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Welcome in to This Week in Bitcoin, episode Lucky 77.

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My name is Chris, chrislas.com, jupiterbroadcasting.com.

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I'm back from my trip, a road trip to Austin with a quick pit stop on the way back in Denver.

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It was really great to see some of you come out to the meetup and say, hey, I'm a twib listener and I really love Bitcoin.

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A lot of Bitcoiners in Texas. I guess I'm not too surprised by that.

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I am kind of surprised by the rest of you, though. I leave for a couple of weeks and everything's just a mess.

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It was Liberation Day all over again. Trump talking tough about China, China pushing back.

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By Sunday, people walking it back. The whole playbook all over again.

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But during this feud, like, yeah, two-day period, let's say a two-day period, Friday to really Sunday, the market just panicked.

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And some altcoiners got completely wrecked.

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Some altcoins went to zero.

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We saw story after story of altcoin trader bros that just got completely wiped out.

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But I wanted to explain this from a Bitcoiners perspective because it is interesting.

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And there's some big macro wins that are influencing this, and we'll get to that.

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But maybe you're wondering what happened or you want a simple explanation that you can explain to somebody else. Why did we go from like $126,000 in all time new high and then wick down $20,000 in like minutes? That was a big one. Bitcoin erased $380 billion in market cap in just eight hours. It was a big one.

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So what happened? And how do you explain it to somebody who isn't a Bitcoiner? Well, that's kind of where Anthony Pompliano shines. He was on the PBD podcast, don't love the PBD podcast, but he did a good job kind of explaining to somebody who's not really familiar with the dynamics here.

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As the market corrected in after-hour stock, there's just not that many people who have access to the after-market stock.

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So what do they do?

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They look in their portfolio and they say, well, what market is open?

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What market has liquidity right now?

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If I want to sell, if I want to change my financial life or my portfolio, I'm going to sell cryptocurrency.

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And so Bitcoin specifically sold off.

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It sold off $13,000, which is a pretty big move, right?

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I mean, an asset went down $13,000 in a single day, but it's only about 10%.

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And so if you go back and you look at all these bull markets, historically, there have been multiple 30% drawdowns in these bull markets.

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And so this, you know, I joke is like a crypto crash for ants to the crypto crowd.

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Now, the stock market, if the stock market goes down 10%, 20%, they're freaking out.

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They're talking about the Great Depression.

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They're, you know, 1929.

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No, more on that 1929 comment in a moment.

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He's dead on with that.

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And all that kind of stuff.

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And the crypto, again, it doesn't feel good to see your assets go down 10%, but it is still pretty small compared to what everyone has lived through.

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There's somebody who was chirping at me on Twitter yesterday, and they said, you know, why are you saying that we shouldn't be worried about a market correction?

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I said, my brother, we've lived through two 80% drawdowns in four years.

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I said, your stock market crashes?

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They don't even register for the crypto people.

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So I think that plays into a lot of, like, what's going on with the retail folks.

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By the way, it's interesting what you say.

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the fact that for the regular guys that are trading after hours they're like what do i mess

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with now they don't have access to anything they don't have access to anything you see it's clicking

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for pat here i don't think he's ever even considered this i don't think most people have ever considered

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this and it's an important thing to understand if you're gonna hold bitcoin access to anything

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what they do with crypto you can track what bitcoin's doing gold's closed stocks are closed

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bonds are closed everything is closed oh wow now here's the thing is trump on sunday night you know

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I posted this meme.

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It's like abracadabra, make the markets go back up, right?

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And what does he do?

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He tweets out an hour and a half

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before a future's open on Sunday night.

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Like the guy knows what he's doing.

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And so that's fine, understand that.

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But I think the bigger thing about crypto

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and Bitcoin in particular is if you sold your Bitcoin

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because of geopolitical uncertainty,

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you had no clue what you were holding.

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The whole point of Bitcoin is that it is a non-sovereign asset.

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It is supposed to be the safe haven

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that you can go and hold

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regardless of what any government in the world does.

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And so I think that's part of what people

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are trying to figure out now is the hardcore Bitcoiners, they know that. They're looking to

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buy on dips, but you still get tons of new people who come in. And obviously, leverage plays a huge

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part of this. And so the big story over the weekend was there was $19 billion of leverage

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that got wiped out. Now, you can look at that as how prices went down. The way I look at it is we

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just reset the entire leverage in the system, and therefore that probably clears us so that we can

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go higher. Yeah, and $19 billion sounds like a big number. It's $19 billion of leverage. You put

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$100 in, right? And you get $1,000 of leverage, but you're actually only out $100 when you get

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wiped out. But there was some interesting sniping that took place during this tumble. And that is,

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I think, probably tantalizing to the normies and something that at least should be noted

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by those of us in the community. And PBD does ask about these profit takers.

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But two accounts made $160 million. I don't know if you saw this article or not. The two

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accounts that placed bets against the market minutes before the news broke, scored $160 million

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windfall. Bitcoin dropped 12%. Less popular tokens saw declines as steep as 80% coin glass,

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a crypto data platform. I mean, he really has no idea, right? I mean, this guy, he's probably two

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seconds away from launching his own meme coin or already has a meme coin. The point is trying to

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explain it to people that really don't understand why this is behaving differently than, say, the

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S&P 500 or their stocks. Ahead of the sell-off, two counts on Hyperliquid, a decentralized exchange

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that allows investors to make leverage bets on future crypto prices,

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place massive bets that Bitcoin and Ether would fall by days and Friday.

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The positions were closed for $160 million in profits.

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When you see stuff like this, this is the Wall Street Journal story right there.

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These guys made $160 million.

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How much do you know about this story?

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Do you know much about what happened here?

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I've been paying attention to it.

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So a couple of things.

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$19 billion, if you wipe out $19 billion of leverage,

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that doesn't mean that people holding cryptocurrencies lost $19 billion.

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dollars, right? If you put, you know, $10 in, but you get $100 of leverage, right? You didn't put

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$100, you put $10 in. So there's some math that I think is a little bit misleading. The second

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thing is, you know, when prices go down, sometimes people make money. When prices go up, people make

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money. It's all about what are they positioned, how are they positioned, all that kind of stuff.

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There is a trend that is happening in America, but also globally, which is the intertwining of

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finance and entertainment. This is something that's been on my mind recently, as I've been

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hearing advertisements for a lot of sports betting. I don't know where I'm hearing these ads. Maybe

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it's streaming services like when i watch pluto tv maybe i occasionally check the radio or watch

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some youtube tv and i see these ads for betting on all kinds of things and they have like all these

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incentives for you to bet including like protection against a player getting injured in the first half

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of a season and all of these like really intricate things to help you make money based on you know

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your sports team stuff and it just really seems like the betting is getting so pervasive and when

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you look at what the banks want to do with real world assets and putting them on blockchain

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and tokenizing everything, it's all about giving people access to more gambling and more betting

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24-7. Like they're trying to capitalize on this trend that the younger generation loves to kind of

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dabble in this stuff. Where the boomers, they love to sell the tops and buy the tops on the ETFs.

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But, you know, the younger generations, they got their Robinhood apps, right? They got their cash

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apps. I mean, I'm kind of, I'm being flipping here, but it's true. And there's a real gambling

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culture because everybody needs to get rich quick because the fiat just doesn't work for them.

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There is no savings technology built into the system anymore. And these are the things that

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are available to them and they're fun and they're gamified. You don't have to think a lot about it.

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So I was glad that Pomp brought this point up. There is a trend that is happening in America,

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but also globally, which is the intertwining of finance and entertainment. And what you now see

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is whether it's the prediction markets, whether you see it's the stock market, whether you see

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crypto, people want something to talk about. You know, I joke all the time, like financial markets

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have become like soap operas for young people. And so not only is there the gambling or speculation

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component to it, but what now in crypto is you have on-chain analytics. You can go and you can

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see what are the positions people are taking, what wallets are moving, right? All this information

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is almost like kind of new media to them. And so what people do is, oh my God, there's this big

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liquidation, they immediately begin scouring all this data, trying to find some storyline,

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who caused it, who knew what, right? Who made money here? And so when they find this,

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they kind of latch onto it. Now, does this person have information about the tariffs?

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Maybe, maybe not. I don't know. I don't know who the person is, right? And so I tend to think that

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good investors, they're not paying attention to this stuff. They're just saying to themselves,

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listen, I want to continue to acquire this asset, hold it for a long time.

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This is more entertainment factor. Do we know who these two people are?

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You can't know who it is. Is it just speculation who they think it is?

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So there are strong maybe thesis as to who they are because on the wallets at times people can start to identify whose wallet is who.

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Got it.

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And so in one particular case, there's a guy who's associated with a wallet that they believe is the person who has it.

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But again, you don't have full confirmation.

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It's not like they're coming out and tweeting and saying, hey, that was me that made $160 million.

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Is this a well-known name or just somebody that's known in the crypto space?

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It's not even really known.

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Not even known in that space.

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Okay.

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I will have more of a breakdown on this dump later in the show.

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But I'll say, I think part of it was the expectations of October.

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Leverage was through the roof.

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There hadn't really been a 2% decline in the S&P for six months, something like that.

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So when Trump comes out with a big, you know, tough guy post about China, it's a catalyst the market was almost looking for.

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So that's an element to it.

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But there was probably a little bit of sniping in there.

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We'll talk more about that.

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But I want to stay focused on the macro for a moment because there's been this talk at Fear since this event on Friday that we are in a 1929-like bubble and that everything's about to pop and that we're going to enter the recession of all recessions.

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And maybe.

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And the thing that they point to is the AI spending.

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But I think there's a missing factor when you look at the AI spending.

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The tech industry has been the bubble leader, in my opinion, for at least a decade.

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If you look at who makes up the majority of revenue on the S&P 500, it's been in the tech sector for a while now, like five or seven companies.

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And every cycle, we had IoT and we've had, I mean, really since the dot-com boom, there has been multiple, it's been even longer than a decade, I think, of these multiple tech-driven cycles where we just get these massive pumps driven by this huge claim about this new technology is going to change our life.

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and every cycle, every time we go through this hype cycle,

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the tech companies move quicker and faster.

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They hire and they fire and they pivot

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and refocus faster and faster

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and everything gets more feverish.

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The money raising gets more feverish.

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The claims get more feverish.

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And to me, it all seems tied to the fiscal situation

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in Western governments.

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As it's become more and more obvious

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that their situation is unsustainable,

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the need to have these pumps to generate money

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And honestly, to have a place to put all of this printed fiat needs a place.

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It needs a home.

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And I think this is perhaps where we find ourselves right now.

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And surely the CBS News, with their financial reporters full-time on staff, and the people they interview, like Andrew Sorkin, surely, surely they understand this very important moment, right?

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Or do they instead pounce on a market dip and claim that it's the roaring 20s all over again?

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Which do you think it might be?

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Stocks took a nosedive on Friday after President Trump threatened a big tariff hike on China.

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Until then, Wall Street had been at record highs for months,

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which is why we decided to check in with Andrew Ross Sorkin,

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one of the country's most influential financial reporters.

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Listeners to this show know that he's a constant source of frustration.

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Somebody who has been at the center of the financial world for a while

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and does a daily show on CNBC, seems to miss everything about the current situation.

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He's just written a book called 1929 about the market crash a century ago.

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We wondered if he'd run out of news to cover,

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or is he alerting us that what's been happening in the markets lately

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is a replay of what led to the most devastating financial collapse in our history?

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I will say, Andrew is also selling a book right now.

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And so he is going on tour, spreading this narrative anywhere that will have him.

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There's been multiple interviews this week alone with Andrew where he's essentially pitching this.

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The story will continue in a moment.

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Tuesday, October 29th, 1929.

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Imagine the New York Stock Exchange back then.

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The crush of frightened traders dumping stocks.

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investors losing their shirts, businesses, their homes,

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sweeping away the roaring 20s,

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walking that same but transformed floor today.

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So she asked him, while the voiceover is still going,

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she asked Andrew at the start of the interview,

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what's the difference between now and 1920?

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And Andrew, and his super deep insight, he says,

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well, everything's digital now.

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Everything's been digital, Andrew, since 1987.

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Everything's digital.

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Well, yeah, okay.

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Andrew Ross Sorkin says we're in our own roaring 20s, the 2020s, with stocks climbing for months just like then.

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The crazy part about this is from 1928 to September of 1929, the stock market was up 90 percent.

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When you say the stock market was way up, immediately I think of now. Are you scared?

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I'm anxious. I'm anxious that we are at prices that may not feel sustainable.

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And what I don't know is we are either living through some kind of remarkable boom,

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and part of that's artificial intelligence and technology and all of that,

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or everything's overpriced.

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Or we're reliving...

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1929.

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There was so much anxiety.

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You know, Andrew is an example of what plagues the financial world today.

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these people that think they're so smart, but they're unable to learn and adapt.

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They continue to measure the system from within the system.

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It can't think of anything else.

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Like he cannot grasp the idea that we are watching a massive debasement trade play out.

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We'll talk more about that in a moment.

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But throughout this interview, they frame capitalism as the villain.

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And the idea that people want to earn profits is also evil.

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And then in one breath, they switch to Larry Fink.

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So they frame capitalism as bad, and then they come about to investing.

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And while they're talking to old Finky Boy from BlackRock, Bitcoin comes up.

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He also believes we should be investing in crypto.

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Crypto?

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It wasn't that long ago that the big bankers, Jamie Dimon and Larry Fink...

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That's you.

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...were saying that crypto was stupid and a fraud.

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I did say Bitcoin, because we were talking about Bitcoin then, was the domain of money

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launderers and thieves. But, you know, the markets teach you, you have to always relook

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at your assumptions There is a role for crypto in the same way there a role for gold That is it an alternative For those looking to diversify this is not a bad asset

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but I don't believe that it should be a large component of your portfolio.

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No, no, of course not. No, no, of course not.

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So somehow, Andrew, even though he's on TV every single morning,

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fart-sniffing every little headline that comes out about finance,

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following every little pamp,

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he somehow misses that we've entered an era of debasement as policy.

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And I actually am genuinely shocked by this,

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because while I was away and with gold ripping like it is,

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the quote-unquote debasement trade became the meme of the town on Wall Street.

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It became the talk that everybody was obsessed with, the debasement trade.

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Why is gold ripping?

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And somehow Andrew misses all of this?

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Explain that to me.

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Explain that to me.

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I don't know. It gets to me. It gets to me.

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So I think that some of what's happening is basically things that those of us in either

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the Bitcoin space or the gold space have been talking about for years are kind of hitting

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the mainstream.

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This is Lynn Alden, of course, and she's going to give her definition of what this

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quote unquote debasement trade is.

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In a way, which is basically that there's an increasing recognition that major developed

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countries, whether it's the United States, whether it's Europe, like large parts of Europe,

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whether it's Japan, that they're not going to get their public finances in control.

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anytime soon, that their money supplies are going to continue growing pretty substantially,

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and less so from bank lending and more so from fiscal transfers. And that because of that,

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that there's an increased interest in harder assets. Now, when things do hit the mainstream,

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you have to be a little bit careful because you start to get consensus. And so, for example,

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after a disastrous five or six years in global bond markets, basically the worst bond market

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performance, especially in real terms, but even nominal terms, in modern history. It's natural

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that people are now extremely anti those things in favor of the things that have done well.

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Now, I still think structurally those things are going to do well, but there is some kind of

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caution at certain points. But basically, the debasement trade is the increasing recognition

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that nothing stops this train, that fiscal deficits are going to keep barreling different

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countries at different speeds. They all have their own unique dynamics, or I actually should say

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currency blocks because it's countries, but then in Europe's case, it's also the shared

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currency and that these things are long-term.

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They've already kind of received a kill shot in a way. They've already kind of become

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unsustainable. And now it's just that gradual realization and that

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gradual playing of those cards that have kind of already been dealt.

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This is really important to understand.

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everything's going to look like over a long time horizon like it's ripping stocks are going to look

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like they're ripping gold is going to look like it's ripping bitcoin is going to look like it's

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ripping in the short term maybe not but in the long term it will because the fiat that it's being

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compared to will always be devaluing we're in a period of debasement via policy we have to in

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order to win this quote-unquote ai war with china and i know of course all the other all the other

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things like all of the services that the U.S. government promises that it can't afford or the

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military engagements that it gets into that it can't afford. Like those can those will continue

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as a matter of policy. And so what Andrew seems to be missing is it's going to be ripping for a

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while. Now, will there be moments of corrections? Of course, of course. But we're probably in a

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prolonged period of things just looking like they're ripping because what they're being

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compared to is getting debased and he can't wrap his head around it. It's really something.

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moving on. But it's important that you wrap your head around it. You see,

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you need to understand that it's Bitcoin. That's going to be the strongest, fastest performing asset

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in this race. And gold, if you're closer to retirement and you need that stability,

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these are going to be your main assets. And of course, things like real estate are going to rip

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as well. But compared to Bitcoin and gold, it's just not quite the same investment.

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So what did happen to October? Well, you can think a lot of world dynamics at play, I'd say. We were promised an October PAMP, and I think that very expectation actually plays a role. It might have contributed to people over-leveraging themselves, where we just then saw them get wiped out.

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But I do agree with the spirit. Things have been good. Lots of tailwinds for Bitcoin legally, politically, policy, public opinion. Things are good. Access to buying Bitcoin is getting better. Gold's been running away. And typically, Bitcoin follows gold after a bit of a lag. So why isn't Bitcoin following?

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Well, it's two things.

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It's liquidity and it's sellers.

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It's always a matter of more sellers than buyers.

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And it's a matter if there is money looking for a place to get stashed and earn returns.

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And when people are loose with the money and they're looking for places to put it, things like assets get bought up.

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And this is why I often start the show with macro news.

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When things start to break down at the global level, it does directly impact Bitcoin in the short term, often negatively.

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and then ultimately positively.

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And I think we're in a period of that right now

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and how people ultimately react to it,

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like it really makes all the difference.

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So it's hard to really predict.

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But right now, big money has a big problem.

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And I don't think things necessarily smooth out

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until big money's problems are solved.

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And at the moment,

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China is really screwing up the AI pump.

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All right, Treasury Secretary

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and the U.S. Trade Representative

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met with reporters just about an hour ago.

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they warned about the potential impact of new trade rules from China, a plan they say could

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give Beijing complete control over the global economy. Now, all this as President Trump has

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threatened new tariffs and plans to meet with Xi Jinping later this month. Listen.

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China's new measures include a rule saying that any product of which more than 0.1% of minerals

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consist of minerals mined or processed in China, one must seek approval from the Chinese government

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before trading it.

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Since many important...

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Let's hold on a second,

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because that really matters.

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It sounds like what they're saying

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is that if your product,

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your overall entire product

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has at least 1% of Chinese

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rare earth minerals in it,

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then you have to get their approval to trade.

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1% of minerals

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consist of minerals mined or processed in China.

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One must seek approval

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from the Chinese government

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before trading it.

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You can imagine how that's not going to work

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for a lot of people.

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That's a big deal.

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One percent of minerals consist of minerals mined or processed in China.

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One must seek approval from the Chinese government before trading it.

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Since many important semiconductors, for example, have these critical minerals,

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and semiconductors are in nearly everything,

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this rule gives China control over basically the entire global economy and the technology supply chain.

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This will impact artificial intelligence systems and high-tech products,

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but even regular consumer items like cars, smartphones,

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and potentially even household appliances could be affected.

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You could see how this might have global liquidity a little upset.

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And as the U.S. escalates now back, because this is China's biggest leverage here,

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this rare earth issue is massive.

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This is something that this is one of the bigger cards China could play.

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And while the U.S. is invested in treasuries and the dollar and financialization,

341
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China has been stacking gold and rare earths.

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and now the U.S. realizes they've made a key mistake,

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and they've let themselves get played to a degree.

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Their hubris in their own building of some glorified financialization system

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let them get snowed by the Chinese,

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who've been stacking gold, preparing rare earths,

347
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building out factories, power building.

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The West just can't live with such tight controls on rare earths.

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It's going to be a no-go,

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and there's not really anything lined up to replace China's supply.

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While, yes, there's some in the ground and Greenland is known to have some and all of that, it doesn't change the fact refining them is difficult.

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And the machinery involved comes from like one company in some instances.

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That one company is in Germany and that one company in Germany sources parts from one company in Switzerland.

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And that company in Switzerland sources parts from some place in China.

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I mean, I'm not even kidding. It is like very precarious to refine these things right now.

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It's the most fragile aspect of the ecosystem, and it's a huge, huge topic.

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So I don't think the U.S. is going to take it very easily, and they're going to use every bit of leverage they have, anything they can scrape up.

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They're going to talk tough, and they're going to try to apply it.

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This was Treasury Secretary Scott Besson today.

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Make no mistake.

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This is China versus the world.

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They have put these unacceptable export controls on the entire world.

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China is a command and control economy, and we and our allies will neither be commanded nor controlled.

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They are a state economy, and we are not going to let a group of bureaucrats in Beijing try to manage the global supply chain.

365
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So this, I guess, you could consider as the opening dialogue by the U.S.

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This is their opening position, and they will use everything in their power to try to put pressure on China, even ridiculous proposals.

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Shut down when we can't get seven more Democratic senators across the line.

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But 85, 85 U.S. senators are willing to give President Trump the authority to put up to 500 percent tariffs on China for the purchase of Russian oil.

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Trust me, when the Treasury secretary in a press conference says that they're willing to put 500% tariffs on China, the Chinese authorities notice that kind of stuff.

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So that's the opening line of dialogue, okay?

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And then Trump's going to meet with Xi later this month.

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Where that goes, how productive that is, it's pretty hard to say.

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But this could be turbulent.

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Really, though, it comes down to how people decide to view Bitcoin in these conditions.

375
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Perhaps they view it as a safe harbor once again, since it's detached from government policy.

376
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they can only be so wise.

377
00:26:00,661 --> 00:26:04,361
Bitcoin Core 30 was released this week.

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This major update introduces optional encrypted node-to-node connections for enhanced privacy

379
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and also includes a massive increase in the op return data limit from 80 to 100,000 bytes,

380
00:26:16,261 --> 00:26:20,321
allowing much more than just financial data to be stored on the Bitcoin blockchain.

381
00:26:20,321 --> 00:26:25,121
The update also officially ends support for version 27 and earlier.

382
00:26:25,661 --> 00:26:35,321
While it includes performance upgrades, bug fixes, and a fee rate change, the most controversial change in here, as you are probably already aware, centers around the op return expansion.

383
00:26:36,521 --> 00:26:44,041
And as of this episode, when I was putting it together, my dashboard shows Core 30 at 1.8% of the network.

384
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So just shy of 2% of the network.

385
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Nots, combining the various versions, is around 21% of the network, almost to 22.

386
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21, pretty great number.

387
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And then the remainder of the other versions are different versions of Core.

388
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So this is awkward.

389
00:27:03,701 --> 00:27:09,561
Bitcoin Core 30 has landed without any real resolution to some of the complaints that people clearly feel very strongly about.

390
00:27:09,561 --> 00:27:18,381
And I have noticed, I'm not thrilled to say it, but I have noticed there has been an uptick in the discussion around softworking.

391
00:27:18,961 --> 00:27:24,801
And this very situation is something that Start9's CEO warned us about back in March.

392
00:27:25,401 --> 00:27:26,421
And I thought we'd play that now.

393
00:27:26,421 --> 00:27:42,641
There is some controversy in Bitcoin right now, for those of you who are not aware, where that power, the ability to define standard and non-standard according to a variety of different criteria, is being dwindled away to a degree.

394
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The nodes only have two powers.

395
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They have relay policy and they have war.

396
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They have user-activated soft fork and user-resisted soft fork powers,

397
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which cannot be taken away from the nodes.

398
00:27:57,821 --> 00:28:01,561
So let's say you are a constituency of Bitcoin that had to deal with the nodes

399
00:28:01,561 --> 00:28:03,961
because you do, because they have a rightful place,

400
00:28:04,441 --> 00:28:07,201
an undeniable place in Bitcoin's political ecosystem.

401
00:28:08,101 --> 00:28:09,441
The nodes only have two powers.

402
00:28:09,441 --> 00:28:15,461
They have the friendly way of enforcing certain types of transactions, and then they have the

403
00:28:15,461 --> 00:28:22,721
nuclear option. And so if the nodes are denied their ability to cooperate in a diplomatic,

404
00:28:23,081 --> 00:28:30,341
friendly way, and 90% of them want a certain type of transaction to be defined as non-standard,

405
00:28:30,541 --> 00:28:35,701
the only way that they now have to define that transaction as non-standard is to also define

406
00:28:35,701 --> 00:28:42,661
it as non-consensus, which means the transaction, if that were to happen, if 90% of nodes wanted a

407
00:28:42,661 --> 00:28:47,001
certain type of transaction out of the Bitcoin network and they couldn't do it through policy,

408
00:28:47,581 --> 00:28:54,681
they absolutely, with 90% consensus, could enforce a consensus rule that banned that transaction for

409
00:28:54,681 --> 00:29:00,121
all of the future. So forget about being able to sideload it to a miner or circumvent the P2P

410
00:29:00,121 --> 00:29:06,221
network in one way or another, the nodes have the ability to nuke the transaction from existence.

411
00:29:06,841 --> 00:29:13,121
So in a way, and where I wanted to get to with a little bit more time, is this is sort of a call

412
00:29:13,121 --> 00:29:19,021
for people to node up, right, in the first place. Get yourself a node. You don't have to buy anything

413
00:29:19,021 --> 00:29:23,201
from us. I don't care about that. Get yourself a node so that you can be heard on the network,

414
00:29:23,321 --> 00:29:28,581
so that you have a voice on the network. And it's also a little bit of a warning shot to the other

415
00:29:28,581 --> 00:29:35,361
constituencies of the nodes only have two political powers. And if you take away the friendly one,

416
00:29:35,741 --> 00:29:41,181
they will be left with one power, which nobody wants. Nobody wants a nuclear war in Bitcoin.

417
00:29:41,181 --> 00:29:49,041
We don't want a contentious soft fork. But in the absence of the ability to create policy

418
00:29:49,041 --> 00:29:54,661
that divides transactions into standard and non-standard, all we can do is divide them into

419
00:29:54,661 --> 00:29:59,121
consensus and non-consensus. And if 90% of the nodes want something, it's going to happen.

420
00:29:59,481 --> 00:30:04,601
There's no force in Bitcoin that can offset 90% of nodes wanting something to happen. They are the

421
00:30:04,601 --> 00:30:09,401
ultimate power in Bitcoin. So anyway, if you want a little bit of political power and any of this

422
00:30:09,401 --> 00:30:15,201
is interesting to you, get a node, read up on this stuff, because unfortunately, there probably

423
00:30:15,201 --> 00:30:20,421
is a software coming in the next couple of years. We hope that it is non-contentious and simply

424
00:30:20,421 --> 00:30:23,621
He implements some really cool new features that everybody wants.

425
00:30:24,161 --> 00:30:27,461
But there's a bit of arguing taking place in Bitcoin right now.

426
00:30:27,481 --> 00:30:36,741
And if you have a stance on that argument, the only way to be heard and to make a difference is to note up and choose the policies and consensus rules that you yourself believe in.

427
00:30:37,021 --> 00:30:37,741
Thank you very much.

428
00:30:37,741 --> 00:30:40,241
Yeah, I would plus one his call to note up.

429
00:30:40,521 --> 00:30:41,561
Have a voice in the network.

430
00:30:41,781 --> 00:30:45,921
If something like a soft fork does present itself, then you have a vote.

431
00:30:46,001 --> 00:30:46,681
You have a voice.

432
00:30:46,681 --> 00:30:52,581
I'm not convinced we're headed for some sort of Bitcoin civil war just yet for one you could just

433
00:30:52,581 --> 00:30:57,361
not upgrade you could stay on core 29 it's still gonna get fixes for a while they just deprecated

434
00:30:57,361 --> 00:31:12,082
27 so you can stay on 29 it getting bug fixes you could run knots and then if knots pisses you off you could switch back to core you could probably switch back to core 28 or core 29 for a while So I don know That where I at with this

435
00:31:12,982 --> 00:31:13,842
What do you think?

436
00:31:13,882 --> 00:31:15,562
Am I just oversimplifying this?

437
00:31:16,082 --> 00:31:18,842
Is this going to lead to a soft fork in a civil war?

438
00:31:19,562 --> 00:31:20,762
I don't know about that.

439
00:31:20,762 --> 00:31:27,562
To me, it just seems like once the dust settles, we're probably going to look back at this and think it was a bit of an overreaction.

440
00:31:28,062 --> 00:31:34,542
The stuff that's going to be really dramatic is if you do get CSAM and stuff like that in the blockchain, and then people make a big deal about it or something like that.

441
00:31:35,162 --> 00:31:35,622
But I don't know.

442
00:31:35,782 --> 00:31:37,022
I'd like to get your read.

443
00:31:37,142 --> 00:31:37,882
What's your temperature?

444
00:31:38,162 --> 00:31:39,582
Am I oversimplifying the situation?

445
00:31:39,782 --> 00:31:42,522
Boost in and tell me if you're satisfied where things are at this moment.

446
00:31:57,562 --> 00:32:03,702
There's a lot more show coming up.

447
00:32:03,742 --> 00:32:07,782
But first, I just want to say you can support the show by doing what you might already be doing.

448
00:32:07,942 --> 00:32:11,842
If you're buying sats on River, one of the best places to stack sats in the U.S.,

449
00:32:11,842 --> 00:32:13,982
I have a link in the show notes that supports the show.

450
00:32:14,462 --> 00:32:17,102
Click that first. You start stacking. Supports the show.

451
00:32:17,482 --> 00:32:21,622
Now, if you're all about self-custody and you're in the U.S. or Canada, the Bitcoin well.

452
00:32:21,702 --> 00:32:23,962
It's an amazing automatic self-custody platform.

453
00:32:24,482 --> 00:32:26,262
You go directly to and from your own wallets.

454
00:32:26,262 --> 00:32:36,422
They don't even host the wallet. I love that. If you're ready to spend some sats and you have them on Lightning, the Bitcoin company, the Bitcoin company link in our show notes, gives you access to hundreds of gift cards in just seconds.

455
00:32:36,702 --> 00:32:41,062
You don't even have to log in. You just use your lightning. Boom, you're in there and you get a gift card. Boom, you're spending it.

456
00:32:41,462 --> 00:32:47,422
Now, I think one of the best ways to stack sats is just why you're grinding out your daily life. And the fold card helps you do that.

457
00:32:47,522 --> 00:32:52,702
You stack sats while you pay your bills, things like that. Fold card's great. Big favorite in the audience.

458
00:32:53,322 --> 00:32:57,902
Then last but not least, if you need to get access to your Bitcoin value without selling it, consider Salt Lending.

459
00:32:58,542 --> 00:33:05,062
They allow values lower than, say, Strike, and they have things that let you take advantage of wipeout protection.

460
00:33:05,602 --> 00:33:10,222
It's a crazy system where they'll convert your Bitcoin to stablecoins for a bit and then back when the market crashes.

461
00:33:10,682 --> 00:33:15,102
Not a big stablecoin guy, but I like that more than I get than getting margin called.

462
00:33:15,202 --> 00:33:16,462
So that seems like a pretty great feature.

463
00:33:16,582 --> 00:33:17,762
Salt Lending's been rolling that out.

464
00:33:18,262 --> 00:33:19,222
They have that protection now.

465
00:33:19,622 --> 00:33:21,262
None of them pay me to say any of that crap.

466
00:33:21,262 --> 00:33:22,202
I just use it.

467
00:33:22,282 --> 00:33:23,102
I think you'd like it too.

468
00:33:23,162 --> 00:33:24,162
It's a great way to support the show.

469
00:33:24,302 --> 00:33:26,002
Links in the show notes.

470
00:33:37,622 --> 00:33:39,222
And we did get some boosts.

471
00:33:40,022 --> 00:33:44,522
And Adversary 17 is our baller booster this week with 90,000 sats.

472
00:33:44,522 --> 00:34:14,502
Hey, Rich Lobster!

473
00:34:14,522 --> 00:34:16,202
First ever fully custom Docker image.

474
00:34:16,561 --> 00:34:18,642
I decided it'd be fun to build knots from source.

475
00:34:19,041 --> 00:34:20,382
Now I'm running both core and knots.

476
00:34:20,742 --> 00:34:21,522
Stay tuned for an update.

477
00:34:21,882 --> 00:34:22,222
Wow.

478
00:34:22,922 --> 00:34:24,702
Talk about doing the proof of work on that one.

479
00:34:25,442 --> 00:34:26,462
Well done adversaries.

480
00:34:26,642 --> 00:34:27,882
I'd love to hear an update on that.

481
00:34:28,422 --> 00:34:32,402
And if you notice anything between them in particular, I would be surprised if you did.

482
00:34:33,081 --> 00:34:34,282
But would love to hear if you do.

483
00:34:34,581 --> 00:34:35,322
Thanks for boosting in.

484
00:34:35,502 --> 00:34:36,022
Appreciate it.

485
00:34:36,642 --> 00:34:38,742
Jcube's here with 61,000 sats.

486
00:34:38,742 --> 00:34:41,442
I hoard that which your kind covered.

487
00:34:41,662 --> 00:34:43,942
Jcube writes, I'm currently running knots on Umbral.

488
00:34:43,942 --> 00:34:47,802
I was running on NixBitcoin, but couldn't get the swap to Notts from Core to work.

489
00:34:48,102 --> 00:34:49,862
I'd love to see an example of that config.

490
00:34:50,322 --> 00:34:55,581
I'm going to choose to run Notts for a while, at least because the Core devs are going full big government on us.

491
00:34:55,702 --> 00:34:58,302
If they undeprecate an option, I may swap back.

492
00:34:59,022 --> 00:35:01,081
I will take my dip as an opportunity to get more sats.

493
00:35:01,382 --> 00:35:03,202
Yes, right? Take the dip. I agree.

494
00:35:04,382 --> 00:35:06,502
And enjoy Texas Linux Fest, JQB writes.

495
00:35:06,782 --> 00:35:09,522
Thank you, JQB. I don't really have a config to share at the moment.

496
00:35:09,862 --> 00:35:12,862
I'll talk to Wes about that and see if we can't cook something up in the near future, though.

497
00:35:12,862 --> 00:35:14,262
And thank you for the boost.

498
00:35:15,762 --> 00:35:19,081
OBL9118 comes in with 50,000 sats.

499
00:35:22,802 --> 00:35:26,581
I just says Boost McBoosterson and also Run Knots.

500
00:35:26,702 --> 00:35:28,242
B-O-O-S-T.

501
00:35:28,541 --> 00:35:29,021
Boost!

502
00:35:29,182 --> 00:35:31,802
Thank you, sir. Appreciate that. Appreciate the value, too.

503
00:35:32,882 --> 00:35:35,462
FortyDeuce comes in with 42,000 sats.

504
00:35:35,642 --> 00:35:37,762
The answer to the ultimate question.

505
00:35:38,122 --> 00:35:39,822
Chris, thanks for the value you provide on the show,

506
00:35:39,902 --> 00:35:42,262
and I hope you all have a great road trip down to Texas.

507
00:35:42,262 --> 00:35:55,362
The way you tend to structure the show with macroeconomics overview near the beginning and then getting deeper into the Bitcoin weeds later on in the show makes it much more shareable with friends who are interested in investment and economics but haven't been fully bitten by the Bitcoin bug yet.

508
00:35:56,002 --> 00:35:57,882
I find that alone useful and valuable.

509
00:35:58,362 --> 00:35:58,982
Keep up the work you do.

510
00:35:59,041 --> 00:35:59,742
It's deeply appreciated.

511
00:35:59,822 --> 00:36:01,222
Well, thank you, Forty Deuce.

512
00:36:01,521 --> 00:36:10,602
I think that's a happy second-order effect of trying to set the context and the framework of which you find Bitcoin in today.

513
00:36:10,602 --> 00:36:10,922
Right?

514
00:36:10,922 --> 00:36:15,282
So I start with the macro because it then leads into what's going on with Bitcoin.

515
00:36:15,962 --> 00:36:18,362
And I think it's a bit that a lot of us can easily overlook.

516
00:36:19,202 --> 00:36:21,322
And it's also, I could spend a lot more time.

517
00:36:21,862 --> 00:36:23,602
Every episode, I'm cutting macro.

518
00:36:23,842 --> 00:36:24,541
I really am.

519
00:36:24,682 --> 00:36:26,021
I cut stuff out every episode.

520
00:36:26,502 --> 00:36:28,902
Because I can make the whole episode about it, and I don't want to do that either.

521
00:36:28,962 --> 00:36:29,802
I'm here to talk about Bitcoin.

522
00:36:29,982 --> 00:36:34,422
But trying to find the balance, kind of where it all clicks together, that's sort of, I think, when I get the episode just right.

523
00:36:35,002 --> 00:36:35,541
Thank you, 40.

524
00:36:35,662 --> 00:36:36,322
Appreciate that.

525
00:36:37,081 --> 00:36:39,402
VCP comes in with 20,000 sats.

526
00:36:40,922 --> 00:36:48,402
I am minutes away from addressing a 250 AG policy people.

527
00:36:48,541 --> 00:36:49,142
Oh, cool.

528
00:36:49,282 --> 00:36:50,081
In Manhattan.

529
00:36:50,502 --> 00:36:51,362
Oh, in Kansas.

530
00:36:52,122 --> 00:36:53,002
Manhattan, Kansas, huh?

531
00:36:53,541 --> 00:36:54,402
Is that a cool place?

532
00:36:55,081 --> 00:36:55,802
I want to look that up.

533
00:36:56,162 --> 00:36:58,442
I'm going to tell them something they're going to resist.

534
00:36:59,182 --> 00:37:02,982
Those that engage in Bitcoin today will be the farmland owners of tomorrow.

535
00:37:03,802 --> 00:37:04,162
Ooh.

536
00:37:04,862 --> 00:37:07,762
It says, I owe a large portion of my ability to explain Bitcoin to your work on Twib,

537
00:37:07,762 --> 00:37:08,922
and I'm boosting to say thank you.

538
00:37:09,061 --> 00:37:10,242
Your work is echoing into the world.

539
00:37:10,242 --> 00:37:11,762
Oh, VCP, that's super cool.

540
00:37:11,942 --> 00:37:13,242
And I love where your head's at.

541
00:37:13,322 --> 00:37:14,682
I think about this a lot.

542
00:37:15,122 --> 00:37:24,902
I have family members that moved north of Seattle, like an hour north of Seattle, 40 years ago, when it was nothing out here.

543
00:37:25,422 --> 00:37:26,662
Nothing but empty land.

544
00:37:26,862 --> 00:37:31,842
And they bought up so much choice land, and they took some risk to do it.

545
00:37:32,382 --> 00:37:33,382
They were not rich.

546
00:37:33,822 --> 00:37:39,622
They had to work very hard, and they had to leverage up to their eyeballs for a while to pull it off.

547
00:37:39,622 --> 00:37:43,122
but now they own these massive chunks of land.

548
00:37:43,222 --> 00:37:46,422
I would just, oh, I would love to talk to them about it.

549
00:37:46,541 --> 00:37:47,682
Never really got the opportunity.

550
00:37:47,782 --> 00:37:49,342
I would love to just pick their brain.

551
00:37:50,081 --> 00:37:53,502
And I view a similar opportunity happening right now in Bitcoin.

552
00:37:54,102 --> 00:37:56,242
It's a land grab in Bitcoin right now.

553
00:37:56,322 --> 00:37:59,902
It's the same exact thing happening, but just in a different asset class.

554
00:37:59,902 --> 00:38:03,021
It was real estate for the boomers and the boomers' parents,

555
00:38:03,462 --> 00:38:07,622
and it's Bitcoin for the generations that are, well, looking for it now.

556
00:38:07,682 --> 00:38:08,622
It's multiple generations.

557
00:38:08,622 --> 00:38:16,782
It could even be for boomers, although they tend to sell at the bottom and buy at the top if you go by the ETF stats.

558
00:38:17,222 --> 00:38:19,521
But that's probably just the ones that play with ETFs.

559
00:38:20,061 --> 00:38:24,842
And I think it's really important because I don't have access to that real estate now because it's all gone.

560
00:38:25,502 --> 00:38:31,602
If you look in Washington State, try to just find a piece of property for a decent amount of, you know, like an acre.

561
00:38:32,061 --> 00:38:32,942
Try to find an acre.

562
00:38:33,482 --> 00:38:37,242
Just in western Washington, try to find an acre.

563
00:38:37,242 --> 00:38:38,842
as a little experiment.

564
00:38:39,081 --> 00:38:40,882
If you live somewhere that's not very populated,

565
00:38:41,021 --> 00:38:41,602
not very dense,

566
00:38:42,222 --> 00:38:43,762
go have a little fun at Chris's expense.

567
00:38:44,382 --> 00:38:46,622
Go look at just property and house prices

568
00:38:46,622 --> 00:38:49,541
in the Pacific Northwest, right?

569
00:38:49,561 --> 00:38:51,322
That opportunity is pretty much closed.

570
00:38:51,622 --> 00:38:52,402
And I can't believe that.

571
00:38:52,422 --> 00:38:54,162
As somebody who has bought two homes,

572
00:38:55,021 --> 00:38:56,382
bought and owned two homes,

573
00:38:56,762 --> 00:38:58,882
I thought I would have two more homes by now.

574
00:38:59,402 --> 00:39:01,182
It's just crazy how that real estate

575
00:39:01,182 --> 00:39:03,061
has gotten so far out of the reach of most people.

576
00:39:03,602 --> 00:39:04,942
But Bitcoin is our opportunity today.

577
00:39:05,021 --> 00:39:05,882
And I'm really glad you're out there

578
00:39:05,882 --> 00:39:06,742
talking about it, VCP.

579
00:39:07,242 --> 00:39:09,942
Good on you. Appreciate that. And thanks for sharing.

580
00:39:10,702 --> 00:39:14,402
Gene Bean's back with 2,896 sats.

581
00:39:16,302 --> 00:39:18,122
Says, I quite enjoyed the chat with Oscar,

582
00:39:18,561 --> 00:39:21,202
and I loved the music in the background after the boost.

583
00:39:21,282 --> 00:39:22,862
Keep that up. Oh, yeah, the cha-cha music?

584
00:39:23,002 --> 00:39:24,902
Yeah, okay, I'll play that for you this week, Gene.

585
00:39:25,402 --> 00:39:27,402
And says, by the way, don't take my minimal boosting

586
00:39:27,402 --> 00:39:30,382
and possibly reduce streaming for me as signal.

587
00:39:30,622 --> 00:39:31,962
All right, I won't, Gene, I won't.

588
00:39:32,322 --> 00:39:33,642
Some of us get tight, I understand.

589
00:39:34,222 --> 00:39:35,422
Although I have been wondering how you're doing,

590
00:39:35,521 --> 00:39:36,382
So thanks for the check-in.

591
00:39:36,521 --> 00:39:37,662
It is really nice to hear from you.

592
00:39:38,302 --> 00:39:40,302
Paranoid Coders here with 4,000 sats.

593
00:39:44,942 --> 00:39:48,162
One of the things that keeps me, he says, from switching to Fountain

594
00:39:48,162 --> 00:39:51,942
is the lack of a desktop or web support.

595
00:39:52,462 --> 00:39:55,462
I'm not going to pretend that adding a new platform support would be easy,

596
00:39:55,561 --> 00:39:57,942
but so many other podcast apps have a desktop equivalent,

597
00:39:58,402 --> 00:40:01,342
and a lack of one is a core miss with my existing flow.

598
00:40:01,622 --> 00:40:03,541
I still want to support the app, though, and I continue to boost through it.

599
00:40:04,041 --> 00:40:05,122
I used to be that way, too.

600
00:40:05,422 --> 00:40:08,002
It was one of the big reasons I went with Pocket Cast for so long.

601
00:40:08,802 --> 00:40:15,722
But as time has gone on, the speakers on my phone have gotten so good that I don't find myself switching to my desktop to finish a podcast when I arrive.

602
00:40:16,342 --> 00:40:17,742
And if anything, I'm putting headphones on now.

603
00:40:18,081 --> 00:40:19,342
So it just hasn't really been a big work.

604
00:40:19,402 --> 00:40:20,541
I think it's a workflow thing.

605
00:40:20,642 --> 00:40:22,122
And you can adjust.

606
00:40:22,242 --> 00:40:22,782
You can get used to them.

607
00:40:22,902 --> 00:40:23,782
But I hear you.

608
00:40:23,822 --> 00:40:25,302
It would be nice to have like a web player sync.

609
00:40:25,382 --> 00:40:25,942
Maybe one day.

610
00:40:26,502 --> 00:40:27,061
You never know.

611
00:40:27,982 --> 00:40:28,902
Technology's out there, Paranoid.

612
00:40:29,182 --> 00:40:29,802
Thanks for the boost.

613
00:40:30,342 --> 00:40:32,822
Hearn 88 is here with 4,500 sats.

614
00:40:32,822 --> 00:40:34,142
Fun will now commence.

615
00:40:34,142 --> 00:40:36,222
He says, sailor was right about ossification.

616
00:40:36,762 --> 00:40:37,282
Thank you.

617
00:40:38,242 --> 00:40:38,942
Thanks, Hearn.

618
00:40:40,081 --> 00:40:41,162
Perhaps he was.

619
00:40:41,541 --> 00:40:42,682
Perhaps he was.

620
00:40:43,122 --> 00:40:45,702
Northern hodl's here with 5,555 zats.

621
00:40:45,962 --> 00:40:46,762
This is the way.

622
00:40:47,302 --> 00:40:48,782
He says, thanks for your continued efforts.

623
00:40:49,242 --> 00:40:50,182
You're doing a bang-up job.

624
00:40:50,442 --> 00:40:51,162
Win pamp.

625
00:40:52,822 --> 00:40:53,742
I know, buddy.

626
00:40:53,902 --> 00:40:54,362
I know.

627
00:40:54,561 --> 00:40:55,842
The traders love the vol.

628
00:40:55,902 --> 00:40:56,902
Hey, you love the vol, right?

629
00:40:56,982 --> 00:40:57,882
Buy the dip, right?

630
00:40:58,581 --> 00:40:58,942
Yeah.

631
00:40:59,622 --> 00:41:00,242
I know.

632
00:41:00,362 --> 00:41:02,561
The issue is, of course, what I outlined earlier.

633
00:41:02,561 --> 00:41:04,842
the things I outlined in the macro section.

634
00:41:05,602 --> 00:41:06,021
Whew.

635
00:41:07,422 --> 00:41:08,782
Just take a deep breath.

636
00:41:09,322 --> 00:41:10,102
Go outside.

637
00:41:11,202 --> 00:41:12,482
Enjoy the nature.

638
00:41:13,322 --> 00:41:14,222
And before you know it,

639
00:41:14,521 --> 00:41:15,602
the Bitcoin will pamp again.

640
00:41:16,622 --> 00:41:17,561
Thanks, Northern Auto.

641
00:41:17,842 --> 00:41:18,462
Appreciate it.

642
00:41:18,822 --> 00:41:20,782
Hello there is there with a row of ducks.

643
00:41:20,862 --> 00:41:22,581
2,222 sats.

644
00:41:23,442 --> 00:41:25,802
No message, just value, which I appreciate.

645
00:41:26,242 --> 00:41:29,302
Ace Ackerman's here with 3,333 sats.

646
00:41:29,342 --> 00:41:30,442
That's probably a McDuck.

647
00:41:30,561 --> 00:41:32,242
Quack-a-wack-a, it's a treasure.

648
00:41:32,581 --> 00:41:34,502
Christine Lagarde is a kook!

649
00:41:35,302 --> 00:41:36,622
Oh, and have fun on your road trip.

650
00:41:37,222 --> 00:41:38,442
Thanks, Ace. Appreciate it.

651
00:41:39,021 --> 00:41:42,102
Morph Sausage is here with 4,444 sats.

652
00:41:42,302 --> 00:41:42,902
That's right!

653
00:41:43,541 --> 00:41:45,222
About the digital year, I have to admit,

654
00:41:45,402 --> 00:41:48,422
the responses from Ms. Lagarde were very poor and uninformed.

655
00:41:48,581 --> 00:41:50,862
However, some privacy is indeed there,

656
00:41:50,942 --> 00:41:54,482
because the idea is you could transfer payments directly from device to device offline

657
00:41:54,482 --> 00:41:57,842
without a server connection required, just like handing over cash.

658
00:41:57,842 --> 00:42:00,882
In my mind, that's actually a competitor to Visa or MasterCard.

659
00:42:01,502 --> 00:42:05,602
Currently, there is no EU payment provider in EU like MasterCard.

660
00:42:06,002 --> 00:42:09,142
And I don't mean to be offensive, but with the current political situation in the U.S.,

661
00:42:09,142 --> 00:42:13,442
I think a lot of EU citizens are happy with such an arrangement and no dependency on a U.S. company.

662
00:42:14,182 --> 00:42:15,822
I think the government is looking for a solution.

663
00:42:16,202 --> 00:42:19,041
He says, but I do not see it as a response to stablecoins.

664
00:42:19,402 --> 00:42:20,622
Ah, interesting. I heard otherwise.

665
00:42:20,902 --> 00:42:22,402
I very appreciate that perspective.

666
00:42:22,962 --> 00:42:23,541
Thank you, Morph.

667
00:42:24,182 --> 00:42:24,942
That's really interesting.

668
00:42:25,422 --> 00:42:28,541
Army guy 6902, I think, is along the same lines there.

669
00:42:28,622 --> 00:42:29,521
Let's bring in army guy.

670
00:42:29,521 --> 00:42:30,862
Coming in hot with the boom.

671
00:42:30,882 --> 00:42:38,541
3,000 sats. With regards to the digital euro discussion, whether or not privacy is intended to be upheld or not is irrelevant.

672
00:42:39,081 --> 00:42:43,442
If you wanted privacy, we could just use Monero.

673
00:42:43,682 --> 00:42:47,822
If you wanted speed, you could just use a partner or use Lightning with a provider.

674
00:42:48,242 --> 00:42:52,682
The truth is the digital euro infrastructure allows privacy to be stripped away whenever they decide.

675
00:42:53,342 --> 00:42:57,482
It has been a while since I sent in the last boost, but I want to say keep up the good work and I love the show.

676
00:42:57,802 --> 00:42:59,502
Thank you, Armageddon. Appreciate it.

677
00:42:59,502 --> 00:43:01,102
fun will now commence.

678
00:43:01,142 --> 00:43:01,922
We're having fun over here.

679
00:43:02,002 --> 00:43:02,622
Appreciate that.

680
00:43:03,521 --> 00:43:04,302
Two good perspectives.

681
00:43:05,222 --> 00:43:06,541
Chance of Dizzy Spells

682
00:43:06,541 --> 00:43:08,422
comes in with 2,000 sats.

683
00:43:08,521 --> 00:43:09,162
Tough little ship.

684
00:43:09,982 --> 00:43:10,322
Little.

685
00:43:10,802 --> 00:43:11,602
Sounds dangerous.

686
00:43:12,021 --> 00:43:12,942
Danger zone.

687
00:43:13,142 --> 00:43:14,282
I enjoyed the bonus episode.

688
00:43:14,382 --> 00:43:15,682
Informative and clearly presented.

689
00:43:15,822 --> 00:43:16,982
Here's a small value for value note.

690
00:43:17,442 --> 00:43:18,222
Wish I could send more.

691
00:43:18,462 --> 00:43:19,702
Appreciation for all your hard work.

692
00:43:19,962 --> 00:43:20,882
Well, thanks, spells.

693
00:43:21,081 --> 00:43:21,561
Appreciate it.

694
00:43:21,642 --> 00:43:22,182
Danger zone.

695
00:43:22,722 --> 00:43:25,402
Bobby Pins here with 12,000 sats.

696
00:43:29,502 --> 00:43:31,362
Put some macaroni and cheese on there, too.

697
00:43:31,482 --> 00:43:33,902
And Bobby Penn says, thanks for giving me the advice.

698
00:43:34,102 --> 00:43:36,041
I think it was in response to trying to get to one Bitcoin.

699
00:43:36,502 --> 00:43:37,561
I think I'm on the right path.

700
00:43:37,702 --> 00:43:39,422
I'm keeping my DCA at what it is.

701
00:43:39,581 --> 00:43:41,602
Interesting that you suggested keeping a stash in River.

702
00:43:41,702 --> 00:43:44,122
I was already doing that since they gave a little better on rewards.

703
00:43:44,822 --> 00:43:47,122
But I used that stash to pick up more at 109.

704
00:43:47,482 --> 00:43:49,742
Hey, time to fill up the reserve again.

705
00:43:49,842 --> 00:43:50,902
Staying humble and stacking sands.

706
00:43:50,962 --> 00:43:51,561
You did it.

707
00:43:51,842 --> 00:43:54,462
Man, within like two weeks, you executed on the idea.

708
00:43:55,002 --> 00:43:55,722
Bobby Penn.

709
00:43:55,862 --> 00:43:56,202
Yeah.

710
00:43:56,202 --> 00:44:03,422
For now, I'm pretty happy learning all the interesting technical aspects of Bitcoin and various apps to run on my node and how to integrate that with my home lab.

711
00:44:03,561 --> 00:44:04,482
Oh, I love this.

712
00:44:05,202 --> 00:44:07,642
This is the zone you want to be in, dude.

713
00:44:08,162 --> 00:44:17,342
Is there an OSI model-like tool to understand how the consensus layer interacts with mempool and how layer twos like Lightning and Liquid can transfer sats without using block space?

714
00:44:18,002 --> 00:44:20,541
Boy, well, okay, so Liquid isn't technically a layer two.

715
00:44:20,942 --> 00:44:23,942
People say it's a layer two for simplicity.

716
00:44:24,602 --> 00:44:28,002
Lightning is a layer two because it is settled on Bitcoin.

717
00:44:28,782 --> 00:44:30,021
All right, so where to start?

718
00:44:30,222 --> 00:44:30,622
Okay.

719
00:44:32,862 --> 00:44:35,242
I think there's some talks you need to watch on YouTube.

720
00:44:35,982 --> 00:44:37,102
And I would look up, you know what?

721
00:44:37,422 --> 00:44:38,702
Start with mempool policy.

722
00:44:38,882 --> 00:44:40,702
I think that actually will get you going in the right direction.

723
00:44:40,702 --> 00:44:45,222
So go on the YouTubes and look up how Bitcoin mempool policy works and gets set.

724
00:44:45,581 --> 00:44:47,822
And then later on, worry about Lightning and Liquid.

725
00:44:47,942 --> 00:44:48,882
Not nearly as important.

726
00:44:49,061 --> 00:44:51,402
Not nearly as important as kind of understanding the consensus stuff.

727
00:44:51,402 --> 00:44:57,561
and then like liquid sure lightning i would get to first it's a it's probably more applicable

728
00:44:57,561 --> 00:45:02,682
liquid is great for if you're trying to in my opinion there's lots of uses for it but in my

729
00:45:02,682 --> 00:45:08,142
opinion liquid is great for if you have a lot of small utxos and you want to stack them all up in

730
00:45:08,142 --> 00:45:13,222
one place and then just do one transaction out of liquid to your bitcoin cold storage so then what

731
00:45:13,222 --> 00:45:19,521
you end up is like a reasonably sorry chart reasonably sized sorry utxo instead of having

732
00:45:19,521 --> 00:45:23,102
lots of little ones that you're going to spend lots of fees on in the future. That's where I

733
00:45:23,102 --> 00:45:28,422
think Liquid comes in clutch. There's some privacy involved too. I also really like Liquid for moving

734
00:45:28,422 --> 00:45:33,502
sats between my kids. Like if they do something and they earn 15 sats as a chore or 20 sats as a

735
00:45:33,502 --> 00:45:39,142
chore, I just move that over Liquid. They have Liquid wallets on their phone and I send them a

736
00:45:39,142 --> 00:45:42,882
little bit. They get a notification. They love it. You know, they can look at it and then we can move

737
00:45:42,882 --> 00:45:48,742
things around real quick for basically no cost. And there are hardware wallets available for Liquid

738
00:45:48,742 --> 00:45:54,502
as well. You are on a great journey, Bobby Penn. Keep us posted. I'm really enjoying living

739
00:45:54,502 --> 00:46:00,202
vicariously through your process. Keep it up. And thank you very much for the boost. Appreciate it.

740
00:46:00,722 --> 00:46:07,521
The immunologist is back with 3,333 stats. I like you. You're a hot ticket. With the digital euro,

741
00:46:07,862 --> 00:46:12,982
independently on how it is presented, the goal is likely to have alternatives to PayPal,

742
00:46:13,262 --> 00:46:18,102
MasterCard, and Visa in the EU. Currently, almost all digital transactions depend on those American

743
00:46:18,102 --> 00:46:23,822
companies and could easily exert could easily have political control exerted on them. In an

744
00:46:23,822 --> 00:46:28,622
ideal world, the digital euro would be a form of citizens for citizens payment, but it is at least

745
00:46:28,622 --> 00:46:33,362
another payment option. If private companies or the EU are better as a payment provider, well,

746
00:46:33,402 --> 00:46:45,422
then it just a matter of debate Okay so the big context that you guys are giving me here is I didn realize that you use Visa and MasterCard so much You didn have your own equivalents over there I never really thought about it to be honest with you

747
00:46:45,523 --> 00:46:48,982
I suppose there's the convenience of it makes global travel awfully nice.

748
00:46:49,343 --> 00:46:54,002
But I had not really given it much thought, I suppose, because I've never been to the EU.

749
00:46:54,563 --> 00:46:57,762
And so this is one of the things I would probably think about when I was there and noticing it.

750
00:46:57,802 --> 00:46:59,702
But it's one of the things you don't think about from afar.

751
00:46:59,702 --> 00:47:04,823
So I really appreciate just even that education you give me today and the context.

752
00:47:04,942 --> 00:47:08,543
And it doesn't sound like it's nearly as controversial as something like this would be in the United States.

753
00:47:08,922 --> 00:47:15,622
I'm hearing kind of a mixed but not overly negative take on the digital euro.

754
00:47:15,962 --> 00:47:20,462
And so I hope you guys will keep me posted on how it actually plays out and any evolving thoughts you have.

755
00:47:21,142 --> 00:47:24,302
Also, thank you everybody who boosts below the 2000sat cutoff.

756
00:47:24,363 --> 00:47:27,582
I do read all of them and I keep them all in my show notes too for posterity.

757
00:47:27,982 --> 00:47:28,662
Appreciate that.

758
00:47:28,662 --> 00:47:34,363
I do the 2000s that cut off just for, you know, time on the air. And also big shout out to all of

759
00:47:34,363 --> 00:47:39,702
you who stream sats as you listen. 49 of you just streamed those sats and collectively you stacked

760
00:47:39,702 --> 00:47:46,502
61,818 sats for the show. Thank you. I love the sats stream. I love seeing them come in. They come

761
00:47:46,502 --> 00:47:52,622
in 24 seven. I'm working on my node. I'll see five sats come in. Five sats come in. Somebody's

762
00:47:52,622 --> 00:47:57,023
listening to the show while I'm working on my node. Somebody's listening to the show. It's so cool.

763
00:47:57,023 --> 00:48:05,563
All right, when you combine those SAT streamers with our boosters, the show stacked a pretty reasonable 376,645 SATs.

764
00:48:08,122 --> 00:48:10,962
Thank you, everybody who participates in the Value for Value system.

765
00:48:11,242 --> 00:48:12,382
I put the show out there for free.

766
00:48:12,442 --> 00:48:13,422
I hope it's useful to you.

767
00:48:13,662 --> 00:48:15,482
And then you return the value you find in it.

768
00:48:15,902 --> 00:48:17,563
Fountain.fm makes that real easy.

769
00:48:18,043 --> 00:48:21,043
Of course, there's AlbiHub, and then you can plug that into your app of choice.

770
00:48:27,023 --> 00:48:35,343
There's also some set-it and forget-it options with the show.

771
00:48:35,482 --> 00:48:37,982
To support us, we have the Jupiter Party membership,

772
00:48:38,182 --> 00:48:41,662
which is the Jupiter Broadcasting Whole Network membership

773
00:48:41,662 --> 00:48:42,722
where you get everything.

774
00:48:42,843 --> 00:48:43,762
That's Jupiter.party.

775
00:48:44,262 --> 00:48:47,202
And then in Fountain, I'm working with their new membership system.

776
00:48:47,343 --> 00:48:49,182
It's a membership program just for the show,

777
00:48:49,242 --> 00:48:50,362
an individual program for the show,

778
00:48:50,422 --> 00:48:52,182
where you do get access to the bonus features,

779
00:48:52,662 --> 00:48:54,102
the early stuff when I put it out there,

780
00:48:54,102 --> 00:48:55,442
and you get a badge in your profile.

781
00:48:55,442 --> 00:49:00,642
but also we're kind of kicking the tires on a lightning-based subscription system,

782
00:49:00,802 --> 00:49:03,402
which does mean you need to keep your Fountain wallet topped off for this to work.

783
00:49:03,502 --> 00:49:05,642
You could also plug it into your Fiat bank card if you want,

784
00:49:06,282 --> 00:49:07,722
but nobody else does this right now.

785
00:49:07,722 --> 00:49:10,982
And Fountain is doing it all with open freaking standards.

786
00:49:11,502 --> 00:49:14,582
Now, they're the only ones doing this stuff, but if we can prove the way,

787
00:49:14,742 --> 00:49:18,882
others may very well follow along, and they will be able to implement this stuff

788
00:49:18,882 --> 00:49:22,762
because it's just standards, RSS feeds, and Oster identities, things like that.

789
00:49:22,762 --> 00:49:27,823
So there is a subscription membership system available through the Fountain app for this show as well.

790
00:49:28,202 --> 00:49:33,362
And we're kind of trying out something that could be a revolutionary way for content creators to run memberships.

791
00:49:33,362 --> 00:49:53,602
all right in the updates section we're going to do a little bit of a banker blowout they've been

792
00:49:53,602 --> 00:49:59,602
going out and saying a lot of things about bitcoin and crypto etc etc so i'm just going to do a hot

793
00:49:59,602 --> 00:50:04,402
run down a few of them, and then we'll get into some serious news about the DOJ and the

794
00:50:04,402 --> 00:50:09,982
Bitcoin Reserve. So let's start with Bitwise. They say a new country is stacking Bitcoin

795
00:50:09,982 --> 00:50:15,642
very soon. They're preparing, laying the groundwork, and they will be announcing something within

796
00:50:15,642 --> 00:50:20,602
a matter of months. So what do I mean by that? We're chatting with a sovereign wealth fund

797
00:50:20,602 --> 00:50:25,602
who's interested in buying Bitcoin, but it's going to take them about six months to get

798
00:50:25,602 --> 00:50:26,782
through the process.

799
00:50:26,782 --> 00:50:28,902
So they own shares of MicroStrategy now.

800
00:50:28,902 --> 00:50:33,162
We were just approved at a trillion dollar bank in the US,

801
00:50:33,162 --> 00:50:34,682
their wealth management division.

802
00:50:34,682 --> 00:50:37,642
It's the first time they have access to a Bitcoin ETF.

803
00:50:37,642 --> 00:50:40,902
A lot of them have used DATS, MicroStrategy and others,

804
00:50:40,902 --> 00:50:42,222
to get exposure.

805
00:50:42,222 --> 00:50:44,063
There is an article in the Wall Street Journal

806
00:50:44,063 --> 00:50:46,362
about Mark Casey, the portfolio manager at Capital Group,

807
00:50:46,362 --> 00:50:48,823
who's the largest owner of MicroStrategy.

808
00:50:48,823 --> 00:50:50,222
Mark is absolutely fantastic.

809
00:50:50,222 --> 00:50:53,182
If you ask him, his mutual fund is only

810
00:50:53,182 --> 00:50:54,862
allowed to invest in equities.

811
00:50:54,862 --> 00:50:58,102
So he has a lot of conviction on Bitcoin, but he can't buy Bitcoin.

812
00:50:58,523 --> 00:50:59,902
So this allows him to express that view.

813
00:51:00,662 --> 00:51:00,882
All right.

814
00:51:01,442 --> 00:51:08,043
Continuing our banker blowout, JPMorgan staffer confirms they are soon going to allow clients to trade Bitcoin.

815
00:51:08,702 --> 00:51:14,202
Just in terms of another big topic that the banks focus on, custody of crypto assets.

816
00:51:14,523 --> 00:51:19,323
I was speaking to Citi last week, suggesting they're going to launch their own crypto custody service.

817
00:51:19,442 --> 00:51:23,063
This is actually holding Bitcoin, Ethereum and other tokens as well.

818
00:51:23,063 --> 00:51:28,082
when it comes to how you're approaching digital assets how big a topic is custody right now is

819
00:51:28,082 --> 00:51:33,343
it something that you're looking to launch as well from jp morgan side i i don't think that's

820
00:51:33,343 --> 00:51:37,462
in the near term horizon for us i think jamie was pretty clear at invest today that you know we're

821
00:51:37,462 --> 00:51:40,523
going to be involved in the trading of that but custody isn't on the table at the moment

822
00:51:40,523 --> 00:51:44,742
there's a lot of questions our own around our own risk appetite of how far we want to go down that

823
00:51:44,742 --> 00:51:50,362
path from trading and other sides of it and then custody i guess would follow but naturally we need

824
00:51:50,362 --> 00:51:53,922
custodian so we're exploring what the right custodians for us for the business footprint

825
00:51:53,922 --> 00:51:58,802
man there's going to be a big business boom for crypto custodians but what they're saying there

826
00:51:58,802 --> 00:52:02,422
is they're going to allow clients to trade bitcoin now why does this matter because

827
00:52:02,422 --> 00:52:06,422
you and i you know listeners to this show you're probably not going to be buying and selling

828
00:52:06,422 --> 00:52:13,482
bitcoin on the jp morgan platform but my dad is you know one of the things that happens is

829
00:52:13,482 --> 00:52:19,422
bitcoin gets isolated off into its own area and so when you're buying and selling your etfs and

830
00:52:19,422 --> 00:52:24,722
your stocks and your funds. You're doing this in your brokerage account. And that's where all the

831
00:52:24,722 --> 00:52:31,242
money is. And to get the cash, when you say you bought an ETF, you sell it off, and now you've

832
00:52:31,242 --> 00:52:35,422
got some cash, or you bought a stock, you sell it off, you got some cash, and you want to buy

833
00:52:35,422 --> 00:52:40,942
Bitcoin with that cash. You have to do the slow process here in the States of moving that money

834
00:52:40,942 --> 00:52:44,782
through different financial systems, sometimes setting it up, going through the verification

835
00:52:44,782 --> 00:52:49,722
process, it can take days. And by that time, the trading opportunity has completely passed.

836
00:52:50,123 --> 00:52:54,023
So if everything is in the same system, it's in the same brokerage account,

837
00:52:54,023 --> 00:52:59,343
if you can sell your stocks and buy your Bitcoin and vice versa, then that money is able to move

838
00:52:59,343 --> 00:53:03,642
between in and out of Bitcoin a lot easier. So it actually, it does matter. And it's a product

839
00:53:03,642 --> 00:53:06,942
people do want. It's just probably not a product you or I are likely going to use.

840
00:53:07,343 --> 00:53:14,682
Now we continue the banker blowout. One more clip after this, I believe. And this one is your buddy.

841
00:53:14,782 --> 00:53:23,882
The Finkster, Larry Fink, not only was on CBS News, but he went on CNBC and just went on there to brag about how Ibit is completely crushing it.

842
00:53:24,182 --> 00:53:29,402
You know, our Bitcoin Ibit is now over $100 billion.

843
00:53:29,402 --> 00:53:32,402
$100 billion, I know, from nothing not that long ago.

844
00:53:32,742 --> 00:53:33,623
And two years ago, zero.

845
00:53:33,802 --> 00:53:34,642
Yeah, I know.

846
00:53:34,802 --> 00:53:37,623
Well, you weren't always a huge proponent of crypto, as we know.

847
00:53:37,623 --> 00:53:38,982
I love it now.

848
00:53:39,123 --> 00:53:40,222
But I grow and learn.

849
00:53:40,982 --> 00:53:42,742
I heard you say that on 60 Minutes.

850
00:53:42,782 --> 00:53:43,102
I did.

851
00:53:43,343 --> 00:53:43,563
Yeah.

852
00:53:43,563 --> 00:54:07,482
Ha ha ha ha. You know, who could have seen that coming? That the Bitcoin ETF would be the most successful ETF in history. Who could have seen that coming? All right. And our last banker blowout clip. Your buddy Tom Lee has a theory on at least partially why gold is ripping. And I'll be honest. This is my bias showing here. I love this theory.

853
00:54:07,482 --> 00:54:20,523
And the reason gold's up and it's because of crypto, not directly because of crypto, but you think the incremental buyer in gold are there's gold based stable coins and people need to buy gold to to back the stable coins.

854
00:54:20,642 --> 00:54:26,182
And that you think that's enough to be up ninety two dollars all the way up to a new high?

855
00:54:26,182 --> 00:54:38,362
Well, there is an interesting correlation we found, which is when I look at Tether's supply of dollars outstanding, it really started to rise about three months ago.

856
00:54:39,063 --> 00:54:44,162
And that corresponded with gold essentially going up every day.

857
00:54:44,902 --> 00:54:51,523
I'm not positive of this, but I think stable coins, including Tether, may be one of the largest buyers of gold today.

858
00:54:53,742 --> 00:54:54,682
That's perfect.

859
00:54:54,682 --> 00:55:00,182
so the the people that have been bullish on gold for so long and bearish on crypto

860
00:55:00,182 --> 00:55:06,323
and and bitcoin they're finally getting their their big rally in gold and it's because of the

861
00:55:06,323 --> 00:55:11,402
thing they hate so much crypto and bitcoin yeah that's right that's so funny other is proving to

862
00:55:11,402 --> 00:55:17,502
be a good meeting ground between bitcoiners and gold people i don't know if it's true i love that

863
00:55:17,502 --> 00:55:22,523
theory i love the idea that gold's getting pumped because of crypto all right now on a more serious

864
00:55:22,523 --> 00:55:28,862
matter, the DOJ has seized $15 billion in Bitcoin in the pig butchering fraud case that you may be

865
00:55:28,862 --> 00:55:32,862
hearing about. And I wanted to highlight this because I think this indicates perhaps the worst

866
00:55:32,862 --> 00:55:36,682
case scenario for how the U.S. government is going to build out the Bitcoin reserve.

867
00:55:37,143 --> 00:55:42,123
They're not going to look for revenue neutral ways to purchase Bitcoin. They're going to look

868
00:55:42,123 --> 00:55:47,442
for revenue neutral ways to seize Bitcoin. So this week, the Department of Justice seized around

869
00:55:47,442 --> 00:55:52,043
$15 billion worth of Bitcoin held by a man who oversaw the massive pig butchering fraud operation

870
00:55:52,043 --> 00:55:53,362
based in Cambodia.

871
00:55:53,962 --> 00:55:55,942
The seizure is the largest forfeiture action

872
00:55:55,942 --> 00:55:57,682
by the DOJ in history.

873
00:55:58,143 --> 00:55:59,422
The largest in history.

874
00:56:00,002 --> 00:56:01,862
The indictment charging alleged scammer Chen Xi

875
00:56:01,862 --> 00:56:04,643
was unsealed in federal court in Brooklyn, New York.

876
00:56:05,123 --> 00:56:06,462
The U.S. government's Bitcoin wallet

877
00:56:06,462 --> 00:56:07,782
has also been updated now

878
00:56:07,782 --> 00:56:10,582
with 127,000 new seized Bitcoin.

879
00:56:11,143 --> 00:56:13,302
According to the people that monitored their wallets,

880
00:56:13,302 --> 00:56:15,623
the U.S. government's wallet now holds

881
00:56:15,623 --> 00:56:22,002
a rough 324,780 Bitcoin.

882
00:56:23,063 --> 00:56:24,762
And perhaps this is how they build out

883
00:56:24,762 --> 00:56:26,682
their big old Bitcoin reserve,

884
00:56:27,323 --> 00:56:28,623
is they seize Bitcoin.

885
00:56:28,862 --> 00:56:30,563
And you suppose as it gets more valuable,

886
00:56:30,662 --> 00:56:31,482
they get more aggressive.

887
00:56:32,563 --> 00:56:34,043
Perhaps a different government comes in

888
00:56:34,043 --> 00:56:35,602
with different policies towards Bitcoin,

889
00:56:35,702 --> 00:56:36,482
they get more aggressive.

890
00:56:37,222 --> 00:56:39,942
And if the social situation continues to deteriorate

891
00:56:39,942 --> 00:56:41,362
and they're looking for people to blame

892
00:56:41,362 --> 00:56:42,582
and they need something to do

893
00:56:42,582 --> 00:56:44,782
to alleviate the debt situation

894
00:56:44,782 --> 00:56:46,482
or they become more aggressive with the seizures?

895
00:56:46,882 --> 00:56:48,102
See, I think this is worst case.

896
00:56:48,922 --> 00:56:51,502
I almost would have rather they spent tax dollars to buy Bitcoin.

897
00:56:52,682 --> 00:56:54,582
I'm not a big fan of that.

898
00:56:54,902 --> 00:56:56,582
So let's shift gears.

899
00:56:57,182 --> 00:57:03,242
I wanted to go into more on this large liquidation event that happened on Friday.

900
00:57:03,342 --> 00:57:06,262
Just a bit more context because the Hurl Rate podcast boys

901
00:57:06,262 --> 00:57:10,202
were watching the markets live and doing trading when this crash happened.

902
00:57:10,282 --> 00:57:12,962
So they talk about their experience in real time.

903
00:57:12,962 --> 00:57:23,002
And they also get into the linchpin sort of at the center of this massive market drop and why things started to seemingly fail and crash so hard.

904
00:57:23,002 --> 00:57:25,362
It's been wild this weekend.

905
00:57:25,362 --> 00:57:28,202
The crash was pretty impressive.

906
00:57:28,202 --> 00:57:33,082
When you see those cascading liquidations, a lot of us were on a call while it was happening

907
00:57:33,082 --> 00:57:38,442
live and you're starting to see the weakness hit the market and Bitcoin draw down and it

908
00:57:38,442 --> 00:57:43,002
doesn't really hit you as any big deal because that happens a lot in Bitcoin, right?

909
00:57:43,002 --> 00:57:46,502
We've seen lots of these liquidation events, but then all of a sudden you start to see

910
00:57:46,502 --> 00:57:50,902
the book get really thin and all of a sudden Bitcoin's jumping around by the thousands of

911
00:57:50,902 --> 00:57:59,143
dollars within seconds and it was pretty clear that something along the chain had broke and

912
00:57:59,143 --> 00:58:05,222
almost always when you see this type of price action it means the leverage is getting hit

913
00:58:05,862 --> 00:58:12,823
there's a reason why most people should never touch leverage when they're trading cryptocurrencies

914
00:58:12,823 --> 00:58:16,742
and this is the reason it's because you've got these automated liquidation engines

915
00:58:16,742 --> 00:58:22,502
that are driving all of these trades. And as soon as one cascades into the other,

916
00:58:22,502 --> 00:58:28,682
you start this chain of events. And what was really interesting with that post that came out,

917
00:58:28,742 --> 00:58:35,563
and it was by a guy named Elon Trades, was it showed effectively the trail of what happened

918
00:58:35,563 --> 00:58:42,662
and how all of this was effectively triggered by a coin called USDE with 60 to $90 million being

919
00:58:42,662 --> 00:58:49,043
dumped on Binance and causing the initial liquidation on Binance. But what people were

920
00:58:49,043 --> 00:58:55,222
really focusing on was the tie to the larger macro event, which was the tariff announcement from

921
00:58:55,222 --> 00:59:02,182
Trump. And it just was when you see things that seem too orchestrated, there's the old saying,

922
00:59:02,282 --> 00:59:08,002
somebody always knows something. What a way to mask this type of an exploit. And it was interesting

923
00:59:08,002 --> 00:59:14,023
because Binance had already identified this exploit and they had communicated that there

924
00:59:14,023 --> 00:59:18,982
was a patch on the way for it. And so there was only an eight day window where this all would

925
00:59:18,982 --> 00:59:24,202
have been possible. And they managed to do that Friday afternoon, right after the markets had

926
00:59:24,202 --> 00:59:29,262
closed, you immediately get the news of the tariffs hitting. You start getting initial weakness in the

927
00:59:29,262 --> 00:59:33,462
market. You start this liquidation cascade and everyone ties it to the news out of the White

928
00:59:33,462 --> 00:59:37,682
House, even though that was, that would have been surprising, right? Because this is not our first

929
00:59:37,682 --> 00:59:41,962
tariff rodeo. I actually think one of our very first episodes, we were talking about tariffs then,

930
00:59:42,543 --> 00:59:46,382
and the markets were getting hit by the tariffs at that time, and then bouncing back and recovering

931
00:59:46,382 --> 00:59:55,063
much like we saw today. But it was one of these perfectly timed executions to exploit the

932
00:59:55,063 --> 00:59:59,782
collateral engine on Binance using that USDE token and causing the forced liquidations,

933
00:59:59,902 --> 01:00:06,162
which ultimately, I believe, amounted to over $19 billion, which is larger than the FTX collapse.

934
01:00:06,162 --> 01:00:08,102
It was larger than anything that happened with COVID.

935
01:00:08,242 --> 01:00:12,942
It was the largest drawdown or liquidation that you saw within the crypto complex.

936
01:00:13,323 --> 01:00:15,282
So it was a really major event.

937
01:00:16,102 --> 01:00:24,643
And I think what was ultimately interesting was when you watched it play out, maybe we've just been around this too long, but it didn't really feel like that much.

938
01:00:25,402 --> 01:00:26,123
You watched it.

939
01:00:26,182 --> 01:00:34,082
It didn't pull Bitcoin under 100, although on some exchanges where it got really thin, I did see that there were some trades that were some orders that were filling right around 100.

940
01:00:34,082 --> 01:00:36,002
So it drew it pretty low.

941
01:00:36,162 --> 01:00:41,202
but Bitcoin overall, people stepped in on the bid. There were buyers on Bitcoin,

942
01:00:41,202 --> 01:00:44,623
and you didn't see that with all the other tokens. A lot of the other altcoins that were

943
01:00:44,623 --> 01:00:51,602
out there drew down 70%, 90%. You saw some really major wipeouts happen in that side of the house.

944
01:00:51,602 --> 01:00:56,823
Bitcoin overall showed pretty good resiliency, bouncing back from that very quickly. It did not

945
01:00:56,823 --> 01:01:01,962
hold down there very long before it had recovered back to the $112, $113 range, ultimately getting

946
01:01:01,962 --> 01:01:10,442
above 115 here. And it was a good battle test, I will say, for Bitcoin. It shows when everything

947
01:01:10,442 --> 01:01:16,823
really starts falling apart around the crypto industry. I think what you saw over the weekend

948
01:01:16,823 --> 01:01:22,702
was where that capital rotates to. There's a fleet of safety within that overall industry,

949
01:01:22,842 --> 01:01:27,742
and Bitcoin is the most established and the most liquid of all the digital assets that are out

950
01:01:27,742 --> 01:01:33,323
there. And when panic and chaos hits and all these other ones, I think what you saw was that capital

951
01:01:33,323 --> 01:01:37,782
goes to where it believes it to be safe, which is in Bitcoin. So I thought that was actually a

952
01:01:37,782 --> 01:01:42,962
really good highlight for how Bitcoin can withstand what most others cannot.

953
01:01:42,962 --> 01:01:48,543
And I think that might have been the signal that got lost in all of the excitement about a big

954
01:01:48,543 --> 01:01:54,902
crash is Bitcoin's dominance shot way up. The crypto industry bailed into Bitcoin. They know

955
01:01:54,902 --> 01:02:01,063
deep down that Bitcoin's the only true crypto asset. And they know it. And they bail. And I

956
01:02:01,063 --> 01:02:03,902
think that's the real signal when you look at that crash.

957
01:02:12,323 --> 01:02:18,203
Well, if you couldn't believe it, we're already at our final clip of the week.

958
01:02:18,843 --> 01:02:21,783
I feel like we just got together, back together again, and I gotta go.

959
01:02:22,123 --> 01:02:22,603
I gotta go.

960
01:02:23,363 --> 01:02:24,903
But there is more to do, I suppose.

961
01:02:25,403 --> 01:02:26,403
I like this clip, though.

962
01:02:26,423 --> 01:02:31,683
I think it's a good final clip of the week because in one clip, it really shows you how

963
01:02:31,683 --> 01:02:33,203
stupid the tulips argument is.

964
01:02:33,503 --> 01:02:38,083
Every now and then, people still call Bitcoin tulips, which was a bubble that lasted for

965
01:02:38,083 --> 01:02:39,043
a very short period of time.

966
01:02:39,463 --> 01:02:41,463
But it's a dumb, dumb thing to call Bitcoin.

967
01:02:41,463 --> 01:02:49,163
And this clip not only knocks that one out, but also kind of makes it clear why it's more risky to not own Bitcoin than it is to own it.

968
01:02:49,783 --> 01:02:52,683
Like everyone goes, Bitcoin is a bubble.

969
01:02:53,003 --> 01:02:53,963
It's tulips.

970
01:02:54,763 --> 01:03:00,683
OK, tulips was was the bubble in tulips in Amsterdam in 1630.

971
01:03:01,143 --> 01:03:06,683
That bubble in Amsterdam, where is the center of the global flower industry today?

972
01:03:06,823 --> 01:03:07,763
It is in Holland.

973
01:03:07,763 --> 01:03:13,823
the netherlands has been the central the center of the global flower industry for 400 years that

974
01:03:13,823 --> 01:03:19,723
tulip bubble bought 400 years of prosperity to amsterdam so to call it tulips is actually a

975
01:03:19,723 --> 01:03:26,643
compliment and then you go what is a bubble well i'll tell you what a bubble is a bubble

976
01:03:26,643 --> 01:03:33,723
is a bull market in which you don't have a position it is a psychological way of justifying

977
01:03:33,723 --> 01:03:36,943
that you didn't invest in something to call it a bubble.

978
01:03:37,463 --> 01:03:39,803
So you can call it a bubble and you can dismiss it.

979
01:03:39,803 --> 01:03:46,643
But the potential of Bitcoin to be the default cash system of the Internet

980
01:03:46,643 --> 01:03:51,463
and the default savings vehicle of the Internet is so extraordinary,

981
01:03:52,003 --> 01:03:55,083
I would argue that the risk is not owning Bitcoin.

982
01:03:55,343 --> 01:03:58,983
The risk is not owning Bitcoin, if that makes sense.

983
01:03:59,343 --> 01:04:02,063
Everyone should have an allocation in their portfolio.

984
01:04:02,063 --> 01:04:06,523
and don't try and use the fact that I don't understand it as an excuse

985
01:04:06,523 --> 01:04:15,874
because most people don understand how the combustion engine works and they still own a car Most people don understand hypertext transfer protocol and they still use the internet

986
01:04:26,514 --> 01:04:33,434
All right, let's check in on the state of the network as I'm wrapping up at block height 919,233.

987
01:04:33,434 --> 01:04:46,854
Bitcoin's price to US dollar. One Bitcoin is 111,280. That puts our sats per dollar right at 899 sats to one US dollar, which makes us down 11.8% from our all time high.

988
01:04:47,154 --> 01:04:54,294
That was 126,180 US dollars nine days ago on October 6th, 2025.

989
01:04:55,214 --> 01:05:01,414
We have a difficulty retarget date coming up October 15th. 3% downward adjustment.

990
01:05:01,414 --> 01:05:04,654
I may have already gone in by the time you hear this episode.

991
01:05:05,234 --> 01:05:07,154
So that's probably a pretty accurate prediction.

992
01:05:07,974 --> 01:05:14,134
Reachable nodes on the network right now, 24,565 nodes.

993
01:05:15,514 --> 01:05:21,734
Core 29.1 at 15.2% of the network and knots at 21% of the network.

994
01:05:23,314 --> 01:05:23,974
Let's see.

995
01:05:24,074 --> 01:05:30,574
And just checking live, Core 30 clocking in still at 1.8% of the network, 443 nodes.

996
01:05:31,414 --> 01:05:32,814
I say go stand yourself up a note.

997
01:05:32,934 --> 01:05:33,594
That's your homework.

998
01:05:33,734 --> 01:05:35,414
If you haven't done that yet, or get AlbiHub going,

999
01:05:36,054 --> 01:05:37,354
get yourself a voice in the network.

1000
01:05:37,794 --> 01:05:40,454
The network could use your voice to make it even stronger.

1001
01:05:51,514 --> 01:05:55,894
If you made it this far, links to what I talked about are at thisweekinbitcoin.show.

1002
01:05:55,974 --> 01:05:59,434
That also takes you to Jupyter Broadcasting, where I have my other great shows.

1003
01:05:59,434 --> 01:06:23,044
My goal is to try to create something that doesn get distracted by the emotions about what going on but just focuses on the signal for you so you can be as informed as possible and make the best decisions around Bitcoin and all the things that Bitcoin impacts in your life So let me know how I did with a boost You can also tell me what I missed what I should have included or anything like that And I always would love to hear more segment ideas or future segment ideas

1004
01:06:23,204 --> 01:06:24,264
Love those in a boost as well.

1005
01:06:24,604 --> 01:06:26,764
Now I'm going to leave you with a value for value track,

1006
01:06:26,844 --> 01:06:27,764
as I like to do.

1007
01:06:27,844 --> 01:06:29,685
So if you boost in while this music plays,

1008
01:06:30,284 --> 01:06:33,465
95% of your sats will go to the artist and their team.

1009
01:06:33,845 --> 01:06:35,744
Now this is off the album In Another Life

1010
01:06:35,744 --> 01:06:37,144
by artist B. Glass,

1011
01:06:37,444 --> 01:06:39,244
and it's their track, Spook.

1012
01:06:42,064 --> 01:07:12,044
Thank you.

1013
01:07:12,064 --> 01:07:42,044
Thank you.

1014
01:07:42,064 --> 01:08:12,044
guitar solo

1015
01:08:12,064 --> 01:08:44,415
Thank you

1016
01:08:44,435 --> 01:09:14,415
Thank you.

1017
01:09:14,435 --> 01:09:44,415
Thank you.

1018
01:09:44,435 --> 01:10:14,415
Thank you.

1019
01:10:14,435 --> 01:10:21,555
The Time Legion