoin nodes currently reachable on the network ah all right

782
00:51:51,440 --> 00:51:58,800
So sats for B, one sat per V byte for transactions are looking pretty normal again.

783
00:51:58,860 --> 00:52:02,440
It was really interesting because we were getting like up to six and eight even for immediate

784
00:52:02,440 --> 00:52:04,160
transactions earlier in the week.

785
00:52:04,540 --> 00:52:07,680
And a half hour now is just 0.10 sats per V byte.

786
00:52:08,220 --> 00:52:12,800
So back down to regular, what I'd say have kind of been baseline transaction fees, but

787
00:52:12,800 --> 00:52:18,360
we did see a pretty big spike earlier in the week, kind of adjusting as it should.

788
00:52:18,780 --> 00:52:20,440
Things are moving right along.

789
00:52:21,440 --> 00:52:23,200
And the Bitcoin network is strong.

790
00:52:37,920 --> 00:52:40,940
Well, if you made it this far, why not have a little fun?

791
00:52:41,200 --> 00:52:46,840
Boost it and tell me if you think we're going to get a right hike or a cut or a hold.

792
00:52:47,700 --> 00:52:49,700
Just got to get it in before Wednesday.

793
00:52:49,700 --> 00:52:53,260
so that way not only can it be in the show but before they actually announce it if you just feel

794
00:52:53,260 --> 00:52:56,380
like having some fun and you want to get your prediction on there while you support the show

795
00:52:56,380 --> 00:53:02,260
and of course i want to know what your threshold is for the emergency pod where when you'd like me

796
00:53:02,260 --> 00:53:07,440
to cut into your feed with a purpose-built episode all right links to what i talked about today are

797
00:53:07,440 --> 00:53:14,040
over at this week in bitcoin.show that's the website you can get the back catalog and all of

798
00:53:14,040 --> 00:53:18,080
that over there let me know how i did too with a boost if you would my goal here is to give you a

799
00:53:18,080 --> 00:53:19,900
that doesn't get distracted by the emotions

800
00:53:19,900 --> 00:53:21,340
or the drama around what's happening,

801
00:53:21,400 --> 00:53:22,500
but focuses on the signal.

802
00:53:23,020 --> 00:53:24,240
So you can plan for yourself,

803
00:53:24,400 --> 00:53:26,000
your friends, your family, your business,

804
00:53:26,200 --> 00:53:27,880
your future, whatever it might be

805
00:53:27,880 --> 00:53:29,560
with the best clarity possible.

806
00:53:29,980 --> 00:53:31,700
And of course, when I make a mistake,

807
00:53:31,840 --> 00:53:33,600
I'll be right here telling you what I did wrong

808
00:53:33,600 --> 00:53:35,220
and what lessons I'm learning from it.

809
00:53:35,600 --> 00:53:37,520
So I guess thank you.

810
00:53:37,800 --> 00:53:40,080
And let me know if you want more coverage

811
00:53:40,080 --> 00:53:40,940
on the liquid stuff too,

812
00:53:40,980 --> 00:53:42,160
because I really don't have a sense

813
00:53:42,160 --> 00:53:44,080
if anybody out there is a big liquid user.

814
00:53:44,140 --> 00:53:45,840
So I just wasn't sure when to make that episode.

815
00:53:45,840 --> 00:53:47,300
But I hope, I think the timing was right.

816
00:53:47,300 --> 00:53:51,400
We let things develop and whatnot, but it's always something I'm interested in as well.

817
00:53:51,860 --> 00:53:52,740
Okay, I'm out of here.

818
00:53:52,860 --> 00:53:54,580
Links over this week in bitcoin.show.

819
00:53:54,720 --> 00:53:58,260
And hopefully, hopefully, I'll see you right back here next week.

820
00:53:58,420 --> 00:53:59,440
It's not 100%.

821
00:53:59,440 --> 00:54:01,580
I can't tell you what direction this thing's trending.

822
00:54:02,520 --> 00:54:04,160
I'm hoping this is the thick of it.

823
00:54:05,020 --> 00:54:09,780
If history plays out, I'll probably be better just in time for Sunday to do Linux Unplugged.

824
00:54:10,060 --> 00:54:10,620
But we'll see.

825
00:54:11,120 --> 00:54:12,080
Anyways, I appreciate you.

826
00:54:12,220 --> 00:54:14,680
And I hope to see you right back here next week.

827
00:54:17,300 --> 00:54:47,280
Thank you.

828
00:54:47,300 --> 00:55:17,280
Thank you.

829
00:55:17,300 --> 00:55:17,800
you