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Welcome in to This Week in Bitcoin, episode 80.

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

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The big 8-0, which means now we're just sniffing at 100.

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I don't know. That's where my head goes. Just seems crazy to me. 80 episodes of This Week in Bitcoin.

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And last week I asked, are we seeing signs that the government shutdown in the U.S. is impacting Bitcoin?

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And this week I got a resounding yes. Wow.

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In fact, it seems to be having a very large impact on Bitcoin and a lot of other things, causing a whole cascade of bad news that we're going to get into this week.

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So let's start with that government shutdown.

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Well, today is the 36th day of the federal government shutdown,

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making it the longest closure in U.S. history.

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Yeah, but now some senators in both parties appear to be working together

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on a possible plan to reopen the government.

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It involves some kind of stopgap funding bill

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and a promise to vote later on rising Obamacare subsidies.

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So how does a U.S. government shutdown affect a worldwide asset like Bitcoin?

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Is it just because the markets get scared?

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Well, there may actually be a little bit of that.

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No, no, no.

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It's actually because of something we've talked about before on this show.

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The TGA, the Treasury General Account.

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Essentially, Scott Besson's checking account.

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And we've been fixated on this because they have been refilling the TGA, which sucked a bunch of liquidity, out of the market, right?

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It takes it from the banks.

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It takes it from those money markets you hear about all the time.

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And it goes into Scott's checking account.

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And then he pays for the government's bills.

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I'm simplifying here, obviously.

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And the cash works its way back out into the system, or the liquidity.

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Now, when the government shut down, they didn't start spending that money.

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In fact, they are just soaking up a little bit more money here, up to, oh, just tiny bits, $700 billion additional dollars.

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The TGA has been Bitcoin's biggest enemy for the last few months.

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And now the shutdown is having a major impact.

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So when the TGA stops hoarding the cash, the liquidity will flow back into the market.

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Bitcoin may catch some of that.

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But it's hard to say because, you know, at the same time, it's causing stresses in the banking sector as well.

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And that causes issues.

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So it's it's not good.

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But this this part I missed in my analysis last week.

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So I wanted to start right here, right now and admit, yeah, that is having an impact on Bitcoin.

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There's also been a lot of talk this week about long-term holders, quote-unquote, taking profits,

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or like the Wall Street media likes to call it, whale profit-taking, whale selling.

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Bitcoin off of some of the lows that we saw trading above $100,000 a coin,

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but still significantly off the record highs, down around 20%.

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Now, analysts have been pointing to something called whale selling as a catalyst for this slowdown.

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What is whale selling and how is that contributing to the pullback that we're seeing in Bitcoin?

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Yeah, this is long term holders that hold a large amount of Bitcoin.

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And we've seen that there's been whale selling, which has put pressure on the market.

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The strategists are pointing to 400,000 Bitcoin that have been sold by long term holders.

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Oh, 400,000 Bitcoin, you say, by long-term holders, you say. Yeah, 405,000 in the past 30 days, guys. Okay. I mean, that is huge. That's just no joke.

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When I tell you that 405,000 Bitcoins from long-term hodlers, they were bought at like pennies and dollars. I just went on the market. I mean, it's amazing we stayed around 100 that we did.

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However, there's something you should know.

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In this case, the term, quote, long-term holder means 155 days.

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Not exactly what I would consider long-term.

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In fact, this is exactly what I would consider short-term.

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Perhaps what you might call a speculator.

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The exact cohort that you would, I don't know, expect to panic sell.

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So long-term holders, little disingenuous.

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So let's look at some of the different longer term holding strategies.

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So the three year supply change.

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If you look at coins that have been held for three years, if we look at the last 30 days, they sold 109,000 coins.

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Yeah.

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So that I mean, three years, still not super long conviction, but you've held it through some stuff.

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May is a real inflection point for when this started happening.

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And since May, the three-year supply for holders has dropped from 9.2 million to 8.47 million

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Bitcoin.

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Now, what's notable, I think, is the differences by the five-year hodlers.

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I went and did some digging here.

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Over the last 30 days, they've accumulated.

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Over the last 30 days, the five-year hodlers have added 13.9 thousand Bitcoin.

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However, if we go back to May, that inflection point, they've actually sold.

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They've dropped from 6.1 million to 6 million.

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So they've sold, well, you know, actually about 100, 150,000.

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So there is definitely some profit taking that is happening even by people that have held for longer than five years.

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Not a lot, not nearly the amount that they would have you believe when they just use the generic term long term hodler.

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So you do need to stay skeptical about that term.

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But there is there is some selling.

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So what's going on here?

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Well, it's been dubbed and this has really spread.

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You could call it cope theory.

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You could say it's a narrative, whatever you want.

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But it has really spread this week.

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And it's Bitcoin's IPO moment.

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Now, Jordy Visser created this and he stopped by the Pomp podcast when he was sort of flushing this idea out.

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And he explained what he was thinking.

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Beginning in May and in early July, there were a lot of, I want to say rumors flying around, but they weren't just rumors.

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And this is not speculation.

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Anyone can go look this up.

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But there were stories about China cracking down again on Bitcoin miners and non crypto ownership and blah, blah, blah.

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And it got poo pooed and everything went on.

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Since those stories came out, there has been an overhead of supply that have gone through.

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And I just want to make sure people realize there's two themes as a traditional finance person that has spent a lot of time trying to take the lens that I learned everything through, which was as a trader, as a macro person.

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So I think the reason I shake my head at Bitcoin is because every possible thing to everyone

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listening that you would want for Bitcoin is happening right now, meaning the government

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is supporting things.

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The financial guardrails are shifting.

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We've got news after news every single day about the financial guardrails becoming more

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digital economy.

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It's things that are necessary for the network effects to kick in.

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All of that has happened.

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We still see inflows from retail.

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We still see the banks now opening it up for people to go through.

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But there's clearly a bunch of whatever it is, OGs, Bitcoin miners out of China, whoever

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it is, large amounts.

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Mike Novogratz publicly said it.

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If you go back to July, there have been billions and billions of dollars of, let's say, original

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investors supporting Bitcoin.

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Now, he's right to a degree.

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I mean, I just went through the numbers with you.

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And if you are somebody that's been hodling for five years or even three years, you're probably getting a good sense that there is support in this market like we've never seen before.

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Someone can turn around and, well, a group of people, not someone, but a group of people can turn around and sell 405,000 Bitcoin in the last 30 days and the market eats it up.

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Now, we have reached the point where there are more sellers than there are buyers.

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But it is remarkable that there was that depth of buying when they wanted to sell.

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That wasn't available to them two years ago.

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That wasn't even available to them a year and a half ago necessarily.

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If they wanted to sell, they would have tanked the market.

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And now they can sell and there's somebody there to support that buying, or at least there has been.

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And that's new.

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That aspect, these institutional pockets, it'll snap it up.

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Also, they don't say this, but you have to keep in mind that these institutional buyers, your MSTRs, your exchanges, your whatnots, they're reaching out to the long-term hodlers that are known.

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And they're trying to cut them deals.

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Big fat checks.

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Picture yourself.

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You've been sitting on Bitcoin for 5, 6, 10 years.

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And you recognize what it was early on.

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You knew it was a scarce asset, a hard asset.

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And so you snapped it up and you bought thousands of it and you've realized billions and tens of billions of dollars of profit.

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Really?

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I mean, think about it for a moment.

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You've realized $9 billion.

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One of these individuals, the one he was just referencing, was a $9 billion transaction.

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You've got $9 billion in potential profits, but you haven't been able to actually realize it yet.

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And are you going to go take a $9 billion loan on strike or lava?

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No, you can't do that.

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They can't do that.

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And does it make sense to diversify when you're at $9 billion?

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When you have $9 billion, you could just afford to let it be debased.

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You know, I'm not saying I would necessarily trade for dollars, and we don't know what they traded it for.

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Maybe they went out and bought real estate.

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But if you actually had the opportunity to realize a $9 billion profit, that would change your life and everyone you know.

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How would you say no to that?

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And now there's depth of market to support it.

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So I can understand why some of these people are selling.

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And this is a natural function that redistributes coins from the original hodlers back into the market.

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Some of it to the plebs, some of it to the institutions.

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This is how we redistribute those early coins.

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Regardless of how you want to term it.

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So I'm writing a substack.

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I think what people should think about is we don't have an IPO for Bitcoin.

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But this last four months to me feels like sourcing the pricing of the IPO.

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Interesting.

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Where the original investors are getting out of large chunks.

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Now, why is there ever an IPO for monetization? If someone has $9 billion in Bitcoin, I mean,

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I think they should diversify a little bit. If it was related to China, guess what China has now

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that they haven't had since 2014-15? A bull market in stocks. Guess what else people have?

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Well, they have the chance to invest in AI. AI is a 10-bagger in many cases. You've been able to do

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it in the public markets. So I think at some point, Bitcoin becomes a boring asset to people

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who are looking for three baggers, four baggers, five baggers. It becomes a diversification.

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So I think this is just a distribution of a few massive holders. And the weaknesses I have heard

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about Bitcoin as I've gotten into it from institutions, it's too volatile. Not too

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volatile anymore. We've taken the implied volatility and the actual realized volatility

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down to 30 and below in some cases. So the vols come down. Okay, what's the next thing? Well,

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it's too concentrated in ownership. I mean, I've gone through the numbers. When you add Satoshi's

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wallet, you add the other whales, you're talking about about a third of it has been owned by

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not many people. I think like 10,000 is the number I heard, regardless of what the right answer is.

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Every month, the Bitcoin Ibit outstanding shares goes up. It's up again this month,

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even though the price is down. So I think everyone that's depressed has actually become entitled.

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I think they think it's a risk asset.

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Oh, there's another one.

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This is just a risk asset.

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Okay, well, it's not going up with the NASDAQ,

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so that's good, lower correlation.

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Well, it's just digital gold.

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Well, it's not going up with gold, so guess what?

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In portfolio theory, for everyone who hasn't bought any yet,

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I think with your stocks, with your gold, with your bonds,

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now there's every argument to make.

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It's lower volatility now,

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lower correlation with the other traditional asset class,

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diversification from gold.

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I think this thing is going to move higher.

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I was wrong about where I thought we'd be at this point. It's still up for the year. I think once

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this consolidation is done and we're through the IPO process and the fundamentals take over,

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next year, once we get through clarity and the beginning of tokenization and the stories of

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Zelle and everything along those lines, I think we're going to have an acceleration in this.

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This IPO process, it's an interesting theory. And one of the things that I think it should remind us

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of is A, we don't know if it's true or not, but B, no one couldn't predict where this is going.

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Everybody was saying 150 Bitcoin by the end of the year.

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250 Bitcoin, you know, 250,000.

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We don't know where any of this is going because of human behavior.

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In this weird twist of irony, now this is speculation on my part.

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We're going into Chris speculation mode.

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But in this weird twist of irony, I think all these Bitcoin treasury companies are what the market has taken to calling DATS, digital asset treasury companies, because, you know, there's other digital assets.

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these bitcoin treasury companies gave permission for these ogs to sell stick with me here for a

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second right if you're an og and you see all these hungry bitcoin companies the maulers companies and

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the sailors and and the sequoians and all the sequins or whatever they're like all these like

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what was there 20 of them that came online they're all hungry for bitcoin but they've all got ahead

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of their skis even sailors a little ahead of his skis at the moment although he's definitely at the

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top of the pack doing the best.

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I don't have a lot of information, but by going by just what we can see on chain and

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things moving around, it seems at least two Bitcoin treasury companies have begun selling

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their stack.

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Now, we know Sequoia and Bitcoin treasury has sold because Corey from Swan said so on

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X.

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He said that they were too leveraged at nearly 50 percent of the initial raise and that there was supposed to be significantly more in the pipe by now, whatever that means.

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I think that means more money coming in.

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But they didn't get it.

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They have 195 million in equity and 189 of debt.

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So they had to de-leverage, i.e. they sold 1,000 Bitcoin at a loss.

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And there seems to be another Bitcoin treasury company that is also selling.

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They cannot sustain these lower prices.

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And in this weird, this is, again, my speculation bit, in this weird twist, them coming online and telling everybody about how insatiable they were going to be and how they were never going to sell, gave all these OGs permission to sell, tank the price, and making these DATs unsustainable.

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Well, some of them.

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I think this is where we will see some of the weak ones get washed away.

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And if that happens, there's going to be a lot more selling pressure on the market.

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Questions are being raised about the rapid growth of the AI sector Some see a strong demand in artificial intelligence and technology

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Others are concerned that we are in a bubble that will eventually burst.

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Here to talk more about those concerns is Gary Marcus,

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an author and professor emeritus at New York University.

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Gary, thank you very much for joining us today.

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Glad to be here.

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We've heard the term frothy a lot for this.

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Is it coalescing into a bubble?

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or is it a bubble already to you?

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It is a bubble.

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The question is, when will the bubble pop?

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You know, I find this really something.

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It is funny how these shift, right?

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Just even a few weeks ago,

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when we were talking about this on the show,

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it was, is it a bubble?

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That's whatever.

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Is this a bubble?

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Now it's definitely, obviously, certainly a bubble.

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It's only a matter of time until it pops.

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There's a big shift happening here.

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And the question is, all right, well, if it's a bubble and everyone knows it's a bubble, why are investors still YOLOing into AI?

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The weirdest thing of all is people like Sam Altman saying this could actually be a bubble.

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If everyone is talking about it like it's a bubble and everyone thinks it's a bubble, why is everyone continuing to act like it isn't?

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This is The Economist, and I guess they have a podcast.

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And why is the pace of investment not slowing?

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The big thing here is this might not be a normal market, and this might not be a normal victory. This might be a bubble, but also a race. If, as the people at the top of these labs keep saying they believe, the first company to build powerful AI, in the words of Anthropics founder, AGI, in the words of most of the rest of the industry, artificial general intelligence, human level intelligence, if the first lab to build that owns the future, perhaps in a science fictionally

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literal sense, then it's quite hard to value that. And potentially, you know, I've seen one figure,

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just one, on the valuation of building AGI or superintelligence of $1.46 quadrillion.

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That's so bonkers. I mean, that's just so bonkers. And the thing that they always miss

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in their analysis is part of the AI bubble has been driven by the Cantillion effect.

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Big tech has become an absolute expert over the last 20 years at positioning themselves

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close to the money printer.

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The investors, the big bankers, they get the money

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and they got to put it somewhere and they put it into tech.

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And so the question really isn't, is there a bubble?

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Isn't there a bubble?

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Is how long can that sustain?

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And when you have these numbers, it's just bonkers stupid.

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Even the most insane YOLO investor

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is going to start questioning these numbers.

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And if that money flow starts to slow,

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well, AI has been the largest driver of money in the system.

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So Bitcoiners should probably brace themselves.

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Even if you hate AI, you hate or don't hate AI.

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Like if the money train slows down, you don't get an AI bubble pop without a hit to liquidity.

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And then if you have a hit to liquidity, you're going to have a Bitcoin price slide.

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Let me ask you about crypto, which also might be relevant to this conversation.

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Really interesting trading through October, dropping for one reason, and then the early part of November dropping for what seems to be a different reason, even if actually this morning it's a little bit stronger.

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What's happening with crypto?

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Yeah, it's really interesting to note that Bitcoin today is trading below its one-year average.

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It's 365-day moving average.

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So, you know, the average purchase of Bitcoin over the past year is offside,

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given there were one year from Trump's election victory.

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That's quite interesting.

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So, therefore, Bitcoin has been actually one of the worst trades of the Trump presidency.

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And given that he was meant to be the big crypto backer, I think that might change the narrative there.

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The aspect of why that's going to be fueled on the downside is digital asset treasury companies are having real problems.

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And I think there's a lot more outflows to come there.

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So I think we are in a sustained crypto downwave.

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Bitcoin's constructed to have repeated boom-bust cycles.

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That's how it works.

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It can't work when it's stable at high prices.

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It's constructed, this guy.

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This is Mark Cudmore from Bloomberg.

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So it's had, you know, I think a six 70% plus corrections over at 17 and horizon.

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We're overdue another one.

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I think we're probably in the next, the start of the next 70% plus.

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I think Mark takes a little bit of nose candy before he does a hit.

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Action in Bitcoin and that'll drag the whole crypto sector lower.

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That'll weigh on retail sentiment.

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So what he's saying, because the guy's just rambling on at a thousand miles per hour,

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is retail's washed out.

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They're washed out already.

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And if the AI play washes out, then the liquidity is going to hit crypto hard.

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Bitcoin and that'll drag the whole crypto sector lower.

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That'll weigh on retail sentiment.

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It will be kind of, but it's not, it doesn't have a direct kind of feed through to the

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broader market.

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Sure, it's going to hurt some of these meme stocks.

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It's going to hurt some of these marginal momentum names.

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It's going to be slightly bad for the tech sector.

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But ultimately, there are real solid names at the core of the tech business.

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And that's really kind of marginal froth.

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It hurts the retail index.

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And that will eventually field into a wealth effect on the economy.

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All these problems are growing.

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And that's why I think the AI bubble will burst next year.

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But crypto won't be kind of coincide with the collapse of the AI bubble.

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Crypto will probably collapse first AI a few months later.

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now where i agree with uh nose candy mark here is if we're going to see a pop in the ai bubble

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you're going to see it in bitcoin first it'll be the canary in the coal mine as it always is

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so to bear that in mind something you know we need to watch out for as you're making plans you know

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if you're trying to think of like lines of credit and margin loans and all those types of things

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this is the type of stuff you need to be considering there's also the larger picture

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When I say AI has been driving the money, I'm not kidding. I'm not even exaggerating. That's been driving the entire economy here in the States.

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A couple of recent stats that just came out. The top 10% of U.S. households, so the top 10%, the richest people, now hold 87% of all U.S. stocks. The top 1% alone owns over 50%. And the top 10% of households reflect 67.3% of the nation's entire wealth. 67.3%.

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So they're driving everything right now. Whatever they're spending money on is what's doing well. And whatever they don't spend money on isn't doing well. That's the situation. Like the regular consumer hasn't mattered for a while. It may be that that cumulative effect does start to drag things down.

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I, however, think if we were to look at the macro picture longer term, the conditions are setting up for a lot of the Western banks to start easing and all of that easing to start happening around the same time.

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And so the overall liquidity picture only actually gets better for Bitcoin if there is a market slowdown.

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Of course, Bitcoin takes a hit initially and it takes the hardest hit potentially.

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But if that puts pressure on the Fed and the other central banks around the world to ease even more, that ultimately is going to be fantastic for Bitcoin because it's going to suck up so much of that liquidity.

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And it seems we're already positioning for that very thing to happen.

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This is Arthur Hayes.

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Japan, the new prime minister, I can't pronounce her name correctly, so I'm not even going to try.

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She is talking about printing money to help households pay for goods and services because

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of the high inflation that was caused by the printed money of the previous administration,

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who she loves, Abenomics. So they're printing money in Japan. And then the ECB is going to have

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to print more money to save the euro. So again, all around the world, the politicians are going

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to print more money. And so I see it as a completely different scenario than, let's even

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talk about 2021 when Jerome Paul was talking about tightening credit, when every central bank was

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tightening credit because of inflation. We're in a scenario where the politicians around the world,

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regardless of where you live, are talking about spending more money without raising taxes. And so

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that's why I believe that this particular cycle will extend. I think it's going to extend in the

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2027, 2028 time period. But again, who knows how long it will go for. But as long as the politicians

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are going to print money to hand out goodies to people to support them, we're going to keep going

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higher as a crypto ecosystem. And it seems like we're going in that direction. Even with this

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pullback, though, if you just look at Bitcoin since the BlackRock ETF was filed 30 months ago,

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it was now 30 months ago. Can you believe it? Bitcoin's up 300 percent. So that's 80 percent

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annualized return for I mean, that's not bad, right? So, yeah, it hurts right now. But if you

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look at 80% annualized returns over 30 months, that's pretty darn good. So if you have a margin

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loan, it's time to keep an eye on it right now. Tend to it. But we're not in a disaster situation.

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We are in that warning sign situation. But everything should be okay as long as we don't

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screw it up. And man, do we have the ability to screw things up.

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All right. It's time to talk about Bitcoin Improvement Proposal 444.

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BIP 444.

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And I recorded a clip for Noster.

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If you're not following me, go to chrislas.com.

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And while the analysis was fresh, and I thought I would have a big updated take for you on my analysis from this was Friday when I recorded this, but it still seems to be pretty relevant.

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The questions I raise in this clip from last Friday are still relevant today.

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So we go back in time to just a few days ago when Chris posted a clip on his Noster.

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Bitcoin improvement proposal 444 is a spicy one.

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I'm kind of shocked I had to make a video on this.

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So this is coming from a developer that goes by Dathom, something to that effect.

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They've had an account relatively recently created both on X and GitHub, and they're working on BIP444.

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It hasn't been officially submitted to the main project, but it is available online for review right now.

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And this is coming after concerns around Core 30 and the increased op return.

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I guess this is their solution.

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The proposal says, quote, if the blockchain contains content that is illegal to possess or distribute,

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node operators are forced to choose between violating the law or their conscious or shutting down their node.

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And the document then goes on to say, quote,

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this is unacceptable dilemma directly undermines the incentive to validate,

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leading to the inevitable centralization and proposing an existential threat to Bitcoin security model.

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And they also mentioned on line 261, I think they're going to massage the wording on this in the future.

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They say rejecting this soft fork may subject you to legal or moral consequences or could at least result in you splitting off to a new altcoin like Bcash.

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Now, the idea is these changes would result in a soft fork where transactions that were previously considered valid by the network would actually become invalid.

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And then they would be in limbo land for like a year.

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Now, how they get determined is illegal or immoral.

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I'm not sure.

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However, this is one of the things that people are pointing out is that Bitcoin is a global ledger and in jurisdictions all over the world with different legalities and moral standards.

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So it would be pretty hard to really say which legal and moral standards you're following.

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Also, the folks over at BitMEX Research, of course, not big fans of nots in general, but they make a great proposal or suggestion or realization that I think should be definitely considered.

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BIP444, as it is written now, would be incredibly bad, they say.

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A bad actor who wants to conduct a double spend attack could put CSAM, that's child porn, on the chain to cause a reorg intentionally and then attack the network.

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So you're actually giving someone an economic incentive and a path to attack the network.

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Now, to make it clear what I'm talking about here, BIP444, because this is all so crazy, it probably doesn't even make sense what I'm saying.

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Well, Bitcoin University, Matthew Cratter, went to his channel to promote this idea.

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I almost have a sense he's talking to Luke Dasher directly.

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And I'll let him explain the idea behind it.

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Because what I'm saying sounds so crazy, perhaps if they explain it themselves, it'll make sense.

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And what we're going to be talking about today, though, is number two, which is emergency activation.

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And this will almost certainly be contentious.

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So if we take a look at Bit444, there are two ways in which it gets activated.

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There's the proactive way and the reactive way.

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This section called activation goes into it a little bit more, and it says, due to the

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unpredictable nature of the crisis this BIP addresses, we should move to limit on-chain

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data as quickly and orderly as possible while being ready to react immediately in case illegal

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data appears in the chain before the new rules activate.

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What is the nature of the crisis?

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Are they talking about C-SPAM or are they talking about Core30?

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I think they might be talking about Core 30 because they say, does this proposal activate too soon?

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In short, yes, it does.

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Unfortunately, due to the release of Core 30 endorsing large data storage and actual legal content, they have an emergency situation.

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So Core 30, the release of Core 30 makes this a crisis, according to this document.

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But you can still change the settings with Core 30.

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And you can still run Core 29.

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Now, as I record this, Bitcoin Core 30 has about an 8% market share on the Bitcoin network.

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Maybe that's freaking out the knots guys. I don't know. But to me, it doesn't seem like a crisis. Again, you can change the defaults or you just don't upgrade. You just run 29 or hell run 28. It's fine. So you can still run 28, whatever. I know people that are still on 19. You can do that. You probably shouldn't, but you can do that. I've fired up even older nodes than that when I rescued old systems.

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So it's not like it's an imminent crisis.

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I realize there's more core 30 nodes

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that just have the tyranny of the defaults

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become on the network.

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They feel like this problem gets worse,

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but you're not convincing me it's an imminent crisis.

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Thus, this BIP presents two parallel methods of activation.

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The first proactive, the other reactive,

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which would be the contentious version.

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The proactive method involves a flag day activation

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of the rules sometime in early 2026.

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If no troublesome content appears in the chain,

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this BIP will activate smoothly via this proactive method.

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If, however, some content appears in the chain that causes significant risks,

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we can fall back to the reactive method,

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which is a retroactive chain reorganization or reorg

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to invalidate the offending block in an attempt to orphan it

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and any subsequent blocks while immediately activating the new rules about spam.

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So it literally says in here that if troublesome content appears in the chain,

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this BIP will activate smoothly.

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If troublesome content, well, who defines what is troublesome?

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Who says this is troublesome?

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Is it a council of elders?

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Is it Luke?

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Is it a consensus of node operators?

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Who determines that?

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The mere existence of this BIP likely reduces the threat,

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since it demonstrates that although Bitcoin Core 30 appears to sanction data storage as an official feature of the Bitcoin network the network has not yet arrived at a consensus regarding this stance since And that completely backwards They say the very existence of this soft fork bomb that could be a hard fork

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that very existence will prevent people from putting CSAM on the blockchain.

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No, it won't.

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Like BitMEX Research says, it's actually creating an incentive to put CSAM on the blockchain.

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You're creating incentive for the very thing that you're all worked up about.

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You're all worked up about this, and you're creating an incentive to do it.

426
00:31:34,281 --> 00:31:39,301
It seems so obvious, and I feel like I'm truly trying to understand what I'm missing here.

427
00:31:39,881 --> 00:31:41,941
There is an active opposition.

428
00:31:42,141 --> 00:31:48,361
So this goes into the activation, the non-contentious one, and then the reactive one, which is contentious.

429
00:31:48,361 --> 00:31:52,101
As Luke points out in this tweet, he writes that,

430
00:31:52,101 --> 00:31:56,661
If someone mines CSAM, BIP444 will activate to reject that block.

431
00:31:57,101 --> 00:32:03,941
The only way technically to then reject BIP444 is at a checkpoint pinning the CSAM in the chain, which is quite un-

432
00:32:03,941 --> 00:32:06,901
How does BIP444 activate?

433
00:32:07,741 --> 00:32:09,861
Does somebody trigger it? Is that a manual process?

434
00:32:10,621 --> 00:32:14,041
Is there some sort of bot that is hashtag matching?

435
00:32:14,501 --> 00:32:18,061
Like, are they like, you know, matching hashes? Hashtag matching?

436
00:32:18,061 --> 00:32:20,301
I don't know.

437
00:32:20,301 --> 00:32:24,341
likely someone would want to do that, but anything could happen in Bitcoin, certainly.

438
00:32:24,861 --> 00:32:28,641
So here's the plan that Luke's talking about and that BIP444 is talking about.

439
00:32:29,021 --> 00:32:35,301
If a large CSAM operaturn gets mined in a block, Bitcoin mining pools will then need to immediately

440
00:32:35,301 --> 00:32:40,621
reject that block and instead start mining on the previous block in the blockchain in an effort to

441
00:32:40,621 --> 00:32:47,201
reorg out the offending block. Right, but what about all of the other transactions in that block?

442
00:32:47,201 --> 00:32:58,081
Right. You're you're taking your you could be you could potentially destroying all those transactions or quarantining them or whatever it is. And that's violating people's property.

443
00:32:58,081 --> 00:33:07,781
all right now back to current chris so i'm still trying to figure out exactly how this would work

444
00:33:07,781 --> 00:33:11,581
the rest of the video will be linked in the show notes if you'd like to watch the rest of the clip

445
00:33:11,581 --> 00:33:18,461
i think the way it would work is that luke dasher would activate some sort of block and fork or

446
00:33:18,461 --> 00:33:24,861
whatever in knots and then people would vote by installing the latest version of knots but i'm not

447
00:33:24,861 --> 00:33:28,041
I'm still not clear on who's scanning the blockchain.

448
00:33:28,781 --> 00:33:32,041
I'm still not clear on who makes the determination.

449
00:33:32,141 --> 00:33:33,501
Are we following U.S. laws?

450
00:33:33,821 --> 00:33:36,461
Are we following some sort of list provided by the federal government?

451
00:33:37,361 --> 00:33:39,981
Well, then why can't we follow other lists provided by the federal government?

452
00:33:40,521 --> 00:33:45,541
If we can do this, why can't we also figure out a way to go after OFAC-sanctioned transactions?

453
00:33:46,181 --> 00:33:47,241
Why can't we follow that list?

454
00:33:48,161 --> 00:33:49,221
Who handles that?

455
00:33:49,721 --> 00:33:50,621
Who manages that?

456
00:33:51,181 --> 00:33:52,781
Who makes sure we're following the rules?

457
00:33:52,781 --> 00:34:00,341
who double checks that the transaction does have c sam in it does somebody have to view the c sam

458
00:34:00,341 --> 00:34:06,101
in the bitcoin community and then flag it and then what happens all the other transactions

459
00:34:06,101 --> 00:34:11,841
in that block and what gives you the fuck to what gives you the right to fuck with property like i

460
00:34:11,841 --> 00:34:15,521
mean it's just it's just crazy it's just like you're touching people's property i don't understand

461
00:34:15,521 --> 00:34:22,221
like justify that to me just change the settings on your node and what i can't really figure out is

462
00:34:22,221 --> 00:34:25,681
if this is a serious proposal,

463
00:34:26,281 --> 00:34:29,781
if this is some kind of 4D chess troll,

464
00:34:30,441 --> 00:34:33,421
or am I missing something technically critical

465
00:34:33,421 --> 00:34:35,261
to my understanding of this?

466
00:34:35,861 --> 00:34:37,801
Which I'm open to that possibility.

467
00:34:38,181 --> 00:34:41,921
Because to me, it seems like the craziest BIP I've ever seen.

468
00:34:43,001 --> 00:34:46,921
And the unanswered questions seem like massive problems.

469
00:34:47,461 --> 00:34:49,101
And the fact that there are answers for them

470
00:34:49,101 --> 00:34:51,501
make me think either they're not serious,

471
00:34:51,501 --> 00:34:54,661
or it's been explained technically in some way that I've missed.

472
00:34:55,281 --> 00:34:59,181
Because I read the early versions and I'm still trying to wrap my head around this BIP444.

473
00:35:00,201 --> 00:35:01,621
It's pretty wild to me.

474
00:35:02,761 --> 00:35:08,621
The idea, too, that so many people are for it, I think is what's really struck me.

475
00:35:09,461 --> 00:35:14,821
As I've read through the comments on the YouTube videos and on social media,

476
00:35:15,481 --> 00:35:17,501
there's thousands of people that are for this.

477
00:35:17,501 --> 00:35:23,621
for some sort of monitoring and surveillance and sanctioning of Bitcoin transactions

478
00:35:23,621 --> 00:35:28,321
that are decided by some elder counsel, I guess.

479
00:35:28,581 --> 00:35:34,341
And I think part of what's happened is the folks that were against Operaturn and Core30

480
00:35:34,341 --> 00:35:36,341
have lost the plot.

481
00:35:37,021 --> 00:35:39,961
Like they can't accept the fact that they lost that fight.

482
00:35:40,041 --> 00:35:42,161
And so they've redirected that energy.

483
00:35:42,961 --> 00:35:45,501
And maybe this is my opinion as a content creator.

484
00:35:45,541 --> 00:35:46,241
I could be wrong.

485
00:35:46,241 --> 00:35:49,681
I think Matthew Cratter has audience capture.

486
00:35:50,841 --> 00:35:54,801
So I'm not, I'm not, but I'm really not, I'm not 100% sure.

487
00:35:54,861 --> 00:35:57,881
I'm really, I am shaken by this BIP.

488
00:35:58,161 --> 00:35:59,221
I'm shaken by it.

489
00:35:59,221 --> 00:36:04,161
As somebody who's been in Bitcoin since 2011, I am shaken by this.

490
00:36:04,261 --> 00:36:05,841
I've never seen anything crazier than this.

491
00:36:05,981 --> 00:36:07,341
BIP 444, go look it up.

492
00:36:07,401 --> 00:36:09,261
I'll have, I'll have links in the show notes.

493
00:36:10,381 --> 00:36:12,101
And Boostin, tell me your thoughts on this.

494
00:36:12,141 --> 00:36:13,121
Am I missing something?

495
00:36:13,281 --> 00:36:13,861
Do you like it?

496
00:36:13,901 --> 00:36:14,701
Do you not like it?

497
00:36:14,701 --> 00:36:17,761
explain yourself and chime in

498
00:36:17,761 --> 00:36:40,861
well you can buy the dip and support the show we have a link to river you use that link in the

499
00:36:40,861 --> 00:36:45,121
show notes when you stack sats it supports the show you're all about self-custody i like that

500
00:36:45,121 --> 00:36:49,821
and so does the bitcoin well it's an amazing automatic self-custody platform for canada and

501
00:36:49,821 --> 00:36:53,861
the u.s now if you've got some sats burning a hole in your pocket you want to buy something

502
00:36:53,861 --> 00:37:00,761
the bitcoin company spend your sats via lightning instantly hundreds of gift cards go from sats to

503
00:37:00,761 --> 00:37:08,441
gift card in literally minute fold card this is how you passively stack sats you want to get some

504
00:37:08,441 --> 00:37:12,781
sats for paying bills, buying some stuff here and there, fold card. Check out the link in the show

505
00:37:12,781 --> 00:37:17,641
notes. If it's time to get access to your Bitcoin, Salt Lending is who I've been using. There's a lot

506
00:37:17,641 --> 00:37:21,581
of options these days, but you really want to make sure somebody's been around for a minute. Salt

507
00:37:21,581 --> 00:37:25,221
Lending has. They've even survived a few crashes. I'll have a link to them in the show notes. If you

508
00:37:25,221 --> 00:37:28,741
use any of those, you can support the show just by doing what you do.

509
00:37:38,441 --> 00:37:45,221
And we did get some boosts into the show.

510
00:37:46,621 --> 00:37:49,741
And now it is time for the boost.

511
00:37:49,901 --> 00:37:53,621
I always appreciate everybody who likes to directly support the show with a boost.

512
00:37:53,621 --> 00:37:59,601
It's a great demonstration of how the value for value system not only works, but how the Lightning Network can work, too.

513
00:38:00,121 --> 00:38:03,841
And our baller booster this week is Adversaries 17.

514
00:38:04,361 --> 00:38:05,681
And it is a baller boost.

515
00:38:05,741 --> 00:38:06,601
Get ready for this one.

516
00:38:06,681 --> 00:38:07,121
Are you ready?

517
00:38:07,121 --> 00:38:10,121
409,600

518
00:38:10,121 --> 00:38:10,701
sats.

519
00:38:10,701 --> 00:38:11,761
Hey, rich

520
00:38:11,761 --> 00:38:12,601
lifestyle.

521
00:38:14,361 --> 00:38:15,461
You're the best

522
00:38:15,461 --> 00:38:16,581
around.

523
00:38:17,601 --> 00:38:18,701
Nothing's gonna ever

524
00:38:18,701 --> 00:38:19,661
keep you down.

525
00:38:19,761 --> 00:38:20,441
You're the best.

526
00:38:23,561 --> 00:38:23,961
Yahoo!

527
00:38:30,561 --> 00:38:31,661
Thank you, adversaries.

528
00:38:31,781 --> 00:38:33,561
He writes, a minimum of 12 hours work.

529
00:38:33,621 --> 00:38:35,621
Well, let's see. That comes out to

530
00:38:35,621 --> 00:38:40,121
be well there that should do it thanks for the great episode again chris the value is there

531
00:38:40,121 --> 00:38:46,321
that's whoo whoo that just made the show right there you know i'll i'll tell you something i

532
00:38:46,321 --> 00:38:51,481
don't know this week because the boosts have been low for lup i thought oh it's gonna be a low week

533
00:38:51,481 --> 00:38:56,941
for twib and man you know like everybody's down i don't think the show's gonna have any support

534
00:38:56,941 --> 00:39:02,201
you know it's not like the workload stops when when when the bitcoin news is bad in fact it goes

535
00:39:02,201 --> 00:39:07,741
up. And then I pulled the boost this morning, took the lens off of LUP, and I looked at Twib and I

536
00:39:07,741 --> 00:39:13,681
went, holy crap, let's go. Let's go. Thank you, adversaries. I really do appreciate that. And

537
00:39:13,681 --> 00:39:19,221
adversaries is our baller booster this week. That's a good one. Thank you very much, sir.

538
00:39:19,901 --> 00:39:23,781
J-Cube comes in with a very generous 64,000 sats as well.

539
00:39:23,781 --> 00:39:32,041
a bitcoin backed credit line interests me especially one that i could access via a visa

540
00:39:32,041 --> 00:39:36,861
mastercard or something like that i use my credit card and i pay the full balance every two weeks

541
00:39:36,861 --> 00:39:40,981
currently this way i could just skip the fiat bank account and just take my paycheck directly

542
00:39:40,981 --> 00:39:48,821
in sats there has to be a hole in that somewhere you know not only not only that but it just to me

543
00:39:48,821 --> 00:39:53,121
it's like whenever you have extra money just makes sense to put it into sats because if you know

544
00:39:53,121 --> 00:39:57,061
on a moment's notice, you can draw a line of credit on it just to the amount you need.

545
00:39:57,641 --> 00:40:01,261
That's huge. I have a follow-up on Lava. So you're right, there could be a hole in there somewhere.

546
00:40:01,341 --> 00:40:05,321
I have a follow-up on Lava in the updates section. So stay tuned on that, because I've been testing

547
00:40:05,321 --> 00:40:09,381
it out. Thanks, J-Cube. Appreciate that. Boost. OB's here. He's

548
00:40:09,381 --> 00:40:12,781
sending us 23,420 sats.

549
00:40:17,741 --> 00:40:21,481
Hey, Chris, if you think the CleanSpark story is something, so, side note,

550
00:40:21,481 --> 00:40:26,381
last week I covered a story about CleanSpark pivoting to AI.

551
00:40:27,081 --> 00:40:29,101
He says, well, you should check out Iron and Sifra.

552
00:40:29,241 --> 00:40:30,781
I don't think we've seen anything yet.

553
00:40:31,161 --> 00:40:33,881
There just isn't enough power to go around short term.

554
00:40:34,641 --> 00:40:36,061
OB, you're right about that.

555
00:40:36,701 --> 00:40:40,021
I was just reading another piece about,

556
00:40:40,541 --> 00:40:41,821
oh yeah, it was Saatchi in an interview.

557
00:40:41,961 --> 00:40:44,281
Saatchi Nadella from Microsoft said that they have

558
00:40:44,281 --> 00:40:45,701
NVIDIA chips sitting on the shelf,

559
00:40:46,061 --> 00:40:49,121
which spooked the market because the idea they thought was,

560
00:40:49,121 --> 00:40:51,241
well, they can't get enough chips.

561
00:40:51,241 --> 00:40:52,541
No, no, they have chips now.

562
00:40:52,741 --> 00:41:02,141
NVIDIA is delivering and they're getting the chips they need, but they don't have the machines and the power so they can't use them, which just spooks the crap out of the AI investors.

563
00:41:02,781 --> 00:41:06,021
So they need power real bad to keep this thing going.

564
00:41:06,921 --> 00:41:10,921
And I think that's going to put them right on the front door of the Bitcoin miners.

565
00:41:11,621 --> 00:41:12,281
I think you're right, Obi.

566
00:41:12,361 --> 00:41:13,441
Thank you for the boost.

567
00:41:14,441 --> 00:41:17,941
Nat Simerson comes in with 22,222 sats.

568
00:41:17,981 --> 00:41:18,961
That's a big old duck.

569
00:41:18,961 --> 00:41:19,961
Quack-a-wack-a.

570
00:41:20,061 --> 00:41:20,721
It's a treasure.

571
00:41:20,721 --> 00:41:32,281
Yeah. Nat writes, Chris, on one of your recent podcasts, you asked for a listener info on Noster. Well, check out this Noster in 10 minutes presentation by Odell he put together for the Global Bitcoin Summit in 2024.

572
00:41:32,281 --> 00:41:36,281
Yeah, you know, I've been messing around with Noster a bit more.

573
00:41:36,861 --> 00:41:49,141
And I like the idea of being able to post some content that's supplemental to the show that people could catch throughout the week that would give you additional context or maybe something breaks right after I post a show.

574
00:41:49,521 --> 00:41:50,241
I'm not sure.

575
00:41:50,321 --> 00:41:54,721
It's like a fine line because sometimes it justifies an emergency pod.

576
00:41:54,801 --> 00:41:57,381
And sometimes it's just like I'll throw something up on Noster.

577
00:41:57,901 --> 00:42:00,641
And then I'm also I have created a This Week in Bitcoin.

578
00:42:01,341 --> 00:42:04,341
I think you could find it at primal.net slash this week.

579
00:42:04,761 --> 00:42:06,141
But I haven't done anything with it yet.

580
00:42:06,361 --> 00:42:08,281
So keep the expectations low.

581
00:42:08,381 --> 00:42:09,301
But I am slow cooking.

582
00:42:10,081 --> 00:42:11,021
I am slow cooking.

583
00:42:11,681 --> 00:42:14,601
He says, you can check out Odell Citadel podcast.

584
00:42:14,721 --> 00:42:15,341
Yep, dispatch.

585
00:42:15,581 --> 00:42:16,081
Let's see.

586
00:42:16,141 --> 00:42:16,901
I'm trying to read through this.

587
00:42:16,961 --> 00:42:18,601
Particularly considering you're both value for value.

588
00:42:18,661 --> 00:42:18,921
Oh, geez.

589
00:42:18,981 --> 00:42:20,561
I stumbled across Bitcoin long before Linux.

590
00:42:21,061 --> 00:42:22,461
Ah, so thanks for Linux Unplugged too.

591
00:42:22,861 --> 00:42:23,141
Okay.

592
00:42:23,561 --> 00:42:24,461
This is the thing I wanted.

593
00:42:24,461 --> 00:42:24,741
Right.

594
00:42:25,621 --> 00:42:25,961
Nat.

595
00:42:26,581 --> 00:42:27,961
Man, I love hearing that, man.

596
00:42:27,961 --> 00:42:32,021
because I feel like Linux and Bitcoin go together so well.

597
00:42:32,181 --> 00:42:36,181
Similar ethos, similar licensing, similar goals,

598
00:42:36,321 --> 00:42:40,421
Linux for technology and computers and Bitcoin for money,

599
00:42:41,001 --> 00:42:44,181
both about digital and tech sovereignty.

600
00:42:44,321 --> 00:42:45,841
And I just feel like there's so much crossover there.

601
00:42:46,481 --> 00:42:47,521
How do we spread that word?

602
00:42:47,581 --> 00:42:48,961
If you have any ideas, let me know, Nat.

603
00:42:49,061 --> 00:42:49,901
It's good to hear from you.

604
00:42:50,041 --> 00:42:50,961
Thank you for boosting in.

605
00:42:51,141 --> 00:42:51,681
Appreciate it.

606
00:42:52,241 --> 00:42:55,281
Paranoid Coder is here with 2,000 Sats.

607
00:42:55,561 --> 00:42:56,521
Danger zone.

608
00:42:56,521 --> 00:42:58,161
And he's talking about ARK.

609
00:42:58,281 --> 00:42:58,841
Danger Zone.

610
00:42:59,441 --> 00:43:00,041
ARK's pretty cool.

611
00:43:00,121 --> 00:43:03,101
He says, ARK's first implementation has launched with Arcade.

612
00:43:03,281 --> 00:43:05,061
And I would love to see you cover this kind of thing.

613
00:43:05,181 --> 00:43:07,081
Bitcoin scaling seems to be entering a new era.

614
00:43:07,761 --> 00:43:09,261
Your unbiased opinion would be highly valued.

615
00:43:09,621 --> 00:43:12,201
Well, Paranoid Coder, I don't have anything for you this week.

616
00:43:12,641 --> 00:43:18,921
But I actively have multiple tabs open on my browser, reading about ARK, catching different interviews.

617
00:43:19,501 --> 00:43:21,561
I am very much in the learning phase.

618
00:43:21,701 --> 00:43:23,201
I want to just sort of ingest, understand.

619
00:43:23,281 --> 00:43:24,421
I might try to play with it too.

620
00:43:24,421 --> 00:43:29,621
very much also interested in other people's experiences, thoughts, impressions with ARK.

621
00:43:30,101 --> 00:43:31,321
If you've got them, send them in.

622
00:43:31,781 --> 00:43:35,741
Yeah, so we've talked about lightning a lot on the show, which is a layer too.

623
00:43:35,821 --> 00:43:37,701
We've talked about liquid, which is a side chain.

624
00:43:38,121 --> 00:43:40,841
And now we're going to be talking more about ARK, I think.

625
00:43:40,841 --> 00:43:44,061
So I'm entering my ARK.

626
00:43:44,161 --> 00:43:44,421
ARK.

627
00:43:45,041 --> 00:43:45,701
Doesn't work.

628
00:43:46,121 --> 00:43:46,681
Thanks, Paranoid.

629
00:43:46,941 --> 00:43:47,821
Nice to hear from you.

630
00:43:48,301 --> 00:43:50,121
Chew Toys here with 10,000 sats.

631
00:43:50,281 --> 00:43:51,981
It's over 9,000!

632
00:43:52,741 --> 00:43:53,581
Spell check got me.

633
00:43:53,581 --> 00:43:55,421
That was supposed to be not on my true.

634
00:43:55,421 --> 00:43:56,461
No, I thought so too.

635
00:43:56,661 --> 00:43:57,261
I thought so.

636
00:43:57,301 --> 00:43:58,181
Nice job though.

637
00:43:58,901 --> 00:44:02,641
I think you're the first report I have had of not on a true NAS server.

638
00:44:03,261 --> 00:44:04,961
So thank you for sending that in.

639
00:44:05,541 --> 00:44:06,981
Ace Ackerman's here with a row of ducks.

640
00:44:07,241 --> 00:44:08,961
2,222 sets.

641
00:44:10,181 --> 00:44:11,721
Pivot to high energy use cases.

642
00:44:11,881 --> 00:44:15,601
Long-term climate change scam is getting pushed aside to make room for AI scam.

643
00:44:19,441 --> 00:44:22,961
You know, I took, I took Gates to say, let's have a more balanced approach.

644
00:44:22,961 --> 00:44:26,901
I didn't take him for saying he was walking back all his climate stuff.

645
00:44:27,241 --> 00:44:37,121
However, since that interview came out, I have seen, you know, super cuts that people put together of like some pretty wild stuff Gates did say about like everything being destroyed.

646
00:44:37,321 --> 00:44:40,981
No food, no food supplies, like real ends of day kind of clips.

647
00:44:41,361 --> 00:44:44,101
So, yeah, there's been a bit of a walk back there.

648
00:44:45,221 --> 00:44:46,361
Thanks, Ace.

649
00:44:47,001 --> 00:44:49,501
Wise Hoddle's here with 3,000 sats.

650
00:44:50,481 --> 00:44:51,581
No message, just value.

651
00:44:51,581 --> 00:44:55,301
Mug Daddy's here with 10,000 sats.

652
00:44:56,021 --> 00:44:57,081
Pet rock boost.

653
00:44:57,201 --> 00:44:57,381
Yeah.

654
00:44:57,861 --> 00:45:00,081
Let's see a boost with your gold rocks.

655
00:45:00,421 --> 00:45:00,621
Huh?

656
00:45:01,421 --> 00:45:02,121
Oh, man.

657
00:45:02,581 --> 00:45:03,121
Pet rock.

658
00:45:03,201 --> 00:45:04,541
Can you believe they even said that?

659
00:45:05,401 --> 00:45:06,381
Thanks, Mug Daddy.

660
00:45:06,561 --> 00:45:07,341
Appreciate that.

661
00:45:07,741 --> 00:45:08,001
All right.

662
00:45:08,001 --> 00:45:08,481
Here we go.

663
00:45:08,541 --> 00:45:10,341
We got Kiwi Bitcoin guy.

664
00:45:10,421 --> 00:45:11,021
There he is.

665
00:45:11,381 --> 00:45:13,141
Because I'm the win.

666
00:45:13,961 --> 00:45:15,281
I like you, Kiwi.

667
00:45:15,441 --> 00:45:16,201
The heck?

668
00:45:16,241 --> 00:45:16,681
No, I do.

669
00:45:16,781 --> 00:45:16,961
I do.

670
00:45:16,961 --> 00:45:17,601
He says,

671
00:45:17,601 --> 00:45:23,741
Calling out the piss-poor hiring practices as a cause for layoffs, as the Fed's strategy for curbing inflation, trying really hard.

672
00:45:23,821 --> 00:45:24,441
This is the way.

673
00:45:24,981 --> 00:45:26,981
Also, I appreciate your video on BIP444.

674
00:45:27,301 --> 00:45:30,161
How does everyone feel about Noughts now, I wonder?

675
00:45:30,881 --> 00:45:31,481
Yeah, I'm shaking.

676
00:45:32,501 --> 00:45:35,961
Yeah, and the way they implement this is through Noughts, isn't it?

677
00:45:35,981 --> 00:45:40,101
And I think the reason why they're escalating is because the Noughts growth is sort of stalled out.

678
00:45:40,841 --> 00:45:41,481
What do you think, Kiwi?

679
00:45:41,761 --> 00:45:42,481
Thanks for boosting in.

680
00:45:43,441 --> 00:45:44,701
Philip is here with a row of ducks.

681
00:45:44,701 --> 00:45:48,101
Thanks, Chris, for constantly interested in an entertaining show.

682
00:45:48,581 --> 00:45:50,681
If some of your content was video, I'd definitely give it a watch.

683
00:45:50,761 --> 00:45:55,261
Sometimes I feel a bit strained in the Western islands of Europe when it comes to developments in Bitcoin.

684
00:45:55,661 --> 00:45:56,901
But the meetups are building.

685
00:45:57,421 --> 00:45:58,061
Yeah, that's good.

686
00:45:58,261 --> 00:45:59,661
I think it'll build.

687
00:45:59,981 --> 00:46:00,741
It does everywhere.

688
00:46:00,941 --> 00:46:01,841
It does everywhere.

689
00:46:02,301 --> 00:46:06,061
You know, and perhaps more interest will accelerate as the digital euro rolls out.

690
00:46:06,241 --> 00:46:06,861
What do you think of that?

691
00:46:07,401 --> 00:46:08,421
I'd love to hear your thoughts on that.

692
00:46:08,421 --> 00:46:14,841
nakamoto6102 is here with 3,500 satsaroonies

693
00:46:14,841 --> 00:46:16,481
coming in hot with the boost

694
00:46:16,481 --> 00:46:17,421
thank you for the value

695
00:46:17,421 --> 00:46:19,581
we'll thank you for the boost nakamoto

696
00:46:19,581 --> 00:46:22,001
tomato's here with 5,000 sats

697
00:46:22,001 --> 00:46:23,281
everything's under control

698
00:46:23,281 --> 00:46:23,941
love the track

699
00:46:23,941 --> 00:46:25,761
oh we were sending that to our artist last week

700
00:46:25,761 --> 00:46:26,741
thank you

701
00:46:26,741 --> 00:46:27,181
thank you

702
00:46:27,181 --> 00:46:30,561
bobby pin is here with 10,000 sats

703
00:46:30,561 --> 00:46:31,261
boost

704
00:46:31,261 --> 00:46:32,061
oh yeah

705
00:46:32,061 --> 00:46:33,621
b-o-o-s-t

706
00:46:33,621 --> 00:46:47,952
bitcoin just dropped below 100 blocks are full and there six full blocks in the queue and fees are four to seven sats of vbyte sounds like a good time to buy more sats make it so i agree i like the way you think

707
00:46:47,952 --> 00:46:52,412
thank you everybody who boosted it including dave jones who was testing his new albi hub shout out

708
00:46:52,412 --> 00:46:59,532
to you sir i do get all the below 2 000 sat boosts but i just do 2 000 sats and above for time and

709
00:46:59,532 --> 00:47:02,092
Thanks to adversaries, we just had a crazy week.

710
00:47:02,192 --> 00:47:03,872
And also, shout out to you sat streamers.

711
00:47:04,232 --> 00:47:12,312
43 of you streaming those sats as you listened, and you stacked a nice 53,049 sats.

712
00:47:12,512 --> 00:47:13,092
Stop it.

713
00:47:13,772 --> 00:47:14,512
Get some help.

714
00:47:15,072 --> 00:47:15,652
No, I disagree.

715
00:47:16,252 --> 00:47:16,772
Keep it up.

716
00:47:17,292 --> 00:47:17,932
I like it a lot.

717
00:47:18,032 --> 00:47:19,972
Thank you very much for streaming those sats as you listen.

718
00:47:20,432 --> 00:47:26,092
When you combine that with all of our boosts, yeah, you know it's going to be a big one this week.

719
00:47:26,092 --> 00:47:29,112
In fact, this one should put us up on the charts.

720
00:47:29,112 --> 00:47:36,592
Our grand total for this episode of This Week in Bitcoin is 627,723 sats.

721
00:47:36,592 --> 00:48:00,212
I might not be a Bitcoin treasury company, but I am building a little bit of a stash to make sure that this network has a runway, even if things take a downturn.

722
00:48:00,212 --> 00:48:03,752
And I think as you Bitcoiners out there know, it's going to be the right play long term.

723
00:48:03,812 --> 00:48:07,232
And I appreciate you helping keeping this totally independent media.

724
00:48:07,332 --> 00:48:08,092
Can you believe this?

725
00:48:08,712 --> 00:48:17,652
80 episodes, no sponsor, just your support between our members at Jupiter.party and our boosters and our fountain members, which is still out there.

726
00:48:17,712 --> 00:48:19,252
It's a small group, but it's out there.

727
00:48:19,572 --> 00:48:20,292
Can you believe it?

728
00:48:21,092 --> 00:48:21,792
80 episodes.

729
00:48:21,972 --> 00:48:25,852
And you can't claim any advertiser has brought any bias or anything like that.

730
00:48:25,852 --> 00:48:30,512
the total focus is on delivering the best product possible because you are the customer.

731
00:48:31,072 --> 00:48:32,832
You're the ones I have to make happy.

732
00:48:33,352 --> 00:48:35,132
It's just the brilliance of the value for value model.

733
00:48:35,392 --> 00:48:36,352
You can boost with Fountain.

734
00:48:36,432 --> 00:48:37,232
It makes it really easy.

735
00:48:37,292 --> 00:48:38,452
It's going to get even easier soon.

736
00:48:38,512 --> 00:48:39,532
More details on that.

737
00:48:40,212 --> 00:48:44,512
And of course, you can go the self-hosted route with AlbiHub and then connect to a bunch

738
00:48:44,512 --> 00:48:45,612
of great podcast apps.

739
00:48:45,872 --> 00:48:47,712
Thank you everybody who supported this episode.

740
00:48:55,852 --> 00:49:02,772
Well, you have to wonder if Trump created a bit of a long-term problem for himself.

741
00:49:02,972 --> 00:49:04,112
This week with crypto?

742
00:49:05,912 --> 00:49:08,512
President Trump was interviewed by CBS News,

743
00:49:08,672 --> 00:49:14,972
and Norah O'Donnell asked him about his recent pardon of CZ, the CEO of Binance.

744
00:49:15,412 --> 00:49:17,212
And this was the moment.

745
00:49:17,772 --> 00:49:24,332
So far this year, the president has pardoned or shortened the sentences of more than 1,600 people.

746
00:49:24,332 --> 00:49:30,412
The latest pardon was for a cryptocurrency tycoon who is known as CZ.

747
00:49:30,812 --> 00:49:39,032
The company CZ founded, Binance, helped boost the profile of the Trump family's crypto firm, World Liberty Financial.

748
00:49:39,692 --> 00:49:44,192
He pled guilty in 2023 to violating anti-money laundering laws.

749
00:49:44,372 --> 00:49:50,172
The government at the time said that CZ had caused significant harm to U.S. national security,

750
00:49:50,172 --> 00:49:54,952
essentially by allowing terrorist groups like Hamas to move millions of dollars around.

751
00:49:55,352 --> 00:49:56,512
Why did you pardon him?

752
00:49:56,652 --> 00:49:58,312
Okay, are you ready? I don't know who he is.

753
00:49:58,892 --> 00:50:01,552
I know he got a four-month sentence or something like that.

754
00:50:02,172 --> 00:50:03,212
Let's just start right here.

755
00:50:03,932 --> 00:50:07,272
I can't believe Trump is going with the I-don't-know-who-he-is defense.

756
00:50:08,032 --> 00:50:10,212
Are you ready for this? I don't know who he is.

757
00:50:10,712 --> 00:50:15,072
No, actually, to be frank, Mr. President, I wasn't ready for that answer.

758
00:50:15,072 --> 00:50:17,852
... of dollars around. Why did you pardon him?

759
00:50:17,912 --> 00:50:19,672
Okay, are you ready? I don't know who he is.

760
00:50:20,172 --> 00:50:23,032
I know he got a four-month sentence or something like that.

761
00:50:23,312 --> 00:50:25,212
And I heard it was a Biden witch hunt.

762
00:50:25,212 --> 00:50:35,252
In 2025, his crypto exchange, Binance, helped facilitate a $2 billion purchase of World Liberty Financial's stablecoin.

763
00:50:35,792 --> 00:50:38,172
And then you pardoned CZ.

764
00:50:38,712 --> 00:50:42,152
How do you address the appearance of pay for play?

765
00:50:42,192 --> 00:50:43,052
Well, here's the thing.

766
00:50:43,192 --> 00:50:45,612
I know nothing about it because I'm too busy doing the other.

767
00:50:45,732 --> 00:50:46,272
But he got a part?

768
00:50:46,272 --> 00:50:48,532
I can only tell you this.

769
00:50:48,532 --> 00:50:51,112
so if this is true

770
00:50:51,112 --> 00:50:53,532
then how is that any better than the auto pen

771
00:50:53,532 --> 00:50:55,672
seems like and I just

772
00:50:55,672 --> 00:50:57,792
this is such a wild bonkers defense to me

773
00:50:57,792 --> 00:50:58,472
you're doing the other

774
00:50:58,472 --> 00:50:59,572
I can only tell you this

775
00:50:59,572 --> 00:51:01,412
I can only tell you this

776
00:51:01,412 --> 00:51:03,832
my sons are into it

777
00:51:03,832 --> 00:51:05,512
I'm glad they are because it's probably

778
00:51:05,512 --> 00:51:07,112
a great industry crypto

779
00:51:07,112 --> 00:51:08,872
I think it's good you know they're running a business

780
00:51:08,872 --> 00:51:09,992
they're not in government

781
00:51:09,992 --> 00:51:10,592
what?

782
00:51:11,352 --> 00:51:11,752
what?

783
00:51:12,592 --> 00:51:13,272
now I

784
00:51:13,272 --> 00:51:15,132
this is not a political statement

785
00:51:15,132 --> 00:51:18,312
I just believe this is going to chase him

786
00:51:18,532 --> 00:51:22,652
This is going to follow him for a while and perhaps through the midterms.

787
00:51:22,652 --> 00:51:28,652
Then if the Democrats take over in the midterms, the lower houses of government, they're going to go after him on this.

788
00:51:29,212 --> 00:51:33,612
So this seems like a really clumsy thing to do, sort of a critical time for him to answer that.

789
00:51:33,892 --> 00:51:36,932
And it's going to be a problem for the general crypto industry.

790
00:51:37,012 --> 00:51:39,472
This is going to hang over that aspect.

791
00:51:39,652 --> 00:51:48,472
Binance, by the way, my opinion seems to be at the center of a lot of the dumps and liquidations and market manipulation we've been seeing.

792
00:51:48,532 --> 00:51:50,392
for about 30, 40 days.

793
00:51:51,052 --> 00:51:52,952
It's always Binance, and Binance is partners.

794
00:51:53,772 --> 00:51:57,232
So Trump actually had an extended version of that interview,

795
00:51:57,492 --> 00:52:04,312
and we do get a bit more insight and a new narrative from Trump in the more extended cut.

796
00:52:05,132 --> 00:52:08,052
Now China's getting into it very big right now.

797
00:52:08,392 --> 00:52:11,772
If you want to go after people, you're going to kill that industry.

798
00:52:12,112 --> 00:52:16,152
The industry he's talking about is crypto, and he's saying China is going big in crypto right now.

799
00:52:16,152 --> 00:52:23,512
And it'll be very bad. Tremendous number of jobs. I campaigned positively on crypto. Very openly,

800
00:52:23,512 --> 00:52:30,092
I campaigned. Biden campaigned against it. When Biden found out that I was getting like 100% of

801
00:52:30,092 --> 00:52:35,352
the crypto vote, which was a lot, he switched totally and he went in favor of crypto. They

802
00:52:35,352 --> 00:52:41,172
went totally in favor. They had many people under indictment. They let them all go. They let them

803
00:52:41,172 --> 00:52:46,952
all go you know that many people were under indictment biden was a corrupt president biden

804
00:52:46,952 --> 00:52:51,872
went all in on crypto at the very end because he thought he could get some votes it didn't work

805
00:52:51,872 --> 00:52:57,792
they voted for me i want to make crypto great for america that's the only thing i don't want to have

806
00:52:57,792 --> 00:53:04,252
somebody else have crypto and have china be number one in the world in crypto because in crypto it's

807
00:53:04,252 --> 00:53:08,792
a kind of an industry where basically you're going to have number one and you're not going to have a

808
00:53:08,792 --> 00:53:13,252
number two. And right now we're number one by a long shot. I want to keep it that way. The same

809
00:53:13,252 --> 00:53:18,072
way we're number one with AI, we're number one with crypto. And I want to keep it that way.

810
00:53:18,992 --> 00:53:23,852
Bringing in the China competitive narrative is always interesting. It's a hard one to argue

811
00:53:23,852 --> 00:53:28,012
against. How do you know if it's true or not? And then the statement that it's an industry where

812
00:53:28,012 --> 00:53:32,572
there's only going to be one winner. And then the comparison to the AI industry, I find all of that

813
00:53:32,572 --> 00:53:38,232
really interesting and where Trump's headspace is on it. The White House did try to clean up

814
00:53:38,232 --> 00:53:40,912
some of these statements later, like a day or two later.

815
00:53:41,732 --> 00:53:43,732
And so the president is correcting that wrong,

816
00:53:43,872 --> 00:53:46,772
and he has officially ended the Biden administration's war

817
00:53:46,772 --> 00:53:48,532
on the cryptocurrency industry,

818
00:53:48,532 --> 00:53:50,492
and I think that's the message he sent with this pardon.

819
00:53:51,012 --> 00:53:51,812
Karen, yes.

820
00:53:52,272 --> 00:53:54,212
So that's their cover for it.

821
00:53:54,472 --> 00:53:58,412
To me, I think somebody, maybe one of his kids,

822
00:53:59,072 --> 00:54:00,772
got to Trump and said, you should pardon this guy.

823
00:54:01,332 --> 00:54:03,532
If I were just going to make a bet on Polymarket,

824
00:54:03,532 --> 00:54:06,152
my bet would be that Trump didn't know anything about CZ,

825
00:54:06,152 --> 00:54:09,772
but his boys or somebody he trusts told him to do it

826
00:54:09,772 --> 00:54:11,432
and told him it's for the crypto industry.

827
00:54:12,232 --> 00:54:13,772
And then today, as I'm recording,

828
00:54:13,872 --> 00:54:15,592
actually just like an hour before I started recording,

829
00:54:16,172 --> 00:54:19,032
Trump made some current today comments about Bitcoin.

830
00:54:19,932 --> 00:54:22,872
We're making the United States the Bitcoin superpower,

831
00:54:23,052 --> 00:54:24,612
the crypto capital of the world,

832
00:54:24,692 --> 00:54:27,952
and the undisputed leader in artificial intelligence.

833
00:54:27,952 --> 00:54:29,652
We're leading China by a lot.

834
00:54:29,872 --> 00:54:31,472
Look at that, all of it right there again.

835
00:54:32,272 --> 00:54:34,552
AI, crypto, same sentence, and China.

836
00:54:34,552 --> 00:54:37,852
It's an interesting political messaging there.

837
00:54:38,412 --> 00:54:41,512
And if we're going to be the Bitcoin capital, are we going to have that SBR?

838
00:54:42,072 --> 00:54:43,452
I'm just curious about that.

839
00:54:43,672 --> 00:54:44,912
I'm just curious.

840
00:54:45,332 --> 00:54:47,672
I mean, I'm, you know, just wondering what's happening there.

841
00:54:48,772 --> 00:54:58,212
Now, I've been noticing that the Treasury Secretary has been going on the Sunday morning programs just about every week trying to set the narrative for the market successfully or not.

842
00:54:59,012 --> 00:54:59,812
That's all fine.

843
00:54:59,872 --> 00:55:03,392
And I always am keeping an eye on to see if there's anything relevant for you to know about.

844
00:55:03,392 --> 00:55:20,332
Generally, not much. But I do I do want to play a couple of these because we have entered an era where the Treasury secretary is just straight out hostile against the Federal Reserve and everything about the Federal Reserve.

845
00:55:20,912 --> 00:55:29,392
And so Scott was on with Maria and he blasted for their hawkish talk around a possible December rate pause instead of a rate cut.

846
00:55:29,392 --> 00:55:39,392
That the decision by the Federal Reserve yesterday, the decision to cut rates by 25 basis points, I applaud.

847
00:55:40,392 --> 00:55:46,632
But the language that went with it tells me that this Fed is stuck in the past.

848
00:55:46,812 --> 00:55:51,792
Their inflation estimates have been terrible so far this year.

849
00:55:51,892 --> 00:55:54,652
They keep coming down. Inflation keeps coming down.

850
00:55:54,652 --> 00:55:57,312
And their models are broken.

851
00:55:57,312 --> 00:56:06,312
And I'm just not sure what they're thinking here in terms of signaling that they may not want to cut rates at the December meeting.

852
00:56:06,312 --> 00:56:18,712
They've got a lot to answer for, not only for this year, but for many years past, both in their GDP estimates and their inflation estimates, which are consistently wrong.

853
00:56:18,712 --> 00:56:30,612
And we're going to find a leader who is going to revamp the entire institution in terms of process and inner workings.

854
00:56:30,772 --> 00:56:31,952
Oh, that won't cause any volatility.

855
00:56:32,672 --> 00:56:37,492
And then he was he was I think he was on Bloomberg and no, no, he was on Fox.

856
00:56:37,772 --> 00:56:42,592
And he just straight out said that the Fed wants a nation of renters.

857
00:56:43,332 --> 00:56:46,932
This is what Bitcoiners have been saying and probably gold bugs, too.

858
00:56:47,672 --> 00:56:53,812
But to have the Treasury Secretary of the United States government say this is a remarkable turn.

859
00:56:54,432 --> 00:57:03,572
Last year, they voted for the massive 50-point or 50-basis-point rate cut in September before the election in November.

860
00:57:04,212 --> 00:57:05,692
Clearly very political.

861
00:57:06,112 --> 00:57:08,732
Then two rate cuts after that.

862
00:57:09,592 --> 00:57:15,592
You know, the irony here, of course, is that Scott often makes it political by hitting on that point.

863
00:57:15,592 --> 00:57:25,812
It does, I think, broadly support his overall point that they did a 50 basis point cut back in September when the employment market was stronger and inflation was about the same.

864
00:57:25,992 --> 00:57:27,772
The only difference was it was before an election.

865
00:57:28,572 --> 00:57:34,572
It does kind of support his point, but it makes him political while he's accusing the Fed of being political.

866
00:57:34,912 --> 00:57:39,372
And I think in a way his position would be stronger if he didn't get in the politics of it.

867
00:57:39,372 --> 00:57:45,532
The massive 50 point or 50 basis point rate cut in September before the election in November,

868
00:57:46,252 --> 00:57:56,572
clearly very political, then two rate cuts after that. And the labor market was in better shape then.

869
00:57:56,572 --> 00:58:03,772
The inflation levels were the same. So, you know, I'm afraid that the board may be playing politics

870
00:58:03,772 --> 00:58:11,492
here. And what's really discouraging is we were starting to see signs of a nascent recovery in the

871
00:58:11,492 --> 00:58:17,772
housing market. Housing market is obviously the most interest rate sensitive sector of the economy.

872
00:58:18,292 --> 00:58:25,292
Americans have been pushed out of affordability in the housing market. And this isn't helpful

873
00:58:25,292 --> 00:58:31,732
what the Fed's doing here. And when I look, rents are down. And that's one of the biggest

874
00:58:31,732 --> 00:58:37,332
components of inflation. So it's like they want to have a nation of renters and not owners.

875
00:58:38,872 --> 00:58:45,752
Wow. Wow. All right. Now I want to give you an update on Lava. Now, you might remember we talked

876
00:58:45,752 --> 00:58:51,512
a little bit last week about Lava. This is an application and a Bitcoin financial services

877
00:58:51,512 --> 00:59:00,732
that allows you to store Bitcoin cash and stable coins in their app and then traditionally pull out

878
00:59:00,732 --> 00:59:07,912
a Bitcoin collateralized loan, but now recently they've introduced a line of credit. And it is an

879
00:59:07,912 --> 00:59:12,232
interesting product because you only have to pull out as much as you need. It's Bitcoin backed. So

880
00:59:12,232 --> 00:59:19,232
if you have, say, $10,000 worth of Bitcoin on Lava, then you could pull up to $5,000 as you

881
00:59:19,232 --> 00:59:23,332
needed it. And you would pay fees on the most expensive thing that you charged. It's a 5%

882
00:59:23,332 --> 00:59:29,292
interest rate right now, which is an unbelievably low interest rate. It'll eventually be up to 5%

883
00:59:29,292 --> 00:59:33,412
It appears their cost of money is somewhere around 4% to 5%.

884
00:59:33,412 --> 00:59:37,952
And they've recently just taken on around 200, maybe a little bit more in VC money.

885
00:59:38,652 --> 00:59:40,612
So that's the recap of Lava.

886
00:59:40,772 --> 00:59:45,872
And since last week, I decided to test it a little bit because I saw a lot of interest by you guys.

887
00:59:45,932 --> 00:59:52,332
In fact, a ton of interest in general around this product, especially as whales are selling their Bitcoin right now.

888
00:59:52,472 --> 00:59:57,992
You think, you know, if you're a whale and you've got, say, just a round number, 10,000 Bitcoin,

889
00:59:57,992 --> 01:00:01,132
you could put two of them in the Lava app

890
01:00:01,132 --> 01:00:07,272
and you could easily pull up to $200,000 as you need it

891
01:00:07,272 --> 01:00:09,992
and then they have a very competitive payback structure

892
01:00:09,992 --> 01:00:12,272
where you could actually not make payments at all

893
01:00:12,272 --> 01:00:15,032
until the very end if you want or et cetera, et cetera.

894
01:00:15,672 --> 01:00:16,372
Very interesting.

895
01:00:17,092 --> 01:00:18,672
The process is very easy too.

896
01:00:18,752 --> 01:00:19,972
There's very little KYC

897
01:00:19,972 --> 01:00:22,492
until you want to connect to a fiat on-ramp.

898
01:00:22,572 --> 01:00:25,212
But if you were just to work with stable coins,

899
01:00:25,212 --> 01:00:28,692
you would never actually have to KYC as far as I can tell.

900
01:00:29,092 --> 01:00:32,272
You put the Bitcoin in and it's available for a loan.

901
01:00:32,492 --> 01:00:36,492
And then you decide if you want to ACH it to an account or if you want unstable coins.

902
01:00:36,952 --> 01:00:42,972
I've not done a line of credit, but I have decided to put just over a million sats in it,

903
01:00:43,112 --> 01:00:45,552
just in the Bitcoin portion, just so I can start testing it.

904
01:00:46,152 --> 01:00:49,452
I'm a little hesitant because, you know, even that's a lot of money,

905
01:00:49,452 --> 01:00:52,172
but I do want to properly test this for you.

906
01:00:52,172 --> 01:01:00,432
And you have to have a certain balance on there to get into the wait list for the card that will sit in front of this, like a Visa card is what they're talking about.

907
01:01:00,752 --> 01:01:02,412
So then you would be at a merchant.

908
01:01:02,572 --> 01:01:06,412
In my case, I need to buy $700 worth of tires for my car right now.

909
01:01:06,572 --> 01:01:07,652
This is something that's happening right now.

910
01:01:08,552 --> 01:01:18,292
And the way I would have to use LAV at the moment is I would grab a line of credit and I would send that cash, I guess, to my checking account.

911
01:01:18,292 --> 01:01:28,452
But ideally, you would just have that Visa card, and I would be at the discount tire store, and I would just swipe the card at their point of sale, and it would just be charged to my line of credit on Lava.

912
01:01:29,212 --> 01:01:34,432
And the interest rate is 5%, so it's about 20% lower than a credit card these days.

913
01:01:34,892 --> 01:01:36,152
That's a huge difference.

914
01:01:36,792 --> 01:01:38,032
And it's very compelling.

915
01:01:38,652 --> 01:01:43,532
So I want to test this for you, but I am concerned about a couple of things, and I just want to make you aware of them.

916
01:01:44,212 --> 01:01:46,632
Number one, a lot of us were under the impression

917
01:01:46,632 --> 01:01:48,552
they were doing this with DLCs on Bitcoin

918
01:01:48,552 --> 01:01:50,612
and using something called the Lava Protocol,

919
01:01:50,792 --> 01:01:52,812
which they released a white paper on some time ago.

920
01:01:53,512 --> 01:01:55,252
It has now come to my attention

921
01:01:55,252 --> 01:01:56,932
that that is not how they're doing this,

922
01:01:56,992 --> 01:01:58,652
that they tried that, found issues with it,

923
01:01:58,652 --> 01:02:00,672
and now are doing a more traditional custody model.

924
01:02:01,412 --> 01:02:02,912
Some people have reported that their Bitcoin

925
01:02:02,912 --> 01:02:04,772
has been moved around since they've moved it on there.

926
01:02:04,832 --> 01:02:05,212
I don't know.

927
01:02:05,272 --> 01:02:06,312
I don't have any instances

928
01:02:06,312 --> 01:02:08,272
or I don't know how they're checking that at the moment.

929
01:02:09,152 --> 01:02:12,952
And I'm not exactly sure under what legal...

930
01:02:13,002 --> 01:02:18,762
framework, they're able to operate in every U.S. state and in Canada and I believe around the world.

931
01:02:19,402 --> 01:02:25,882
I've seen some reports on X that they are using a commercial lending license. In other words,

932
01:02:25,942 --> 01:02:30,282
these are supposed to be loans to small businesses, which is a lot more flexible. Like here in

933
01:02:30,282 --> 01:02:34,722
Washington state, you cannot take a personal Bitcoin backed loan out, but you can as a business.

934
01:02:35,342 --> 01:02:39,662
And so there's been some talk of maybe that's the case. I don't know if that's true or not.

935
01:02:39,662 --> 01:02:54,562
So these are risk flags when you're dealing with money that I think people should be aware of. Now, their CEO has been very active on X responding to people's questions and seemingly as transparent as one can be in these types of things.

936
01:02:54,562 --> 01:03:09,522
So I'm continuing to monitor it. I will test it. If they issue a card, I will try it. I may try the line of credit. If more of you express interest, I am putting some I put some Bitcoin in there basically to have some skin in the game and to report to you what happens.

937
01:03:09,522 --> 01:03:12,082
because if this is a success,

938
01:03:12,762 --> 01:03:14,602
this could be the biggest game changer

939
01:03:14,602 --> 01:03:15,502
for Bitcoin holders

940
01:03:15,502 --> 01:03:18,762
in the 15 years that I've been in Bitcoin

941
01:03:18,762 --> 01:03:20,622
because in my opinion,

942
01:03:21,362 --> 01:03:24,062
this unlocks the access to liquidity

943
01:03:24,062 --> 01:03:25,942
on demand as you need it

944
01:03:25,942 --> 01:03:27,202
and that was the last piece.

945
01:03:27,282 --> 01:03:28,862
These Bitcoin-backed loans have been neat

946
01:03:28,862 --> 01:03:31,782
but I don't want to take out,

947
01:03:32,222 --> 01:03:34,222
a lot of them have a minimum of $10,000

948
01:03:34,222 --> 01:03:36,762
like at Strike or $7,000 or $5,000.

949
01:03:37,522 --> 01:03:39,042
I think Salt's $5,000 or $7,000.

950
01:03:39,522 --> 01:03:40,462
They have minimums.

951
01:03:40,462 --> 01:03:44,062
Well, I don't even necessarily want to take that much out to buy $700 worth of tires.

952
01:03:44,542 --> 01:03:46,102
But also, I don't, is that enough?

953
01:03:46,502 --> 01:03:56,502
If I can only take one loan out a year, or if I'm only, you know, I suppose you could take another one out, but if I'm only going to take out one loan a year, how am I supposed to guess how much money I need for the entire year?

954
01:03:56,962 --> 01:03:58,822
I must really have my crap together, huh?

955
01:03:59,402 --> 01:04:02,102
Where with a line of credit, you use it as you need it.

956
01:04:02,542 --> 01:04:06,802
You're not paying a bunch of fees or interest on something that you're not using, et cetera, et cetera.

957
01:04:06,802 --> 01:04:34,542
So I'm very excited as a product because I think it's going to be a game changer for Bitcoiners. The things that are red flags, I'm going to continue to monitor, of course. It should be said, with all of these types of products at the moment, they are also custodial. In other words, you're giving them your keys. It's a huge risk factor. It seems to be something that traditional finance is fine with and perhaps weighed against selling your Bitcoin. It's an acceptable risk, but it's a big ask.

958
01:04:34,542 --> 01:04:38,302
And so it's another thing I'm watching with lava with some skin in the game to see where it goes.

959
01:04:38,682 --> 01:04:40,922
So far, they've delivered on what they've said.

960
01:04:41,482 --> 01:04:44,762
I'm not exactly sure how they're doing it when it comes to all of the legalities,

961
01:04:45,062 --> 01:04:47,362
but they're doing it.

962
01:04:48,042 --> 01:04:49,862
And they continue to be fairly transparent.

963
01:04:50,382 --> 01:04:53,102
They said they would have the line of credit within a week, and they did it.

964
01:04:53,862 --> 01:05:04,280
So if they deliver on this card within a relatively short period of time I going to be pretty impressed because I have to imagine that a very hard thing to do And if they manage to deliver a Visa card that sits in front of a Bitcoin line of credit

965
01:05:04,860 --> 01:05:07,340
not only is that going to be a historic product innovation,

966
01:05:07,760 --> 01:05:11,240
but it would indicate that it's something they have been working on for a long time

967
01:05:11,240 --> 01:05:13,960
because that's just not the kind of thing you just whip out in a couple of weeks.

968
01:05:14,440 --> 01:05:17,360
And that, I think, would be a positive signal

969
01:05:17,360 --> 01:05:19,020
because that would mean they've been working on this,

970
01:05:19,080 --> 01:05:20,300
they've been working with institutions.

971
01:05:20,300 --> 01:05:27,160
to me that would indicate that it's not just this quick reactionary thing to like strike or something

972
01:05:27,160 --> 01:05:30,980
like that and they're moving quick but this has been something that's been coming together for

973
01:05:30,980 --> 01:05:35,600
quite a long time if that card ships relatively soon so i'll keep an eye on it keep you updated

974
01:05:35,600 --> 01:05:39,800
keep your questions coming in and also i'd like to hear your thoughts and opinions on lava if

975
01:05:39,800 --> 01:05:42,060
you're looking for an excuse to boost let's talk about this

976
01:05:42,060 --> 01:05:56,320
well the folks at van ek have been really interesting they have some etfs and they're

977
01:05:56,320 --> 01:06:03,640
deep into the bitcoin and nuclear energy areas and things like that and they're i think i don't

978
01:06:03,640 --> 01:06:07,820
know if he's the ceo i think he i think i think he is van ek i think this is the guy he was

979
01:06:07,820 --> 01:06:14,900
interviewed recently, and he was looking at some recent trends that are just super early days,

980
01:06:14,900 --> 01:06:20,580
but could indicate where Bitcoin eventually ends up at 5% of global trade.

981
01:06:21,360 --> 01:06:26,180
We think there's a good chance that central banks and sovereign wealth funds will start to get more

982
01:06:26,180 --> 01:06:31,540
aggressive in adopting Bitcoin, not only as a store of value, but also as a medium exchange.

983
01:06:32,120 --> 01:06:37,800
So this year, the Czech Republic, the governor of the central bank there, has initiated a study

984
01:06:37,800 --> 01:06:41,720
to analyze Bitcoin for inclusion in their central bank reserves.

985
01:06:41,720 --> 01:06:49,500
And then just this week, Russia did a trade with China, partially denominated in Bitcoin,

986
01:06:50,020 --> 01:06:53,640
beginning to really use Bitcoin for the first time as a medium of exchange.

987
01:06:53,740 --> 01:06:55,820
And that's not for individuals buying coffee.

988
01:06:56,240 --> 01:07:03,080
That's for large scale transactions where countries are using Bitcoin as an intermediary currency

989
01:07:03,080 --> 01:07:05,020
to do, say, an oil trade.

990
01:07:05,020 --> 01:07:15,300
And in that scenario where Bitcoin denominated trade could be, say, 5% of global trade, we get to a $3 million price per Bitcoin.

991
01:07:15,540 --> 01:07:18,680
That's a long-term prediction, like 2050.

992
01:07:19,400 --> 01:07:24,480
But that's going to be necessary, we think, to elevate Bitcoin into the millions per coin.

993
01:07:35,020 --> 01:07:55,598
Let check in on the state of the network before I get out of here Show wrapping up at block height 922 378 the bitcoin price to usd is 103 700 up a little bit that makes our sats per dollar around 965 satoshis to one u dollar we are down a solid

994
01:07:55,598 --> 01:08:06,278
17.8 percent from the all-time high some real stuff there which was 126 180 dollars 30 days ago

995
01:08:06,278 --> 01:08:10,498
on the nose. October 6th.

996
01:08:10,658 --> 01:08:14,418
Okay. Interesting. Interesting. The estimated difficulty change

997
01:08:14,418 --> 01:08:18,418
has made a huge adjustment. Now just down 0.9%.

998
01:08:19,118 --> 01:08:22,438
Wow. Current retarget date November 11th.

999
01:08:22,438 --> 01:08:24,498
Let's check in on the nodes though. This is interesting.

1000
01:08:25,838 --> 01:08:30,578
Core 30 now clocking in at 9.4% of the Bitcoin network.

1001
01:08:31,458 --> 01:08:34,278
One of the fastest ascends we've ever seen of any

1002
01:08:34,278 --> 01:08:36,638
core version ever, 9.4%.

1003
01:08:36,638 --> 01:08:38,238
You almost have to wonder

1004
01:08:38,238 --> 01:08:40,198
if all of the hoopla was

1005
01:08:40,198 --> 01:08:42,278
actually somewhat of marketing for Core

1006
01:08:42,278 --> 01:08:44,238
30, like people knew about the release

1007
01:08:44,238 --> 01:08:45,438
and wanted to update or something.

1008
01:08:46,498 --> 01:08:48,378
Maybe more people are paying attention to the release.

1009
01:08:48,478 --> 01:08:50,338
I don't know. But it could

1010
01:08:50,338 --> 01:08:52,358
be well at 10%, which

1011
01:08:52,358 --> 01:08:54,178
would beat Core 28, the current top

1012
01:08:54,178 --> 01:08:56,158
contender. It is now the number

1013
01:08:56,158 --> 01:08:58,278
two most popular node software

1014
01:08:58,278 --> 01:09:00,278
on the network. And that is

1015
01:09:00,278 --> 01:09:00,898
the Bitcoin Network.

1016
01:09:04,278 --> 01:09:14,618
Well, if you made it this far, you ought to check out the links in the show notes,

1017
01:09:14,738 --> 01:09:17,558
either in your podcast app or over at thisweekinbitcoin.show.

1018
01:09:17,558 --> 01:09:23,138
We're also going to find a bunch of great shows like Linux Unplugged and The Launch,

1019
01:09:23,258 --> 01:09:26,178
which is fun and unexplainable, but I think you'll enjoy it.

1020
01:09:26,438 --> 01:09:27,958
But I hope you enjoyed this here podcast.

1021
01:09:28,298 --> 01:09:29,538
I try to focus on The Signal.

1022
01:09:29,978 --> 01:09:32,818
Even when we get talking about politicians and politics,

1023
01:09:32,818 --> 01:09:37,858
I try to focus on what the actual signal is in there, not get distracted by the emotions around the issue.

1024
01:09:38,218 --> 01:09:41,458
If you value that or if you have any feedback, consider a boost.

1025
01:09:41,758 --> 01:09:49,438
And of course, you can always boost in with what else you'd like to see from the show in the future or in terms of guides, tutorials or what I missed.

1026
01:09:49,598 --> 01:09:50,298
I always like that.

1027
01:09:51,018 --> 01:09:53,738
Now, I'm going to leave you with a value for value track, as I do.

1028
01:09:53,818 --> 01:09:58,778
If you boost in once the music starts playing, 95 percent of your sats go to the artist.

1029
01:09:58,978 --> 01:10:01,038
This week, it's Caroline Hale.

1030
01:10:01,038 --> 01:10:02,978
It's one of my favorite Value for Value tracks.

1031
01:10:03,378 --> 01:10:07,318
She's an Austin-based singer and songwriter, and it's her track, Kick It.

1032
01:10:31,038 --> 01:10:38,476
you Now I just wanna be alone Met you on the west side of 35 the other night

1033
01:10:38,476 --> 01:10:40,536
Music's kinda weird, but I'm here

1034
01:10:40,536 --> 01:10:42,916
And I wanna have a good time

1035
01:10:42,916 --> 01:10:49,636
I'm on a late July high

1036
01:10:49,636 --> 01:10:51,456
Summer nights are getting blurry

1037
01:10:51,456 --> 01:10:55,656
But I remember you, 402, almost like it was a movie

1038
01:10:55,656 --> 01:11:03,456
The noise is getting loud

1039
01:11:03,456 --> 01:11:07,016
So when you took me by the hand, it all stopped

1040
01:11:07,016 --> 01:11:08,916
And you asked me where I'm going

1041
01:11:08,916 --> 01:11:12,196
I said I'll see you out of nowhere

1042
01:11:12,196 --> 01:11:15,156
Oh, I just wish you'd play it cool

1043
01:11:15,156 --> 01:11:17,676
I wish you'd play it cool

1044
01:11:17,676 --> 01:11:19,896
I wish you'd find it cool.

1045
01:11:19,896 --> 01:11:21,756
Learn how to kick it on and roll.

1046
01:11:21,756 --> 01:11:24,556
Kick it on and roll, kick it on and roll.

1047
01:11:24,556 --> 01:11:25,916
Kick it on and roll.

1048
01:11:25,916 --> 01:11:26,296
Kick it on and roll.

1049
01:11:26,296 --> 01:11:28,396
If you just wanted someone to go home,

1050
01:11:28,396 --> 01:11:31,036
I wish you'd play it cool.

1051
01:11:31,036 --> 01:11:33,056
How would you play it cool?

1052
01:11:33,056 --> 01:11:34,856
Now I just want to be alone.

1053
01:11:34,856 --> 01:11:36,436
Kick it on and roll.

1054
01:11:36,436 --> 01:11:37,916
Kick it on and roll.

1055
01:11:37,916 --> 01:11:39,316
Kick it on and roll.

1056
01:11:39,316 --> 01:11:40,456
Kick it off.

1057
01:11:40,456 --> 01:11:42,396
Kings of the flea out on the beat.

1058
01:11:42,396 --> 01:11:44,416
Starts on fire in the basement.

1059
01:11:44,416 --> 01:11:47,656
Wish that I could dance and dance and say we ran around the road.

1060
01:11:47,656 --> 01:11:52,076
He said that I can't dance too

1061
01:11:52,076 --> 01:11:56,596
Now he's supping on the gas

1062
01:11:56,596 --> 01:11:59,616
Moving way too fast, getting mad

1063
01:11:59,616 --> 01:12:01,456
Honey, unlock all the doors

1064
01:12:01,456 --> 01:12:05,096
Cause I don't want this anymore

1065
01:12:05,096 --> 01:12:07,876
Oh, I just wish you'd play a cool game

1066
01:12:07,876 --> 01:12:10,876
I wish you'd play a cool game

1067
01:12:10,876 --> 01:12:12,496
I wish you'd play a cool game

1068
01:12:12,496 --> 01:12:14,416
Learn how to kick it on the road

1069
01:12:14,416 --> 01:12:21,396
Just wanted someone to go home with

1070
01:12:21,396 --> 01:12:23,436
I wish you'd play it cool

1071
01:12:23,436 --> 01:12:25,696
I wish you'd play it cool

1072
01:12:25,696 --> 01:12:27,536
Now I just wanna be alone

1073
01:12:27,536 --> 01:12:34,136
Oh, I just wish you'd play it cool

1074
01:12:34,136 --> 01:12:37,456
Learn how to kick it on your own

1075
01:12:37,456 --> 01:12:41,156
Just wanted someone to go home with

1076
01:12:41,156 --> 01:12:44,036
Now I just wanna be alone

1077
01:12:44,036 --> 01:13:10,836
Oh, I just wish you played