Your Top 5 Bitcoin Podcasts of the Week in 5 minutes

In Simply Bitcoin IRL, Jesse Myers and Steven Lubka discuss their predictions for the future of Bitcoin and its impact on global wealth management and civilization. Myers believes Bitcoin will siphon up to 25% of the world's assets, which would correlate with a 500x increase from its current market cap, while Lubka agrees and predicts Bitcoin could potentially store 2% of people's global wealth. They both feel that Bitcoin adoption will be a slow burn, and while hyperbitcoinization is a once in a species transition, it will occur at a lightning-fast scale compared to human history. The speakers also discuss the limitations of fiat currency and the positive societal implications of Bitcoin. They believe that Bitcoin will help reorient society toward pursuing higher-order values, such as virtue and purpose, transcending materialism to bring vitality to human life.

• 00:00:00 In this section, the hosts of Simply Bitcoin IRL introduce their guests: Jesse Myers, CEO of On-Ramp Bitcoin, and Steven Lubka, head of Swan Private. They start off jokingly announcing it as a health show to discuss the benefits of walking and sunlight before diving into the topic of Bitcoin's potential valuation. Myers shares his article on the topic, which makes the case for Bitcoin being a $10 million asset, requiring 25% of the world's wealth. Lubka weighs in on the Big Hairy Audacious Goal (BHAG), stating that it may be possible but it would require a paradigm shift.
• 00:05:00 In this section, Jesse Myers, a data analyst and Bitcoin enthusiast, explains how he used his background in consulting to estimate the potential growth of Bitcoin in the global asset landscape. He researched the total addressable market of assets in the world, including real estate, stocks, bonds, money itself, and found that Bitcoin only accounts for 0.05% of the market, equivalent to $400 billion. However, he believes that Bitcoin's superiority as a store of value asset will cause people to shift their investments away from traditional assets like bonds and into Bitcoin, causing it to siphon away up to 25% of the world's assets and reach a potential of $90 trillion, a 500x increase from its current market cap. He compares Bitcoin to gold in the 70s, which 14xed during stagflation due to the increasing scarcity and hard asset preference.
• 00:10:00 In this section, Steven Lubka, the head of Swan Private, agrees with Jesse Myers' thesis that Bitcoin could potentially store 2% of people's wealth around the globe in the future, resulting in a price increase as high as 40 times its current value. Lubka believes that it is highly likely that a couple of percent of the world's wealth could be stored in Bitcoin over the next decade, and the numbers align with the work they have been doing with Alpha Zeta on nakamotoportfolio.com. According to their calculations, Bitcoin could potentially be 5% of global financial assets, creating a return to what monetary and asset dynamics looked like a few decades ago. Lubka also points out that the argument that hard money would impair economic growth did not hold during the Dynamic period when gold was a store of value asset taking up a significant slice of all assets.
• 00:15:00 In this section, Jesse Myers and Steven Lubka discussed the timeline for Bitcoin to become a generational shift. Lubka thinks it will be a long time for people to adjust to the Bitcoin unit of account, and it may not happen in the lifetimes of most Boomers. However, he believes that each generation will have a greater percentage that realizes the value of Bitcoin and includes it as a major part of their savings strategy. The winning strategy in the future, according to Lubka, is to accumulate hard assets, such as Bitcoin and gold, and land will perform well, but it will still underperform compared to Bitcoin and gold.
• 00:20:00 In this section, Jesse Myers and Steven Lubka discuss the current adoption of Bitcoin and its potential for growth in the future. They mention that there are currently 10 million people in the world who use Bitcoin as a savings strategy, which is only half a percent of the 2 billion people with a net worth of $10,000 or more. This puts us at the beginning of the adoption curve, with all the other adopters yet to come. They predict that over time, more people will adopt Bitcoin as a primary way to store savings, until it becomes the norm, alongside traditional asset classes like stocks or real estate. They acknowledge that there are unpredictable events that could either expedite or impair this adoption curve, but generally, they believe that the transition to Bitcoin will be a slower burn, taking at least a decade or two.
• 00:25:00 In this section, Jesse Myers and Steven Lubka discuss the concept of hyperbitcoinization and how it is a slow but steady transition from one monetary norm to another. Myers notes that the four-year intervals created by Satoshi Nakamoto allows humans, businesses, and the market to incorporate and build conviction and infrastructure at a reasonable pace. On the other hand, Lubka observes that people are slowly awakening to Bitcoin, as evidenced by mainstream figures like Tim Poole and Warren Buffet being asked about Bitcoin's role in the global economy. Both agree that hyperbitcoinization is a once in a species transition, occurring at a lightning-fast scale compared to human history.
• 00:30:00 In this section, the speakers discuss how discussions about the US dollar losing its role as the global reserve currency are spreading beyond just pockets of the macroeconomic and finance sphere, and are now becoming a more mainstream topic of discussion. This is evidenced by traditional interest rate observer, Grants, writing about Bitcoin in their newsletter, something they have never done before. Additionally, the Bitcoin community has become broader, with different factions, academics, and progressives all becoming interested in Bitcoin. This is what adoption looks like, and it is motivating people and giving them a sense of purpose. They also discuss comments made by anti-Bitcoin Congressman Brad Sherman, who accused crypto "bros" of making money out of thin air, to which Jesse Myers responds by highlighting how the US government itself does this as well.
• 00:35:00 In this section, Jesse Myers and Steven Lubka discuss the flaws in the current system of money creation by the US government and its misaligned incentives. They argue that the act of printing money impairs the complex machinery of an economy by distorting incentives, capital formation, and information processing. The distorted system causes deterioration in health, culture, and buildings, and ultimately impairs the progress of civilization. They also point out that the food pyramid was taught in schools as if it was a fact when it was not, which broke many people's trust in institutions.
• 00:40:00 In this section, Jesse Myers and Steven Lubka discuss the impact of fiat currency on civilization. They argue that the distorted incentives and machinery embedded in the system leads to a collapse in efficiency and organic growth. This then leads to a broader deterioration of the civilizational engine, which is not just about economic growth. They discuss the importance of culture, aesthetics, art, and purpose in advancing humanity. They also draw a connection between postmodernism and fiat currency, arguing that fiat breeds nihilism and that the separation of money and state is the key solution. Finally, they discuss the inherent flaws in post-modernist ideology when applied to a money system.
• 00:45:00 In this section, Jesse Myers and Steven Lubka discuss the value of Bitcoin and the societal implications of living in an inflationary world. They argue that money has both social and inherent objective qualities, but fiat money becomes a natural choice in a society where truth and objective reality are questioned and dismantled. They also assert that Bitcoin changes people's operating system and their perspective on life, as it is connected to reality via proof of work and is anchored to the universe to energy. The common denominator of Bitcoin becomes the great unifier, transcending different ideological beliefs, and changing craftsmanship, art, and quality of goods that are stifled by inflationary fiat machines.
• 00:50:00 In this section, Jesse Myers and Steven Lubka discuss the transition from a fiat world to a Bitcoin world. They talk about how in a fiat world, it is difficult for younger generations to purchase things such as a starter home, forcing them to orient their lives around experiences. However, with Bitcoin, they are on a deflationary standard where the value of their money increases over time, which can buy them more goods in the future. They explain how, even though the transition from fiat to Bitcoin is bumpy and requires a shift in worldview, it is a good force for humanity as it encourages planning and saving for the future. They emphasize that Bitcoin represents a bright, glowing, sunlit place full of hope and optimism, in stark contrast to the World Economic Forum's slogan of "you own nothing and you'll be happy."
• 00:55:00 In this section, the speakers discuss the limitations of the fiat system and the potential future of central bank digital currencies. They contrast this with Bitcoin, which allows for individuals to take back monetary sovereignty and plan for their future. The conversation then shifts towards the issue of consumerism and how nihilism and reductionistic materialism can drive people towards it. They express hope that Bitcoin can help reorient society towards pursuing higher-order values, such as virtue and purpose, that transcend materialism and instead bring vitality to human life.

01:00:00 - 01:15:00

Jesse Myers and Steven Lubka discuss the role of Bitcoin in providing a sense of purpose and its potential impact on GDP growth. Myers argues that Bitcoin gives people a sense of purpose and can satisfy the lower tiers of Maslow's pyramid. Lubka disagrees and believes that the pursuit of material wealth should not be at the center of discussions around hard money standards. Although they agree that technological advancements can lead to a positive flywheel of things getting better over time, Lubka suggests that the erosion of values has contributed to a preoccupation with the rat race. Finally, Lubka talks about the Swan Private service, which is the concierge team for high net worth investors, while Myers is the CEO of OnRamp Invest, a Bitcoin trust vehicle.

• 01:00:00 In this section, Jesse Myers and Steven Lubka discuss the importance of purpose and the battle over the definition of the Human Condition. Myers argues that without a purpose, one cannot truly live and that Bitcoin gives people a sense of purpose and an engine to help satisfy the lower tiers of Maslow's pyramid. Lubka disagrees, stating that the ultimate goal of all efforts should be to illuminate the Human Condition and answer the question, "Who are we after all?" He believes that this answer cannot be found in things like GDP growth and that the pursuit of material wealth should not be the center of discussions around hard money standards.
• 01:05:00 In this section, Jesse Myers and Steven Lubka discuss the potential impact that Bitcoin can have on GDP growth, elevating the quality of life for many regions. While Steven recognizes that Bitcoin can provide material benefits, he argues that the world becoming more productive on its own will not necessarily shift cultural focus. He suggests that the erosion of values over time has contributed to a preoccupation with the rat race. However, they both conclude that with technological advancements, communities can bootstrap a positive flywheel of things getting better over time, leading us back to a place where we can start to aspire to higher ideals. Steven also recommends following his optimistic Twitter account, which emphasizes the importance of health and wealth.
• 01:10:00 In this section, Stephen Lubka talks about the Swan Private service, which is the concierge team for high-net-worth investors, corporations, and retirement products, among others. Their Private Client gets a dedicated representative who can text or call and get on the phone with, walking them through Bitcoin and holding their hand. On the other hand, Jesse Myers is the co-founder and CEO of OnRamp Invest, a Bitcoin trust vehicle designed by Bitcoiners to do better than Grayscale. They allow people to get exposure to Bitcoin without having to worry about self-custody, and if their clients intend to handle cryptographic materials later on, they can take self-custody and withdraw their Bitcoin.

01:15:00 This excerpt does not contain any relevant information as it is just the hosts signing off and promoting their upcoming live show.

The video features a philosophical discussion with Bradley Rettler about Bitcoin and its philosophical implications. The conversation covers topics such as vague concepts and language, personal identity and the existence of souls, artificial intelligence, and the role of money in society. The speakers also discuss the moral implications of Bitcoin's transfer of wealth, the potential for an uneven distribution of wealth, and its environmental impact. They conclude that Bitcoin's focus on the nature of money makes it valuable in discussions about the moral issues behind how money is created, distributed, and regulated, and that it has potential benefits in terms of privacy, censorship resistance, inclusion, and renewable energy usage.

• 00:00:00 In this section, Bradley Rettler discusses his interest in metaphysics and the concept of vagueness in language. He uses the example of the vague term "heap" to explain how some words have application conditions that make it difficult to set definite limits. The conversation then shifts to American football, with Rettler revealing that he's a Green Bay Packers fan and suggests that the 49ers are his second favorite team for no particular reason.
• 00:05:00 In this section, Bradley Rettler provides examples of practical applications of philosophy including a tax consultant who utilizes philosophical arguments to help companies pay taxes on spatially separated properties. He also talks about his metaphysics course where students discuss personal identity and what type of things we are. They explore different theories on whether or not humans have souls, and if so, when they were acquired. Lastly, the conversation delves into the idea that the soul is an immaterial object that interacts with the physical world mediated through the body.
• 00:10:00 In this section, the discussion turns to the topic of AI and the question of when an AI can be considered a person with rights. It's noted that technological innovation often outstrips ethical discussion, which can lead to problems, and that it's likely too late to pause AI development. However, it's pointed out that the current examples of AI merely duplicate human failures, such as bullshitting and irrational overconfidence when wrong, suggesting that humans may be projecting their own flaws onto AI.
• 00:15:00 In this section, Bradley Rettler shares how he met Andrew Bailey and Craig Warmke and how they eventually coalesced around the idea of talking about "resistance money." Rettler and Bailey initially met in 2005 when Rettler went to grad school where Bailey was an undergrad. The two started talking about philosophy and eventually ended up living together in Notre Dame for five years. Meanwhile, Rettler and Warmke started talking about their experiences on the job market when they were both applying to grad schools, and eventually discussed their interest in Bitcoin. They ended up writing a philosophy paper together about the philosophy, politics, and economics of cryptocurrency, which eventually led to them writing a book about Bitcoin. Rettler also shared his first encounter with Bitcoin when a friend who got super into it explained it to him and he saw its potential in revolutionizing cross-border remittance payments.
• 00:20:00 In this section of the video, Bradley Rettler discusses vague concepts and how they relate to philosophical ideas such as count nouns and mass nouns. The conversation touches on the notion of when something is no longer considered coffee, and how it is difficult to pinpoint the exact moment when it becomes something else. They then move on to discussing football and the notion of winning the league, using it as an example of how philosophical ideas of possibility and knowing relate to real-life scenarios. The conversation ends with a mention of producing a book about the philosophical case for Bitcoin.
• 00:25:00 In this section, Bradley Rettler discusses a book he co-wrote arguing that Bitcoin is overall good for the world. The book takes a philosophical approach, with arguments for Bitcoin's benefits in terms of privacy, censorship resistance, inclusion, and other benefits. The authors tackle objections to Bitcoin and respond to them, ultimately concluding that Bitcoin's benefits outweigh the costs. Rettler and his co-authors took a collaborative approach when writing the book, spending 10 days together in Wyoming to write the core of each chapter. The publication date is not yet known.
• 00:30:00 In this section, Bradley Rettler discusses the concept of money and its role in society. He explains that to determine whether something is money, people cannot run experiments. Money plays a role that we need, and whatever fulfills that role counts as money. Animals do not use money, and it is an emergent human technology that allows for trade. Philosophically, the question of who should issue money and how it should operate falls under moral and ethical concerns, such as what gives people the most freedom and leads to the most human flourishing. Money creation and governance are important factors in global inequality, as too many people do not have enough to engage in fulfilling projects. Inflation is one of the most important subjects of our time, according to some experts, as it affects so many people to the benefit of the few, causing damage to society.
• 00:35:00 In this section of the transcript, the guest and host discuss the importance of money and its impact on people's lives. Inflation can cause catastrophic effects on millions, if not billions, of people worldwide. It affects everyone and the way money is designed, issued, and operated, with inflation being a part of that, could be the most crucial issue of our time. Money affects everyone's access to basic needs like food, shelter, and water, and fixing the money could fix these issues. Bitcoin's focus on the nature of money makes it a vital part of the discussion, bringing attention to the moral issues behind how money is created, distributed, and watched by governments. Many people have never considered that money could be governed differently, prompting the need for spreading awareness and triggering thoughts on the matter.
• 00:40:00 In this section, the conversation turns to the moral implications of the transfer of wealth brought about by Bitcoin. The guest speaker argues that he would like to see people who have the least amount of money get into Bitcoin first, but unfortunately, the people they trust are often not interested in Bitcoin. The conversation then touches on the subject of societal collapse and the worries that come with transitioning from fiat currency to Bitcoin. While the guest speaker doesn't think Bitcoin will replace fiat currency unless there's a collapse, he hopes that such an event doesn't happen because of the devastation it would cause.
• 00:45:00 In this section, the speakers discuss the moral case for printed money and how it should be distributed. They note that during the pandemic, printing money to help people buy food and pay rent was justified as long as it was distributed directly to people rather than being spent on the military industrial complex or bailing out banks. However, there are still many complexities surrounding the topic of money, such as the fact that people have no say in who introduces it or how it is publicized. They argue that there needs to be more education about money and the different models for banking, but it is unlikely to be part of the common curriculum.
• 00:50:00 In this section, the speakers discuss two major concerns they have with Bitcoin. First, they worry about the possibility of an uneven distribution of wealth if Bitcoin becomes the global reserve currency. The speakers acknowledge the challenge of ensuring that those who need it have access to it. Second, they discuss the environmental impact of Bitcoin mining. They question whether Bitcoin will incentivize solutions to climate change or whether it will contribute to it. They acknowledge that evidence shows that moving from industrial-scale miners to renewable energy may make Bitcoin carbon negative within two to five years. However, they also recognize that those who cannot access Bitcoin directly will not benefit from it, despite its potential indirect benefits.
• 00:55:00 In this section, the interviewer asks about the correlation between Bitcoin and climate change. The guest, who is a philosopher, believes that climate change is the most pressing issue of our time. He states that while some Bitcoin community members do not view climate change as an issue, he trusts scientists who have expertise in researching, making models, and testing those models. He further explains that we need to take steps to address climate change, and most climate scientists agree on the need to do so. The guest also talks about the correlation between Bitcoin and renewable energy, where Bitcoin can subsidize communities worldwide using renewable energy.

01:00:00 - 01:30:00

Bradley Rettler makes several arguments in favor of Bitcoin in this video. He first argues that Bitcoin has the potential to positively impact renewable energy build-out, as Bitcoin miners can purchase energy at times of low demand and turn off their mining machines during periods of high demand. He also addresses concerns of Bitcoin being used by criminals and terrorists, stating that not many criminals use it, and they are easily traceable due to the public ledger. Rettler believes that Bitcoin is beneficial for people living under difficult regimes because it allows them to evade capital controls. He also acknowledges the bias against Bitcoin in academic circles, encouraging a balanced and investigative approach in reporting on Bitcoin. Overall, Rettler paints a nuanced picture of Bitcoin and its potential to be a force for good in the world.

• 01:00:00 In this section, Rettler discusses the potential positive impact of Bitcoin on renewable energy build-out as a result of Bitcoin miners buying energy at times of low demand and willingness to shut off at times of high demand. He also addresses the use of Bitcoin by criminals and terrorists, stating that not many criminals use Bitcoin and are easily traceable due to the public ledger. Rettler argues that Bitcoin is used by activists and people living under difficult regimes to evade capital controls. However, people who are not aware of Bitcoin's usage tend to associate it with tech people on the west coast and criminals.
• 01:05:00 In this section, the speaker discusses how the media tends to highlight negative stories about Bitcoin and how that can influence people's views of it. He explains that the evidence primacy effect means that the first information people receive will shape their view of the topic. If they are exposed to negative stories first, they may interpret all information through that lens. He acknowledges that Bitcoin can be used for illegal activities but argues that it is not the whole story and the good aspects of Bitcoin's impact should also be highlighted. The speaker also talks about the reluctance of people to admit to being wrong and how it stems from evolutionary tendencies to want to conform to the beliefs of the group.
• 01:10:00 In this section, Bradley Rettler discusses how Bitcoin has become a community with a group identity, which helps them defend against attacks but can also become a weakness when there is no tolerance for dissent from within the group. The community has factions with differing views on important topics like politics and diet, and it becomes challenging to decide how much to care about these other things. However, many people in the Bitcoin community believe there is no room for ideology in Bitcoin except for maximizing the number of people who have access to censorship-resistant money.
• 01:15:00 In this section, Bradley Rettler discusses the various ideological groups that have formed within the Bitcoin community and how he hopes people will start to coalesce around the idea of money rather than ideology. He also talks about the challenges of being an advocate for Bitcoin in academic circles, where many people either ask for the argument in favor of Bitcoin before evaluating it or criticize it for its perceived impact on the world. Nevertheless, Rettler believes that Bitcoin is becoming more accepted academically, and he is open to hearing arguments against it that could alter his current belief that Bitcoin is beneficial for the world.
• 01:20:00 In this section, Bradley Rettler discusses the potential for bias against Bitcoin within academic circles. While he does not see it happening in philosophy, he acknowledges that peer review, which relies on anonymity, can be a place where roadblocks are set up for those who argue in favor of Bitcoin. He cites an instance where an academic press received four anonymous referees who were hesitant to read a proposal and openly expressed negative sentiments against Bitcoin. However, he notes that this issue is less likely to occur when individuals engage in face-to-face discussions about the value of Bitcoin. Lastly, he mentions that while their book covers many objections to Bitcoin, they ultimately had to leave some out to avoid writing a book entirely against Bitcoin.
• 01:25:00 In this section, the speakers discuss the need for a balanced and investigative approach when it comes to reporting on Bitcoin and its impact on the environment. They believe that it is important for journalists to speak with both sides of the argument and present a fair and balanced view. They also touch on the philosophical questions that they have pondered, such as the existence of free will in a world where God knows the future, and the conflicts between the existence of a good God and the existence of evil in the world.

01:30:00 In this section, the conversation touches on the idea of whether God would want us to have fun when thinking that He is not looking. The philosopher argues that if the things we are doing are morally permitted, then God would allow us to do them even if we had more evidence. They also discuss a short story by Ted Chang called "Hell is the absence of God," where people are in hell, and there are regular Angelic visitations. The conversation ends with the promotion of the book and website Resistance Dot Money, where people can find academic and non-academic works.

Frost is a new approach to Bitcoin multi-sig that utilizes the Taproot upgrade and provides a better user experience in terms of multi-signatures. It is a single lock, unlike current multi-signatures, making it more private and secure. Frost works by using Shamir secret sharing, creating a joint polynomial that doesn't require secret reconstruction to sign, making it more practical and simpler than previous methods. Additionally, Frost is highly malleable, allowing signers to be added or removed later. The implementation of Frost needs to be thoroughly tested before widespread adoption, and there are backup options available, such as NFC backups. Roast is a set of instructions that makes Frost more robust and reliable, ensuring a threshold number of signers for signature generation. Frost can also be applied to social media as a type of multi-sig, creating a more secure and private account for individuals and companies.

• 00:00:00 In this section, Nick Farrow discusses Frost as the next generation of Bitcoin multi-signatures. Frost utilizes the Taproot upgrade in Bitcoin and provides an exciting user experience in terms of multi-signatures. Multi-sig exists today with op check multi-sig and up checksig, but Frost has many benefits compared to the current multi-sig. Some benefits include easier usability with hardware wallets, more complex scripts for multi-party coordination, and better privacy. Frost also includes Roast, which allows the protocol to be auditable while still maintaining privacy. Overall, Frost provides many advantages and can potentially be the future of Bitcoin multi-signature security.
• 00:05:00 In this section, Nick Farrow explains the difference between script multi-sig and Frost, a new approach to Bitcoin multi-sig. Multi-signatures in Bitcoin require multiple keys to spend Bitcoin, while Frost uses a key fragmented or shared among a group of people. With Frost, it is possible to have the threshold, but instead of operating through Bitcoin script, it is done mathematically. The main benefit of Frost is that it is a single lock, making a transaction using Frost appear identical to a single Taproot key spend on chain, unlike the current multi-seekers. The lack of privacy in script multi-sig means that it is possible to reveal how many keys are held in a multi-sig, which can be used to obtain sensitive information and is a significant downside.
• 00:10:00 In this section, it is explained that while Frost improves privacy, it also has worse accountability, making it more complex to track who signed what due to being private. However, Frost is optimized to make things simpler, allowing users to sign in a single round. Frost's building block is built around Shamir secret sharing, meaning that a secret is split into multiple fragments, which can then be shared among different parties. The process is done with mathematics and requires some communication, meaning that there are nuances about how it works and its complexities.
• 00:15:00 In this section, Nick Farrow explains the concept of Frost, which is a type of multi-signature feature based on secret sharing. While Shamir's secret sharing splits a joint secret into different points that require complete reconstruction, Frost generates a joint polynomial that doesn't require secret reconstruction to sign. Each participant creates their own polynomial, and Frost combines them to make a joint secret polynomial. This allows each participant to sign using their polynomial or constant term and combine them with other participants' constant terms to generate a valid signature of the joint polynomial. This eliminates the risk of having to fully reconstruct the secret and makes it more practical than Shamir's secret sharing.
• 00:20:00 In this section, Nick Farrow explains the concept of FROST (Flexible Round-Optimized Schnorr Threshold Signature) as a way to enable multi-signature transactions without having to reconstruct secrets. With FROST, multiple users can sign with fragments of a secret and combine them at the end to have a signature that is valid under the joint secret. While there is some complexity in the initial setup, Farrow suggests that this technology could be brought into existing multi-sig coordinator wallets such as Sparrow and Nunchuk Keeper as another way to coordinate multi-sig and use it in a similar way to the existing multi-sig wallets. The integration with wallets such as Asparo, Nunchuk, and Specter is possible and will require communication changes to send Frost data back and forth between participants.
• 00:25:00 In this section of the video, Nick Farrow discusses the differences between legacy multi-sig and Frost, specifically related to the sharing of polynomials and nonces. In Frost, there is more interaction required between wallets in the setup process, which will need a specification for sharing information to ensure compatibility. Additionally, the devices themselves should have software barriers to prevent non-screen use, so users are not solely relying on the coordinator to tell them which nonces to use. They are currently experimenting with designing hardware devices to support Frost, which would require a whole new paradigm to be incorporated into the technology. Regardless, one advantage of Frost is that it eliminates the need to keep backup copies of output descriptors, as each user would only need to back up their own single x-pub.
• 00:30:00 In this section, Nick Farrow explains how Frost works and its potential for Bitcoin multi-signature. Frost is imagined to be used with a chain of Frost Hardware devices all connected, one into each other. The laptop sends a message down the chain of devices, and on each device, you can verify that it has the same view of all the other devices. Frost allows for multi-signatures to be quite malleable, where signers can be added or removed at a later date, which is not possible with current script multi-signature. In terms of backups, seed phrases will be optional with Frost, and multi-signatures are quite malleable as new participants can be added.
• 00:35:00 In this section, Nick Farrow discusses the possibilities of the FROST solution and how it allows for the adding and removal of signing parties and the ability to change the signing threshold. However, a quorum of agreeable parties is necessary to make any changes to the signing parties or threshold. Farrow emphasizes the need for this implementation to be tried and tested before users switch to it since it involves placing trust in hardware and software. He explains that multi-sig is about having fault tolerance and being reproducible and verifiable, hence the importance of maintaining seeds.
• 00:40:00 In this section, Nick Farrow discusses the different backup options for the Frost key shares, including NFC backups, which can be loaded up again easily, and having one Frost device act as a seed signer and loading up individual secret shares, although this may not be ideal if the device is compromised. He also touches upon the computational requirements for Frost, which can be computationally expensive when the threshold is high. However, existing hardware devices should be able to handle anything up to around 50 out of 100 key shares. The slow multi-signatures may be due to older hardware devices being used, which can take up to three or four minutes to sign when there are many utxos and they are multi-sig, leading to some people having to break down the transaction into smaller outputs.
• 00:45:00 In this section, the speaker explains that Frost is not using Bitcoin script, which means it might have less computational work for each UTXO. The Frost paper has been proven secure, and there are two implementations of Frost that exist. Jesse Posner has a Frost implementation in C, while the other is in SEC P256k fun Library, owned by Lloyd and the speaker, which is more experimental. One big step is to make the Frost specification compatible with other Frost implementations through a Frost coordinator. The speaker also explains Roast, which is not a new signature scheme, but a set of instructions for running a threshold signature scheme like Frost. Roast is used when signers can be disruptive, pretend to sign, or have bad connections, causing delays in signing.
• 00:50:00 In this section, Nick Farrow explains the concept of Roast, which is a set of instructions that makes Frost robust. If a signer fails to sign, Roast gives instructions to seek another signer. Roast keeps track of who is a good signer and who is not, recognizing a good signer as more reliable. Roast also ensures a threshold number of signers for reliable signature generation. The algorithm for Roast is relatively simple, and it automatically selects a signer, making it useful in gray areas where multi-signature parties do not trust each other. Additionally, Farrow mentioned Noster, which uses schnauzignatures. Noster is a less risky platform to experiment with schnauzignatures as it is a fun playground for signature testing.
• 00:55:00 In this section, Nick Farrow discusses Frost, which is the combination of Noster and Frost. Frost is the first-ever collaborative social media account or shared custody social media account. It essentially works like a multi-sig for social media. Each member has a key share of the multi-sig, and in order to sign it, a threshold number of multi-sig members must sign, which can be either two of two or two of three. A shared custody of social media could be useful for people who have a massive social media following or companies that want to make sure that their public-facing accounts don't get hacked. This type of technology has not been fully explored, but it could be especially useful for Ethereum Dows and Federated Mints as well.

01:00:00 - 01:00:00

Nick Farrow discusses the potential of Frost Keys to revolutionize the accessibility and user-friendly nature of multi-signature key management. Frost's flexible multi-sig capabilities will enable users to add or remove devices with ease without needing to migrate the whole multi-sig while its encryption offers privacy and user experience to attract broader adoption from average users and high net worth individuals. Although the system still needs battle testing, Farrow believes in the significant potential of Frost Keys.

01:00:00 In this section, Nick Farrow discusses the potential for Frost Keys to make multi-signature key management more accessible and user-friendly. Frost's malleable multi-sig capabilities will allow users to easily add or remove devices without having to migrate the whole multi-sig. Additionally, Farrow believes that Frost's focus on user experience, along with the privacy offered by its encryption, will likely attract wider adoption from average users and high net worth individuals alike. Though the system still needs to undergo battle testing, Farrow believes in the significant potential of Frost Keys.

• 00:00:00 - 00:55:00
  In this section, Checkmate, lead analyst at Glassnode, a provider of on-chain data analytics, discusses the importance of on-chain metrics for understanding the Bitcoin market. Specifically, he looks for turning points and uses "cohorts" to group holders by their conviction in the asset. Checkmate believes the November price and behavioral action signaled a key turning point, with a dominance of the hodler cohort and a changing of hands among holders. He is now tracking the behavior of those new holders to see if they are being washed out or taking profits, but so far there is no loss of conviction or view that the market is too expensive, suggesting we may be entering a re-accumulation phase.00:00:00 In this section, Checkmate, lead analyst at Glassnode, a provider of on-chain data analytics, discusses the importance of on-chain metrics for understanding the Bitcoin market. Specifically, he looks for turning points and uses "cohorts" to group holders by their conviction in the asset. Checkmate believes the November price and behavioral action signaled a key turning point, with a dominance of the hodler cohort and a changing of hands among holders. He is now tracking the behavior of those new holders to see if they are being washed out or taking profits, but so far there is no loss of conviction or view that the market is too expensive, suggesting we may be entering a re-accumulation phase.
• 00:05:00 In this section, the guest talks about the strength of Bitcoin's on-chain fundamentals. Despite a small 6% rise in price from 16K to 18K, between 11-13% of circulating supply jumped back into profit, indicating a robust market floor. The guest also explains the realized price, which is the cost basis of all holders, and breaks it down into different cohorts. During a bull market, short-term and long-term holders have diverging prices, while during a bear market, they converge, creating a homogeneous market. After detoxing speculative capital, only the hodler cohort remains, making it a good time to invest. Furthermore, the guest argues that by discounting lost coins, the true cost basis of Bitcoin is pretty much where it is now, at about $30k.
• 00:10:00 In this section, the host asks a question about whether the recent rally in Bitcoin has been driven by strong accumulation by hodlers or by leverage. The guest responds by explaining that it's a bit of both, but the primary driver of the current rally appears to be spot demand. He notes that there has been a decline in leverage and positive funding rates, but they're not as high as they were in a full bull market. Additionally, he observes that options have become increasingly popular lately, surpassing futures in open interest for the first time. Overall, he believes that the rally is primarily driven by spot demand due to a high inflow of coins and low market liquidity.
• 00:15:00 In this section, the video discusses the distinction between short-term and long-term holders in Bitcoin. The short-term holders are those who stepped in at the FTX lows, while the long-term holders are from the previous cycle and often resist selling until they break even. Currently, short-term holders are taking profits, but they are not significant compared to the profits made during the 2021 cycle. The market is behaving as expected in a rally after a year of down, and the spot-driven market is doing what it should. The conversation then shifts to the topic of havings, and despite the debate surrounding their significance, they add to the factor in mining behavior, where they distribute the vast majority of their coins, and creating hype and narratives that are self-fulfilling prophecies.
• 00:20:00 In this section, the speaker discusses the impact of the moving average on Bitcoin and highlights that it tends to react every time the price comes near it. He also mentions that it has a marginal impact on the supply but meaningful impact on behavior patterns. The on-chain analytics and observing behavioral patterns that are native to Bitcoin are fascinating, and they are entirely unmanipulated. The speaker also talks about miner economics, saying that mining is a tough industry and to survive, one must be at the top of their game. The cost of mining Bitcoin typically comes back to the cost of production, and as the network grows, people invest in new ASIC technology. The speaker concludes by saying that the difficulty adjustment keeps the mining market on its toes and that hash price goes down only, indicating that if one is not the best operator, they will face issues.
• 00:25:00 know about the on-chain strength of Bitcoin? According to the video, one of Bitcoin's most exciting strengths is the way it pushes miners to find amazing stranded energy opportunities, forcing them to innovate and remain efficient. Stranded energy is power that is naturally distributed everywhere, and converting it into power is where innovation comes into play. The video also discusses how Bitcoin mining can be set up in areas where power generation is not previously feasible. The video then delves into the topic of ancient coins and gawks, which the presenters have recently conducted some research on.
• 00:30:00 look at coins that have been dormant for over seven years, only around 8.3% of these coins have ever been spent. This is an interesting dynamic to watch as it both discounts lost or dormant coins while also accounting for potential economic effects if these coins are put back into circulation. Among these dormant coins are coins held by large entities such as Mt. Gox and the US government, which currently hold significant chunks of the Bitcoin supply. Mt. Gox is expected to undergo distributions this year, which may cause volatility in the market, and the US government has already distributed BTC to Coinbase, which could cause a shift in demand. Additionally, while address creation can be used to gauge new users on the Bitcoin network, it's important to differentiate between new addresses being created and actively used addresses.
• 00:35:00 In this section, the speaker discusses the on-chain activity of Bitcoin and the implications it has for the growth of the network. The momentum chart shows that there has been more activity in recent times, indicating a positive sign of adoption. However, transaction counts are at an all-time high, whereas the transaction volume or realized value is relatively small. Moving to the supply side, the speaker discusses a report called "The Shrimp Supply Sink," which analyzes the coin holders and their absorption rates. The shrimp, crab, and almost all other cohorts, except whales and exchanges, have seen their balances grow. The whales haven't been net distributors in the past six years, which indicates the distribution of coins and the growth of smaller people in society is healthy. From the speaker's viewpoint, Bitcoin's resilience lies in the patience required to see the maximum benefit for the smallest people in society.
• 00:40:00 In this section, the speakers discuss the resiliency of Bitcoin holders and how they become more convinced of the asset's value after holding it for some time. They reference a chart that shows shrimp, or Bitcoin holders with balances of less than one BTC, have grown in their understanding of the asset and are now holding more than they did at the 2017 top, showing that they are becoming more educated about Bitcoin. The speakers also explain the different cohorts of Bitcoin holders, from shrimp to whales, and clarify that monthly DCA purchases can result in multiple entities being counted if privacy best practices aren't followed. Lastly, they discuss the chart that shows the percent drawdown from all-time high, which highlights Bitcoin's increasing liquidity profile.
• 00:45:00 In this section, the interviewees discuss the future of Bitcoin's blockchain and how it will be used, as well as the best approach to analyzing the Bitcoin asset class going forward. They both agree that Bitcoin will expand in layers, with lightning or something else potentially being the preferred method of interaction for the average individual due to base layer fees becoming expensive. However, some people may still prefer traditional banking rails for convenience and reduced risk. They believe that scaling in layers will make the Bitcoin economy more interesting and dynamic to analyze, and analysts will need to consider the evolving dynamics and metrics of the economy. They also agree that analyzing the Bitcoin asset class going forward requires a combination of on-chain analytics, qualitative understanding, exchange mapping, and macro analysis, as Bitcoin's heartbeat reflects what's going on in the world.
• 00:50:00 In this section, Checkmate, a lead analyst from Glassnode, discusses how Bitcoin on-chain data contains all the collective decisions made by a subset of society, which is a meaningful and informed group. While individual error bars may be large, macroscopic patterns prove to be "unbelievably accurate." Unchained Analytics showcases that people engage in tax loss harvesting at the bottom of bear markets, demonstrating a constant behavior pattern. The on-chain data is an immutable database of these collective decisions and is a "remarkable conclusion." Checkmate provides access to their newsletter and YouTube channel containing tools that help both casual investors and analaysts better understand the market dynamics around Bitcoin.

Matthew Mezinskis, who is known for his ability to speak on the concept of monetary base and Bitcoin, joins Stephan Lavera to discuss Bitcoin's main function and the different money supplies in the fiat system. Mezinskis explains the importance of a bottom-up approach to promote Bitcoin's decentralization and clarifies the different terms used in money, such as narrow money base, broad money, and monetary aggregates. The speakers also discuss legal tender laws, fiduciary money, and the unique properties of the Lightning Network. The focus remains on getting individuals to be their own bank, yet the evolution of these "banking" systems creates an alternative to the Fiat system with fundamental differences, providing real tangible ways of escaping legal tender laws and the manipulation of credit markets.

• 00:00:00 In this section, Stephan Lavera introduces his guest, Matthew Mezinskis, who is known for his ability to speak about the concept of monetary base and Bitcoin. Mezinskis, also the host of Crypto Voices, discusses his focus on macro money and breaking down different money supplies, such as narrow money and broad money, as well as his current daily video series. Mezinskis also talks about his former co-host, Fernando Ulrich, and how they helped bring attention to the idea of base money, which was not previously focused on as much until they spoke about it.
• 00:05:00 In this section, Mezinskis explains that Bitcoin's main function is final settlement, which is analogous to gold or fiat-based money. He clarifies the different terms used in money, such as narrow money base, broad money, and monetary aggregates, and how they are defined by central banks. Mezinskis also gives an overview of the central bank's balance sheet, Bank Reserves, and monetary base, which are key components of traditional banking. He adds that the Central Bank can be the lender of Last Resort, but ultimately, the focus of Bitcoiners should be on bottom-up adoption to promote decentralization.
• 00:10:00 In this section, the transcript delves into the different types of money supply that exist in the traditional fiat currency system. The conversation starts with the concept of base money, which is essentially the reserves held by the central bank. The discussion then moves on to M1, which includes both physical cash and demand deposits held by retail customers. The different types of accounts in M2 and M3 are then explained, including savings accounts, time deposits, institutional accounts, and Eurodollars. Finally, Bitcoin is compared to base money in that it has no characteristics that represent a bank account, making it fully analogous to base money. The conversation is designed to help listeners understand the fiat currency system and how it differs from Bitcoin.
• 00:15:00 In this section, the guest speaker explains that a stablecoin is actually a combination of two traditional instruments. It is like a money market fund which started in the 80s due to bad government regulation. People resorted to these less regulated accounts to earn a higher yield as banks were restricted by the government to pay interest on deposits. A stablecoin is like the money market fund, and works with assets and liabilities that are controlled by someone else. For instance, tether pays for its operations from the interest it collects from people's money. A fiduciary is money that is at the control of someone else, and not under the control of the Central Bank.
• 00:20:00 In this section, the speakers discuss the issue of legal tender laws and how they force people into a fractional reserve system. They argue that legal tender laws should be abolished to allow competition and acknowledge that different banks pose different levels of risk like the Kraken IOU, Coinbase IOU, and the Binance IOU. The speakers also touch on the debate between full reserve and fractional reserve, where the history of banking shows that banks have had very low reserves and free banking has failed. However, they agree that Bitcoin is a great escape hatch that allows people to opt-out of the fractional reserve system.
• 00:25:00 In this section, Matthew Mezinskis discusses the Lightning Network and its unique economic properties. While lightning is a fundamentally different thing than Bitcoin, it is locked Bitcoin, creating a kind of locked-based money. However, even with lightning and Bitcoin, we don't know how many balances or UTXOs have been lent out to third parties with a private loan agreement that we can't see, creating a fiduciary media type situation. Mezinskis doesn't necessarily see a problem with this, but he also sees it as a moot point because the main point of Bitcoin is as an escape hatch from legal tender and central banking. He is not a fan of people loading up with Bitcoin on exchanges and sees that as counter to the ethos of Bitcoin.
• 00:30:00 In this section, the speaker discusses the potential adoption of Bitcoin in a fiduciary holding capacity, using Caitlyn Long's Custodia as an example. He notes that while it would be great to see more bailment services for Bitcoin, the speaker questions whether a fully centralized and regulated system is the best way forward. The speaker draws parallels to the way gold central banks were able to control and eventually take over the precious metal, which could be a concern with a fully regulated Bitcoin system. The speaker concludes that he does not have a strong view towards full reserve banking, particularly as it has not happened in the free market before, but he believes that a decentralized and secure Bitcoin custody system is necessary to avoid centralization and control.
• 00:35:00 In this section, the importance of decentralized scaling solutions was discussed as a means of achieving bottom-up adoption of Bitcoin, consistent with the initial promise of "be your own bank." The use of custodial lightning accounts, such as Wallet of Satoshi or Bitcoin Beach wallet, was acknowledged as a form of full reserve banking operating above Bitcoin, with the payment rails provided by Lightning. The view was proposed that the focus should still remain on getting individuals to be their own bank, yet the evolution of these "banking" systems creates an alternative to the Fiat system with fundamental differences, providing real tangible ways of escaping legal tender laws and the manipulation of credit markets. It was recognized that there is a risk of theft or getting rugged, and that these systems are still liable to bank failures but are fundamentally different from the Fiat system.
• 00:40:00 In this section, Matthew Mezinskis discusses the nature of Bitcoin in relation to other monetary aggregates and assets. He compares Bitcoin to gold or silver as an asset that is held personally, but which is not fundamentally similar to other assets like real estate, bonds, stocks, or deposits. Mezinskis notes that the monetary base of the world is approximately $30 trillion, with an additional $10 trillion in gold, while bank money is something else entirely. He acknowledges that Bitcoin's value could increase or other asset values could decrease as Bitcoin gains wider adoption. However, he asserts that it will take decades to reach a SAT standard or for Bitcoin to become more widely traded, given that some well-known economists still do not understand it.
• 00:45:00 In this section, Mezinskis discusses how credit cards create abstractions within their networks. While making a payment, the merchant gets credited from the credit card, and the user is debited from the credit card, without any influence on the banking system. The money supply is hit only when the user pays off their credit card statement from their checking account or when credit card companies like Amex or Visa make a direct deposit. Mezinskis believes that the centralized system needs to be broken with more credit card companies, gift card points, and more financial freedom, which is where Bitcoin comes in. He explains that Bitcoin focuses on bottom-up adoption, which is the best way to break the centralized system and create a bottom-up approach to adopting Bitcoin.
• 00:50:00 In this section, Matthew Mezinskis discusses the bottom-up approach for bitcoin adoption, which he believes is stronger than a top-down approach. He thinks that bitcoin is too difficult to value because the dollar is being valued today, but other systems like credit cards and derivative markets are floating above, treating dollars to be equal. He predicts that bitcoin's value might be millions of dollars in today's terms on the low end. Mezinskis believes that monetary bases can shrink, die, or have no more usage, and demand for it will collapse, just like what happened in the 70s with gold, which most economists predicted its value fall, but the opposite happened. He thinks that bitcoin will be valued so much higher on the margin, resulting in massive adoption from grassroots rather than from a top-down approach, which he believes is a bad place to be with excessive regulation and where economists think they can model an economy, which they can't.
• 00:55:00 In this section, Matthew Mezinskis discusses the flaws of a banking system adopting Bitcoin and the importance of a decentralized groundswell of adoption from the ground up. He explains how historically, government-managed gold supply standards were centrally set, leading to a possible scenario where some government bureaucrats could set the value of Bitcoin, causing a difference between a government rate and the real rate valued by a bottom-up bucket of Bitcoin users. Mezinskis believes a generational trend may help younger politicians become more amenable to letting Bitcoin happen. He suggests that Bitcoin must be allowed in a free-market type of scenario, and if it's not allowed, it will still happen, but it will be considered black market money. Mezinskis also provides an example of using Bitcoin in El Salvador, where it is explicitly permitted, and it could act as a good example for others to follow.

01:00:00 - 01:00:00

Matthew Mezinskis emphasizes the importance of a bottom-up approach to adoption for Bitcoin's success, drawing a comparison to decentralized, mutually trusted, gold-backed banking systems that were disrupted by government intervention and printing money. While a full Bitcoin standard is a potential solution, a gradual change is more likely. However, the podcast sadly ends early due to an audio error.

• 01:00:00 In this section, Mezinskis argues that a bottom-up approach to adoption is crucial for Bitcoin's success. He draws a comparison to gold-backed banking systems, which were decentralized and based on mutual trust. However, as governments became involved, they often turned to printing money to sustain their spending habits. Mezinskis sees a full Bitcoin standard as a possible solution, but acknowledges that a gradual change is more likely. The podcast ends prematurely due to an audio error.