Circle P:

Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:01):
It is 09:14AM
Pacific Daylight Time. It is the May
2025.
This is episode
11 o five
of Bitcoin.
And, Arkham
seems to have doxxed MicroStrategy.
I don't know. I probably shouldn't laugh,

(00:24):
but man,
Michael Saylor and Jack Dorsey has just been getting
they've just been getting roasted
for the comments that they make
at the Bitcoin conference, which it just
I don't know what to say about the Bitcoin conference.
I probably shouldn't say anything at all. But guys, I gotta tell you, man, the more the longer this conference goes on, and I'm not talking like

(00:50):
a particular singular conference, I'm talking about like the entirety of the series, like since 2019
this thing has been going on. It's this is it. It's in its sixth year,
and it just seems to get more cringe.
I like I said, I probably shouldn't say
it but is am I the only one that's getting those vibes? I mean, I guess if you're there

(01:14):
and you're hanging out with all you you're not really going to the talks, you're hanging out in the hallways, you're just like networking and stuff like that, it's probably a great place to be. But if for whatever reason you're actually witnessing
the Steak and Shake cows dancing
like they were part of the Ethereum crew. Oh my god. It's just as cringe as can be. And Michael Saylor

(01:37):
saying that, you know, we're just not gonna give proof of reserves. And now we got Jack Dorsey
who is apparently going to force feed everybody
bit $1.07 7, which
renames Satoshis to Bitcoin, and he's doing it in the Cash App. And while I applaud Jack for
getting
lightning payments into the not cash app,

(02:00):
what am I trying to say? What's the what's Square. The Square merchant thing, you know, for for merchants. The point of sale rig
is apparently renamed
Satoshis to Bitcoin at least as near as I could tell. And everybody's they're just getting roasted and everybody's losing their mind.
And honestly, guys,
the rule for Vegas is this,

(02:21):
three days is enough.
I'm hoping this is the last day of the conference because even if you're not at a conference, three days in Vegas
is clearly enough. It seems to be driving everybody crazy. But we've got other news to go through too, but let's go ahead and stay on this one.
Arkham claims to have found 87%
of strategies

(02:41):
Bitcoin.
I like I said, I'm
not sure it's cool to dox Michael Saylor's wallets, but Ezra Reguera for Cointelegraph
tell us more. Blockchain analysis company, Arkham,
has claimed
to have uncovered previously undisclosed wallet addresses tied to strategy,
formerly MicroStrategy,

(03:02):
potentially exposing billions in Bitcoin holdings.
In a post,
referencing strategy cofounder and executive chairman Michael Saylor's commitment to privacy,
Arkan claimed that it had identified an additional 70,816
BTC linked to the company.
That's about 6 point or $7,600,000,000

(03:23):
at current prices.
Arkham said that the newly identified wallets bring strategy's total identified
holdings to 54,500,000,000.0.
If that's accurate, the findings suggest
that Arkham has indeed mapped out most of the company's stash, making it the first entity to publicly associate the wallets with the firm. Quote,

(03:43):
Sailor said he would never reveal his addresses.
So we did, Arkham wrote, adding that the amount represents 87.5%
of the total Bitcoin holdings of strategy.
Cointelegraph reached out to Arkham, but no comment has been received.
Arkham's claims
follows comments from Saylor about the risks of publishing wallet addresses.

(04:06):
Apparently, not risky enough.
At the Bitcoin twenty twenty five conference
in Las Vegas, Saylor said that publishing wallet addresses is dangerous for companies holding Bitcoin. Quote, no institutional grade or enterprise security analyst would think it's a good idea to publish all of the wallet addresses
such that you can be tracked or traced back and forth, according to Saylor

(04:30):
The executive then said,
making wallets public allows every future transaction to be scrutinized
exposing a company to risks that may not be immediately apparent
To highlight his point, Saylor suggested using
artificial intelligence to explore the issue.
Saylor said, if a user puts AI in deep think mode and asks about security problems associated with publishing wallet addresses,

(04:55):
the executive said the response could get 50 pages of security problems.
Oh, boy.
You're tell me, Mike, that you're not using ChatGPT
to be your security officer for strategy. For the love of God,
to say it, while blockchain data is publicly available, the accuracy of claims related to wallet ownership

(05:18):
has been questioned before.
At the height of the Mantra token collapse, Mantra CEO John Mulan
denied accusations of insiders dumping their tokens. The executive accused Arkham Intelligence of mislabeling the wallets they had identified as belonging to insiders.
Yeah. I don't care

(05:39):
because it's like
here we
we live
in this interstitial space between
what am I trying to say here?
Meme
humor
and ultra serious

(06:01):
corporate structure. We're we're sort of in the middle. And what I mean by that is Arkham intelligence.
And this sentence,
Sailor said he would never reveal his addresses, so we did.
That is right in the middle of being very serious about your shit, but still having a sense of humor and the ability to, you know, mean things into consciousness.

(06:23):
We're right
in the center. And for the love of God,
I hope we stay right here.
Sure, we may hate ARCEM intelligence because they keep doxing stuff,
and maybe they're doxing the people that we don't want doxed. I, you know, I don't know. ARCEM is what is. There ain't nothing you or I is gonna be able to do about it. So we might as well just laugh along

(06:47):
when
an outfit like Arc of Intelligence
says,
these kinds of things because I think I honestly think it's funny.
Now I'm not exactly certain what sailors, you know,
what he's
what he's really worried about here. We know how much Bitcoin he has.

(07:07):
At
least we know how much he's told us he has
so what does it at this point kind of really matter if we know the wallet address it I mean what I mean, I know how much he has or at least how much he's told us we it doesn't it doesn't make that much sense
unless there's some kind of weird papery Bitcoin or chicanery going on. And I don't know. I can't prove that. I don't even have a gut feeling. I actually don't think that they're holding paper Bitcoin strategy. I really don't. But,

(07:39):
you know, it is what it is.
But, you know, if you wanna go check it out, I guess you can go find Arkham Intelligence and see if you can find strategies, you know, labeled
wallets. But to me, that just seems like a bunch of a whole bunch of ho
honestly. So let's move on
to
Bitcoin.
Crypto rally expected to resume

(08:01):
after the dip on the hawkish Fed minutes analysts
say.
I pretty much
told everybody that I could on both, you know, x and not that anybody listens to me on x because I've been banned so many times. But on Nostr,
I was saying the same thing. I was like, oh, look, man. I don't know why, you know, you're going to announce, as GameStop did yesterday, why you're going to announce

(08:27):
this big Bitcoin buy,
right in front of Jerome Powell about to pull the rug out from everybody
insofar as basically telegraphing that we're not gonna even touch interest rates
for a long, long time.
People were expecting
maybe July.
And at this rate, you'll be lucky to see a rate cut, if at all,

(08:50):
until the fourth quarter of this year. That's what I'm saying. But let's let's see what Naga Avin Namayo
has from the block for us.
Bitcoin and cryptocurrency pie prices posted
moderate losses
following the hawkish signals from minutes of the May
Federal Open Markets Committee or the FOMAC session, which was released yesterday.

(09:15):
US Federal Reserve officials flagged
potential difficult trade offs
tied to persistent inflation and looming recession risks. Quote,
participants agreed that uncertainty
about the economic outlook
had increased further, making it appropriate to take cautious approaches until the next economic effects of the array of changes

(09:38):
to government policies become clearer,
the minutes read.
If you want a translation, it means so many bombs dropped, it kicked up so much dust and debris. We can't see three inches in front of our fucking faces. So what we're not gonna do is walk around and fall into holes and possibly get munched on by sombles. No. We're not. We're going to sit right here and we're going to

(10:01):
do exactly
nothing
until we can see where we're going.
That's what that means. But Bitcoin closed in losses below a hundred and 7,800
following the release, but has since rebounded to around $1.00 $8,500,
which is now no longer true. This this was written, you know, hours ago.

(10:22):
So a lot can change in hours. But,
meanwhile
oh god, they're gonna talk about shit coins. I'm just gonna skip right over it.
Despite the brief pullback, analyst at BRN
noted that institutional demand remains strong. US spot Bitcoin ETFs
have recorded ten consecutive days of inflows

(10:44):
with BlackRock, of course, leading the pack.
Fournier
added that more firms have unveiled plans to accumulate BTC as a treasury asset. Indeed, we'll I'll I'll I'll I will announce another one here in a few minutes.
A move poised to support buying pressure, and Trump media
intends to create a private Bitcoin treasury with $2,500,000,000

(11:05):
of offering.
We knew that from yesterday.
That's really all we, you know, kinda need from this.
Is that's what what's really going on here
is that the FOMAC basically
took the air out of everybody's sales. And I'm not exactly sure what anybody was expecting. I really don't.

(11:27):
I have been saying this all year long. We are not getting
rate cuts. We're just not.
We we're not gonna get them in June. We're not gonna get them in July.
We're we're not gonna get them I mean, the the next time that anybody's gonna be able to
breathe clean air that's not filled with, you know, the fog of war is gonna be at the end of the summer.

(11:50):
You know, maybe we'll see something in, you know, September. I don't know.
I'm thinking more like October or November,
if at all.
The
here's here's my best advice.
Assume
for the rest of this year,
Fed interest rates are gonna be 4.25
to 4.5.

(12:12):
And they are not this goes along with that. They are also not going to be able to control the yield of both ten year and the thirty year bond.
Make that assumption
and plan accordingly.
Just saying.
Now there's other added weirdness going on in the markets because

(12:32):
the US trade court has stricken
down Trump's tariffs. And, of course, I don't know if stricken is a word, but you know me.
I can't I I abhor bad grammar, and I use
made up words. Vismaya v for decrypt.
Bitcoin retreated slightly on Wednesday
amid a United States court decision that invalidated

(12:55):
president Donald Trump's sweeping tariff regime,
delivering a blow to his second term trade doctrine
and calming
equity markets because that's what we need. Right?
A three judge panel
at The United States Court Of International Trade, which I've never heard of before ever in my life,
ruled that Trump exceeded his presidential authority when he imposed blanket tariffs on most

(13:21):
United States trading partners in early April, citing a national emergency
under the decades old International Emergency Economic
Powers Act.
The IEEPA,
enacted in 1977,
grants The United States President authority to regulate international commerce during declared national emergencies arising from external threats. Quote,

(13:45):
we instead
read IEEPA's
provisions to impose meaningful limits on any such authority that it confers, the panel of judges wrote.
Quote, any interpretation that delegates unlimited
tariff authority
is unconstitutional,
end quote.
The ruling invalidates

(14:06):
10% baseline tariffs,
a 25%
levy on Canada and Mexico,
and a 20%
rate on Chinese imports.
It comes in response to two lawsuits,
one filed by small businesses including wine importer VOS selections
and another by a coalition of states led by Oregon and Arizona.

(14:28):
Following the
ruling, Dow futures climbed 520
points or nearly 1.2%,
while the S and P five hundred and Nasdaq futures gained 1.7 and nearly 2%, respectively, according to MarketWatch.
Bitcoin, which reached a new all time high of a hundred and 11,814
last week, fell 1% on the day to a hundred and 10,800

(14:51):
according to CoinGecko.
Carden Stadelman,
CTO of Komodo Platform, told the crypt that the decision
signaled a return to law and order, saying that investors were now more comfortable reallocating capital into equities.
While Bitcoin's short term decline reflects that shift, the executive said he doesn't expect the trend to reverse the broader bull market. Quote, it's also perfectly reasonable to see Bitcoin's price action

(15:21):
after the court decision as little more than a correction before it continues making the gains that it has been making for several years.
The panel also rejected, this is the judge's panel, also rejected the administration's
justification for country specific tariffs on China, Canada, and Mexico,
saying

(15:42):
that they fail
because they do not deal with the threats
set forth in those orders.
Trump had invoked IE EPA to levy tariffs of up to a 25%
on hundreds of imported goods, claiming an economic emergency tied to drug trafficking
and foreign coercion.

(16:02):
The court ordered
the US government to issue the necessary administrative
actions within ten calendar days
to carry out the permanent injunction.
Trump's legal team has already filed a notice of appeal to the US Court of Appeals for the federal circuit according to a Reuters report.
So this court and, yeah, I'm not saying that it's illegitimate

(16:25):
because I've never heard of it. I've just never heard of it actually doing anything before. This is
absolutely the first time I've ever heard about this US Court of International Trade,
but they've basically just said no
to
everything
that was introduced on Independence Day and then the days thereafter.

(16:48):
I'm honestly kinda shocked that the equity markets rose.
And why is that?
Because to me,
the US
Trade Court basically signaled
that you have an internal battle going on with the Trump administration and the rest of,
well, the rest of the

(17:09):
legislative
workings of the United States government. This, to me, does not project
calm in the markets.
It does not suggest
that we're all working from the same page. It certainly doesn't suggest
that everything's, you know, fine.
It it to me, it suggests

(17:30):
confusion
and war you know, internal
battles.
So
why
we saw such a huge jackup in the equities market because of this is, honestly, the only thing that I can think of
is that it really is more about the retail sector

(17:52):
thinking that they can breathe a sigh of relief. But I'll bet you institutional investors are going,
these assholes don't know what the hell they're doing. We're going to wait on the sidelines
over here
and let all this BS calm down. But
we really don't know yet, do we?

(18:12):
But I'll tell you what you can do.
If if the fog of war has gotten in your eyes
and you're just filthy and dirty,
get away clean with SoapMiner Soaps. That's SoapMiner Soaps at soapminer.com.
You can get all your soap
needs
over at soapminer.com.
Soap miner Com has handmade

(18:35):
100%
tallow
soap.
This stuff is awesome.
I use it.
I mean, I'm still I'm literally still using my very first bar of rough cut tallow soap, which has no
no scents in it all. It's it's just three ingredients. It's only water or distilled water. It's a % beef tallow,

(18:57):
and it's lye. It doesn't smell like anything.
It doesn't have any kind of color to it. It's one of the best bar soaps I've ever had.
And I've had it for, like
my family uses it. So my son, my daughter, my wife, and myself
are still using the same bar of soap. So, yes, it costs $7 for five ounces of the rough cut tallow soap, but you're going to use it for a lot longer than you're gonna use Irish Spring,

(19:25):
which god only knows what's in that have you ever read the ingredient list on like a bar of soap that you get from walmart
you might want to do that and then you might want to go over to soapminer.com
and get yourself some real clean soap so that you can get real cleaning with the soap. You can get it in Earl Grey. You can get it in Fresh Breeze. You can get it oh, he's just now offering goat milk tallow. So instead of a % distilled water, it's basically lye

(19:57):
and goat milk
and
beef tallow.
That
it it it's this is the cleanest soap you're ever gonna find. You can get lemongrass and orange and and the rough cut, like I was saying. You can get tea tree, tree, you can get pine tar, you can get cedar wood, peppermint,
lavender.
It's amazing soap. And make sure that when you go to soapminer.com,

(20:19):
you put in Bitcoin and
into the coupon code and get 10%
off of your entire purchase.
And that way, SoapMiner knows that I made a sale for him and he will cut me Satoshi. So when you support SoapMiner,
SoapMiner supports me so that I can support SoapMiner.
Do you want a Bitcoin circular economy? That's what the circle p, which is where you're at right now. That's what we intend to do is create

(20:46):
more than just a circular economic Bitcoin community. We're talking about supporting
plebs,
supporting plebs, supporting
yet more plebs.
That's what we're trying to do. Soapmiter.com.
Get away clean.
These guys are not gonna get away clean.
Circle freezes

(21:08):
$58,000,000
in
USDC, that's Circle's
stable coin,
the USDC that was linked
to the Libra meme coin scandal according to our friends over there at Arkham
meme fantastic,
you know, meme tastic intelligence.
Danny Park has it for the block.co.

(21:29):
Stablecoin
issuer circle has frozen.
If you're not listening to me,
Stablecoin
issuer, the people that make Circle Stablecoin
froze
two wallet accounts
linked to the Libra meme coin scandal containing around 57,600,000.0
in USDC

(21:50):
according to Arkham Intelligence.
Screenshots provided by Arkham suggest that one frozen Libra wallet contains $44,590,000
worth of USDC while another
holds around 13,000,000
worth of USDC.
Key stablecoin issuers such as Circle and Tether can restrict

(22:12):
token
transfers in urgent scenarios
or during legal investigations such as major security breaches. However,
it's unclear who requested Circle to freeze the tokens,
a point currently being disputed online.
Berwick Law, a firm known for its involvement with hawk, the hawktua

(22:33):
meme coin,
and pump. Fun, claimed that the US District Court for the Southern District of New York
granted its temporary restraining order
to freeze the wallets. However,
Martin Romeo,
a plaintiff in the Argentine
Libra token case, stated he and other plaintiffs

(22:54):
sought the order through the local justice system.
And Circle hasn't commented,
on this at all or at least not yet. The Solana based meme coin Libra
gained widespread attention for its association
with Argentinian
president Javier Mille,
a connection that fueled its meteoric rise, which was eventually followed by a complete collapse in value.

(23:16):
It's not because of president Javier Millet, guys.
It's a shitcoin.
It's going to have the shitcoin graph.
It's just
whatever. It earlier this year, Malay publicly promoted Libra as a token intended
to help small businesses and startups in Argentina
posting a link to the token and its contract address on a social media account. And Libra's market surge or cap surged over 2,000,000,000 before quickly reversing course and crashing

(23:46):
by the standard 90%
because it's a shitcoin.
For all you chartalist out there, it's going to have a shitcoin chart. It just is. Malay then withdrew his support for the project after the meme coin's value collapsed,
saying that he had no advanced knowledge of it and never intended to encourage people to invest.

(24:07):
Bullshit.
Hayden Davis, CEO of Kelsier Ventures,
and the alleged adviser to Libra claimed he paid Malay's sister,
his sister,
to influence the Argentine
leader to endorse the project.
Following the collapse,
Malay faced fraud charges filed by local lawyers over his involvement in the meme coin, though he has consistently denied any wrongdoing. Amid

(24:31):
an ongoing legal investigation into his involvement,
a local judge requested the unsealing
of the president's
and his sister's bank accounts earlier this month. A few days later, however, Argentina announced that the investigative unit tasked with probing the Libra scandal has been
disbanded.
I I have honestly, I've I've almost

(24:54):
I am just like everybody else.
I'm at the I am at the,
behest of mainstream media. I literally forgot about Javier Millet because he hasn't been in the news lately.
Has that happened to anybody else, or is it just me? If it's just me, then I feel embarrassed and I should be ashamed of myself, and I will go hide under a rock. But I get the feeling that somebody else out there is probably, oh, shit. I forgot all about Javier Millet.

(25:23):
But listen. That's not the point. This has nothing to do with Javier Malay.
This is a deadly reminder for all of you people out there
that unless you hold Bitcoin
and
you hold it yourself, which means under your own private keys,
how get

(25:43):
there's like, you know, Jack Dorsey is out there talking about Bitkey,
which is his hardware wallet
that basically doesn't have a seed phrase.
This I I like I I do. I I I like Jack. I like what he's done for the space, but I hate the Bitkey.
It just doesn't make any sense to me
for various reasons that I I don't wanna get into into all of them. But one of them is is that

(26:06):
because Bitkey,
they're the ones that actually hold the key.
You don't actually hold your own key.
That causes two problems. One is
I think they'd be able to freeze your funds if they were asked to by the FBI or c whatever,
the SEC. I I don't care
because you're not really in control of your funds on a Bitkey. At least that's what it kinda looks like. Now I could be wrong,

(26:33):
but one of the things that's come to light is that they can also see what transactions you're making.
Well, if they can see what kind of transactions you're making and you don't have your own seed phrase, which means that you can't
use another hardware wallet
because like like my my seed phrase with my cold card wallet, I can
cold card generated that seed phrase.

(26:55):
I can take that seed phrase and I can go to any other actual Bitcoin wallet and I can spin up that same wallet that I built with Coldcard
on Sparrow
or Specter
or a whole host of different types of Bitcoin wallets because they all say, hey, would you like would you like
to spin up the wallet with your seed phrase? Do not do this online. You if it don't don't give your seed phrase out to somebody online.

(27:24):
You've got to really be prepared for, you know,
being able to be damn sure that you really do have the correct copy of the Sparrow wallet software or the Specter software or whatever that you're going to enter in the seed phrase with. Right?
Don't don't just go go start doing that shit. I'm just saying that this can be done. I've had to do it with Electrum wallet before,

(27:48):
but I was I was attached to my own Electrum server
on my own Bitcoin full node.
That's why I did not have a problem doing that. And unless you're prepared to run your own node, don't do any of the shit that I just suggested.
Okay?
The point is,
you can't take your money with you if you start out with a Bitkey.

(28:08):
Right? And Circle
and Tether
being able to freeze
millions of dollars
just at the snap of their fingers
should tell you all you need to know about why I don't use either one of these things.
It's ridiculous.
I don't I've never even met anybody in real life that has to use Tether,

(28:31):
and I certainly don't know anybody that's ever used Circle.
Just
I mean, like I said, unless
meteorites are falling out of the sky and dinosaurs are rising from the grave,
you probably don't need to actually use tether. Let's run the numbers.

(28:58):
West Texas Intermediate Oil is down one and a quarter points to $61.00
8. Brent Norsee is down likewise 1.03
to $64.23.
Wow. We're almost starting to to get into a parity situations between Brent, North Sea, and West Texas.
Natural gas is down well over two points to $3.48

(29:20):
per thousand cubic feet, and gasoline is down just under a full point to $2.07
a gallon.
Gold is doing well today. Point 89% to the upside, $33.24
and a dime. Silver is up point o eight. Platinum is up a half.
Copper is down,
but palladium is up one and a quarter points.

(29:41):
Ag is mostly in the red today. Biggest loser is chocolate four five and a half to the downside. Biggest winner is sugar,
a quarter percent to the upside. Meanwhile, live cattle is up 1.02%.
Lean hogs are down point 17%,
and feeder cattle are up almost one and a half.
The Dow,
I guess, reversing its yesterday's

(30:03):
trend, is actually in the red today.
It's down well over a tenth of a point to forty two one zero six. S and P
futures or rather, the S and P is up a quarter of a point as is the Nasdaq, but the S and P Mini
is down 0.05%.
Bitcoin is at $1.00 $6,900,

(30:25):
so we can kiss the one eleven goodbye, I guess.
Everybody's rotating into equities because, apparently,
the US Trade Corp made everything okay.
Jesus. These people just
I've never seen anybody chase each other's tail
like retail investment

(30:45):
crew lately. It's just kinda sad. But there's still a $2,130,000,000,000
market cap. We get 32.1
ounces of shiny metal rocks within our one Bitcoin of which there are 19,871,422.72
of. Average fees per block 0.04
BTC
taken in fees on a per block basis.

(31:07):
There are eight blocks carrying 13,500
transactions waiting to clear. High priority rates are 4 Satoshis per v byte. Low priorities are the same.
Hash rate,
909.5
exahashes per second, so no minor capitulation
yet.
Go to bitcoinandshow.com.

(31:28):
Go to bitcoinandshow.com.
That's all one word, bitcoinandshow.com.
Sign up for the email. I'm not gonna give it to anybody. I'm not gonna sell it to anybody.
I'm not gonna, you know, I'm I'm just not going to play with your emails because it is your property,
and I have no reason whatsoever to give it to anybody else.
Right now,
I'm just posting up

(31:51):
the the episodes of the show on a daily basis.
So
at one point,
very soon, I'm I'm
I'm getting a whole library of of stuff together with my Obsidian
note taking app. I've read, like, 50 books about soil and cattle and management and all kinds of stuff, and I'm going to start writing, but I need to have a library

(32:15):
put together,
you know, that I can kinda start with. And then I'm gonna start posting articles about soil and mycology and bacteria and all kinds of the neat stuff that I've been reading about. And if you wanna catch any of those, go to bitcoinandshow.com.
That's bitcoinandshow.com.
Give you give me your email address. I'm not going to give it to anybody.

(32:39):
From down the drain, yesterday's Bitcoin and episode, I've got digital panhandler with a row of ducks twenty two twenty two
says nothing.
Deleted account,
1291
says,
say something.
Okay.
I just said something. Progressively worse with a thousand,

(33:00):
says thank you, no thank you. Turkey with 500 says nothing. God's death $2.37, thank you sir, no thank you. And that's the weather report.
Well, we did get some good news out of the Bitcoin conference. By the way, welcome to part two of the news that you can use.

(33:27):
Yesterday, it was announced
by the block
or not the block, but block. That's Jack Dorsey's company, I guess.
Lightning routing
yields 10%
annually. Let me read it again.
If you've got a lightning node,
other people that with lightning nodes apparently are getting 10%

(33:47):
yields annually, at least
the node that Block is running.
At least that's my guess. Let's read more about it from Atlas twenty one.
During the Bitcoin twenty twenty five conference in Vegas, Miles Souter,
Bitcoin Product Lead at Block Incorporated,
revealed data that could change the economic perception of the Lightning Network.

(34:11):
That company's routing node is generating annual returns
of 9.7%
on invested liquidity.
During his presentation, Souter
confirmed what many experts suspected, but no one had ever quantified
precisely.
Lightning payment routing cannot only be technically effective, but also economically

(34:35):
profitable
at scale.
With an estimated public capacity of a 84
BTC,
that's about $20,000,000,
Block is demonstrating
that Lightning infrastructure can generate significant returns
through the use of Bitcoin as a payment method.
Lightning routing represents what experts define as true non custodial

(34:59):
yield
returns
generated from the pure economic utility of Bitcoin as a means of payment
without having to interest one's funds to a third party.
Quote, we are earning almost 10% returns
on Bitcoin by effectively routing real payments on the Lightning Network, Suder declared.

(35:20):
In 2024,
Cash App recorded an increase in Lightning payments volume equal to seven times that of the previous year.
One in four outgoing payments now occurs via Lightning Network, suitor stated.
According to Block product lead or, well, I guess Souter, quote, if Bitcoin
becomes
only digital gold,

(35:41):
we have failed the mission. If we don't use Bitcoin for payments, we risk losing one of the most important promises, permissionless money of permissionless money. If we don't preserve the qualities of cash in the digital world, human liberty is seriously in trouble, end quote.
The company
aims to incentivize practical and daily use of Bitcoin,

(36:02):
seeing lightning payments as the key to realizing Satoshi Nakamoto's original
version or vision of a peer to peer electronic payment system. Yeah. The last part is basically a whole bunch of philosophical fluff. I mean, it's not saying that they're wrong, but just keep in mind that this entire article is about the fact that they are generating real yield

(36:22):
by doing something and offering the service that people want.
They're not generating yield out of, you know, thin air. They're not promising people shit they can't deliver. They're actually running a high quality Bitcoin lightning node.
They have a hundred and 84 Bitcoin on that node.
I have no idea how many channels they have, but if I remember correctly,

(36:45):
the name of the node node is the letter c and an equal sign.
So I I can only guess that they pronounce it sequel.
That's the best I got for you. So the letter
little letter c
and an equal sign, you might be able to go find that on

(37:06):
oh, I can't remember the name of the website for lightning notes. There's a whole website that that you can go to and you can I like, if you know the name of the of a node that you're looking for, you can pick it out of the network and see how many channels it has and how much Bitcoin it has and blah blah blah blah blah blah?
But we but what you can't find out about Lightning Nodes is how much,

(37:26):
routing they're actually doing and how much they're charging for those routes. Right? So we are depending
on Suitor's claim that that Block Incorporated
is actually getting
a real 10% yield
on routing people's lightning payments,
which is pretty good because
Ellen Biggs said that he was only getting, like, point 5%

(37:48):
APR.
And l n big's got massive,
massive Bitcoin nodes. So
I see a problem.
Why is Block
able to get 10% yield
and l n big only able to somehow or another come up with half a percent.
I don't know. If you ask me, something smells fishy, but I ain't got time to

(38:11):
reel it in. Bank of Russia says that qualified investors can now access crypto
derivatives
because, you know, god forbid you actually buy the thing, you gotta buy the bet on the thing.
Don't buy the bet.
Buy the actual things. Stop being stupid. But from
Decrypt.c0

(38:31):
written by Vismaya v, the Bank of Russia said on Wednesday
that financial institutions
may now offer crypto linked derivatives
to qualified investors,
marking a cautious yet significant step forward or towards
regulated crypto exposure in the country. Quote,
Financial
institutions
may now offer

(38:52):
qualified investors financial derivatives,
securities, and digital financial assets
whose yields
are linked to cryptocurrency
prices, the central bank said in a statement. Oh, god.
Yields
that are linked
to cryptocurrency
prices,
how many

(39:12):
steps away from actually owning the thing of value do you have to be
before you start becoming uncomfortable?
For me, it's one step.
The the the spot ETF is one step away
from actually owning Bitcoin,
and I'm uncomfortable

(39:33):
with having BlackRock
BlackRock iBit shares. I don't want them. To me, they're worthless.
I I don't know. What
where are we going wrong?
How is Misty and buying,
you know, MicroStrategy
and and and betting on derivatives of derivatives of derivatives that itself is a bet on the price of the actual asset when it's so easy to actually get the asset? Where did we go wrong?

(40:03):
If you can answer that question, I'll give you a thousand satoshis.
The instruments,
however, may must be non deliverable.
Meaning that they cannot result in the
actual ownership of crypto assets
such as, you know, Bitcoin.
It's similar to the restrictions that US based crypto ETFs have faced on offering in kind redemptions. The bank urged a conservative

(40:28):
approach
Because, yes,
being conservative means not owning the actual thing that you think you own. That's just so conservative.
But it's a conservative approach to these offerings,
calling for full capital coverage and individual exposure limits
while repeating its long standing warning against direct investments in cryptos.

(40:49):
Yeah. Because they wanna cut.
This is the house
forcing you to play a game
instead of actually buying Bitcoin,
but the move is the latest
in a series of policy steps aimed at developing Russia's domestic crypto infrastructure
without compromising its control. And in 2020, the Bank of Russia barred mutual funds

(41:10):
and brokers from offering crypto exposed products,
citing volatility, fraud risks, and, of course, systemic
threats. The regulator
has long viewed crypto,
decentralized
and unbacked,
as incompatible with national monetary policy.
Things began to shift after Russia's Invasion Of Ukraine in 2022

(41:31):
when
sanctions happened. But isolated
from global finance, Russian officials then began exploring
how crypto could enable international settlements and
preserve liquidity.
The legal walls around crypto in Russia began to crack, you know, last August when Putin signed a law permitting registered crypto miners to operate,

(41:53):
formally
regulating an industry long kept in legal limbo.
In March, the Bank of Russia floated a proposal to allow,
quote,
particularly
qualified
investors,
end quote,
those with over $1,100,000,
US dollars, or a hundred million rubles in assets

(42:14):
or annual incomes exceeding 50,000,000
rubles or half a million dollars US to participate
in a limited three year crypto trial. And by April,
Russian officials had advanced plans for a state backed crypto exchange according to local outlet RBC.
Finance minister Anton
Sulyanov

(42:35):
publicly backed the platform which will operate under an experimental
legal regime. Oh, god.
Anytime somebody says an experimental legal regime, you might wanna run because that sounds a lot like something you don't wanna have anything to do with. But access is going to be limited
to, quote,
super

(42:56):
qualified investors
with requirements
still under review. So you got qualified investors,
and then what what what was it? One up here.
Where where was it?
I can't find it. But now we have well, we have, like, extra qualified investors, and now they're talking about

(43:18):
super
qualified
investors. And we don't even know how much money they have to have to be considered a super qualified.
This is just
bullshit.
All of these people deserve to be poor.
I'm just gonna say it. All of these people deserve to be as poor as barn mice that ain't got a

(43:40):
sink to or a pot to piss in or a window to throw it out of
because they're all being stupid.
They're just I mean, from the from the regulatory framework all the way down to investors actually believing that instead of owning the asset, that you should actually own a bet on what the asset does.
Like, that's fucking brilliant.

(44:02):
Maybe Pakistan has their shit together because they did announce
the creation of their own
strategic
Bitcoin reserve.
Is it gonna be an iBit, or are they actually going to hold Bitcoin? Let's find out from Atlas twenty one.
Pakistan
has officially announced
the creation of a strategic Bitcoin reserve.

(44:23):
The announcement was made during the Bitcoin twenty twenty five conference in Vegas marking a significant
shift from the government's previous stance against digital assets.
During the
event, Bilal bin Saqib,
head of the Pakistani crypto council, shared the country's decision.
Quote,
today,
I announced the Pakistani government is setting up its own government led strategic Bitcoin reserve,

(44:49):
and we want to thank The United States Of America again
because we were inspired by them. Then he added, quote, this wallet,
the national Bitcoin wallet, is not for speculation.
We will be holding these Bitcoin, and we will never
ever
sell them, end quote. So I guess they're actually going to buy real Bitcoin, quote. It

(45:12):
rather not quote, but it remains unclear how the Bitcoin will be acquired
whether through direct purchases or through other means.
Pakistan's shift in approach towards digital asset traces back to last February
when the government
first explored the idea of creating a national crypto council.
This body was designed to oversee the development of a comprehensive regulatory framework for cryptocurrencies

(45:37):
and to attract
foreign investment in the sector.
The council's proposed initiatives
included projects such as utilizing surplus energy for mining,
building high performance data centers, and accumulating Bitcoin for the national treasury,
just a few days ago,
the council officially allocated

(45:58):
2,000
megawatts of surplus energy to support mining operations and AI data centers. And if you remember, I brought you that story a few days ago.
Moreover,
Changpeng Zhao,
cofounder of Binance, was appointed
as an adviser to the council in April offering expertise on crypto regulations,
blockchain infrastructure, and the adoption of digital assets.

(46:20):
To further consolidate
this new approach,
the Pakistani
Ministry of Finance has commissioned the creation
of the Digital Asset Authority,
an agency dedicated to supervising digital asset regulations
and issuing licenses for crypto service providers operating within the country. So Pakistan marches
right on.

(46:42):
I mean,
two gigawatts
wasn't enough, apparently.
Now they're just going straight,
full bore,
strategic Bitcoin reserve.
So we'll we'll see.
I'm sure Arkham Intelligence will will troll those dudes too, and we'll find out what their wallet address is soon enough,
and we'll be able to look and see if if they're actually putting Bitcoin in that wallet. But until then,

(47:09):
we'll end
the show today with this one.
Jet King Infotrain.
God. Why does why does this sound like a funk band?
Jet King Infotrain
becomes India's First public company to hold Bitcoin as a treasury reserve. So India,
welcome to the shit show.

(47:30):
This is written by Gino Matos
for cryptoslate.com.
Jet King Info Train.
Get on the Soul Train.
Became India's First publicly traded company to adopt Bitcoin
as a reserve asset for its treasury
after actually purchasing
real Bitcoin.

(47:51):
12 of them on December
according to the firm's CEO,
Avanesh Barwahi.
You've gotta be shitting me. This is updated since December
2024.
How the hell did I get a hold of this? Oh, oh, oh, that's right.
TradingView.
Let me say a few words about TradingView.

(48:15):
Their news section, if you choose to put it up in a pane because you can have, like, a graph of, you know, Bitcoin,
then you'd have, like, you know, a watch list of all your stocks.
Right under that, in my view, I've got a list of the daily news.
And you know what's in the daily news?
Shit like this
from, like, seven months ago.

(48:36):
This is this this
article
that came up today
came up today
on TradingView is seven months
old.
We already knew about this.
We already knew
that JetKing Infotrade
was India's First publicly traded company to adopt Bitcoin.

(48:57):
We knew that seven months ago.
So to the people that actually
are looking
at what's going on in TradingView's news pane,
be very careful because there's a second gotcha
that's coming out of the news pane of TradingView.
Really shitty
outlets.

(49:18):
News outlets.
And I'm gonna pick on one in particular.
News BTC.
Don't listen
to a single thing
that outfit
ever says.
It is all clickbait.
In fact,
I have now
I literally have to scan

(49:38):
through TradingView's
news pane. I gotta
scroll, and it's like eight stories in a row from news BTC, and it's all clickbait
headlines
before I get to something like, you know,
The Block or so you know, something that's a little bit more credible
or, you know, Bitcoin Magazine or Cointelegraph.
And, yeah, I mean, I've got problems with with all of these publications,

(50:01):
but not like I've got with news BTC.
That thing can go to hell. It can go hell go to hell and die.
It I I would I would rather toss diesel on newsBTC
and light it on fire
than to read another thing from them, even though this is from CryptoSlate,
which I stopped I stopped reading because I I don't think it's as quality as some of the other places that I that I can find. But news BTC is just terrible. And I don't understand why

(50:32):
TradingView,
which is
pretty much a class act.
I have no idea why they just source the crappiest news sources for Bitcoin news in their news pane. I I I don't get it. Again, if somebody can tell me why, I'll throw you a thousand sats for the best answer.
Until then, I'll see you on the other side.

(50:53):
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.
Have a great day.

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