A Bitcoiner used his wedding day to share his love for his favorite digital currency, Bitcoin, by gifting 4,000 Satoshis to every guest and incorporating a volcano theme.
A Bitcoin (BTC) evangelist in Lebanon took their love for Bitcoin to the next level. Said Nassar, an international business engineer, themed his wedding day around Satoshi Nakamoto’s innovation, Bitcoin.
Each and every wedding guest received Satoshis (the smallest denomination of a Bitcoin) as a wedding gift for attending the Nassar family’s special day, while the theme of the wedding was volcanoes—a nod to El Salvador’s Bitcoin bonds, commonly known as the Volcano bonds.
Nassar told Cointelegraph that he put a volcano stand in the wedding and “distributed gifts via the Lightning Network.” Indeed, under every cutlery set for the post-ceremony banquet were instructions to download a Bitcoin Lightning Network wallet to receive 4,000 Satoshis. Worth roughly $0.80 now—due to bearish price action—at the time of the wedding, the gift was worth $1.60.
The link took the wedding guest through to a thorough YouTube video that shows how to set up a wallet and why people should buy Bitcoin. Of the 250 to receive wedding Satoshi gifts, 75 people downloaded wallets and asked Nassar to send over the 4,000 Satoshis—this was the first time these people had received Bitcoin.
At a 30% success rate, his method for promoting Bitcoin adoption is high given that worldwide Bitcoin adoption may only reach 10% by 2030. Plus, Nassar qualifies, “All of them [the wedding guests] saw it and thought about it.”
Nassar is an insatiable Bitcoin advocate. So naturally, his wedding day would be the perfect time to “orange pill” or educate more people about the importance of Bitcoin. He’s the brains behind Lebanon’s first Bitcoin-themed escape room and jokes that he has a half-hour limit for talking about non-Bitcoin themes when making acquaintances:
“I try to explain monetary policies and what is fiat money to every person I meet longer than 30 minutes.”
Curiously, Twitter user Stackmore also treats weddings as the ideal time to both start a family and start stacking sats. Stackmore has sent Satoshis as wedding gifts for the past five years:
In Nassar’s home country Lebanon, the inflation rate exceeded 200% in January this year. Bitcoin, by comparison, has a fixed supply of 21 million coins and benefits from a programmed issuance rate that makes the currency deflationary.
Despite calls from top execs to avoid buying Bitcoin in Lebanon, groups such as AlJazeera report that Bitcoin adoption is booming in the country. For Nassar, it’s key to start with family and friends as “Hyperbitcoinzation starts at home.” He has already introduced his nearest and dearest to Bitcoin:
“All my close friends and my family members have bought bitcoin, and my mother is a whole coiner.”
What about you, anon? Do you love Bitcoin enough to theme your special days around the coin?
It can’t be said often enough: Bitcoin is confusing. However, it’s not complicated like a Rube Goldberg machine is complicated. It’s just very foreign and thus very misunderstood—it is a completely new thing. “There’s nothing to relate it to,” as Satoshi put it in one of his posts.
Because there is nothing to relate it to, we are all having a hard time wrapping our heads around the various aspects of it. We need to use words if we want to talk about it in a meaningful way, and words are what I will focus on.
I want to talk about two things: (1) the language used in Bitcoin and (2) the language used to attack bitcoin.
Part 1: The Language Used In Bitcoin
Let’s get one thing out of the way: it’s all numbers, all the way down. Bitcoin does the one thing that all computers do, which is actually two things: it takes certain numbers as inputs, does calculations, and presents the result of said calculations to someone else. In Bitcoin’s case, this “someone else” is another node on the network—or multiple, to be precise. When stripped down to its bare essentials, that’s all there is to it: math and messages.
Consequently, we have to use metaphors—and lots of them. Keys, wallets, addresses, signatures, contracts, mining, dust, fork, oracle, orphan, seed, witness—the list goes on.
However, here’s the thing with metaphors: “All metaphors are wrong, but some are useful,” to paraphrase George Box. Undoubtedly, many people are confused precisely because of the shortcomings of these metaphors. All the labels that we apply to the various concepts in Bitcoin are wrong, at least a little bit. Some are wrong a lot. Everyone who ever tried to explain that “your bitcoins are not actually in your bitcoin wallet” to a glossy-eyed newbie knows what kind of confusion I’m talking about.
Unfortunately, this confusion won’t be going away anytime soon. And more worryingly, this confusion is being weaponized by legislators, politicians, and commentators alike. Those who despise Bitcoin are trying to pass laws and plant ideas in people’s heads that are bastardizing how Bitcoin works, as well as the language we use to describe how it works. Consequently, it would be beneficial to get our language straight. After all, how high are the chances of understanding something deeply if the words we use to describe said thing are inadequate?
First, let’s go through some of the words we use in Bitcoin and see where they fall short. We all know these words, and we usually don’t think twice about them. Let’s start with “wallet.”
A wallet is a piece of software or hardware that makes it easier or more secure to store and/or spend your bitcoin. It’s easy to see that a wallet is neither one thing nor easily defined; just look at all the various forms of wallets we came up with over the years: paper wallet, brain wallet, hardware wallet, mobile wallet, multisig wallet, lightning wallet, watch-only wallet, and so on.
In the end, we have to understand how Bitcoin operates if we want to get a grip on what a wallet is. Here is the gist of it: to create a bitcoin transaction, you need to sign a message with a private key. Consequently, two things are essential for a wallet: key storage and signing. But that’s not enough, usually. To interact with the Bitcoin network, you need to interact with a Bitcoin node. You need a way to access the public information, the “distributed ledger” that is so often mentioned by finance and crypto bros alike.
What we have historically called a bitcoin wallet, thus, is just some software that manages and stores keys and allows the user to easily use these keys to sign and broadcast messages. To increase security, said software might be embedded in a dedicated hardware device. The more effort it is to spend your sats, the lower the risk of theft or loss of funds. A wallet might not have any signing capability at all, as is the case for brain, paper, or watch-only wallets. This begs the question: how useful is the term wallet?
Interestingly, we have already switched to a different term when it comes to seed storage. We are not talking about “metal wallets” or “metal keys” when we talk about key storage; we usually talk about seed storage, metal seeds, or seed plates nowadays.
Further, we now refer to various multi-signature and timelock constructs as “vaults”—a powerful and clear distinction. The vault metaphor makes it immediately obvious that whatever is stored in the vault is there for the long haul. It isn’t spendable easily or quickly.
I hope that, in the future, we will also manage to do away with the generic “wallet” term. When it comes to hardware wallets, a change of terms is already underway. Given that a hardware wallet is nothing but a small device that is used for signing transactions, a more accurate term is “signing device,” which is currently gaining traction thanks to people who understand the technicalities of Bitcoin deeply.
Maybe usage will morph so that whenever someone says “wallet,” it is implied that it is something that isn’t holding massive amounts of value and that said value is spent easily and quickly, as is the case for Lightning wallets. In the end, the “wallet” metaphor will always be wrong in a crucial way: your wallet does not actually hold any of your coins. That’s not how Bitcoin works. It might hold your keys, which brings us to the next word.
In the physical world, a key is used to open something. A door, a chest, a locker, and so on. It might also be used to start something: a car, a motorbike, a nuclear missile—you get the idea.
As mentioned before, to create a bitcoin transaction, you use your private key to sign a message. The keys in bitcoin are cryptographic keys, and cryptographic keys can be used to create digital signatures.
This, of course, only makes sense in the world of cryptography. Commonly, a key is used to lock and unlock things. If you want to sign something, you need a pen. This confusing metaphor is not exclusive to Bitcoin, of course. Plenty of other software uses cryptographic keys to sign stuff, which is why in 2010, this abomination of an emoji was introduced: the padlock, “locked with pen.”
Consequently, a “key” in bitcoin is more like a pen, not an actual key. Granted, you can use your key to “unlock” sats that are “locked” by yourself or someone else, but still, no matter what metaphor you use, it will always fall short. It will always fall short because the keys in Bitcoin are data, nothing else. Your private keys are secret information—information that nobody but you should ever know. If someone else gets possession of your private keys, your bitcoin will be their bitcoin.
To make theft or accidental spending as difficult as possible, keys that give access to large funds are held in “cold” storage. The secret information is disconnected from the internet, held on special signing devices that never touch a general computation device.
A “hot wallet,” on the other hand, brings the secret information required to move your sats as close to the network as possible. If you want to spend frequently, your keys have to be readily available. A lightning wallet, for example, is a “hot” wallet: the private keys that allow you to spend your sats are connected to the internet at all times. If your computer or smartphone is compromised, your funds are at risk. Such are the tradeoffs between “hot” wallets and “cold” storage.
“Hot” and “cold” are again, of course, metaphors. A hot wallet is hot like a microphone in a recording studio is hot. It means that it’s charged, fired up, and to be handled with care, not that its temperature actually increased.
We can see that language is neither singular nor static, which makes the line between a useful metaphor and an outright linguistic attack a blurry one.
The “key” metaphor, for example, isn’t terribly wrong. We can actually think of signing as unlocking. The underlying elements responsible for spending sats are referred to as locking and unlocking scripts, and for good reason. These scripts are small computer programs that define the conditions that are required for certain sets of sats to move. You can think of it like this: those who want to move sats have to solve a cryptographic puzzle. Usually, a private key is required to fulfill the spending condition: the key is the key to the puzzle. So if we think “key to the puzzle,” it’s not even wrong. And anyway, I’m afraid we’re stuck with it.
Two more things: the reason why your private key can be represented as words is that it is, just like everything else in bitcoin, information. And the reason why we call these words a “seed phrase” is because your private key is the seed from which all your other keys and, ultimately, addresses are derived from. This brings us to the next word: “address.”
This is probably the worst of all. To quote Luke Dashjr: “It’s so bad, we made a BIP to get rid of it.” He is talking about BIP 179, a Bitcoin improvement proposal that’s sole purpose is to propose a new term for “address.” The new term is “invoice,” which is the default in lightning and is actually more accurate—technically speaking—even on the base layer. It is more accurate because bitcoin transactions do not have a “from address,” even though you might think they do, especially if your mind is poisoned with the “address” metaphor.
The concept of a “from address” only exists heuristically. In Bitcoin, only receiving addresses exist. A transaction does not contain a from address. A transaction only contains the aforementioned scripts, which are challenges and solutions to challenges. If you can solve the challenge, you can move the coins.
The way to think about this properly is to think about flows, not coins. Let’s say you take a big scoop of water out of a lake, and let’s further say that this lake is fed by multiple streams. It’s a pristine lake in a mountainous region, so you fill up your bottle to cool yourself off with a refreshing drink. You sit down, take a sip, and ponder the following question: where did the water in your bottle come from?
From the lake, obviously—but from which stream? And how many molecules came from the clouds directly, raining down on the lake? Can you tell, even in principle? A God-like entity probably could, since water consists of molecules, and you could—at least in theory—track said molecules.
You can understand Bitcoin and bitcoin transactions in a similar way: transactions can have multiple inputs and multiple outputs, i.e., inflows and outflows, to stick with the liquid metaphor. However, there is one important difference: there are no molecules in bitcoin; there is only accounting. You can’t track anything for sure; you can only make educated guesses—heuristics that are, in many cases, plain wrong.
There are no molecules in bitcoin because every transaction “destroys” all inputs and creates new outputs. If you are dead-set on thinking about coins—i.e., if you view every UTXO as a coin of a different size—you can think about every transaction as a smelting process. All inputs are liquified in a big furnace, and new coins are created as outputs.
This brings us to the next problematic metaphor: coins.
I always loved this quote by Peter Van Valkenburgh, musing on the locality of bitcoin—or lack thereof:
Where is it, at this moment, in transit? […] First, there are no bitcoins. There just aren’t. They don’t exist. There are ledger entries in a ledger that’s shared […] They don’t exist in any physical location. The ledger exists in every physical location, essentially. Geography doesn’t make sense here — it is not going to help you figuring out your policy here.
What we call “coins” only exist by convention. The protocol is oblivious to our notion of coins. It only knows sats and spent or unspent transaction outputs. Spent outputs are inputs of past transactions. If the sum of one or multiple outputs adds up to 100 million sats, we call it “one bitcoin.”
Of course, it is way easier to talk about “coins” and “addresses” and “wallets,” because we know these things intimately from our real-world experience. We have an intuitive understanding of these metaphors, so it is clear what is happening if one “coin” moves from one “wallet” to another “wallet”—or so we think.
While the mental image of coins moving from one wallet to the next in an intuitive and easy-to-understand manner is a comforting one, nevertheless, it is wrong. What happens under the hood in bitcoin is much more wonderful, much more elegant, and much more magical than boomer gold coins moving from one leather purse to the next. It has to be. Bitcoin is information, not a physical thing. It is teleported at the speed of light, not moved in any physical sense. It is Magic Internet Money for a reason, and I’m afraid that we all have to understand its inner workings to a certain degree, especially if we want to be properly equipped to fight against any and all linguistic attacks, present and future.
Part 2: The Language Used To Attack Bitcoin
Bitcoin is under attack, always. Money is adversarial by nature because money is used between parties that aren’t fully trusting each other in the first place. Consequently, a monetary system is an adversarial system.
Everyone would love to have something for nothing; to cheat the system and get away with it. Everyone’s a scammer;1 everyone wants to get some sats for free.
Bitcoin is the biggest honeypot the world has ever seen; everyone and their grandma would love to break it. Further, the powers that be are, at least in part, powerful because of the fiat money printers that are rendered obsolete by the orange coin. Attacking Bitcoin becomes a necessary strategy if your very survival is threatened by it.
But, what parts of Bitcoin to attack? It is difficult to nail down what Bitcoin is and what it consists of in the first place. I like to think of it as a big hot mess of two parts software and two parts hardware—or wetware, to be more precise. A mix of technology and biology, with a large dash of economics on top.
An obvious attack would be a software exploit that shuts down a large number of bitcoin nodes, for example. An even more obvious one would be a large-scale attack on its physical infrastructure. If the foundries that produce the current generation of SHA-256 ASIC chips are bombed or various large-scale mining operations go up in flames, we can confidently say that Bitcoin is under attack. In the same vein, if bitcoiners are declared the enemy of the state and are incarcerated or killed en masse, we can also deduce that Bitcoin is under attack.
But: how do you attack an idea? With bad ideas, that’s how. The civil war of the blocksize debate was such an attack on Bitcoin from the inside, and its resolution was a hard fork—an economic instantiation of said idea.
In addition to attacks from the inside, we already had many attacks from the outside. Almost as soon as Bitcoin appeared, it was attacked by politicians, central bankers, traditional investors wedded to the fiat system, as well as the economically and technically illiterate. We’ve heard it all before: bitcoin is only used by criminals, bitcoin is worthless, bitcoin’s value is based on pure speculation, bitcoin is old technology, bitcoin is too slow, bitcoin is a bubble, and so on and so forth.
Allow me to highlight some of the more recent terms and phrases dreamt up by those who hang on the tits of various money printers—whether it be politicians, special interest groups, or crypto bros.
Two words, one goal: pushing users away from sound money and independence into something that we all know too well from the fiat system: trust, and dependency.
The inconspicuous nature of this phrase is what makes this attack so ingenious. Calling a regular bitcoin wallet “unhosted” gives the impression that it should be “hosted” in the first place; that something is missing from how it should be, like an unfinished puzzle or an unsupported beam.
The discussion shouldn’t be about “hosting” in the first place. It should be about control. Who can access your funds? Who can freeze your account? Who is the master, and who is the slave?
Just like “the cloud is someone else’s computer,” a “hosted wallet” is someone else’s wallet. It should be obvious that the centralization of control is what brought about all the monetary problems in the first place, but I’m afraid that we will have to learn the lessons of history and the lessons of Mt. Gox over and over and over again: money held and controlled by others can and will be manipulated. We do not want to make this mistake again, which is why the following became a mantra of sorts: not your keys, not your bitcoin.
Bitcoin wallets are supposed to be unhosted—or, to use a word that wasn’t made up by devilish puppeteers: independent. The purpose of Bitcoin is to bring full sovereignty to the individual and to remove all dependencies on trusted third parties. No rulers, no masters, no hosts. Only peers.
Instead of using the term “unhosted wallet,” one could refer to regular bitcoin wallets as independent or freedom wallets. The opposite of an independent wallet is a custodial service, which means that you have a permission slip, nothing more. By using a custodial service, you destroy what makes bitcoin valuable in the first place. You revert to the permissioned model of money: a debt relationship between masters and slaves, which is the fiat system we want to move away from. Some have all the power; the users have none.
Such a custodial service, a service that they want you to refer to as a “hosted wallet”—but what might be better described as a slave wallet—offers nothing but IOUs: permission slips & debt certificates that can be revoked, multiplied, re-issued, and destroyed at any time. The slave has nothing; the master has everything.
Make no mistake: this is a war of narratives, and the stakes couldn’t be higher. Freedom vs. dependency, control vs. self-ownership, reliance vs. responsibility. If anything, a wallet should be self-hosted, and self-hosting is not a crime. However, we shouldn’t think of “hosts” in the first place. A wallet does not need to be hosted because a wallet, as we’ve seen previously, is nothing but a key—private information—combined with hardware or software that allows you to do something with said key, e.g., derive addresses or sign transactions.
Having 12 words in your head doesn’t make you the owner of an unhosted brain wallet; that’s ridiculous. You don’t need permission to remember 12 words by heart, and any law that makes the act of remembering 12 words illegal is a very, very, (very!) stupid law. But even ignoring this stupidity for a moment, such a law can’t possibly be enforced. It should be rendered meaningless as soon as it is passed. You can’t prove that I have 12 words in my head, just like I can’t prove that you are not thinking about an orange elephant at this very moment. Holding a key is knowing a secret, and here is the thing about secrets: if you don’t tell, nobody knows.
Letting someone else hold your keys destroys all the benefits that bitcoin brings with it. If others could be trusted with our money, we wouldn’t have needed Bitcoin in the first place. And if nobody takes the responsibility of self-custody, Bitcoin will be captured, just like gold before it.
Consequently, the term “unhosted wallet” is an attack on Bitcoin that we should take seriously, along with the implications that a successful ban would entail. It is a most ingenious and mischievous attack—subtle yet effective, re-framing what a wallet is and should be.
The fact that someone sat down and came up with this phrase makes me think that the powers that be are starting to grasp what Bitcoin is and how empowering it truly is, which is why they will do everything they can to keep you numb, dependent, and enslaved. “They want more for themselves and less for everybody else,” to quote George Carlin. “They don’t want well-informed, well-educated people capable of critical thinking.”2
Ask yourself: should flipping a coin 256 times be illegal? What about math? What about having certain thoughts? Do we really want to live in a world in which having 12 words in your head makes you an outlaw?
Another phrase, another implication. The #ChangeTheCode campaign is ingenious; you have to give them that. It implies that Bitcoin’s code can’t be changed, which couldn’t be further from the truth.
Bitcoin is free3 and open-source software released under the MIT License.4 This means that anyone can change the code, Greenpeace or not, without having to ask for permission.
Allow me to replicate the license in full:Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
Anyone is and always was free to change the code of Bitcoin. Bitcoin’s free and open-source nature is why we have thousands of forks and clones in the first place, including forks that implement what the #ChangeTheCode campaigners are proposing.5
While this whole campaign to “change the code” shouldn’t be taken seriously in the first place, the tactics behind it shed some light on the attacker’s motivation and on what is yet to come. #ChangeTheCode was funded by Chris Larsen, founder of Ripple, the company that created the shitcoin that is XRP. These kinds of shitcoins can’t compete with Bitcoin on merit because they are permissioned, centralized, and have no reliable monetary policy, among other things. Consequently, they have to resort to smear campaigns and hiring reputational hitmen.
The thing about money is that all forms of money are competing, either directly or indirectly. All monies compete for liquidity, credibility, attention, value stored, and more. Consequently, the marketing departments of virtually all shitcoins are directing funds to dismiss or attack bitcoin in one way or another by implying that Bitcoin can’t be changed, that it is used for illicit activity, or that it is too slow or wasteful.
Bitcoin, however, is neither slow nor wasteful. Proof-of-work is insanely efficient if your goal is to create a monetary system that is free from politics and secured in a public and transparent manner. If you do not value such a system, it will always seem wasteful.
This, coincidentally, brings us to the next attack.
“Proof of Stake”
Let’s get one thing out of the way: there is no proof, there is no stake,6 and it isn’t even remotely comparable to its namesake, proof-of-work.
I have written extensively about proof-of-work in the past, so in the interest of not trying to repeat myself ad nauseam, I’ll try to be brief: proof-of-work solved the problem of telling time in a decentralized system, the problem of random selection, the problem of fair issuance, and the problem of unforgeable costliness in the digital realm. It embeds objective truth into a blob of data directly, which is why it is trustless and reliable. The information “speaks for itself,” to quote Satoshi.7
Proof-of-stake, on the other hand, has no objective truth, no objective time, no random selection, no fair issuance, no outside cost, no operational cost, and centralizes over time. It is the perpetual motion machine of consensus mechanisms, which is to say that it isn’t a consensus mechanism at all. It is rotten at its core because it relies on trust through and through.
Proof-of-stake should be called “just trust me, bro,” and therein lies the problem as well as the linguistic trickery: by calling it proof-of-stake, one might think that it is comparable to proof-of-work: “Ah, this one is just like the other one! Just another one of those consensus mechanisms, just as good as Bitcoin’s proof-of-work.” No. Wrong. Proof-of-stake is make-believe, and it will inevitably lead to all the ills that the make-believe world of the fiat monetary system suffers from, as the various failures of these systems show time and time again.8
Words have meanings, which is why we should choose them wisely and carefully. Bitcoin is not wasteful.9 Bitcoin is not closed source.4 Bitcoin is not controlled by shadowy supercoders.10 Bitcoin is not war. An ASIC is not a gun. If anything, Bitcoin is a Wittgensteinian language-game,11 using words and chance for peaceful conflict resolution.
Allocation follows perception, as does public policy. Perception, in turn, is shaped by our understanding and the very words we use to arrive at and describe said understanding.
In a world awash in euphemisms and blatant lies, calling something by its proper name is rebellious in itself. Bitcoin is about freedom and self-sovereignty, not about asking for permission. It is about independence and verifiable truth; extreme ownership and responsibility; hope12 and human rights.13
The best way to fight bad ideas and bad terminology is with good ideas and good terminology. Thus, we should all make an effort to call things by their proper names, try to understand their inner workings, and explain them in simple terms to others.
Bitcoin isn’t as complicated as it might seem at first. It is just very alien, which is why all metaphors we use to describe it break down at some point. As we have seen, wallets, keys, addresses, coins, and many other words we use are insufficient to truly explain what is going on.
The confusion which inevitably arises out of this misunderstanding is used and abused by Bitcoin’s detractors, be it from the church of “fiat” or the cult of “crypto.”14
Obviously, “honeybadger don’t care” when it comes to most of these attacks. Bitcoin will march on regardless, but that doesn’t mean that we should give in to the various narratives and framings that are set up by those who want to control and oppress (or those who want to make a quick buck). Bitcoin is made of people, and it is individual people that will suffer—either from short-sighted regulations, economic repercussions, poisonous snake oil, or rug-pull-induced concussions.
Bitcoin is a return to sanity, one that is desperately needed in the insane world of QE infinity and negative interest rates. The tragicomedy of our current financial system reads like the introduction to a game show: “Whose deficit is it anyway? An economy where everything is made up and the points don’t matter.”
The points in Bitcoin do matter, as do the words that we use to describe it. Bitcoin is truthful and precise in its speech, and we should strive to be too.
“The politicians are put there to give you the idea that you have freedom of choice. You don’t. You have no choice. You have owners. They own you. They own everything. They own all the important land. They own and control the corporations. They’ve long since bought and paid for the Senate, the Congress, the state houses, the city halls. They got the judges in their back pockets and they own all the big media companies, so they control just about all of the news and information you get to hear. They got you by the balls. They spend billions of dollars every year lobbying. Lobbying to get what they want. Well, we know what they want. They want more for themselves and less for everybody else, but I’ll tell you what they don’t want. They don’t want a population of citizens capable of critical thinking. They don’t want well-informed, well-educated people capable of critical thinking. They’re not interested in that. That doesn’t help them. That’s against their interests.” —George Carlin↩
Bitcoin is and always was free and open-source software. It is released under the MIT License. “Being open source means anyone can independently review the code. If it was closed source, nobody could verify the security. I think it’s essential for a program of this nature to be open source.” —Satoshi Nakamoto (2009) ↩↩2
Three historical forks that implement what #ChangeTheCode is advocating for are “Bitcoin Oil,” “Bitcoin Stake,” and “Bitcoin Interest.” See this BitcoinTalk discussion from 2018. ↩
Proof-of-stake suffers from the “nothing at stake” problem. “You don’t lose anything from behaving badly, you lose nothing by signing each and every fork, your incentive is to sign everywhere because it doesn’t cost you anything.” ↩
“Proof-of-work has the nice property that it can be relayed through untrusted middlemen. We don’t have to worry about a chain of custody of communication. It doesn’t matter who tells you a longest chain, the proof-of-work speaks for itself.” —Satoshi Nakamoto (2010) ↩
See dergigi.com/pos to understand why proof-of-stake is and always will be a defective consensus mechanism. ↩
One should note that “crypto” is yet another linguistic attack on Bitcoin, making it seem like there are many other projects that are either interesting, viable, or comparable. This couldn’t be further from the truth. Virtually all of “crypto” is a scam. The word “crypto” also leaves out the other half of what makes Bitcoin work, namely the “econ” part. After all, Bitcoin is a cryptoeconomic system. ↩
A small light of progress shines from Andorra, a tiny European country nestled between France and Spain. The country’s government, the General Council of Andorra, recently approved the Digital Assets Act, a regulatory framework for digital currencies and blockchain technology.
The act is split into two parts. The first regards the creation of digital money, or “programmable digital sovereign money,” which can be exchanged in a closed system. In effect, this would allow the Andorran state to create its own token.
The second half of the act refers to digital assets as financial instruments and intends to create an environment in which blockchain and distributed ledger technologies can be regulated. For Paul (who withheld his surname), CEO of local Bitcoin business 21Million, the new law could attract new business. He told Cointelegraph:
“The outcome they’re trying to achieve is to actually attract new businesses to locate in the country by offering some legal clarification making it easier and more transparent. They see this as a way to attract talents and entrepreneurs to the new economy.”
Note that cryptocurrencies and digital currencies are not legal tender in Andorra, and the Digital Assets Act makes no proposals surrounding means of exchange. That privilege is exclusively reserved for the preferred currency of the European Central Bank, the euro. It hasn’t stopped Paul, an avid Bitcoiner, from making the case for Bitcoin (BTC) adoption in Andorra:
I’ve been working on this one for a while but I’ve finally decided to share it ! Here’s the case I make for a bitcoin adoption in Andorra ! https://t.co/xHxl78YChO— Paul ADW (@PaulADW) July 14, 2022
In a blog post, Paul highlighted that Andorra could adopt a Bitcoin standard, mining Bitcoin with renewable energy, taking on Bitcoin as a reserve asset, and welcoming Bitcoin-centric companies from all around the world.
National newspaper Diari d’Andorra reported that the Digital Assets Act is a step toward “making cryptocurrencies a day-to-day reality.” From a business perspective, Paul said that the level of “crypto-friendliness” depends on the activity.
“I have a friend who runs a mining operation here — no problem —and electricity is cheap. If you do financial consulting, then the same: pretty friendly with a low tax rate. If you wanted to run an exchange, it could be a bit hard to find a bank that works with you; the government itself wouldn’t mind.”
In an interview in May, Andorran Minister of Economy and Enterprise Jordi Gallardo mentioned that blockchain was one of the top areas of investment for the tiny country. However, it is not clear if the minister referred to Bitcoin (the world’s foremost blockchain) or research into distributed ledger technologies that underpin blockchains.
Josselin Tonnellier, co-founder of StackinSat, told Cointelegraph that there is confusion regarding crypto, blockchain, nonfungible tokens and Bitcoin. StackinSat hosts a major European Bitcoin conference, Surfin’ Bitcoin, in Biarritz, France just outside Andorra where the group’s headquarters are also located.
Paul, who is a regular attendee of Surfin’ Bitcoin, confirms that in Andorra, the sentiment and confusion remain similar: “The regulator doesn’t make a differentiation between ‘crypto’ and Bitcoin. They haven’t been ‘orange-pilled’ yet.” To take the orange pill is Bitcoin parlance for when a novice to Bitcoin begins to understand the principles of the seminal cryptocurrency.
Tonnellier emphasized that awareness of digital currencies and technologies is on the rise, but there’s a risk of scams and losses without the right educational tools or frameworks in place:
“According to a recent report by KPMG, there are more French people exposed to ‘crypto’ than to the stock market […] France is known to be a hotbed of ‘shitcoinery.’”
Although there is no “shitcoin” classification chart, such coins are tokens other than Bitcoin, which, according to the latter’s proponents, are at risk of plummeting to zero. Squid Game Token was one of the most newsworthy shitcoins of 2021.
Back in Andorra, Tonnellier explained that the country is best placed to run with technologies such as Bitcoin. “Andorra is one of the few European countries outside the jurisdiction of the European Parliament.” Indeed, in many ways, it could be comparable to Switzerland on a smaller scale:
“Andorra is very attractive for entrepreneurs thanks to its low tax, but Switzerland has a great head start in promoting the development of activities around Bitcoin and cryptocurrencies in general. This could change in the coming years thanks to this text of laws which frames Bitcoin and blockchain activities.”
At under 500 square kilometers of land, Andorra is among Europe’s smallest countries. Contrary to popular belief, Andorra is not a tax haven; the micro-state renounced banking secrecy in 2018. Nonetheless, taxes are considerably lower than in neighboring France or Spain, while financial services comprise up to 20% of the economy.
While it’s unclear which digital assets the government intends to regulate with the Digital Assets Act, the economically motivated movement may help to diversify the Andorran economy and welcome blockchain- and crypto-based companies. For Paul, it’s a step closer to Andorra adopting Bitcoin.
Bitcoin (BTC) sets people free. At least, that was the story at Lebanon’s first Bitcoin-themed escape room in Beirut.
Lebanese Bitcoiners from the group Bitcoin du Liban took on the latest Bitcoin education challenge — Bitcoin Escape the System. The best part? The team of four snuck out of the escape room in the fastest time to date.
For the uninitiated, an “escape game” or “escape room” is a team game where players work together to solve puzzles, clues and conundrums usually based on a theme such as spies, zombies and now, Bitcoin. As per the name, the mission is to “escape” the site of the game within a certain time.
Sooly Kobayashi, MENA advisor for Swan Bitcoin and a moderator at Bitcoin du Liban, told Cointelegraph that “All of us (except one) had never played escape rooms before. We entered the room without relying on our Bitcoin knowledge.”
However, they likely had a slight advantage over those new to Bitcoin. The escape game’s themes revolve around fiat money, time-chain technologies (commonly referred to as blockchain), SHA-256 (the Bitcoin hashing algorithm) and self-custody. The escape artists: @marco_bdl @Sooly_Kobayashi @Thomssmn @al3apodcast @BitcoinduLiban.
While the escape game is a bit of fun, according to Sooly, it’s another example of the Lebanese Bitcoin community’s creative approach to onboarding more Bitcoiners. Sooly, who is also a moderator at Bitcoin du Liban, told Cointelegraph that “education is challenging in a country that hasn’t invested much in this sector.”
“And with a history filled with instability, the Lebanese population has been busy surviving in economic restlessness. Hence, Bitcoin education needed a creative modern approach.”
As shown in the following graph, government education expenditure in Lebanon pales in comparison to that of Argentina; a country that also sufferers from critical problems relating to inflation and instability. It’s therefore on the people to take financial education, and creative orange-pilling techniques, into their own hands with grassroots activities.
For the escape game, due to the at times high-stress, adrenaline-fuelled nature of escape games (if you know, you know), it’s possible that participants absorb information quicker and retain it longer. As a result, a Bitcoin-themed escape game could be a quirky yet quick way of educating people about Bitcoin. Sooly explains:
“It’s been scientifically proven that humans learn better in two scenarios. First, when we are emotionally driven. […] Second, when we are expected to pass on information to someone else, our minds tend to focus and memorize knowledge better.”
To date, the escape room founder, Said Nassar, an international business engineer, had only seen a “few” Bitcoiners play the game. Despite the Bitcoin-friendly appeal, the game had been enjoyed by newcomers to Bitcoin, or “no-coiners,” as they are sometimes known.
Sooly adds that some of the players are “shitcoiners,” including individuals interested in Ethereum (ETH):
No one would play this escape room and not learn about Bitcoin.”
For some Bitcoiners, there’s an irony to exiting a Bitcoin escape room. To some, the whole world may already feel like an escape room, and Bitcoin is the only way out. The Bitcoin Escape the System joins a fledgling list of Bitcoin-themed escape rooms, including The Bitcoin Heist in Macedonia, and the DIY Bitcoin escape room, Badass Daddy’s Bitcoins.
Fresh figures on Bitcoin’s (BTC) energy consumption, efficiency and scalability serve to expose the banking sector while bathing the world’s largest cryptocurrency in a new light.
A research report published by Michel Khazzaka, an IT engineer, cryptographer and consultant, calculates that Bitcoin payments are a “million times more efficient” than the legacy financial system. Plus, the banking sector “uses 56 times more energy than Bitcoin.”
The report compiles almost four years of research and suggests a new calculation for estimating Bitcoin’s proof-of-work energy consumption. In an interview, Khazzaka told Cointelegraph:
“Bitcoin Lightning, and Bitcoin, in general, are really great and very efficient technological solutions that deserve to be adopted on a large scale. This invention is brilliant enough, efficient enough, and powerful enough to get mass adoption.”
Khazzaka, who founded payments consultancy Valuechain in late 2021, proposes an alternative to the energy estimates provided by Cambridge Bitcoin Electricity Consumption Index (CBECI). The index, often cited by Cointelegraph, estimates that Bitcoin consumes roughly 122 TW/H per year.
Taking into account the average lifespan of Bitcoin mining machines as well as the rate at which new IT materials are created, Khazzaka suggests that Bitcoin consumes 88.95 TWh per year, considerably less than Cambridge’s estimate.
Graph to show total count of mining units over time over 160 months. Source: Khazzaka report A payments specialist who wrote his dissertation about cryptography in 2003, and discovered Bitcoin in 2011, Khazzaka also puts the banking sector under the microscope to effectively compare the two monetary systems. Khazzaka told Cointelegraph he “really underestimates every aspect of the banking sector,” and contrary to critics, his report is “biased to the banking system.”
Nonetheless, taking into account the creation of money, transporting money, physical banking infrastructure energy consumption, etc, he arrives at a figure of 4,981 TWh. Rounded up, 5,000 TWh is consumed by the “classical payments” sector every year. Consequently, banking uses 56 times more energy than Bitcoin.
The report examines transaction efficiency revealing that currently, “at current block size and if the blocks are filled to their maximum capacity ηmax = 5.7× better energy efficiency than the classical system.” However, that’s without taking into account the Lightning Network. In the interview, Khazzaka explained:
“Lightning will allow the bitcoin protocol to do more transactions without consuming more energy. And this is magic.”
The report concludes that the combination of Bitcoin and the Lightning Network allows Bitcoin to become “194 million” times more energy efficient than a classical payment system.
For Khazzaka, the report lays bare that the “Banking and payments industry needs to adopt blockchain and maybe even Bitcoin.” While Khazzaka’s conclusion may come as a surprise to the cypherpunks and anarchocapitalists who favor the crypto space, Khazzaka believes that Bitcoin could actually benefit banking:
Although Bitcoin’s energy use is frequently critiqued, the investigation into the banking sector will come as welcome news to many.
Central bankers and financial authority members from 44 countries visited El Salvador this week for the Digital Financial Services & SME Finance Working Group Meetings. The countries are all part of the Alliance for Financial Inclusion (AFI) – an organization aimed at the vision of “Making financial services more accessible to the world’s unbanked.”
The first three days of meetings were held at the Sheraton Presidente Hotel in San Salvador and covered a range of topics:
“The week of events is an opportunity to hold technical deliberations on promoting digital ecosystem and financial innovations and providing greater support for micro, small, and medium-sized enterprises (MSMEs), women and individuals with lower incomes, including regulatory frameworks for consumer protection…
…members are examining the position of financial regulators and the emerging approaches to regulate and supervise the proliferation of private digital money (cryptocurrency, virtual assets, digital payment tokens, stablecoins etc) across developing and emerging markets economies.” (full post on afi-global.org)
The Central African Republic has adopted Bitcoin as a legal currency, becoming only the second country to do so after El Salvador.
Lawmakers from the central African country unanimously adopted a bill to make Bitcoin legal tender alongside its CFA franc and legalised the use of cryptocurrencies.
President Faustin Archange Touadera signed the measure into law, his chief of staff Obed Namsio said in a statement.
The CAR “is the first country in Africa to adopt Bitcoin as legal tender,” Namsio said.
“This move places the Central African Republic on the map of the world’s boldest and most visionary countries,” he added.
The new legislation covers the use of cryptocurrencies and those who use them, in online trade, “smart contracts… by blockchain technology” and “all electronic transactions”.
It also said cryptocurrency exchanges are not liable to tax.
However, due to the high volatility of the digital currency, some are wary of the move.
Martin Ziguele, a former CAR prime minister who is now an opposition MP, complained the bill was approved “by proclamation” while some legislators intend to file suit against it at the Constitutional Court. “This law is a way of getting out of the CFA franc through a means that guts the common currency,” said Ziguele. “It [the law] isn’t a priority for the country,” he said. “This move raises the question: who benefits from it?”
Regulators around the world share the same concerns. Some also say that transfers using crypto are a perfect tool for traffickers and money laundering as they can be anonymised.
While countries such as India have in the past banned crypto transactions, El Salvador became the first country to adopt Bitcoin as legal tender last September.
But the move by El Salvador was heavily criticised by the International Monetary Fund (IMF).
The IMF warns El Salvador to drop Bitcoin as a legal currency “The adoption of a cryptocurrency as legal tender, however, entails large risks for financial and market integrity, financial stability and consumer protection,” it warned.
The CAR is one of the world’s poorest countries and has been in the grips of a nine-year civil war that developed largely along sectarian lines.
In 2020, a coalition of rebels advanced on the capital Bangui, threatening to overturn Touadera as new elections loomed.
Russia dispatched paramilitaries to help repel the threat and then recover much of the rebel-held territory.
The operatives are described by Bangui as military advisers but by France, the UN, and others as mercenaries from the Kremlin-backed Wagner group, which has been accused of abuses.
In a recent experiment, it was possible to send Bitcoin (BTC) using high-frequency radio and through a snowstorm. Due to fears of government interference and surveillance, developers have been trying to send Bitcoin internationally without using the internet or satellite. The information was released on Twitter by the hardware and software creator Rodolfo Novak.
Bitcoin Sent Through High-Frequency Radio
There have been several tests to transfer Bitcoin without using internet. For example, it was possible to do it via mesh networks and satellite. This is quite important since it would allow individuals to be connected to the Bitcoin network even if there is a country that turns the internet off.
This experiment started when Novak asked who would like to receive Bitcoin using WSPR/FT8 (amateur radio). A suitable candidate answered the comment using a SDR and an antenna. Using the application called JS8Call, Novak sent a bitcoin transaction from Toronto, Canada to Michigan, in the United States.
The computer scientist and cryptographer Nick Szabo seemed very excited about it. He wrote on Twitter that Bitcoin was sent over national borders without internet or satellite, but just using nature’s ionosphere.
Although there are some security issues related to a poorly constructed brain-wallet, this is a great way to send cross-border Bitcoin transactions offline. Brain wallets are cryptocurrency wallets that allow users to receive virtual currencies but storing the seed phrase just in users’ heads.
There are several countries that are opposed to virtual currencies, including Bitcoin. Two of these countries are Venezuela and China. Using high-frequency (HF/HAM) radio is a novelty in the space. Although we might never use these methods for transacting virtual currencies, it is very positive to know that they work. In the future, some users or individuals in some countries could have to use this method to remain connected.
According to some reports, the Russian president, Vladimir Putin, ordered the country to unplug itself from the internet. The intention is to check how their economy is able to survive without being connected to the internet. This is a clear example of what countries can do with their connection to the cyberspace.
In case there is a war, Russia and countries should be prepared to be disconnected from the internet. Thus, Bitcoin would have to find new ways to be transacted.
Another way to send Bitcoin without an internet connection or cellular network is through a TxTenna device. Although the transaction does not work entirely offline it offers a secure way to send Bitcoin offline. Users have to rely on the goTenna mesh network and the Samourai Wallet. Mesh nodes receive the transaction until a TxTenna internet connection is found. This is when the transaction is sent to the Bitcoin network.
Over the weekend I sent a bitcoin transaction to a relay 12.6km away with no cell network or internet connection. Here’s a tweetstorm about how I used @gotenna and @SamouraiWallet to do it
In the long run, soft money (which loses value and debases the savings of the individual) can only be enforced via authoritarianism, if hard money independently exists via either nature (gold) or technology (btc).
And that soft money system I cannot logically or morally support.
Keeping your private keys accessible only to yourself guarantees your coins for life, no matter what, always keep your coins off exchanges, verify the addresses to where you send your coins, always remember any passwords that you set, you can also dollar-cost-average, after that you’ll be all set 👍
You’re into cryptocurrency and have been wrapping your head around it for some time, yet somehow you feel your search isn’t ending.. I know the feeling, I’ve been there and back, and I bring you now what will put your search to rest.
See, the search isn’t about cryptocurrency per-se, what it is you’re looking for exactly is Bitcoin! This is the earth-shaking technology copied by all other coins, that you need and nothing else. So simply, to guarantee your digital asset future going forth into an uncertain future is to make sure you are hodling Bitcoin! Hodl, the misspelling of hold, means so much more than simply holding Bitcoin.
Hodling Bitcoin is no easy task. You have to battle wild price fluctuations, whales going after your fair share, and abstaining from temptations and promises of other-worldly profits using leverage.
The technique most espoused by the most famous global Bitcoiners is called Dollar Cost Averaging (DCAing), or in plain English, to regularly buy small amounts when Bitcoin’s price is offered at discount, like after a major sale, is when you buy.
If you still have your assets now in “cryptos” for goodness sake switch them for Bitcoin asap, cryptos are nothing more than Bitcoin forgeries.. counterfeits! After the world moves on to the Bitcoin standard what do you want to be left with holding in your bag?
If you are an American then you may have a Coinbase account, otherwise perhaps you have a Binance account, it matters little in actual fact how you exchange your cryptos but what is essential is to trade in those ***tcoins and ***tcurrencies for Bitcoin! Don’t take too long to make your trades though because the Bitcoin standard comes online in a matter of months. So be ready, be prepared, and best of luck. Peace, love, and eternity to all.. with all your Bitcoins in hand 💪
Lugano will also ‘roll the red carpet’ for Bitcoin and blockchain businesses and enthusiasts to relocate to the city.
The city of Lugano, Switzerland, will make bitcoin legal tender and allow citizens to pay for public service fees or taxes in bitcoin, city director Pietro Poretti co-announced in an event livestreamed on Thursday alongside mayor Michele Foletti and CTO of Tether Paolo Ardoino. The city has already worked with over 200 merchants to propel the adoption of bitcoin and Lightning payments.
“This is probably the most important thing of this project,” Ardoino said, referring to “Plan ₿,” a city initiative being sketched and worked in collaboration with Tether to attract wealth, smart minds, and opportunities. Tether’s stablecoin USDT will also become a legal tender in the city.
Plan ₿ involves the creation of a physical venue in the heart of the city to function as a hub for Bitcoin and blockchain startups interested in making the city their new home, as well as the go-to place for networking events and hosting Bitcoin meetups and workshops.
“El Salvador’s GDP increased by 10% and its tourism by 30% after declaring bitcoin a legal tender,” Ardoino said. “Imagine what we can do in a city at the center of Europe.”
Poretti said the city would “roll the red carpet” for Bitcoin businesses and enthusiasts, welcoming visitors and prospect relocators with a business-friendly environment featuring minimized bureaucracy and the ideal conditions for a company to thrive.
Plan ₿ also provisions the creation of two investment funds. The first will allocate up to $3.26 million to foster the adoption of bitcoin, USDT, and LVGA, the city’s stablecoin worth one-hundredth of a Swiss franc which will also be legal tender in Lugano. The second represents the formation of a pool of funds of up to $108.6 million for Bitcoin and blockchain startups that wish to relocate and set up their headquarters in the city as well as bring personnel to the Switzerland town.
Another aspect of Lugano’s Plan B involves a close relationship with academia. It plans to create a specialized curriculum on Bitcoin and Lightning in a partnership with local universities to increase the skills of young students in these new technologies. Bitcoin and blockchain education efforts will also include the creation of 500 student grants to create a skillful and specialized workforce.
In late October, the city of Lugano will host the Bitcoin World Forum, a global event focused on the acceleration of bitcoin adoption and the advocacy for freedom of expression, Ardoino and Poretti announced in the event.
The speakers also announced the intention to have Lugano start mining bitcoin as Plan ₿ researches strategies the city could leverage to employ renewable energy sources to yield BTC.