1 00:00:00,000 --> 00:00:21,200 Music. 2 00:00:21,041 --> 00:00:25,701 Welcome in to This Week in Bitcoin, Episode 9. I know it. 3 00:00:26,041 --> 00:00:31,201 It's been a crazy week. I've gotten several notes from you, and I have to say I agree. 4 00:00:32,141 --> 00:00:35,901 There's more going on in the last seven days than I've seen in a long time. 5 00:00:36,121 --> 00:00:41,721 And I think I've isolated it down to seven major events that have landed in 6 00:00:41,721 --> 00:00:45,001 just the last seven days or so that are putting downward pressure, 7 00:00:45,101 --> 00:00:49,301 I should say aggressive downward pressure as we record, court on Bitcoin's short-term 8 00:00:49,301 --> 00:00:55,201 price and adding long-term risk to the quote-unquote Bitcoin industry and the 9 00:00:55,201 --> 00:00:58,821 potential legal precedent that could be getting set very soon and, 10 00:00:59,861 --> 00:01:01,421 signals coming from the federal government. 11 00:01:01,561 --> 00:01:05,561 So I'll break these seven events down as we get into this week's episode to 12 00:01:05,561 --> 00:01:08,781 try to help put some context around all of this for you, for me, 13 00:01:08,841 --> 00:01:11,921 and just for those of us that want to look back at some point in the future 14 00:01:11,921 --> 00:01:15,861 and try to figure out what was going on during this critical moment of Bitcoin's adoption. 15 00:01:15,861 --> 00:01:20,781 And while I don't know if I would say this is the biggest, we're going to start 16 00:01:20,781 --> 00:01:25,841 with number one, which is certainly the context and a factor that sets the stage 17 00:01:25,841 --> 00:01:28,201 for what we see going on right now. 18 00:01:28,361 --> 00:01:31,681 And I have to tip my hat to the chart sniffers. 19 00:01:32,361 --> 00:01:36,761 They were right. They looked at the bars and they said, actually, 20 00:01:37,141 --> 00:01:40,841 guys, historically, Bitcoin slides for as long as, you know, 21 00:01:40,861 --> 00:01:43,201 nine months after the happening. 22 00:01:44,735 --> 00:01:48,815 OK, I doubt we're going to see it slide for that long, but there is a legitimate 23 00:01:48,815 --> 00:01:52,275 market adjustment that has to take place after the block reward is halved. 24 00:01:52,295 --> 00:01:54,835 I mean, for the miners, the revenue is cut in half. 25 00:01:55,195 --> 00:01:58,975 That has to get sorted out. There may have to be market consolidation or adjustments 26 00:01:58,975 --> 00:02:02,075 or changes, business strategy, strategy adjustments. 27 00:02:02,795 --> 00:02:05,775 So history doesn't always repeat when it comes to these things. 28 00:02:05,795 --> 00:02:10,595 But once again, Bitcoin does seem to be repeating history in this particular pattern. 29 00:02:10,595 --> 00:02:14,755 So, what we're about to get into means we're already primed for it, 30 00:02:14,775 --> 00:02:19,455 and that means that when the number two thing that just really begun to pick 31 00:02:19,455 --> 00:02:22,975 up steam this last week landed, things just started to slide, 32 00:02:23,095 --> 00:02:25,375 and that is the yen is in trouble. 33 00:02:26,135 --> 00:02:30,855 And big money's freaked out about this. The third largest fiat currency in the 34 00:02:30,855 --> 00:02:35,535 world is having problems that will impact every market, including the U.S. 35 00:02:35,535 --> 00:02:40,635 Treasury market, which just about impacts everything else. And if you go look 36 00:02:40,635 --> 00:02:45,715 at the price chart, the yen looks like a dog coin having a crash. 37 00:02:46,215 --> 00:02:50,675 Well, it was. The yen popping yesterday after a suspected intervention from 38 00:02:50,675 --> 00:02:51,575 the Japanese government. 39 00:02:51,695 --> 00:02:56,955 This comes as the currency saw its weakest levels against the dollar since all the way back to 1990. 40 00:02:57,715 --> 00:03:01,495 Not good. Going back to the 90s, now that pop that she talks about, 41 00:03:01,515 --> 00:03:05,175 it's funny how the traditional market press covered this. 42 00:03:05,275 --> 00:03:08,195 The yen sees a surge. The yen sees a pop. 43 00:03:08,895 --> 00:03:15,135 Well, that surge and pop is the Ministry of Finance injecting $35 billion into 44 00:03:15,135 --> 00:03:18,695 the system to keep things going for just a couple of days. 45 00:03:19,075 --> 00:03:23,035 Just a couple of days because they have no fix for the systemic issue. 46 00:03:23,395 --> 00:03:28,215 Japan is trying to slow the weakening yen trend, but I think they know full 47 00:03:28,215 --> 00:03:31,515 well they can't turn the trend. This is Rebecca Patterson. 48 00:03:32,105 --> 00:03:35,045 She's a former Bridgewater Associates chief investment strategist, 49 00:03:35,065 --> 00:03:36,585 so she seems to know her stuff. 50 00:03:37,005 --> 00:03:40,425 Just by intervening. They can spend a lot of money to try to slow it down, 51 00:03:40,485 --> 00:03:41,305 but that's all they're going to get. 52 00:03:41,365 --> 00:03:45,165 To have a real turn in a currency, you need coordinated intervention. 53 00:03:45,485 --> 00:03:48,985 So you have to have several countries working together, ideally including the 54 00:03:48,985 --> 00:03:50,405 U.S. That sends a big signal. 55 00:03:50,765 --> 00:03:54,145 And you want policy moving in the same direction as the intervention. 56 00:03:54,385 --> 00:03:57,965 So in this case, if they want a stronger yen, they would need to be raising 57 00:03:57,965 --> 00:04:01,645 interest rates by a lot more than what's currently expected in the market. 58 00:04:01,645 --> 00:04:04,825 What's so important here is a multidimensionality of it. 59 00:04:04,845 --> 00:04:07,325 The simplistic media approach is what about the Fed? 60 00:04:07,725 --> 00:04:11,165 Forget about that. They have to worry about the entire Pacific Rim. 61 00:04:11,585 --> 00:04:14,645 They're getting a free lunch right now with enhanced exports. 62 00:04:15,065 --> 00:04:18,385 Are you going there this summer, Paul? Everybody else is. Going where? 63 00:04:18,585 --> 00:04:21,625 Japan's the new destination. Oh, I know. Warren Buffett told me about it. I know. 64 00:04:22,125 --> 00:04:26,025 Tourism's a huge, huge. You can get a lot of sushi right now with your dollars. 65 00:04:26,925 --> 00:04:30,585 Yeah, a lot of sushi right now. But it's a problem. 66 00:04:30,585 --> 00:04:35,685 The yen is in trouble, and that is going to cause pressure all over the place, 67 00:04:35,805 --> 00:04:40,645 which brings us to our number three macro situation that some would argue is 68 00:04:40,645 --> 00:04:44,485 really the biggest deal of them all, and that is U.S. Treasury concerns. 69 00:04:45,665 --> 00:04:50,425 Now, it also kind of all mixes in. You see, if Japan has to raise rates, 70 00:04:50,565 --> 00:04:53,685 well, that's going to accelerate Japanese investors dumping U.S. 71 00:04:53,725 --> 00:04:58,545 Treasuries to kind of make up that. So that means we're going to have more sellers 72 00:04:58,545 --> 00:05:02,865 than buyers for treasuries, which is already a problem that seems to be facing 73 00:05:02,865 --> 00:05:03,845 the U.S. Treasury market. 74 00:05:04,005 --> 00:05:11,185 That's not my opinion. That's the former Dallas Fed President Richard Fisher. No relation. 75 00:05:11,465 --> 00:05:14,545 The biggest problem right now, Joe, are the treasury auctions. 76 00:05:15,305 --> 00:05:16,445 Everything's been front loaded. 77 00:05:17,905 --> 00:05:21,145 Obviously, assuming rates might come down, if that's what Yellen was assuming. 78 00:05:22,257 --> 00:05:25,617 And here we are, you know, in the fives. That's expensive money. 79 00:05:25,717 --> 00:05:29,417 A year ago, a year and a half ago, it was 2%, 2%. 80 00:05:30,077 --> 00:05:33,377 The cost of carry has gone up big time. That's an excellent point. 81 00:05:33,437 --> 00:05:36,357 We don't talk enough about that. Thank you, Becky. Hmm. 82 00:05:37,377 --> 00:05:41,037 I wonder, Becky, who could do something about that, Becky? 83 00:05:41,677 --> 00:05:45,277 Yeah, it is a big problem. It is a big problem. It's not getting very attractive 84 00:05:45,277 --> 00:05:46,377 and they're looking for buyers. 85 00:05:46,637 --> 00:05:54,197 So on May 1st, the long-awaited Treasury buyback program was announced. 86 00:05:54,497 --> 00:06:01,177 The Treasury is going to begin the long-teased buyback program on May 29th. 87 00:06:01,217 --> 00:06:08,297 Weekly liquidity support buybacks will be held of up to $2 billion in coupons, 88 00:06:08,317 --> 00:06:14,277 and buybacks will begin under a cap of 20 separate CUSIPs, 20 separate bond issues, 89 00:06:14,477 --> 00:06:16,937 and that cap will eventually be lifted. 90 00:06:17,197 --> 00:06:22,517 So buybacks are going to begin with off-the-run treasuries starting May 29th. 91 00:06:22,517 --> 00:06:26,557 And what this is signaling, besides the fact that the treasury market's in serious 92 00:06:26,557 --> 00:06:30,997 trouble, is that, hey, starting on May 29th, so in less than a month from now, 93 00:06:31,577 --> 00:06:36,457 a whale's going to show up every single week and buy $2 billion worth of product. 94 00:06:37,077 --> 00:06:41,137 Right? And how do they do that? by issuing debt, of course. 95 00:06:41,297 --> 00:06:45,397 And so what do we have happening? One hand, the Federal Reserve is tightening, 96 00:06:45,457 --> 00:06:49,317 and the other hand, the Treasury is spending and injecting liquidity. 97 00:06:49,657 --> 00:06:52,697 So while the Federal Reserve is trying to reduce liquidity, the Treasury is 98 00:06:52,697 --> 00:06:56,917 trying to increase liquidity because they need the dollar to remain deep and liquid. 99 00:06:56,957 --> 00:07:00,037 Otherwise, people will use other fiats in the dollar. 100 00:07:00,237 --> 00:07:05,517 Now, they write in the announcement, quote, this initiative aims to ensure the 101 00:07:05,517 --> 00:07:08,517 Treasury market remains the deepest and most liquid in the world, 102 00:07:08,517 --> 00:07:12,037 addressing concerns about market functions and resilience. 103 00:07:12,637 --> 00:07:16,877 That's what it all comes down to. But this will also probably lead to the dollar 104 00:07:16,877 --> 00:07:20,997 value going lower to relieve pressure for the yen, which probably is going to 105 00:07:20,997 --> 00:07:22,737 be good for Bitcoin long term. 106 00:07:23,217 --> 00:07:28,537 And as Lynn Alden noted, quote, the fact that the Treasury has to provide liquidity 107 00:07:28,537 --> 00:07:32,157 for what is supposed to be the most deep and liquid market in the world, 108 00:07:32,237 --> 00:07:37,197 and that serves as the world's reserve asset, is notable. 109 00:07:37,197 --> 00:07:40,537 Yeah, I'd say it's notable. I'd say it's actually historical. 110 00:07:40,877 --> 00:07:45,537 This is something that we have seen them teasing for more than seven months. 111 00:07:46,017 --> 00:07:50,457 And when they first announced it, it was a sign of a truly sick system. 112 00:07:51,177 --> 00:07:54,617 Rich investors are watching this carefully and staying cautious. 113 00:07:55,808 --> 00:08:00,508 The number four headwind this week, we talked about it last week as it broke 114 00:08:00,508 --> 00:08:01,868 the Samurai indictment. 115 00:08:02,048 --> 00:08:05,788 On April 23rd, the co-founders of the Samurai wallet, a non-custodial Bitcoin 116 00:08:05,788 --> 00:08:12,868 wallet known for its privacy features like everybody loved and what got them in trouble. 117 00:08:13,328 --> 00:08:16,368 They were indicted by the Southern District of New York for opening a, 118 00:08:16,408 --> 00:08:19,988 quote, unlicensed money services business, which they refer to as an MSB, 119 00:08:20,068 --> 00:08:23,248 and for, quote, conspiring to commit money laundering. 120 00:08:24,148 --> 00:08:27,648 This case marks a significant moment in the ongoing debate over financial privacy, 121 00:08:27,868 --> 00:08:29,948 and this is something everyone is watching. 122 00:08:30,368 --> 00:08:34,368 And it's also sort of a significant case just in the regulation of digital currencies. 123 00:08:34,748 --> 00:08:39,408 The legal classification of Samurai Wallet as an MSB, a money services business, 124 00:08:39,788 --> 00:08:45,768 sets a precedent for how similar non-custodial privacy tools might be viewed in the U.S. law. 125 00:08:46,688 --> 00:08:51,448 So the outcome of this could affect future cases and set precedents. 126 00:08:51,448 --> 00:08:56,428 And the key thing here being is that Samurai Wallet didn't take control of user funds. 127 00:08:57,668 --> 00:09:01,568 They were more like the USB cable that transfers data or a PAM that transfers 128 00:09:01,568 --> 00:09:03,208 heat, as the U.S. government argues. 129 00:09:03,988 --> 00:09:10,368 This also goes against and counter to 2019 FinCEN guidance, which specifies 130 00:09:10,368 --> 00:09:14,028 that people exchanging money infrequently and not for profit are, 131 00:09:14,048 --> 00:09:16,408 quote, not regulated MSBs. 132 00:09:18,168 --> 00:09:21,508 So it seems to be there's a change perhaps because they feel like this is their 133 00:09:21,508 --> 00:09:25,728 moment to set precedent and then if they can execute this now they'll have something 134 00:09:25,728 --> 00:09:29,988 they can build on for years but what's happening is a chilling effect is rolling 135 00:09:29,988 --> 00:09:31,548 across the bitcoin industry, 136 00:09:32,608 --> 00:09:36,148 phoenix wallet which i think is one of the great wallets is out of the u.s, 137 00:09:37,525 --> 00:09:43,565 Earlier, WasabiWallet is out. TallyCoin retired. Untold number of plans for 138 00:09:43,565 --> 00:09:48,265 building things or wallets or re-architecting wallets have been put on hold. 139 00:09:49,265 --> 00:09:52,365 The only good news in the Samurai Wallet stuff is the co-founder, 140 00:09:52,505 --> 00:09:55,505 Rodriguez, has pled not guilty and released on a $1 million bond, 141 00:09:55,885 --> 00:09:58,345 which he'll be able to stay out of jail for a while. 142 00:09:59,065 --> 00:10:04,645 So this case that we briefly touched on as it broke last week continues to have 143 00:10:04,645 --> 00:10:08,645 people reflect on the ramifications, which is chilling the market. 144 00:10:09,285 --> 00:10:13,265 Unfortunately, that's probably exactly what the feds wanted. 145 00:10:14,345 --> 00:10:19,905 Number five, the DOJ responds to Roman Storm's motion to dismiss the tornado 146 00:10:19,905 --> 00:10:22,345 cash charges. Yes, this happened this week. 147 00:10:22,525 --> 00:10:28,425 The DOJ's response freaked out many in the community. Now, you remember Tornado 148 00:10:28,425 --> 00:10:32,525 Cash, a smart contract for Ethereum privacy users, still running today. 149 00:10:33,205 --> 00:10:36,325 Well, Roman Storm tried to have the entire thing thrown out. 150 00:10:36,385 --> 00:10:38,805 He had some good support behind it, some good reasoning. 151 00:10:39,365 --> 00:10:45,305 And government prosecutors now responded with a 111-page motion to the Tornado 152 00:10:45,305 --> 00:10:48,325 Cash co-founder, I should say, with his request. 153 00:10:48,965 --> 00:10:54,905 They say they're not having it. They charge Storm alongside his co-founder, 154 00:10:55,065 --> 00:10:58,925 who remains at large, with one count of conspiracy to commit money laundering 155 00:10:58,925 --> 00:11:05,385 and one count of conspiracy to violate the International Economic Emergency Powers Act, 156 00:11:05,685 --> 00:11:10,085 which carries a maximum sentence of 20 years in prison. 157 00:11:10,085 --> 00:11:14,665 Alongside a charge of conspiracy to operate, you guessed it, 158 00:11:14,725 --> 00:11:19,585 an unlicensed money-transmitting business, one of those MSBs, 159 00:11:19,605 --> 00:11:24,465 which also carries a maximum of five years in prison. 160 00:11:25,750 --> 00:11:29,970 So 25, 45 years in prison here. So Storm files a motion to dismiss. 161 00:11:30,170 --> 00:11:31,630 He has some good technical arguments. 162 00:11:31,950 --> 00:11:35,670 They don't facilitate it. They don't hold the funds. They're not a money transmitter. 163 00:11:35,770 --> 00:11:37,290 The smart contract's still running today. 164 00:11:39,050 --> 00:11:43,590 But the government prosecution, led by U.S. attorney for the Southern District 165 00:11:43,590 --> 00:11:47,190 of New York, Damian Williams, wrote that 111-page response. 166 00:11:48,190 --> 00:11:51,470 He contests the characterization that Storm uses. 167 00:11:51,470 --> 00:11:58,570 And prosecutors argue that Tornado Cash, this is a quote, services caused all 168 00:11:58,570 --> 00:12:03,510 of these actions to take place behind the scenes without any further action by the customer. 169 00:12:03,850 --> 00:12:07,890 Under the ordinary meaning of the term, the Tornado Cash service was transferring 170 00:12:07,890 --> 00:12:13,090 funds when it executed customer deposits and withdraws in this way. 171 00:12:13,870 --> 00:12:19,590 So what we have here are two cases, one directly related to Bitcoin and one 172 00:12:19,590 --> 00:12:23,270 tangentially related to Bitcoin. and it's in the cryptocurrency community. 173 00:12:24,090 --> 00:12:26,790 And in these cases, the government is saying that these developers, 174 00:12:26,890 --> 00:12:30,710 by creating this code that enabled this action, became money transmitter businesses. 175 00:12:31,030 --> 00:12:34,470 They standed up these services. They wrote that code. 176 00:12:35,270 --> 00:12:40,370 Now, the community is digesting that and seeing a wide range of responses to 177 00:12:40,370 --> 00:12:43,790 that, most of which I have to say are panic, especially that on social media. 178 00:12:44,650 --> 00:12:48,210 But if you read through the actual DOJ's response, which I have, 179 00:12:48,970 --> 00:12:53,370 In both cases, they don't really seem to be arguing that they are. 180 00:12:53,370 --> 00:12:56,670 They're going close to it, but they're slightly, in my opinion, 181 00:12:56,690 --> 00:13:01,290 narrowing the focus and specifically saying, look at the way they advertised 182 00:13:01,290 --> 00:13:02,730 it or look what the things they said. 183 00:13:03,210 --> 00:13:07,870 They're backing it up with quotes or DMS or whatever it might be that they have from these people. 184 00:13:09,807 --> 00:13:12,807 I do agree with those that are saying we need to stay vigilant and we don't 185 00:13:12,807 --> 00:13:17,227 want a court precedent that does imply that writing this type of software creates 186 00:13:17,227 --> 00:13:18,247 a money-transmitting business. 187 00:13:18,607 --> 00:13:20,187 It would be very chilling for 188 00:13:20,187 --> 00:13:23,867 not just Bitcoin innovation, but just for financial innovation in general. 189 00:13:25,107 --> 00:13:32,027 Number six, the FBI released a PSA about not using KYC services that freaked 190 00:13:32,027 --> 00:13:35,807 out a bunch of services and wallet developers. 191 00:13:35,807 --> 00:13:41,747 On April 25th, 2024, even though no one was asking and nothing came up, 192 00:13:41,887 --> 00:13:45,047 the FBI happened to release a public service announcement titled, 193 00:13:45,207 --> 00:13:49,547 quote, Alert on Cryptocurrency Money Services Businesses. 194 00:13:50,027 --> 00:13:55,967 And here's what the first paragraph reads in this public service announcement by the FBI. 195 00:13:56,067 --> 00:14:00,327 Aren't you don't you just feel like relieved that the FBI has your back and 196 00:14:00,327 --> 00:14:01,627 that they're making sure the more, you know. 197 00:14:03,947 --> 00:14:07,847 Quote, the FBI warns Americans against using cryptocurrency money transmitting 198 00:14:07,847 --> 00:14:10,767 services that are not registered as money services businesses. 199 00:14:11,187 --> 00:14:14,547 Again, MSBs, according to the United States federal law. 200 00:14:14,707 --> 00:14:18,627 So anything that the U.S. federal law says is an MSB, you should, 201 00:14:18,727 --> 00:14:22,487 if they are acting like it, you should not use them. Does that make sense? 202 00:14:22,587 --> 00:14:26,707 So if the law says they should be an MSB, but they're not an MSB, then don't use them. 203 00:14:26,727 --> 00:14:32,607 And somehow you're supposed to know that. But the FBI has a shortcut for you. 204 00:14:32,627 --> 00:14:37,347 Since that's so confusing, they can't even honestly tell themselves if they're an MSB or not. 205 00:14:37,767 --> 00:14:45,607 They say, we recommend that you just avoid any services that don't do full KYC. 206 00:14:45,607 --> 00:14:49,867 Quote, avoid cryptocurrency money transmitting services that do not collect 207 00:14:49,867 --> 00:14:53,267 know your customer information for customers when required. 208 00:14:53,867 --> 00:15:00,327 And then later in this PSA, they've got a line that implies you might lose your funds. 209 00:15:00,487 --> 00:15:03,887 They might have to steal your bag off of a service. You know, 210 00:15:03,907 --> 00:15:07,007 if you got coins on there, they might just have to take them during their legal 211 00:15:07,007 --> 00:15:08,787 actions. And that's just the way it is. 212 00:15:09,027 --> 00:15:13,667 Quote, people who use unlicensed cryptocurrency money transmitting services. 213 00:15:13,667 --> 00:15:18,287 Services, is this a new category, may encounter financial disruptions during 214 00:15:18,287 --> 00:15:22,947 law enforcement actions, especially if their cryptocurrency is intermingled 215 00:15:22,947 --> 00:15:25,227 with funds obtained through illegal means. 216 00:15:26,427 --> 00:15:29,747 Well, you better trace where every single coin you've ever got came from, 217 00:15:29,767 --> 00:15:31,727 because who knows if it's been intermingled? 218 00:15:31,847 --> 00:15:35,787 You know, do you know if every dollar that you spend has been intermingled or 219 00:15:35,787 --> 00:15:36,907 every coin? Do you know that? 220 00:15:37,647 --> 00:15:41,467 How would you know that? No one knows that. And no one spends the time to look that up. 221 00:15:42,666 --> 00:15:48,766 These are ridiculous standards, and it does pose serious business risks to, 222 00:15:48,846 --> 00:15:52,346 I would say, operations that help facilitate lightning transactions. 223 00:15:52,766 --> 00:15:56,206 And it's something that's causing a lot of heartburn right now, 224 00:15:56,326 --> 00:15:58,426 like I said, in the quote-unquote industry. 225 00:15:58,886 --> 00:16:01,966 Number seven, won't someone think of the children? 226 00:16:01,966 --> 00:16:06,606 U.S. Senator Elizabeth Warren and Bill Cassidy have called for the Department 227 00:16:06,606 --> 00:16:11,566 of Justice and the Department of Homeland Security to redouble their efforts 228 00:16:11,566 --> 00:16:16,626 to stop the use of cryptocurrency to pay for child sexual abuse material online, 229 00:16:16,886 --> 00:16:19,806 a problem they claim has worsened. 230 00:16:20,306 --> 00:16:25,206 Although I don't believe anything Elizabeth Warren says, but nonetheless came 231 00:16:25,206 --> 00:16:27,606 out in the last week. And a bonus round. 232 00:16:28,386 --> 00:16:33,246 The Fed is not cutting rates. So this is technically number eight. I'm throwing it in here. 233 00:16:33,566 --> 00:16:38,186 But no doubt some whales have been buying up Bitcoin, not because of its fundamental utility, 234 00:16:38,466 --> 00:16:43,046 not because it's the best asset, not because there's no second best, 235 00:16:43,146 --> 00:16:49,026 but because they expect the money printer to turn back on and simply pump their bags. 236 00:16:49,026 --> 00:16:54,906 Well, the federal funds rate has stayed at the same level since July of 2023. 237 00:16:55,966 --> 00:17:00,486 That's when the Fed last hiked rates. And today they announced they're staying 238 00:17:00,486 --> 00:17:01,566 where they're at for longer. 239 00:17:02,726 --> 00:17:05,166 Many, especially the degens, expected 240 00:17:05,166 --> 00:17:09,326 rate cuts by now. So they have to internalize this new adjustment. 241 00:17:09,666 --> 00:17:13,106 Also, while we're just going for a few bonus rounds this week, 242 00:17:13,306 --> 00:17:15,246 fears of stagflation are rising. 243 00:17:15,346 --> 00:17:19,246 More reports of stagflation are coming out. The construction spending report 244 00:17:19,246 --> 00:17:20,946 came out, and construction is down. 245 00:17:21,146 --> 00:17:25,146 The employment cost index report came out, and the cost of employees is up. 246 00:17:25,306 --> 00:17:28,586 Consumer confidence report came out this week, and it's down. 247 00:17:29,086 --> 00:17:32,186 Employment is also hotter than expected, which the rich hate, 248 00:17:32,286 --> 00:17:34,686 because that means it's going to prolong rate cuts even more. 249 00:17:34,866 --> 00:17:38,346 Whenever employment's hot, that means rate cuts are going to be further out, 250 00:17:38,466 --> 00:17:40,026 and that impacts the market too. 251 00:17:40,686 --> 00:17:45,506 All of that in just the last week. 252 00:17:46,726 --> 00:17:50,486 So I think the question is, what does all of this mean for Bitcoin? 253 00:17:52,166 --> 00:17:55,286 Bitcoin shows us how all of this is connected. 254 00:17:56,326 --> 00:18:00,666 So many idiots throw the word Ponzi scheme at Bitcoin. 255 00:18:01,266 --> 00:18:06,806 Meanwhile, they are living in one of the greatest Ponzi schemes ever constructed by humanity. 256 00:18:07,446 --> 00:18:11,886 But it's important for us to remember, in everything I just ran down, 257 00:18:12,046 --> 00:18:16,306 nothing has changed internally about Bitcoin. 258 00:18:16,726 --> 00:18:20,766 There has been no hack. There has been no major flaw discovered. 259 00:18:21,026 --> 00:18:22,846 There has been no big outage. 260 00:18:24,086 --> 00:18:27,326 All of this going on is external to Bitcoin. 261 00:18:28,506 --> 00:18:33,026 The entire Western world is experiencing liquidity problems. 262 00:18:33,706 --> 00:18:38,366 And that impacts only one aspect of Bitcoin. 263 00:18:39,326 --> 00:18:42,906 The external aspect. The fiat price peg. 264 00:18:43,726 --> 00:18:49,386 That's what's been impacted, which means everything in Bitcoin remains fundamentally 265 00:18:49,386 --> 00:18:51,886 the same. Eventually, the price will correct. 266 00:18:52,426 --> 00:19:00,306 And Bitcoin, it's once again on sales. It's on sales. It's on sales for us plebs. That's what it means. 267 00:19:02,646 --> 00:19:08,246 The recent dumping we've seen in price, the drop in wallet creations that have 268 00:19:08,246 --> 00:19:10,386 happened recently, that's not because of some problem with Bitcoin. 269 00:19:11,126 --> 00:19:13,366 That's what we have to remember. Remember, when everybody starts freaking out, 270 00:19:13,446 --> 00:19:15,906 the fundamental analysis remains the same. 271 00:19:16,240 --> 00:19:30,960 Music. 272 00:19:30,819 --> 00:19:34,819 Of the chilling effect, federal prosecutors are examining financial transactions 273 00:19:34,819 --> 00:19:37,239 at Block, the owner of Cash App and Square. 274 00:19:37,799 --> 00:19:42,199 Internal documents indicate the Block-processed crypto transactions for terrorist 275 00:19:42,199 --> 00:19:48,519 groups and Square-processed transactions involving nations subject to economic arbitrary sanctions. 276 00:19:49,099 --> 00:19:52,539 Federal prosecutors are digging into internal practices at Block, 277 00:19:52,859 --> 00:19:56,999 which of course is the technology firm launched by the Twitter co-founder Jack Dorsey. 278 00:19:56,999 --> 00:20:02,959 This all comes out, allegedly, because an internal whistleblower told the feds 279 00:20:02,959 --> 00:20:09,479 that they didn't have enough controls and good enough KYC inside Block's applications. 280 00:20:10,399 --> 00:20:13,419 The former employee provided prosecutors from the Southern District of New York 281 00:20:13,419 --> 00:20:18,179 documents that they say show these insufficient information controls and insufficient 282 00:20:18,179 --> 00:20:19,799 information collected by Square. 283 00:20:20,859 --> 00:20:28,079 Roughly 100 pages of documents by the former employee were provided to NBC News, 284 00:20:28,339 --> 00:20:30,419 and NBC News has verified this. 285 00:20:30,699 --> 00:20:34,599 It seems that many of the amounts are very small dollar amounts involving entities 286 00:20:34,599 --> 00:20:38,399 and countries that appear to be subject to U.S. sanctions and restrictions like 287 00:20:38,399 --> 00:20:44,159 Cuba, Iran, Russia, Venezuela, just as recently as last year. 288 00:20:45,339 --> 00:20:49,139 And that, too, along with Roger Ver, 289 00:20:49,139 --> 00:20:55,499 getting arrested in spain for selling bitcoin that he supposedly didn't fully 290 00:20:55,499 --> 00:21:01,099 account for when he exited the united states these are not direct chilling effects 291 00:21:01,099 --> 00:21:07,959 but people are watching people notice i think it does kind of have an effect i don't know um. 292 00:21:09,817 --> 00:21:13,517 How do you feel when companies like Square get investigated or when Elizabeth 293 00:21:13,517 --> 00:21:17,697 Warren comes out? Does it hamper your enthusiasm? I doubt it. I doubt it does. 294 00:21:17,997 --> 00:21:22,217 But I bet you could understand why investors who don't truly understand what 295 00:21:22,217 --> 00:21:25,837 Bitcoin is, but just think it's a way to make a quick buck, why they start to panic. 296 00:21:26,717 --> 00:21:28,817 Put all that together. I think that's where we're at right now. 297 00:21:30,097 --> 00:21:34,177 All right, standby. Coming up on the show, your boosts and one heck of a clip 298 00:21:34,177 --> 00:21:36,417 of the week. You're not going to believe this thing. 299 00:21:36,577 --> 00:21:44,057 But first, I want to thank Podhome.fm, my sponsor, and I think the best podcasting 2.0 platform. 300 00:21:44,557 --> 00:21:48,437 It's my hosting platform of choice with unlimited shows and episodes powered 301 00:21:48,437 --> 00:21:49,897 by unlimited Podhome AI. 302 00:21:50,157 --> 00:21:53,517 They have tools that will balance your audio, transcribe your podcast, 303 00:21:53,757 --> 00:21:58,797 automatically create chapters, clips, and they'll even suggest episodes and title descriptions. 304 00:21:59,177 --> 00:22:02,877 It's easy to go live, too, if you want to do a little podcasting 2.0 streaming 305 00:22:02,877 --> 00:22:04,437 or do some value for value music. 306 00:22:04,737 --> 00:22:07,637 And new features have just rolled out for Clips and Chapters, 307 00:22:07,657 --> 00:22:11,717 a new beautiful visual audio helper, a new transcript editor, 308 00:22:11,937 --> 00:22:16,717 a beautiful way to just note things right there in the browser, 309 00:22:16,817 --> 00:22:18,757 super quick, make a marker and go. 310 00:22:18,977 --> 00:22:22,617 That's what Podhome FM is all about. If you use the promo code TWIB, 311 00:22:22,617 --> 00:22:26,697 you'll get the first three months for free. 312 00:22:26,737 --> 00:22:31,177 That's a great deal and you can really kick the tires. Podhome FM, TWIB. 313 00:22:31,920 --> 00:22:48,400 Music. 314 00:22:48,117 --> 00:22:52,937 We got some boosts this week. Our first one is a baller boost from Wise Hoddle 315 00:22:52,937 --> 00:23:01,557 coming in at 34,567 sats. That's a great show. 316 00:23:01,697 --> 00:23:06,477 I can't remember what I was doing last having exactly, but this last Epoch has 317 00:23:06,477 --> 00:23:07,677 been an amazing journey. 318 00:23:07,797 --> 00:23:10,817 And zooming out, I'm doing way better than I was then. 319 00:23:10,997 --> 00:23:14,177 Looking forward to saying the same thing next happening. 320 00:23:14,297 --> 00:23:19,937 I hope so, sir. You know, before I move on from your boost, something that I've 321 00:23:19,937 --> 00:23:25,597 thought about is how much better is an Epoch goal than like a New Year's resolution? 322 00:23:25,597 --> 00:23:31,337 Resolution. Four years is a real chunk of time to actually execute change in your life. 323 00:23:31,957 --> 00:23:38,017 And so I am starting to like the idea of measuring things in four-year increments 324 00:23:38,017 --> 00:23:42,417 at the happening as a way, as a reflection point and a point to reorient and goal, 325 00:23:42,617 --> 00:23:47,177 but to be able to actually commit to real life changing things over a four-year 326 00:23:47,177 --> 00:23:50,177 period, not just like some silly one-year new resolution. 327 00:23:50,937 --> 00:23:53,797 I guess as I get a bit older and I got more things going on in life, 328 00:23:53,797 --> 00:23:55,897 It takes more time to turn the ship, I think. 329 00:23:56,900 --> 00:24:03,840 And so I love that sentiment, wise hodl. I think that's, well, if you will, very wise. 330 00:24:03,940 --> 00:24:09,660 And I see that Spaceballs boost in there, too. So the combination is 1, 2, 3, 4, 5. 331 00:24:10,880 --> 00:24:15,040 That's the stupidest combination I ever heard in my life. And he sent a row 332 00:24:15,040 --> 00:24:18,000 of McDucks, too, 22,222 sats. 333 00:24:18,060 --> 00:24:22,200 This old duck still got it. I have my Bitcoin tech stack fairly set in stone, 334 00:24:22,280 --> 00:24:24,260 but I appreciate the recommendations for new users. 335 00:24:24,400 --> 00:24:27,340 It's good to know what I can recommend to others. Yeah, I think that's great. 336 00:24:27,500 --> 00:24:31,760 I love that idea of still being open to new implementations for other folks, 337 00:24:31,820 --> 00:24:34,180 but finding something that works for you long term. 338 00:24:35,100 --> 00:24:37,980 Bitcoin lizards way up there in the baller boost this week, too, 339 00:24:38,080 --> 00:24:41,920 with 25,000 sats. I hoard that which all kind covet. 340 00:24:42,140 --> 00:24:47,100 He writes from Podverse, I have no interest in what I believe are imaginary rare sats. 341 00:24:47,240 --> 00:24:51,320 I asked if you'd buy a Satoshi sat, like one of Satoshi's actual sats. 342 00:24:51,940 --> 00:24:58,780 I would, however, love to get my hands on the under-reamed Caucasian coin. I'm so awful. 343 00:24:59,320 --> 00:25:02,920 These are physical. Oh, oh, oh, these physical Bitcoin representations from 344 00:25:02,920 --> 00:25:04,380 the early on in Bitcoin history. 345 00:25:04,960 --> 00:25:07,760 The Caucasus coin, right? No, that wasn't it. What was it called? 346 00:25:08,360 --> 00:25:09,300 Gosh, I can't remember the name. 347 00:25:10,380 --> 00:25:13,020 Unfortunately, the denominations are one Bitcoin and higher, 348 00:25:13,100 --> 00:25:15,900 and the coins carry a premium to spot. I wonder if I can find this right now. 349 00:25:16,480 --> 00:25:18,900 So that's a physical thing you'd be willing to spend a little extra on, 350 00:25:18,940 --> 00:25:21,040 even though back in the day they were pegged to one Bitcoin. 351 00:25:23,360 --> 00:25:28,380 I don't know that to me actually feels less appealing because then it's something I could lose, 352 00:25:29,902 --> 00:25:33,462 The nice thing about digital is that I can always restore it with a seed phrase. 353 00:25:34,482 --> 00:25:38,842 But that's an, you know what, Lizard? I had completely forgotten about those. 354 00:25:38,902 --> 00:25:41,722 And if I could remember the name of them, I'd love to find a picture of that. 355 00:25:42,762 --> 00:25:45,442 Thank you, sir, for the boost. I really appreciate it. No second best comes 356 00:25:45,442 --> 00:25:49,342 in with 5,555 sets. B-O-O-S-T. 357 00:25:49,842 --> 00:25:53,942 You were on top of that Samurai Waltz story. The first place I heard of it was from you. 358 00:25:54,362 --> 00:25:58,882 Thank you very much, sir. And he says boost. B-O-O-S-T. Dang right. 359 00:25:58,882 --> 00:26:00,642 Right. Thank you. Appreciate that. 360 00:26:01,142 --> 00:26:04,562 Faraday Fedora sends in a row of ducks. 361 00:26:06,542 --> 00:26:11,442 2,222 sats. I see these special sats as kind of like old quarters that are worth 362 00:26:11,442 --> 00:26:12,642 more than a current quarter. 363 00:26:13,202 --> 00:26:14,942 Hmm. Hmm. 364 00:26:16,082 --> 00:26:19,342 Yeah, you know, I hadn't even made that connection. You know, 365 00:26:19,482 --> 00:26:22,702 that, if anything, is the proof that this isn't going away. 366 00:26:23,342 --> 00:26:26,922 Is that there always are people out there that, even like with U.S. 367 00:26:26,942 --> 00:26:30,362 Quarter, which is technically worth less, They'll pay more for it. 368 00:26:31,282 --> 00:26:34,102 I don't know how I like... I don't think I like that is what I'm saying. 369 00:26:34,282 --> 00:26:39,262 The more I talk about this issue, the more I just think one sat should equal one sat. 370 00:26:40,122 --> 00:26:44,882 But I realize how much we are not walking this back. I just think, 371 00:26:45,002 --> 00:26:47,422 yeah, Faraday Fedora, you got me there. 372 00:26:48,062 --> 00:26:50,202 Of course, if we're doing it with quarters, we're going to do it with sats. 373 00:26:50,722 --> 00:26:55,242 Anonymous comes in with 8,976 sats. Coming in hot with the boost. 374 00:26:55,462 --> 00:26:58,122 I was sad to hear about Samurai. It was a useful privacy tool. 375 00:26:58,122 --> 00:27:01,982 After the show, I opened up Samurai Wallet and discovered that I couldn't even show my balance. 376 00:27:02,582 --> 00:27:07,542 Seems the DOJ sees Samurai's infrastructure rendering their wallet non-functional 377 00:27:07,542 --> 00:27:11,202 in the absence of a self-hosted backend like the Samurai Dojo. 378 00:27:11,542 --> 00:27:15,802 So, a PSA for anyone else in this situation. You can easily regain access to 379 00:27:15,802 --> 00:27:20,162 your funds by importing your Samurai Wallet into the Sparrow Wallet. 380 00:27:20,162 --> 00:27:25,482 In Sparrow, select File, Import Wallet, then choose the BIP39 option. 381 00:27:26,679 --> 00:27:30,399 Input your 12 seed words. If you lost the seed words in the Samurai app, 382 00:27:30,539 --> 00:27:32,859 you can tell it how to show them to you in the settings view. 383 00:27:33,239 --> 00:27:38,079 After inputting these words, be sure to tick the quote use passphrase box and 384 00:27:38,079 --> 00:27:41,279 input the passphrase which was specified when Samurai Wallet was created. 385 00:27:42,159 --> 00:27:46,319 Passphrases are optional in BIP39, but Samurai Wallet UI unconditionally asks 386 00:27:46,319 --> 00:27:48,139 for one when a wallet is created. 387 00:27:48,439 --> 00:27:52,019 So it is necessary to provide it to Sparrow or the import will fail. 388 00:27:52,559 --> 00:27:55,339 Unlike seed words, the Samurai app cannot show the passphrase. 389 00:27:55,339 --> 00:27:57,939 So hopefully you wrote it down or remember it. 390 00:27:58,199 --> 00:28:02,439 You could instead import to another wallet that supports BIP-39 passphrases, 391 00:28:02,439 --> 00:28:05,659 but Sparrow Wallet has the advantage that it is a Samurai Whirlpool client, 392 00:28:06,159 --> 00:28:10,699 so it understands the structure of the Samurai Wallet from which it is derived. 393 00:28:11,079 --> 00:28:15,339 That is a great tip. Thank you very much. Boost! 394 00:28:15,859 --> 00:28:21,559 That's a great boost. I had read that online, but I had not planned to put that 395 00:28:21,559 --> 00:28:25,619 in the show just because it was, Well, it seemed like a thick thing to go through, 396 00:28:25,659 --> 00:28:26,739 but you did a great breakdown there. 397 00:28:27,039 --> 00:28:30,639 It's really about the fact that you can import your old Samurai wallet into 398 00:28:30,639 --> 00:28:35,399 Sparrow wallet and that we'll understand the structure of the Samurai wallet. 399 00:28:35,599 --> 00:28:40,479 That seems like a huge win. Sparrow is really great too. So it's a recommendation anyways. 400 00:28:40,959 --> 00:28:44,379 Even if you weren't going to make a migration and you just wanted to start fresh, 401 00:28:44,439 --> 00:28:45,179 I would recommend Sparrow. 402 00:28:46,379 --> 00:28:53,739 Jordan Bravo comes in with a suspicious 6,666 sats. I am programmed in multiple techniques. 403 00:28:54,199 --> 00:29:01,859 That's because he sent 3,333 sats twice and said I'd never pay for more than one sat for a sat. 404 00:29:01,999 --> 00:29:04,579 There's no such thing as rare Satoshis. 405 00:29:04,979 --> 00:29:09,919 I think I agree other than obviously than people are doing it. 406 00:29:09,979 --> 00:29:12,639 He says ordinal theory is a complete fiction projected onto Bitcoin. 407 00:29:13,039 --> 00:29:16,619 Agree with that. It's a game played by those who choose to participate in it, 408 00:29:16,639 --> 00:29:20,599 but it doesn't actually exist in the Bitcoin protocol. I agree with all of that. 409 00:29:23,178 --> 00:29:25,718 Doesn't mean they won't do it. He also sent his current software stack. 410 00:29:26,358 --> 00:29:28,898 He says, I buy non-KYC on RoboSats. 411 00:29:28,978 --> 00:29:33,498 I use Strike to send that fiat to the seller. Then I receive the sats in my Phoenix wallet. Uh-oh. 412 00:29:34,378 --> 00:29:37,978 Oh, no. Oh, no. What are you doing about Phoenix wallet? 413 00:29:38,538 --> 00:29:40,978 I repeat this until the amount in Phoenix gets to a certain size, 414 00:29:41,058 --> 00:29:44,538 at which point I swap into a cold storage multisig, which I use Sparrow wallet 415 00:29:44,538 --> 00:29:46,058 to manage. That is brilliant. 416 00:29:46,338 --> 00:29:50,138 Minimizes on-chain fees. Nice and secure. I like all of that except for Phoenix 417 00:29:50,138 --> 00:29:53,278 wallets on the out. So I'm curious what you're going to replace. 418 00:29:53,358 --> 00:29:54,178 Are you going to try a Zeus wallet? 419 00:29:54,778 --> 00:29:59,358 I think it's pretty good. Jin from Matik comes in with 2,000 cents. 420 00:30:01,318 --> 00:30:04,318 Hi, Chris. Thank you for another great episode. I started with a paper wallet 421 00:30:04,318 --> 00:30:07,718 last year, and to me, I still think it's... 422 00:30:07,718 --> 00:30:11,398 Oh, he says, I still... I started with a paper wallet last year, 423 00:30:11,438 --> 00:30:14,618 and to me, it's still a think, because you have border wallets, 424 00:30:14,638 --> 00:30:18,858 borderwallets.com. After explaining your Bulletproof Stacker self-custody guide 425 00:30:18,858 --> 00:30:21,358 last week, what would be your take on this guide? 426 00:30:21,558 --> 00:30:24,278 You know, the Border Wallets idea is brilliant. I don't have time to go into 427 00:30:24,278 --> 00:30:27,098 it right now, but I do think Border Wallets is something people should look into. 428 00:30:27,458 --> 00:30:31,998 There's also, he points out, Bitcoiner.guide with tons of resources on Bitcoin to discover. 429 00:30:33,058 --> 00:30:40,718 That's Bitcoiner.guide and BorderWallets.com. Border Wallets is a really neat idea. 430 00:30:41,458 --> 00:30:46,018 It's a way to quickly and reliably memorize your Bitcoin seed phrase so you 431 00:30:46,018 --> 00:30:49,058 can cross the border with all of your money in your head. 432 00:30:49,918 --> 00:30:51,718 Which, how are they going to stop that? 433 00:30:52,798 --> 00:30:54,598 How are they going to stop that? 434 00:30:55,718 --> 00:31:00,718 Oppie1984 comes in with 4,000 sats. I have been told paper wallets are unsafe, 435 00:31:00,978 --> 00:31:04,278 but I just prefer to trust something I created on a permanently air-gapped machine. 436 00:31:04,718 --> 00:31:07,278 I just can't feel secure with a hardware and software wallet. 437 00:31:07,318 --> 00:31:09,818 Just because I'm paranoid doesn't mean they're not out to steal my Bitcoin. coin. 438 00:31:09,858 --> 00:31:14,578 I'd asked him last week if he was how he felt about paper wallets. I agree with you there. 439 00:31:15,787 --> 00:31:23,767 The way I like to think about my wallet security is you want to get it right, 440 00:31:23,807 --> 00:31:27,327 but you don't want to overdo it so that you never actually take action. 441 00:31:28,327 --> 00:31:31,007 And when you're building towards your ultimate wallet security, 442 00:31:31,327 --> 00:31:33,907 you want to think about what you would do to protect something that's worth 443 00:31:33,907 --> 00:31:35,347 millions of dollars one day. 444 00:31:35,607 --> 00:31:40,047 When Bitcoin is worth a lot of money, the incentives for everybody around you 445 00:31:40,047 --> 00:31:42,967 are going to change. So that's just something to keep in mind. 446 00:31:42,987 --> 00:31:47,347 And who you tell today might not concern you, but in 10 years, 447 00:31:47,527 --> 00:31:49,507 you might have a different feeling about that. 448 00:31:49,607 --> 00:31:53,147 So these things when I'm designing my Bitcoin wallet security are also things 449 00:31:53,147 --> 00:31:54,027 I take into consideration. 450 00:31:54,227 --> 00:31:58,267 But I hesitate to overemphasize that because I don't want to scare people away. 451 00:31:58,267 --> 00:32:00,707 From self-custody. Anything's better than nothing, really. 452 00:32:01,187 --> 00:32:04,747 Halleck comes in with 10,000 sats. It's over 9,000! 453 00:32:05,827 --> 00:32:09,307 I wouldn't pay for a rare sat, but people will. It's human nature. 454 00:32:09,327 --> 00:32:12,407 People are going to do degen things with money, but I would like to hear more 455 00:32:12,407 --> 00:32:14,007 about how it hurts us when they do. 456 00:32:14,447 --> 00:32:19,067 We all know scaling solutions are needed, so aren't they ultimately pushing us where we need to go? 457 00:32:21,147 --> 00:32:25,007 Halleck, that's a take that some people argue. 458 00:32:25,427 --> 00:32:30,267 I think the other side is that non-monetary uses of the Bitcoin network are immoral. 459 00:32:31,407 --> 00:32:34,647 I'd love to know where people fall on that. I think it's a good question. 460 00:32:34,807 --> 00:32:41,287 Dexord comes in with 4,567 sats and says, I am boosting for the show. 461 00:32:41,407 --> 00:32:44,587 Well, thank you very much. Keep the change, you filthy animal. 462 00:32:44,867 --> 00:32:48,627 On rare sats, while I don't particularly like to compare Bitcoin to fiat, 463 00:32:48,647 --> 00:32:51,427 humans love rare coins, bills, etc. 464 00:32:52,207 --> 00:32:56,047 A rare quarter is, well, worth more than a quarter. A rare sat is going to be 465 00:32:56,047 --> 00:32:57,407 worth more than a regular sat. 466 00:32:57,827 --> 00:33:04,047 If anything, it's more proof that the true acceptance of Bitcoin coin as a global currency. Hmm. Hmm. 467 00:33:05,552 --> 00:33:07,792 I'd love you to expand on that a little bit if you wouldn't mind. 468 00:33:08,592 --> 00:33:11,492 Adversary 17's back again with 2,000 sats. Boost! 469 00:33:11,832 --> 00:33:17,412 No, I would not trade for uneven sat amounts. I like that, uneven sat amounts. 470 00:33:17,652 --> 00:33:22,492 They're all worth the same to me, and really to the Bitcoin network. One equals one. 471 00:33:24,232 --> 00:33:29,892 You know what? Nailed it. Crashmaster comes in with Spaceballs Boost. 472 00:33:30,372 --> 00:33:34,172 One, two, three, four, five. Yes. That's amazing. I've got the same combination 473 00:33:34,172 --> 00:33:36,632 on my luggage. I think Episode 8 was the best yet, Chris. 474 00:33:36,732 --> 00:33:39,212 Great, tight coverage of Bitcoin news, mainstream media narratives, 475 00:33:39,312 --> 00:33:41,812 and software stacks, with an added bonus of a nice how-to. 476 00:33:42,452 --> 00:33:44,472 Occasionally, if you could cover mining news and software stacks, 477 00:33:44,612 --> 00:33:47,832 you have a winner. I know you need a certain scale to mine efficiently, 478 00:33:48,052 --> 00:33:50,212 but that might be a good topic as well. 479 00:33:50,672 --> 00:33:54,472 Many of us do a lot of uneconomical things just for fun. Crashmaster, 480 00:33:54,712 --> 00:33:56,972 are you mining at home just for fun? 481 00:33:58,372 --> 00:34:02,172 That's what I take from that. You know, I've got an old S9 in a box that I'm 482 00:34:02,172 --> 00:34:05,372 thinking about maybe hooking up if I get cheap power somewhere that, 483 00:34:05,412 --> 00:34:09,672 you know, I don't feel guilty about because I just want to add some hash. 484 00:34:09,912 --> 00:34:14,752 You know, I just want to add some hash. And if I got lucky, I don't know. 485 00:34:14,812 --> 00:34:18,292 I saw a post this morning that looked back at the last six years and about once 486 00:34:18,292 --> 00:34:24,052 a year or so, some lone rando, you know, gets a block reward. 487 00:34:24,252 --> 00:34:25,812 So maybe that could be you. 488 00:34:26,752 --> 00:34:30,372 What? I wonder where I could get more information on that. 489 00:34:30,472 --> 00:34:34,392 Mining is definitely an area I'd love to dig into more, and it's an area I would 490 00:34:34,392 --> 00:34:35,672 love to hear more from the audience. 491 00:34:35,772 --> 00:34:39,772 What are you doing with mining, if anything? Maybe nothing. 492 00:34:41,312 --> 00:34:47,092 But I have also felt like perhaps I should get into it, even if I didn't do 493 00:34:47,092 --> 00:34:50,372 it for profit, if I just did it for the experience, if I just did it, 494 00:34:50,392 --> 00:34:54,432 I don't know, to get back into the network to computing, which is kind of what 495 00:34:54,432 --> 00:34:56,232 got me into it a long time ago. 496 00:34:57,212 --> 00:34:59,792 I was, I mean, what brought me into Bitcoin originally was mining. 497 00:35:00,792 --> 00:35:02,012 And then I just kind of went from there. 498 00:35:03,373 --> 00:35:07,633 Mega Strike 3 comes in with 7,777 sats. Tough little ship. 499 00:35:08,433 --> 00:35:11,613 Little. Thanks for your explanation about your stacking methodology. 500 00:35:11,893 --> 00:35:14,513 I have a question, though. How does running a lightning node play into this? 501 00:35:14,553 --> 00:35:18,693 Since lightning nodes need inbound and outbound channels, are nodes more for 502 00:35:18,693 --> 00:35:20,733 using sats than stacking sats? 503 00:35:21,393 --> 00:35:24,633 You don't really need a lightning node in your stacking setup. 504 00:35:25,053 --> 00:35:27,873 And you've got to remember, to have a lightning node, you have to have channels. 505 00:35:27,933 --> 00:35:31,053 To open up channels, you need to have funds to put in those channels. 506 00:35:31,133 --> 00:35:32,393 Sats to put in those channels. 507 00:35:32,993 --> 00:35:37,393 You could absolutely use a Lightning node to move funds around to make your 508 00:35:37,393 --> 00:35:39,973 transactions more private, especially if it's on your own node, 509 00:35:40,093 --> 00:35:42,013 but you wouldn't so much use it for stacking. 510 00:35:42,773 --> 00:35:45,813 And the fees that you'd generate from the Lightning network probably aren't 511 00:35:45,813 --> 00:35:47,833 going to amount to much on a small node these days. 512 00:35:48,273 --> 00:35:51,193 So I think that's where something like the Aqua Wallet comes in nice, 513 00:35:51,213 --> 00:35:54,813 because you can take advantage of the Lightning network without having to stand 514 00:35:54,813 --> 00:35:58,533 up a node, because you're just doing a quick peg into liquid, peg out of liquid. 515 00:35:59,153 --> 00:36:00,913 And they do Lightning swaps for that. 516 00:36:01,693 --> 00:36:06,533 Running your own node is a good idea for a lot of reasons, but stacking over 517 00:36:06,533 --> 00:36:09,113 Lightning is probably not one of them. 518 00:36:09,493 --> 00:36:13,633 Probably not, although I'd be totally willing to have anybody else's opinions 519 00:36:13,633 --> 00:36:16,133 or thoughts on that if you feel differently. 520 00:36:16,453 --> 00:36:19,313 And our last boost that goes on air this week comes from Torped, 521 00:36:19,413 --> 00:36:21,933 5,150 sats. This is the way. 522 00:36:22,693 --> 00:36:27,493 Wouldn't trampoline payments help alleviate the title of money transmitter off 523 00:36:27,493 --> 00:36:28,953 of all Lightning nodes? nodes. 524 00:36:29,193 --> 00:36:33,773 So trampoline payments are a way of moving funds between nodes as kind of like 525 00:36:33,773 --> 00:36:37,033 a relay. It does increase fees, but it also increases privacy. 526 00:36:37,633 --> 00:36:42,293 I don't know if they're very economical. And I don't think that solves the problem 527 00:36:42,293 --> 00:36:45,673 of being a money transmitter so much, because the issue that the government 528 00:36:45,673 --> 00:36:51,093 seems to be putting forward is that if you make the infrastructure and code available, 529 00:36:51,553 --> 00:36:54,953 you're essentially a money transmitter business, a money services business, 530 00:36:55,133 --> 00:36:58,433 an MSB, as they put it. Not an MTB, but an MSB. 531 00:36:59,473 --> 00:37:06,913 And that, I think, balloon, I should say balloon, trampoline payments would not solve. 532 00:37:07,013 --> 00:37:10,853 It would cover up some of the source and destinations. 533 00:37:11,213 --> 00:37:15,913 It's an interesting technology. I don't think it solves the case that the federal 534 00:37:15,913 --> 00:37:16,933 government, the DOJ, is making. 535 00:37:17,513 --> 00:37:20,273 At least in my opinion, I would love to be wrong about that, 536 00:37:20,313 --> 00:37:21,873 but unfortunately, I don't think I am. 537 00:37:22,693 --> 00:37:25,013 Good technology, though. Thank you, everybody who boosted in. 538 00:37:25,093 --> 00:37:28,633 We had 24 boosters. Not bad at all, really. Nice to hear from all of you. 539 00:37:28,873 --> 00:37:32,493 I have a 2,000-sat cutoff just to kind of keep it tighter on air, 540 00:37:32,593 --> 00:37:34,373 but I really do appreciate it. 541 00:37:34,413 --> 00:37:37,853 We stacked 136,184 sats. 542 00:37:38,053 --> 00:37:40,993 Thank you very much. And here's something for your trouble. 543 00:37:41,593 --> 00:37:43,953 There you go. You get a little sonic ding for your troubles. 544 00:37:44,593 --> 00:37:47,533 Appreciate everybody who boosted in. If you would like to boost in, 545 00:37:47,613 --> 00:37:51,653 all you got to do, get a new podcast app, podcastapps.com. 546 00:37:51,873 --> 00:37:55,013 Something like Fountain or Podverse, Cast-O-Matic. 547 00:37:55,553 --> 00:37:58,433 Fountain has easy integration with Strike if you're already going that route. 548 00:37:58,533 --> 00:37:59,893 Something to definitely check out. 549 00:38:00,560 --> 00:38:10,800 Music. 550 00:38:11,008 --> 00:38:17,728 Okay, our last clip of the week's a doozy. If you have stuck with me this long, you have earned it. 551 00:38:18,508 --> 00:38:22,968 I'm about to play for you the godmother of modern monetary theory. 552 00:38:23,288 --> 00:38:29,068 And she's going to explain to you why it is childish to expect that a government 553 00:38:29,068 --> 00:38:32,928 would have budgetary constraints of a household or a business. 554 00:38:33,148 --> 00:38:36,608 We live in the future where we have MMT, baby. 555 00:38:36,988 --> 00:38:40,528 Economics is widely known as the dismal science, right? Right. 556 00:38:40,528 --> 00:38:42,088 Because you've got to get better branding. 557 00:38:42,448 --> 00:38:46,248 Well, that's what MMT is trying to do. Better branding. Because, 558 00:38:46,488 --> 00:38:49,788 you know, in the dismal science, it's all about scarcity. 559 00:38:50,168 --> 00:38:54,288 And we can never have the things that we want because there's always this really 560 00:38:54,288 --> 00:38:57,588 intrusive problem, which is how are you going to pay for it? 561 00:38:57,648 --> 00:38:59,408 Where is the money going to come from? 562 00:38:59,668 --> 00:39:04,528 Yeah, it's so hard when you have limits and actual resources that are tied to 563 00:39:04,528 --> 00:39:08,168 real world things and that you have constraints on what you can actually do. 564 00:39:08,168 --> 00:39:13,048 You can't have nice things like endless wars and you can't have nice things 565 00:39:13,048 --> 00:39:15,868 like crazy government programs that are rife with corruption. 566 00:39:16,128 --> 00:39:19,608 So you need unlimited money that isn't tied to anything scarce, clearly. 567 00:39:19,768 --> 00:39:23,408 Of the things that we want, because there's always this really intrusive problem, 568 00:39:23,688 --> 00:39:27,288 which is how are you going to pay for it? Where is the money going to come from? 569 00:39:27,388 --> 00:39:32,448 And the problem is that we treat money like just any other scarce good or service 570 00:39:32,448 --> 00:39:35,408 in the economy. And what MMT is doing is saying, hold on a second, 571 00:39:35,488 --> 00:39:37,928 we're not on a gold standard anymore. 572 00:39:38,248 --> 00:39:42,748 We have this thing called a fiat currency. And it does make people nervous because 573 00:39:42,748 --> 00:39:46,848 a fiat currency sort of opens up space. 574 00:39:46,888 --> 00:39:49,528 And it's kind of like, wait, is money real after all? 575 00:39:49,668 --> 00:39:53,848 It opens up space and it's like, wait, is money real after all? 576 00:39:55,164 --> 00:39:58,564 That's that's her explanation of why people are concerned about Fiat. 577 00:39:59,924 --> 00:40:05,884 This is the woman. This is the the godmother, as they say, of MMT. 578 00:40:06,244 --> 00:40:09,644 And this is how she explains Fiat. You can tell what I think is actually interesting 579 00:40:09,644 --> 00:40:14,624 is that she even has to address that people are aware of what Fiat is and have concerns about Fiat. 580 00:40:15,224 --> 00:40:19,044 That's relatively new. And now she has to deal with that. 581 00:40:19,164 --> 00:40:24,344 But that's that's not the part that's really, really making this a doozy of 582 00:40:24,344 --> 00:40:28,524 a clip. Currency sort of opens up space and it's kind of like, 583 00:40:28,524 --> 00:40:30,444 wait, is money real after all? 584 00:40:30,584 --> 00:40:36,024 And so MMT is an economic framework that tries to have an honest conversation, 585 00:40:36,284 --> 00:40:40,404 that talks to people like grownups, not insulting people by telling them that 586 00:40:40,404 --> 00:40:44,664 you have to treat the government's budget like a household budget and speaking down to people. 587 00:40:44,664 --> 00:40:47,664 But we want to be honest about the monetary system we have today, 588 00:40:47,924 --> 00:40:52,304 the capacities of the government to spend when you have a fiat currency and 589 00:40:52,304 --> 00:40:56,624 you're not tying your currency to gold and promising to convert into something 590 00:40:56,624 --> 00:40:59,844 that you could run out of like physical gold. 591 00:41:00,384 --> 00:41:05,324 So we're opening up a conversation where there are still limits and you still have to make choices. 592 00:41:05,504 --> 00:41:09,904 But we can have an adult conversation about how the government can actually 593 00:41:09,904 --> 00:41:14,084 operate its budget when it doesn't face the same kinds of constraints that a 594 00:41:14,084 --> 00:41:15,544 household or a business face. 595 00:41:16,704 --> 00:41:20,164 I just feel so childish now thinking that my government should have had to follow 596 00:41:20,164 --> 00:41:22,404 constraints and have a balanced budget. 597 00:41:22,604 --> 00:41:27,764 I should have remembered that they can just print money and it has absolutely zero ramifications. 598 00:41:28,144 --> 00:41:32,704 There's no problems at all. I better go back and just undo the whole top of 599 00:41:32,704 --> 00:41:36,244 the show that laid out the seven things that are causing us problems this week 600 00:41:36,244 --> 00:41:37,524 that just happened in one week. 601 00:41:37,584 --> 00:41:40,644 I should probably just go delete all of that, cut all that out from the show. 602 00:41:41,204 --> 00:41:45,284 I am so grateful that Stephanie set me straight. 603 00:41:45,464 --> 00:41:49,424 Stephanie Kilton is her name. She was on The Daily Show, and she was making 604 00:41:49,424 --> 00:41:54,264 the case for MMT and why governments should not have to have the same financial 605 00:41:54,264 --> 00:41:56,064 constraints of businesses and households. 606 00:41:56,224 --> 00:41:58,584 And if you think otherwise, well, that's just childish. 607 00:41:59,384 --> 00:42:02,744 I'll put a link to that in the show notes if you'd like to get it for yourself. 608 00:42:03,124 --> 00:42:04,984 Maybe you listen to it again and just shake your head. 609 00:42:06,384 --> 00:42:11,244 That'll be over at thisweekinbitcoin.show along with all of the previous shows. 610 00:42:11,384 --> 00:42:14,124 Please do boost in. Let me know what you like, didn't like, or would you like 611 00:42:14,124 --> 00:42:18,084 to hear more of in the show or any responses or thoughts on anything I talked about today. 612 00:42:18,504 --> 00:42:23,844 I'd love for this to be the number one Bitcoin news podcast for the JB audience, 613 00:42:24,044 --> 00:42:27,924 for the podcasting 2.0 community, et cetera. And one of the ways you can do 614 00:42:27,924 --> 00:42:30,804 that is by boosting because it helps us get discovered on the fountain charts. 615 00:42:31,524 --> 00:42:36,164 Every boost goes up there to just click, click, click up that chart and helps 616 00:42:36,164 --> 00:42:37,564 others discover it when they go search. 617 00:42:37,924 --> 00:42:41,164 I really appreciate that. Thank you so much for joining me. I'm going to wrap 618 00:42:41,164 --> 00:42:43,144 it up today with a value for value song. 619 00:42:43,264 --> 00:42:46,744 If you boost in during the song, your sats go to support the track directly. 620 00:42:47,324 --> 00:42:49,124 And this week it's self-destruct. 621 00:42:49,840 --> 00:45:34,410 Music.