Circle P:

Episode Transcript
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(00:01):
It is 09:09AM
Pacific Daylight Time. It is the September
2025,
and this is episode eleven fifty nine
of Bitcoin. And, well,
some people sold their Bitcoin over the weekend. I I don't know. I I guess they were needing to go buy $75
freaking briskets at Costco because that's what the cost now.

(00:25):
I mean, brisket.
Brisket.
You're talking about a piece of meat that unless it's cooked for something like ten to fourteen hours,
is a not a good piece of meat. And it's $75
for a decent sized
brisket.
It's insane. Meat prices

(00:45):
are
skyrocketing.
Skyrocketing.
The herd, The United States, actually the world herd of cattle
is at an all time low since records have been kept as to how much we think there's you know, how much cattle we think that there is crawling around and eating grass and pooping and peeing.

(01:06):
It ever since records have been kept, the the the amount of cattle on this planet has never been this low.
And I you know me. I'm a soil nerd, so soil around the globe is suffering because of it. But, again, getting back to the news at hand,
we did see a lot of selling over the weekend. I got a story about that. And then, yes, we're gonna talk about Bitcoin treasury companies because Meta Planet

(01:32):
made an announcement at the, Bitcoin
Asia conference over in Hong Kong. And it's actually a little bit more important than than we thought. And then, of course, we're gonna talk a little bit about strategy a couple of times, in fact.
And then
quantum threats
and El Salvador

(01:52):
El
Salvador and you
and Quantum Threats there's there's an issue going on
I didn't even see this of course I I too was more concerned with listening to the tech football game, you know, Saturday. It was the first game of their season.
Finding out that I'm no longer able to just simply

(02:12):
stream a local radio station over the Internet
from Lubbock to listen to the game. Now I've got a pay I I guess it's gonna be this way all season. We'll we'll have to see. But we had to get a $10 a month subscription to ESPN
just to listen to
the game on the radio. I don't I don't even watch the tech games.

(02:34):
I like listening to the radio because my two favorite announcers,
it's the voice of the red raiders, man.
It's the voice it's a nostalgia that you just can't escape from. That that's why I never I don't even watch Texas Tech football on TV.
I just listen to the game, and it it it relocates me right back to Lubbock where I spent some of the best years of my life, man. I mean and I gotta pay $10 a month for. I can't even stream.

(03:00):
It's the of
everything, guys. It the cattle herd's low. I gotta pay for radio. It's just
we're all we're all
gonna be an l. No. Not really. We all have hope because of Bitcoin. But
University of Hong Kong,
their business school,
they like Bitcoin too. I'll tell you about it. And then Gavin Newsom going head to head

(03:26):
with his own meme coin
against Trump.
As if there wasn't something better to spend your time on
in the state of California.
But first, let's get back to Bitcoin long term huddlers
spend 97,000
Bitcoin
in the largest one day move of this year, 2025,

(03:49):
Amkar Godbal.
Tell us all about it, brother. And he's doing it from CoinDesk.
Long term Bitcoin holders have stepped up their liquidations in recent weeks,
adding to bearish pressures in the market.
And on Friday,
on Friday alone, these so called patient holders offloaded
97,000
Bitcoin, which is about $3,000,000,000

(04:11):
worth, marking the single
largest or rather the largest single day long term holder sell off of the year, which accounts for the bulk of the recent increase in spending activity according
to Glassnode,
block blockchain analytics firm. The fourteen day moving average of coins spent by long term holders has jumped to nearly 25,000

(04:32):
BTC,
the highest since January. And Glassnode
defines long term holders as those with a history of owning coins for over one hundred and fifty five days.
Bitcoin's price fell by over 3.7%
to $108,000
on Friday.
Note that the profit taking operation is still noticeably slower

(04:54):
than the spikes we observed in late last year twenty twenty four.
Long term holders, including wallets that have been dormant for years,
have been consistently selling since Bitcoin broke above a 100 k earlier this year. And one explanation for this profit taking can be rooted
rooted
rooted rooted

(05:14):
in investor psychology. Think of it this way.
How many assets
in the world trade at a $100,000
US per piece?
Perhaps very few that you can quickly count on your fingers. Therefore, it is logical for investors to feel that a 100,000
per Bitcoin is just too expensive,
prompting them to take profit.

(05:35):
Ah, profit.
It also means that the market will likely take time to adjust to a 100 k as the new normal for Bitcoin. We could continue to see broad range trading around the 6 figure price mark for some time,
allowing investors to acclimatize
to this elevated valuation.
All that means

(05:58):
is chop solidation
as I think it's Willie Woo
in the space. He's one of the one of the traders in in Bitcoin and he goes on podcast. And I think it's him that that has coined the term chop consolidation where we're in consolidation
mode, but we're just it's really choppy. There's a lot of there's a lot of short range volatility

(06:20):
as we move sideways. And
traders love volatility,
man.
I don't know how they manage it because I'm not a trader myself, but it just
it sounds a lot like you're
compressing trying to compress
buy low and sell high and be able to time those peaks and troughs perfectly

(06:43):
except
instead of on the macro scale, like, on an hour over hour,
you know, afternoon
versus morning scale. And if you thought it was bad trying to time the top and the bottom on a month over month basis,
try day trading this stuff and watch watch your wealth evaporate like water in West Texas in July.

(07:05):
Meanwhile, Meta Planet's president
lays out a plan to acquire 210,000
Bitcoin by 2027
at a shareholders
meeting. This is out of Bitcoin Magazine
and our good friend Frank Korva is writing
it. On 09/01/2025,
Meta Planet hosted an EMG

(07:26):
in the heart of, oh, Tokyo. So this wasn't in Hong Kong. Okay. This is a completely different event.
And at that event, Meta Planet's president, Simon Gurevich,
highlighted the success the company has had in its sixteen months operating as a Bitcoin treasury company and laid out the company's plan for acquiring 210,000
Bitcoin.
This vision includes issuing

(07:49):
two versions of a brand spanking new financial product,
Meta Planet Perfs or prefs.
Perpetual preferred
stock offerings that resemble the type that strategy rolled out in March 2025
in efforts to acquire said Bitcoin.
Let's pause.
Let's go back in time.

(08:09):
Back in time to when strategy was still called MicroStrategy,
the company
led and is still being led by Michael Saylor. He is the one that came up with the
Bitcoin Treasury Playbook.
He was selling common stock
for a long time to be able to fund
the Bitcoin purchases, plus he had a bunch of cash on hand already. Well, he he burned through that pretty quick, And then he just started diluting

(08:37):
existing shareholders
by generating or rather printing
new shares of MicroStrategy
stock. And the proceeds from those stock sales did two things. First, it diluted
the value of the existing shareholders, which doesn't make anybody very happy.
And it also generated a lot of income. A lot of cash was was given to Michael Saylor, which they immediately spent on buying more Bitcoin.

(09:04):
I think Mike sensed that that train was about to come to the end of its tracks, and he started coming up with preferred stocks like Strike and Stryfe, and he's got at least two others, if not three.
And he was selling those. Now, that way he was able to still print shares
and not
not

(09:24):
dilute the existing shareholders because it was a brand new product.
It was simply
he's simply just building his own yield curve.
He's issuing bonds, like the United States government or
any sovereign government already does. He's just doing what sovereign governments do, he's just doing it at the private scale,

(09:45):
and I can't believe it,
but it's apparently not illegal to do that shit. And I'm really surprised that Mike was the first one to go, hey, this isn't illegal.
We can do this
all day and twice on Sunday, and that's exactly what they did. And now,
the as far as I can tell, Meta Planet's
the first company in the Bitcoin

(10:07):
line of treasury companies
to start doing that part of the playbook.
As in, I would call it phase two of the playbook. Phase one
is burn all your cash, buy Bitcoin.
Phase 1b
is to start printing new common stock and use the money, the proceeds from those sales

(10:28):
to buy more Bitcoin. But now you you hit you hit the end of the tracks and you gotta come up with something new. So now we end up in
phase two
where you just start creating
financial products,
assign a dollar value to them,
and print the living crap out of them and hope people buy them so that you can buy more Bitcoin.

(10:49):
Okay, so
let's continue. Gurevich
commenced the meeting by explaining how MetaPlanet pivoted from operating as a, remember,
struggling hotel company
to a Bitcoin treasury company in early twenty twenty four. Since then,
he pointed out, MetaPlanet has acquired approximately
point 1% of the total Bitcoin supply,

(11:12):
far surpassing its initial goal of acquiring a mere 10,000 Bitcoin.
And during the event,
Gurvich also announced that Meta Planet had increased its holdings to 20,000
Bitcoin,
giving it the sixth largest Bitcoin balance sheet in the world.
He added that his goal is for Meta Planet to have the second largest Bitcoin balance, second only to strategy that is. And he compared Meta Planet's percentage of Bitcoin per share

(11:41):
over the past year to strategies,
noting that it's increased its percentage to 2274%
as compared to strategy's
little piddly
86%.
Oh, gurovich
also pointed out
that Meta Planet stock trades
over one hundred hours per week via exchanges and brokerages worldwide, helping to make the success of Meta Planet not just a Japanese story. No. No. No. No. But a global one. Quote,

(12:11):
wherever you are in the world, Meta Planet is within reach, Gurovich told the event's 3,000
attendees.
3,000
people came to the Meta Planet event. Holy smokes. Traditionally,
preferred equity has been
in a quiet corner of finance, but backed by Bitcoin,
it's something entirely new, Gurovich said.

(12:34):
He explained how the preferred equity Meta Planet plans to offer will not only become a major fundraising mechanism to acquire more Bitcoin,
much like it has for strategy,
but that it will also establish a Bitcoin backed yield curve. Yay. Here we go. One with the potential to produce greater returns
than those from fixed income income products in Japan and what is more.

(12:58):
Gurvich highlighted the fact that Meta Planet is in a new unique situation
to create such
a product in that it can borrow at extremely low rates as Japan
currently has
the lowest interest rates of all g seven countries.
Quote, low rates in Japan

(13:19):
are our super
hold on. I'm sorry. I'm laughing. Low rates in Japan
are our hidden superpower.
Pausing to say, yeah, at the expense of the citizenry of Japan, but
because we know what look. Everybody in The United States wants interest rates to come down so they get cheap money so that we can go out and buy risky assets,

(13:42):
that house, that car, whatever.
Right? But if you keep those interest rates too low, you end up well with a whole bunch of brand new money that
just like strategy shareholders
dilutes the value of the people already holding dollars.
And it's no different in Japan. Just because they're in the Pacific Rim and we're over here on the other side of the world does not mean that money and yield curve and printing and low interest rates don't have the exact same effect, and they do. Continuing,

(14:12):
he also shared
that traditional fixed income markets are under strain
and that investors are searching for alternatives.
You spelled
running for the exits wrong, but okay. This, according to Juravich,
is an opportunity
to become the largest issuer of Bitcoin backed fixed income in Asia, and he believes

(14:34):
that the types of preferred
equity Meta Planet plans to offer will serve as an enticing alternative to traditional fixed income products.
Meta Planet plans to offer two classes of preferred equity. Class a will be designed as
safer and
steadier
of a financial product that offers a yield much like traditional fixed income products do the product will yield in fact 5%.

(15:02):
I'd say that's not bad. At least it's not double digits.
Class b, however,
will be a bit riskier, but will also come with the option to be converted into Meta Planet's common stock.
Oh.
I'm gonna have to mark that. We gotta come back to that.
These new financial products will offer Meta Planet four distinct advantages stated Gurevich.

(15:24):
One, diversification and financing.
Two,
permanence.
Three, low cost of financing.
Four,
ability to cap preferred share issuance.
After discussing these four advantages, Gurevich summarized his presentation with a revised mission statement for Meta Planet.

(15:45):
Pioneer a new theory of credit in Japan.
Issue instruments built upon over collateralized,
absolutely scarce digital capital.
After the laying out of the plan for Meta Planet's prefs,
Gurevich asked the attendees if they'd approve of the company seeking to amend the articles of incorporation.

(16:06):
And he was met with
a resounding
round of applause.
They
loved it. They absolutely
loved it. And the members of the audience weren't the only ones excited about Gurevich's vision
and his proven ability to execute on it. Eric Trump,
who serves as a strategic board advisor to Meta Planet and who partook in a fireside chat with Gurevich during the afternoon's programming, spoke highly of Gurevich.

(16:35):
Quote, Simon is one of the most honest people I've ever met in my entire life.
You have a great leader in Simon and a wonderful product in Bitcoin and I think that's a winning combination.
Oh my God.
I hate it when people talk like this. When you've got to tell a room full of people that the the person you're pointing at is one of the most honest people you've ever met,

(16:57):
I'm not saying that Gurevich isn't honest. I'm not gonna libel myself at this point, but dude, really?
Doesn't that send up like red flags? Oh, that guy's honest, man. You can trust him.
It sends up a red flag for me. It's probably nothing, but whatever.
Nakamoto CEO David Bailey, who invested in Meta Planet soon after it implemented the treasury strategy, praised Gurovich and the Meta Planet team noting

(17:24):
that investors across Japan
are being forced to take notice of the company.
Quote, Meta Planet has become too big to ignore,
said Bailey.
Bailey went on to say that he looks forward to the day that Gurevich is invited to meet the prime minister of Japan
as well as the emperor of the country, thanks to the work Gurevich has done in making Meta Planet a, quote, systemically important institution for Japan.

(17:50):
The hyperbole
is
thick.
That's nothing but pure hyperbole, ladies and gentlemen. Anyway,
let's go back
did I yes. I marked it. Good. Thank you.
Okay. Let's go back to this class a versus class b. Class a, safer, steadier,
these are the the preferreds that they're about to offer, and the product yields 5%.

(18:14):
So you just hold it and get 5%. Okay. That's great. But class b
is riskier,
but it will come and here's the rub.
Come with the option to be converted into Meta Planet's common stock. Now, there's only two ways that this can actually happen.
One,
Meta Planet already has

(18:35):
stock that it is able to trade
for these preferreds
if and when somebody executes the warrant
and says I want I want the common stock from from Meta Planet, here's my preferred stock.
Or
Meta Planet has to print more common shares, which is a dilution event for existing shareholders.

(18:57):
They're not saying which one they're going to do. And in my mind,
that's an important detail.
Because investors
are getting tired of being diluted.
Let me say it again. And this isn't just for Bitcoin Treasury companies. It's not just for Bitcoin companies. This is for all equities.
All Bitcoin Treasury companies.

(19:18):
People are tired of being diluted.
And that includes
sovereign citizens of sovereign nations around the world holding supposedly
sovereign fiat money
that just keeps getting printed into oblivion
and thereby
doing the exact same thing that happens if you're a shareholder and they print more common stock,

(19:40):
the amount of your stock in value
decreases.
That's dilution.
Everybody's tired of being diluted.
And I'm seeing a whole bunch of people say, hey, man. Bitcoin's great. And don't seem to understand
that they're just doing what sovereign nations do. They're just printing debt.

(20:03):
Well,
only a few of these companies, these Bitcoin treasury companies will survive, so be very careful.
And I'm I'm not even say I don't know. I'm not ever gonna get any of these companies. I might have exposure in one way or another because
the companies, you know, I get we got a couple of family companies. They're very, very small, but they are invested. And I guarantee you somebody somewhere has got some kind of exposure to probably

(20:31):
strategy and BlackRock.
So I've got I I guarantee I've got exposure to this,
but only in passing and only because
the company just buys, you know, like, some hedge fund stuff.
There's nothing I can do about it. I would be voted down in the shareholders meeting if I were to say we need to exit all this crap, so I don't even try.

(20:52):
But let's continue on with the strategy thread.
And I'm talking about the company strategy. Strategy's equity shift is not a retreat from Bitcoin
according to strategy.
Okay. Fine.
Will Canny
is writing this one for CoinDesk as well.
Strategy's recent share price weakness has drawn criticism from retail investors who accuse

(21:17):
executive
chairman Michael Saylor of undermining discipline
by loosening a self imposed rule
against issuing equity
when the company's premium
to its Bitcoin holdings or MNAV
falls below 2.5
x. See, See, that's what people are pissed off right right now about. He's made a change.

(21:40):
Michael Saylor
has made a change because he's loosened
a rule that he set for himself.
Let's find out more that that criticism, however,
misreads the situation, benchmark analyst Mark Palmer said in a research report on Tuesday.
The stock's underperformance has more to do with market dynamics, namely a compressing premium

(22:04):
to its Bitcoin net asset value and broader volatility in crypto and macro markets than with capital mismanagement,
Palmer wrote.
By updating its guidance on August 18
to allow tactical
equity
issuance,
think printing shares,
even below
the 2.5

(22:24):
x x m n ave threshold strategy effectively restored flexibility,
the analyst said.
Rather than a capricious move, the change freed the company to keep buying Bitcoin during periods of weakness maintaining its accumulation
flywheel.
This approach is consistent
with the history of adapting its balance sheet, Palmer argued, whether paying down restrictive debt, refinancing

(22:47):
with convertible bonds, or innovating with perpetual preferred stock issuance designed
to supply permanent capital without refinancing
risk.
That's a lot of words to say print debt,
sell debt,
get money,
buy bitcoin. It's like it's like the steel underwear question mark and profit business plan of the underwear gnomes. Anyway, that financial innovation

(23:14):
has been one of strategy's most overlooked strengths according to Palmer. Its preferred stock program has created new Bitcoin linked instruments attractive
to hedge funds and volatility traders
validating the firm strategy and expanding the investor base.
Each successful placement or right. Hold on. Yes. Each successful placement underscores the appetite

(23:34):
for Bitcoin
tied fixed income and cement the company's reputation as a credible issuer experimenting at the intersection
of crypto
and traditional markets.
The company may soon face another milestone.
Potential inclusion in the s p S and P 500 index. If admitted,

(23:54):
the stock could see billions in passive inflows and would join
Coinbase
and Block in embedding crypto exposure directly into the portfolios of mainstream equity investors.
Palmer reiterated its buy rating of $705
per share of strategy,
calling strategy,

(24:15):
the most liquid and direct vehicle for exposure to Bitcoin's upside
without mining risk.
That would be more than a double
from the current share price of a mere $332
If you want to go buy strategy, man, you knock yourself out.
I'm staying away from all of this.

(24:35):
Just I just wanna hold Bitcoin
because Bitcoin's delicious
and it's golden.
Just like
sunlight and glass from my friend, greatghee@greatghee.com.
Ghee is spelled g h e e. What is it? It's clarified butter, ladies and gentlemen. It's golden. It's got a nice toffee taste to it, and it's shelf stable

(24:57):
because all of the protein and the rest of the water that you find normally in butter has been boiled away or baked out, and all you're left with is the golden goodness
that is ghee, which is a staple ingredient
in almost all Indian food dishes and a whole lot more. In fact,
what is ghee?

(25:18):
Ghee or clarified butter is made by simmering butter to remove water,
milk solids,
and other impurities,
leaving behind a golden
lactose free oil with a nutty flavor and high smoke point. In fact, you can get this stuff up to about four eighty five degrees Fahrenheit before it starts to smoke.

(25:39):
When any oil or fat smokes, you've pretty much it's pretty much done for. You've really messed up. So don't get it don't go all the way to four eighty five.
Keep it at four fifty.
Whatever you're gonna cook at four fifty is gonna be just fine. I guarantee it. Unlike regular butter,
ghee is shelf stable and versatile for cooking, baking, or even skin care.

(26:02):
What is shelf stable? It means you don't have to refrigerate it.
And after you open it, take some ghee out, use it in whatever you're gonna use it for, you can put the lid back on and put it back on the shelf. It doesn't have to ever go in the refrigerator.
That's what shelf stable is. And that's one of the great things about ghee is a way of preserving

(26:22):
butter for long term storage.
That's why people do it. Go get your ghee at greatghee.com.
That's greatghee.com.
Again,
it's greatge.com
and make sure that you put Bitcoin and all one word in the order comments section,
because the circle p

(26:42):
of which we are doing the segment of right now,
is a value for value advertising model.
If Great Guy realizes that I made him a sale, then he gets to make the choice as to whether or not he pays me in some of those sweet sweet Satoshis
and by how much he reimburses me for making a sale. If you have never tried great ghee's ghee,

(27:07):
get on over to greatghee.com.
That's greatghee.com.
Use Bitcoin and
in the code box. No. You're not really gonna get that much off, but hey. Or anything off, but
it's the way the value for value advertising model works.
Let's let's go on,
talk a little bit more about what's going on with strategy.

(27:28):
Because honestly, there's really not a whole lot of news going on. Hey. I
I do what I can for you guys. At least I'm not talking about
Solana
from the block and James Hunt. Bitcoin is still on sale.
Strategy buys another 4,048
Bitcoin
for $450,000,000

(27:50):
bringing total holdings
to 636,505
Bitcoin.
Treasury company Strategy acquired an additional 4,048
Bitcoin for about 449,300,000.0
at an average price of $110,981
per coin between August

(28:11):
26
and September 1 according to an eight k filing.
They now hold 6,000
sorry. $636,505,000
BTC
or 70,000,000,000
at an average price of $73,765
per Bitcoin. They're still making out like bandits.

(28:33):
Holy smokes.
Wow. Okay.
The latest acquisitions
were made using proceeds
from
at the market sales
of its, get ready,
class a common stock.
Remember what we were just talking about? That they relaxed the rules?
When Sailor says he's about to do something, you don't wait very long for Sailor to actually execute on it. Usually, it's within

(28:59):
twenty four hours and on the outside, somewhere within
forty eight to seventy two hours that he actually executes. So they've diluted
common stock shareholders
yet one more time.
But they also they also,
sold perpetual strike preferred stock,
perpetual strife

(29:20):
preferred stock, and perpetual
stride
preferred stock.
Wow. So it's strike, strife, and stride. Interesting.
Strategy
sold 1,200,000.0
common a shares for $425,000,000
with
yeah. With $16,310,000,000

(29:42):
remaining for issue and sale under the ATM program,
the firm said.
They also sold almost 200,000
strike shares for 19,000,000,
with 20,390,000,000.00
remaining,
237,000
Strife shares for 26,500,000.0
with 1,800,000,000.0
remaining, and 12,973

(30:04):
Stride shares for $1,000,000
with $4,170,000,000
remaining.
That's how much stock they have
in those little piles to to issue later.
Stride is a non convertible
with a 10%
noncumulative
dividend.
You spelled yield wrong. And the highest risk reward profile. Strike is convertible with an 8% noncumulative

(30:27):
dividend
allowing for equity upside, and Strife
is nonconvertible
with a 10% cumulative dividend
making it the most conservative.
Okay. Well, that's great.
Strategy strike, strife, and stride perpetual preferred stocks, respective 21,
2.1, and 4,100,000,000
ATM programs are in addition to the firm's forty two forty two plan, which targets a total capital raise of $84,000,000,000

(30:53):
in equity offerings
and convertible notes for Bitcoin acquisitions through the year 2027.
And that's upsized from its initial $42,000,000,000
under the twenty one twenty one plan
after the equity side was completely depleted.
Saylor, again, hinted at the likelihood of another Bitcoin acquisition filing ahead of time,

(31:18):
sharing an update on strategy's BTC acquisition tracker on Sunday stating Bitcoin is still on sale.
Yeah. Well, yeah,
we kinda knew that.
I honestly,
they're just gonna go the rest of the story goes into the history of MicroStrategy
and do we need it? No. We're gonna run numbers.

(31:48):
Whoo doggy oil. West Texas Intermediate is up almost two and a half full points
to $65.56.
Brent Norsey up one and a third to $69.00 9. Natural gas
taking
it downwards 1.3%
to
$2.95
per thousand cubic feet. Gasoline is up 3.4.

(32:09):
And Murbaughn Crude, the most expensive light sweet crude oil I guess that there is, is up one and a quarter percent to $72
a barrel. Yeehaw.
Gold
busting out, baby.
2.12%
to the upside today,
clocking in at 3,590
and 7 dimes.

(32:31):
Wow. Silver is up two and a quarter. Platinum is up almost three. Copper is up point eight. Palladium up 2.4%.
These are the exits
alongside Bitcoin.
Agriculture
futures are 100%
in the red today.
Biggest loser
is
coffee, 3.78%

(32:51):
to the downside.
The live cattle is up point 2%,
lean hogs up point 5%, and feeder cattle are up point 08%.
This is some of the highest prices
for cattle sales
ever. I think it's actually the highest
per animal,
per pound, whatever, however you want. When a when a rancher takes

(33:16):
when you see a whole bunch of cattle going moo moo in those cattle trucks,
they're not being taken out for a stroll around town. They're being taken to a kill facility.
Right? That's you can consider that
the the last destination.
But before that, those cows come from something called a sale barn. And that's where me as a rancher, if I was a rancher, I would take my cattle if I was unable to process that cattle myself

(33:42):
so that I could make direct sales to my own customers. If I couldn't do that, I gotta take them to a sale barn.
The price that I'm getting
for selling live cattle to a sale barn, which will then be taken to slaughter, is the highest ever.
And yet, worldwide
cattle,
the herd size is at its lowest point.

(34:05):
Some people
I've seen ranchers going, you will shit. Yeah. I'm just gonna go out and have my chef's steak dinner.
Because prices are high.
Dude,
nature abhors a vacuum.
High prices on cattle
and the lowest herd size on record is not a good mix.
It is not a good mix.

(34:26):
If you can, please, for the love of God, find
your local rancher
and see if you can pony up the money to buy meat directly from that rancher.
We need ranchers to stay in business. I would say that we need more ranchers, but at this point, it's so bad.
I'm begging people to just keep the ranchers that are still alive

(34:48):
alive.
We don't need to lose anymore. I would love it if we gain some ranchers, but right now, man,
it's not a whole lot of that happening. What is happening?
Ranch after ranch after ranch are being
sold off ranching families that have been in it for decades, if not centuries,
leaving
ranching. It's sad, and it needs to stop.

(35:11):
Find your local rancher, shake your ranchers hand. If you've never been to your local farmers market,
go.
Because chances are good if you're gonna find a local rancher, it's gonna be there.
Ask the rancher to tell you
how he does it. I guarantee the rancher will be more than happy, him or her,
to let you know

(35:32):
how they raise their animals, what they think about ranching, what they think about beef.
They're they're dying to to tell other people about their lives. I guarantee it.
But we're not out of the woods yet. All of the indices,
equities are in the red. Dow down 1.16%,
S and P down one and a half, Nasdaq down 1.6,

(35:52):
and the S and P Mini is down 1.16%.
Whoop dee doody day, and we are at a $110,580
per coin.
That is still a $2,200,000,000,000
market cap,
but we can only get 31.2
ounces of shiny metal rocks with our one Bitcoin of which there are 19,915,091.81

(36:16):
of an average fees per blocker.
Relatively normal. I'm used to seeing 0.03
taken in fees on a per block basis. There seem to be about 32 blocks
carrying 91,000
unconfirmed transactions waiting to clear at high priority rates of 1 satoshi per vbyte.
Low priorities are also 1 satoshi per vbyte.

(36:38):
Holy smokes. One Zeta Hash, ladies and gentlemen.
Mining
hash rate has hit one
Zeta Hash.
That would be 1,000
exahashes.
1,000
exahashes.
We've tripped over into Zeta Hash territory
yet one more time.
Can we stay there?

(36:59):
I don't know.
From lightning in the mesh, which was Friday's episode of Bitcoin, and I got Psyduck with seven fifty one Sat says
Psyduck.
Paul Cernine with 500 says,
excellent episode number three on Cathedral.
Tremendously enjoyed listening to it, and I have the impression you explained it so well that I understood

(37:22):
quite a bit of it, which is no mean feat considering I don't have any agricultural
background.
Kudos to your work. Looking forward to the next part.
Paul,
part four has dropped.
Part four has dropped. You got it's it's actually, the the episode right before Wrenched
and right after,

(37:43):
inside Costa Rica. So, Paul, if you're listening,
part four of Cathedral is called Life Raft, and it describes
a subsystem
of the grazing part of the cathedral system.
I thank you for your kind words. I appreciate it. If I I that's what I aim to do.
That's what I the I I love being able to take

(38:04):
agricultural concepts
and get them into the hands of people that don't have any experience with it.
It's important that we keep our act it's not just because it's heritage,
it's because it's food production.
If you want your meat coming out of a stainless steel vat somewhere in Van Nuys, California,

(38:24):
then by all means, don't care about your farmer or your rancher. Otherwise,
you go the people that make your food, that grow your food,
in dirt, in soil, go shake their hands. Go find them, shake their hands. Pies with four twenty, thank you sir, no thank you. God's death two thirty seven, thank you sir, no thank you. Jester for with 5,000
sats, holy smokes, says great coverage,

(38:47):
always appreciate the lightning topics. I wish I could just find more.
Just find more.
Lightning and lightning and noster stuff.
Speaking of you guys can help me produce the show. If you guys find a story or or like a thread somewhere, even if it's Twitter, I don't care. Nostr, whatever. If it's on if it's something interesting about a development in Nostr

(39:11):
that has a, you know, a good explanation behind it, then send it to me. Just just I don't care if you give me even if it's a Twitter URL, I don't care.
Send it to me on Nostr.
Send it to me on send it to me on Nostr, man.
Or or better yet, boost the show because this is podcasting two point o. This is the way you support the show. You can stream me Satoshis, you can give me giant,

(39:35):
giant, like, 5,000 Satoshi boostograms,
and in those you can say, hey, here's something I I saw that's coming on Noster.
Will you please cover it on the show? And I will try.
You you have a you have a say in what goes on in this show too, ladies and gentlemen. That's the
weather

(39:57):
report.
Welcome to part two of the news that you can use quantum threats
or something more.
El Salvador
is splitting up its Bitcoin. Oh my God. It's a divorce. We're all gonna die. Cryptdecrypt.c0

(40:18):
and Matt DeSalvo is gonna tell us what's going on.
And honestly, you know, you know what I'm happy about?
That I literally heard nothing about this either on Twitter or on Noster for the entirety of Memorial Day or Labor Day weekend.
This is the first I've heard about it and this this article was written

(40:38):
yesterday.
And I heard nothing about it. I heard nothing about it this morning, honestly.
And and and for it to go twenty four hours without people going, oh, well, there it is. Bukele is buckled.
I I honestly take that as as good news that people didn't immediately freak out. So let's find out what's going on with El Salvador's government.

(41:01):
It seems that they have moved its Bitcoin stash to new addresses
just months after telling the IMF
that it wouldn't
buy any more of the cryptocurrency.
Well, we promise.
We promise, man.
The country's national Bitcoin office said on x Friday
that it had moved its funds from a single Bitcoin address

(41:23):
into new addresses as part of a strategic initiative to enhance the security
of long term custody of the National Strategic Bitcoin Reserve.
El Salvador's Bitcoin office noted the security threat posed by the advent
of quantum computing
as the primary motivation
for moving its coins. Quote,

(41:44):
quantum computers have the theoretical capability to break public private key cryptography using Shor's algorithm.
The office posted on X. Quote, when a Bitcoin transaction is signed and broadcast, the public key becomes visible on the blockchain,
potentially exposing the address to quantum attacks that could discover private keys and redirect funds before the transaction confirms.

(42:07):
El Salvador's president Nayib Bukele in 2022 said his government would buy 1 Bitcoin per day for its national reserve.
The country's coffers currently hold 6,286
bitcoin according to ARCIM intelligence data.
The office noted over the weekend that it had previously used just one address for transparency,

(42:28):
but would now use multiple addresses as a way of enhancing security.
Data from Arcum Intelligence shows that the country last bought 1 Bitcoin
on Sunday.
Quote, the reserve
is being redistributed
into multiple addresses,
each holding up to 500 BTC,
limiting funds in each address reduces

(42:50):
exposure to quantum threats because an unused Bitcoin address
with hashed public keys
remains
protected.
Wait, what? Hold on.
Limiting funds in each address reduced because
an unused Bitcoin address with hashed public keys
remains protected.
I no.

(43:12):
Not not really.
Not really.
I can dude, I can go I can go scrape mempool right now. I've got my own instance of mempool
on my Bitcoin node. I can go to ARCIM intelligence. I can find these transactions and I can go back and I know where all these coins I all I got
original address. And I can track all of this and I will know

(43:34):
those
addresses.
Those addresses are public.
The minute you send Bitcoin to a public address,
even if you just spun it up,
you'll be able to see that address in the mempools.
Oh,
oh, oh my God. Okay, okay. Calm down here, calm down.

(43:56):
That's wrong.
What the office what the Bitcoin office just said,
that's incorrect.
Be aware
that they either don't know what they're talking about
or they do and they think that you
won't catch it.
But what they just said is 100%
incorrect.

(44:16):
Those public addresses are indeed public
and they are just as vulnerable as any other public address
under the auspices of which they claim,
that is being quantum computing,
which I'm not worried about right now. And you shouldn't be either. But, quote,
once funds are spent from an an address, its public keys are revealed and vulnerable.

(44:40):
By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized.
This is wrong.
The Salvadoran government now has a public dashboard showing its transactions and addresses.
Crypto privacy experts advise against using one address to hold Bitcoin and other digital coins and tokens.
El Salvador's announcement comes after the country said in July that it promised

(45:02):
not to continue to accumulate Bitcoin according to the IMF.
Yeah. We've heard that four times already.
And each time they bought Bitcoin.
Oh, well.
The body in May started dispersing the first part of the loan to help the the IMF loan,
to help the Salvadoran economy grow on the condition
that El Salvador would change some of his Bitcoin policies.

(45:26):
A July statement from the IMF said that authorities continue to comply with commitments not to voluntarily accumulate Bitcoin.
In late July, an IMF spokesperson told inner city press that El Salvador was not, in fact, purchasing Bitcoin on a weekly basis,
but was instead simply moving funds around
from internal wallets. Ah, quote,

(45:48):
the total amount of Bitcoin held across government owned wallets remains
unchanged.
Hold on. Remains
it says remains
unchained.
K. The total amount of Bitcoin held across government owned wallets remains
unchained.
I think they wanna say
unchanged,
but whatever.

(46:09):
This is according to the spokesperson.
The Salvadoran government's press office office confirmed to decrypt that it would continue
to indeed buy one BTC
per day, and the IMF did not immediately respond to decrypt's request for comment.
El Salvador in 2021 made Bitcoin legal tender. Yes, we know. We don't need a history lesson.

(46:30):
So we are still at this impasse
where the IMF is coming out and publicly saying that El Salvador has promised not to buy any more Bitcoin.
And then El Salvador comes out with their own press release saying that they intend to buy more Bitcoin. And then,
El Salvador actually purchases more Bitcoin or at least,
as far as the information that we know tells us, like, this this wallet that's associated with with El Salvador

(46:56):
from Arc of Intelligence or the one that Arc of Intelligence is tracking,
it goes up every day by one Bitcoin just like they said that they would.
The IMF never
after, you know, when people contact the IMF for confirmation as to what El Salvador said, the IMF basically
shuts its mouth and doesn't ever make a statement
until they finally do weeks later saying that, again, El Salvador's promise not to buy any more Bitcoin and when the cycle starts and goes over again.

(47:24):
We have no idea
what's going on here.
But if the IMF is so incensed about all this, then pull the loan.
Tell El Salvador to go pound sand. I don't what I I mean, if they're not complying with you,
pull the loan. It would be better for El Salvador if they didn't have an IMF loan.

(47:45):
It'd be better for everybody
if they stopped
cozy enough to the IMF.
It just it's just that way. Okay.
Hong Kong.
The University of Hong Kong business school, so just the business school, I guess,
is going to accept Bitcoin for tuition?

(48:07):
This is Alex Larry for Bitcoin News. University of Hong Kong's business school is exploring Bitcoin plans. According to the South China Morning Post, the top ranked business school in Asia is evaluating plans to accept Bitcoin and other digital assets for tuition fees and donations.
Dean professor Hong Bin Kai
confirmed the move at the CryptoFi forum last week, quote, all the technical details have been sorted out. We will take Bitcoin and digital currencies for tuition

(48:35):
fees and donations in the future, he told the audience.
No timeline has been set. Okay. So we're going to.
But it's a sign that Hong Kong is getting serious about becoming a global hub for virtual assets.
The move comes as Hong Kong tightens its regulatory framework
for digital finance.
On 08/01/2025,

(48:55):
the city introduced
the stable coins ordinance.
Did you get to get back to the Hong Kong? I don't care about the city. Blah blah blah blah blah blah blah. The a University of Hong Kong spokesperson
told South China Morning Post,
HKU
Business School is dedicated to creating a secure and sustainable environment for advancing research, development, regulation, and practical adoption of digital currencies

(49:17):
in collaboration with our partners.
Yes. You always need to to talk about the stakeholders.
Many believe one of the biggest risks with Bitcoin is its price volatility.
A coin can gain or lose
value in days. Professor Kai said, quote, if we lose money, we will be losing the money of the faculty.
It's okay.

(49:37):
We can take care of it, but at least let us give it a try.
You know, that's probably one of the more honest statements that I've ever heard out of a institution like this, honestly.
Kinda cool.
Local legislator Johnny Ng
suggested
the simplest way to reduce risk is to convert Bitcoin payments into Hong Kong dollars immediately after they are

(49:58):
received. He said KYC checks will be crucial to prevent illegal activity.
Yes. I'm going to launder my money by donating to the Hong Kong business school. I'm going to launder my money by getting a degree from the Hong Kong Business School.
People
are
really weird about this. Quote,

(50:20):
the price of Bitcoin is volatile,
but you can fix the risk by converting it to local currency.
Otherwise,
you could treat it as an investment product, Ng said,
quote, but it is important for institutions to do the KYC
process to ensure the digital wallet is not linked to any illegal activities or funds from unknown origins. Oh, good luck.

(50:44):
How many hops in the chain are you willing to say be you know, beyond this point, we don't care.
Because that's gonna be an issue.
But last week, Binance founder, Shengpeng Zhao, attended HKU forum
and praised Hong Kong's approach. And he said, before, that Hong Kong can rival The US and The UAE as a virtual asset hub

(51:06):
if the government acts fast and decisively.
Other industry voices also see HKU's move as part of a bigger trend.
Universities worldwide are starting to experiment with Bitcoin. For example, in February, the University of Austin
announced the creation of a $5,000,000
dedicated Bitcoin fund.
Well, that's that's easy because the University of of Austin is basically a whole bunch of Bitcoiners that got together and said,

(51:30):
higher education is on the ropes. Let's do it ourselves. So it's that's not surprising,
guys. That's University of Austin taking Bitcoin is not surprising.
HKU, however, will be the first to accept Bitcoin directly for tuition payments.
In a similar move,
Le Monde School in Helensburgh,
Scotland

(51:50):
made history in April by becoming the first school in The UK
to accept Bitcoin as payment for tuition fees.
Hong Kong is going a different path from Mainland China, which banned most digital asset activities in 2021.
Instead,
the city is promoting a regulated but open environment.
11 digital asset trading platforms are already licensed under SFC,

(52:13):
and the government has proposed
tax breaks for digital asset investments.
So, yay.
Maybe
Bitcoin can save higher education.
Because higher education is kinda on the ropes right now, man, depending on which school that you're talking about, like the smaller universities, especially in The United States,

(52:34):
having some pretty difficult times. And you will find out
over the next ten to fifteen years
who was really serious about their endowment and their investments and making sure that their school had a future financially?
Or the ones that spent all of their money on, oh, I don't know, an athletics program that really doesn't deliver?

(52:55):
Because, by god, there's a lot of them.
A lot more than than I care to think about.
Texas Tech will survive. Harvard will survive.
University of Texas will survive.
A and M will survive, and I'm talking about Texas A and M. They'll survive.
You know, schools like that, Princeton, you know, Oxford over in The UK,

(53:16):
Brown will probably survive.
University of Chicago is a spook school, so it's definitely gonna survive. CIA will bankroll that thing.
Georgetown University will definitely survive again. Another spook school, but, hey, who's counting?
It's bad. It's the enrollment cliff is here.
And I won't get into what the enrollment cliff is, but enrollment is down.

(53:40):
And most of the universities in The United States have been scouring demographic data for the last few decades, and they knew it was coming.
And there were schools that either acted on that information,
like Texas Tech, and really ramped up their their donation schedule and making sure that, you know, alumni that that had made it good in the world were prepared to to unfold their wallets.

(54:05):
They had a huge thing called the horizon campaign. It was supposed to get in, like
and this was in the this was in the late nineties, by the way. It was supposed to take him $250,000,000.
They blew past that in a month.
And then the chancellor at the time
had to take it to 500,000,000. They blew blew past that in two more months. So he finally said, okay. 750,000,000.

(54:29):
They blew past that. And then he said, okay. Fine. $11,250,000,000.00.
And that was enough to actually have a real honest to God
lengthy campaign to reach that. And then they reached it and went past it and
tech is gonna be fine.
University of Texas repaid it repatriated

(54:50):
all of their gold, their physical gold. They sent trucks to New York City,
and they got their gold, and they trucked it back, and they are storing it in Austin, Texas, or at least that's what we think. We we know the gold has come back to Texas,
whether or not it's in Austin,
is it is it on the campus of UT? I I don't know. But we do know all of their gold,

(55:12):
UT repatriated,
like, a decade ago.
There are some schools that are gonna be just fine.
I think you're gonna be able I think you're gonna see in the first
next ten years, 25%
of full blown universities,
not colleges,
full blown universities

(55:34):
close their doors permanently.
It's gonna be sad.
But you know what's really sad?
People that have too much time on their hands
and are honestly
way too angry for their own good.
Gavin Newsom, governor of California,
wants to launch a meme coin

(55:55):
just to troll Trump.
Gavin,
do you literally not have anything better to do with not only your time,
but your team's
time?
Because somebody's gotta roll this up.
Matt DeSalvo,
decryp.co.
California governor Gavin Newsom said that he will release his own meme coin

(56:18):
in the Democratic politician's latest dig at Donald Trump.
Newsom said Friday on the pivot with Kara Swisher
and Scott Galloway
podcast that he'd step up his campaign to mock president Trump by releasing
quote
Trump corruption coin.
The California governor joked that the upcoming cryptocurrency

(56:39):
would do better than the digital token president Trump released in January,
the Solana based cryptocurrency
that trades as
official Trump.
Quote, we're about to put a mean coin out and you know what Donald Trump? We'll see how well your coin does versus our coin. Oh, man, it's the bumper sticker. My coin can beat up your coin.

(57:01):
My coin's an honor student at at such and such elementary.
These are grown men.
Grown men and women.
He added that
Trump corruption coin would be the best name for the asset.
Turning serious, Newsom then said, this is one of the great grifters of our time, referring to president Trump. This is just draw jaw dropping, end quote.

(57:28):
Newsom had been mocking the US president by posting on x in Trump's signature style and copying his language and famous phrases.
President Trump, ahead of his January inauguration,
released
official Trump or Trump,
a meme coin that runs on Solana.
The token shot up in value before quickly crashing as meme coins tend to do, and Democrats have since criticized the commander in chief for cashing in on this and various other crypto ventures.

(57:56):
Trump is the seventy seventh biggest cryptocurrency with a market cap of nearly $1,700,000,000,
and it was recently trading for $8.42
a coin according to CoinGecko,
well, well below the all time high of, wait for it,
$73.50.

(58:18):
God, my God almighty.
Meme coins
are cryptocurrencies
based on Internet culture, often celebrities or online jokes.
They are known for their extreme volatility and relatively short shelf lives.
Unlike great ghee, get yourself stable butter at greatghee.com.
President
Trump campaigned to help the cryptocurrency industry,

(58:40):
promising to ease regulations as president,
create a national strategic Bitcoin reserve, and going so far as to say, all future Bitcoin would be mined by United States companies.
He received significant backing from the industry during the campaign,
but opposition politicians
have said the president is lining his own pockets

(59:01):
with his crypto ventures and have criticized Trump for his apparent conflicts of interest.
Well, hell, even I've talked about conflicts of interest.
Yes.
It's a conflict of interest.
That never stopped Nancy Pelosi, but on Monday,
a crypto project backed by president Trump, his sons, and the White House's special envoy to The Middle East, Steve Witkoff,

(59:26):
debuted its token on major exchanges.
WLFI,
which is the governance token of Ethereum based World Liberty Financial,
gave the project a valuation of over $26,000,000,000
following its debut on exchanges like Coinbase and Kraken.
The Trump family owns a significant portion of the WLFI

(59:47):
token supply.
Their share value today at nearly $6,000,000,000.
Yeah. I saw I've scanned another,
news article
that suggested that they've made more money
on the World Liberty
token deal than all of their family's real estate deals that has ever been done.
Now, I I don't I I haven't verified that. I don't I don't know. I I don't care about it that much. But if it was if it's true, that's freaking hilarious.

(01:00:14):
But it's also quite sad
that there's that many rubes in the world
that think that
a Trump coin or a Gavin Newsom coin
has any real
and long term tactical value.
They don't.
And it's not just because it'd be Gavin Newsom and Trump. All of these mean coins are scum.

(01:00:37):
They're scum of the earth. Altcoins are just terrible. The ICO craze, the altcoin craze, the NFTs, and the ordinals, and the ordinances, and and all of it, all of that part of the ecosystem
is just pure grift.
It's just it's just a con game. It's an affinity scam,
and everybody needs to stop buying into this.

(01:00:57):
What do you think you're going to hurt Trump if you're if you're listening to me in California
and you freaking can't stand orange man?
Do you think
that buying Gavin Newsom's token
is going to do anything
that swings the world
in your favor
and hurts
orange man?

(01:01:18):
If you think
that the answer is yes,
I got bridges for you, man.
I got them for sale everywhere there's a desert.
Everywhere there's a dry lake,
I got bridges for you, man.
Buy one, and I'll see you on the other side. This has been Bitcoin, and and I'm your host, David Bennett. I hope you enjoyed today's episode and hope to see you again real soon.

(01:01:48):
Have a great day.

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