Gemini Exchange To Acquire License To Operate In United Arab Emirates
BtcCasey
Jun 1, 2023
Gemini’s move is another sign of exchanges seeking alternatives to the American market as regulatory uncertainty takes its toll.
https://bitcoinmagazine.com/business/gemini-exchange-to-acquire-license-to-operate-in-uae
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Gemini, a global cryptocurrency exchange, has announced [1] its plans to acquire a cryptocurrency license in the United Arab Emirates (UAE) in a move to expand its services. Describing the UAE's position as a forward-thinking financial hub, Gemini aims to tap into the country's growing market. The company is committed to becoming a global entity, according to the announcement, by meeting local regulatory requirements and understanding the needs of UAE crypto investors.
Gemini's decision to apply for a license comes as a result of its findings from the 2022 Global State of Crypto Report. The report revealed a significant increase in cryptocurrency adoption among individuals in the UAE, with many using it for in-person purchases. Additionally, the study indicated a strong intention among non-owners to enter the cryptocurrency space.
Speaking about the application, Gemini leadership expressed their vision of providing a safe, secure, and user-friendly platform for customers in the UAE and beyond. The company stated that it is eager to serve the rapidly growing and vibrant crypto community in the region.
In January, Gemini co-founder Cameron Winklevoss wrote a letter to its parent company [2] Digital Currency Group (DCG) alleging that DCG defrauded Gemini customers in relation to Gemini Earn. Prior to that, Gemini was sued by the CFTC [3] for “misleading the regulator in conversations concerning the launch of bitcoin futures contracts.”
Gemini's move into the UAE highlights the country's emerging status as a bitcoin hub. In addition, it highlights the continued flight of major exchanges out of the U.S. as a result of tightening regulations. At the beginning of May, Coinbase introduced its new international exchange arm [4] called Coinbase International, with the company stating that “countries around the world are increasingly moving forward with responsible crypto-forward regulatory frameworks to strategically position themselves as crypto hubs.”
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Links:
[1] https://twitter.com/Gemini/status/1664107397445550081?s=20
[2] https://bitcoinmagazine.com/business/gemini-alleges-dcg-genesis-defrauded-users
[3] https://bitcoinmagazine.com/business/bitcoin-exchange-gemini-is-being-sued-by-the-cftc
#UAE #Gemini #Exchanges #Middleeast
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CleanSpark Announces Purchase Of 12,500 Antminer S19 XP Bitcoin Miners
BtcCasey
Jun 1, 2023
The publicly traded bitcoin mining company is once again expanding its inventory of deployable miners this year in its quest for 16 EH/s.
https://bitcoinmagazine.com/business/cleanspark-announces-purchase-of-12500-antminer-bitcoin-miners
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CleanSpark Inc. [1] has announced the purchase of 12,500 Antminer S19 XP bitcoin mining machines for a total price of $40.5 million. The machines were acquired at a lower price than the current market average, costing $23 per terahash, according to a press release shared with Bitcoin Magazine. The purchase agreement states that 6,000 of the machines will be shipped in June, with the remaining 6,500 set for shipping in August.
Zach Bradford, CEO of CleanSpark, expressed his confidence in the purchase, stating, "This purchase ensures that we are prepared to meet and potentially exceed our year-end target of 16 EH/s and also positions us to be one of the most power-efficient miners on an energy-per-hashrate basis." He further highlighted the optionality provided by the additional machines, allowing the company to replace less efficient units if the economics support it.
CleanSpark reported that it has been taking advantage of discounted machine purchases during the crypto bear market. In February, the company acquired 20,000 Antminer S19j Pro+ units [2], followed by the purchase of 45,000 Antminer S19 XP units in April [3].
Gary A. Vecchiarelli, CFO at CleanSpark, emphasized the importance of these purchases in preparation for the upcoming bitcoin halving, stating, "the efficiency of these machines also results in less power consumed per bitcoin mined compared to older generation miners, which should translate to higher margins."
CleanSpark's recent purchases of bitcoin mining machines demonstrate the company's commitment to expanding their mining capacity and staying competitive in the market. With fees from Ordinals inscriptions boosting the revenue for miners, it is expected that large players like CleanSpark will continue to bolster their miner inventory.
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Links:
[1] https://www.cleanspark.com/
[2] https://bitcoinmagazine.com/business/cleanspark-acquires-20000-bitcoin-miners
[3] https://bitcoinmagazine.com/business/cleanspark-to-nearly-double-bitcoin-mining-capacity
#Antminer #Mining #CleanSpark #PublicMiners #Asics
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Should A Bitcoin Wallet Have Rights?
Artem Afian
Jun 1, 2023
Like corporate entities or intelligent robots, Bitcoin wallets are poised to gain legal rights of their own.
https://bitcoinmagazine.com/legal/why-bitcoin-wallets-should-have-legal-rights
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This is an opinion editorial by Artem Afian, a lawyer and “legal futurist” at Hiveon, a crypto mining ecosystem that offers services for Bitcoin mining hardware.
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I want to draw your attention to the fact that Bitcoin transactions ultimately occur between wallets [1]. There are humans behind wallets, but this connection is not really what’s important. The pseudonymity of Bitcoin is thanks to the fact that there is no direct connection between the wallet and the person who owns it. It is what distinguishes a Bitcoin wallet from any other financial instrument. No matter how much regulators try to change this, the core of the technology remains the same.
What does this mean? It means that, soon, wallets will be recognized as entities deserving of legal rights.
First, humanity began to recognize animal rights [2]. Now, there is talk about the legal rights of a robot [3]. Soon, the rights of a Bitcoin wallet will come to the fray.
When one talks about the rights of robots, they usually refer to some imitation of human will that is deserving of legal recognition. We understand that a robot does not have a soul in the same way that a human does, but at the same time, it performs rather complex actions, which gives rise to legal consequences. For many of us, a robot or a Bitcoin wallet is something inanimate and devoid of a soul and, perhaps, therefore undeserving of legal protections. But we recognize the rights of companies and corporations and, of course, it is difficult to imagine more soulless forms than those. It turns out that the subjects of law can be inanimate.
So, what is the difference between a Bitcoin wallet and a legal entity? A legal entity is simply a set of files in a specific registry. Lawyers even have a theory of the “fiction of a legal entity [4].” We will calmly confirm that the legal entity is an American corporation. We can quickly check this. But how to check that a legal entity was created, say, under the laws of the country of Swaziland? Even if I show you documents that prove it, they are unlikely to tell you anything. So, if I tell you that you are dealing with a foreign company, you most probably just have to believe it.
Nevertheless, this legal entity, displayed as it is only on paper, has some rights. So, the Bitcoin wallet that exists is even more tangible than many legally-protected entities. Therefore, one more conclusion: Since legal entities have rights, then a wallet may have rights. Just like legal entities, wallets perform transactions, and just like legal entities, wallets can change their owners. This fact never changes: if robots or legal entities are deserving of legal rights, so too are Bitcoin wallets.
I think Bitcoin is an exciting new space and that we still have a lot to explore. Now, my idea that Bitcoin wallets will inevitably receive legal rights of their own may seem crazy, but many more discoveries await us.
This is a guest post by Artem Afian. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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Links:
[1] https://bitcoinmagazine.com/guides/what-are-bitcoin-wallets
[2] https://aldf.org/article/laws-that-protect-animals/
[3] https://www.wsj.com/articles/robots-ai-legal-rights-3c47ef40
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The Debate Around “Cursed” Ordinal Inscriptions
Craig Deutsch
May 31, 2023
Inscriptions that do not get indexed by the ord protocol are known as “cursed,” but whether or not to include them is an ongoing conversation.
https://bitcoinmagazine.com/technical/the-debate-around-cursed-ordinal-inscriptions
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After only four months since the protocol was launched, ord has its first contentious debate about what are known as “cursed” inscriptions.
The simplest definition of a cursed inscription is any inscription that does not currently get indexed and identified by ord. This term came about as a catchall when some people incorrectly used or purposefully misused opcodes to create inscriptions that were not able to be indexed by ord and would therefore be unrecognized and not given an inscription number.
This issue was first mentioned on April 25 in the ord github [1] and the interim fix proposed by then lead developer Casey Rodarmor was to, “Modify ord to recognize the above currently invalid inscriptions, including retroactively in old blocks, but consider these new inscriptions ‘cursed’ and assign them negative inscription numbers.”
Funnily enough, the example inscription code on the Ordinals docs website would have been a cursed inscription.
https://twitter.com/cbspears/status/1663292796306874369
[Link to embedded Tweet.]
There are many ways cursed inscriptions can be created. Any inscription with multiple inputs/outputs would be considered cursed. As shown above, certain misuse of opcodes such as OP_1 can lead to cursed inscriptions. Alternatively, the introduction of OP_66 using a value of “cursed” intentionally made these types of inscriptions by having an even numbered opcode which is not indexed by ord. Unless already defined in the spec, even numbered opcodes are not recognized because they are reserved for future protocol development. The full list of ways to create cursed inscriptions from issue #2045 [2] is as follows:
• Multiple inscriptions per transaction, for efficient batching.
• Inscriptions on inputs after the first, which is useful for collections.
• Multiple inscriptions on the same sat, so that the entire history of a sat doesn’t need to be checked to determine if a new inscription is valid.
• Inscriptions with unrecognized even headers, so that new even headers don't cause upgraded clients to disagree about inscription numbers.
There are a couple specific debates around cursed inscriptions. One of the disputes comes from the way that these inscriptions are currently numbered. Cursed inscriptions are numbered negatively in the order of their creation. Because of this numbering system and naming convention, some people purposefully chose to create inscriptions and collections that appear “cursed” whether by flipping the image of a positively numbered inscription or using a more sinister image theme when inscribing. The question is: Should these be appended to the index of positively numbered inscriptions or should they keep their negative inscription number when the code is updated?
Additionally, another contentious conversation is what to do about the certain type of cursed inscriptions that used the OP_66 opcode in their creation. Because this opcode is not recognized by ord and even numbered opcodes are intentionally left out for future development use, it is debatable whether inscriptions using this opcode should be included in the cursed set or if they should be rejected.
At the present time, the issue around the even number opcode [3] is listed in the ord github. There are many comments in support of including these inscriptions in the index, but the lead maintainers of the protocol seem to be against it. As of now, the current stance by the developers is that these inscriptions would be unbound, meaning that they would not be assigned to a specific satoshi.
Remember, ordinal theory works based on a first in, first out tracking system for satoshis. Each inscription is assigned to the first satoshi in the genesis transaction when the inscription is created. This type of lens for looking at bitcoin allows images, files, text, etc. to be tracked and transferred. If a cursed inscription is unbound, it would not be associated with a specific satoshi and therefore would be unable to be transferred to another address. Many people who are inscribing are hoping to be able to sell or transfer their inscription to another person. While the inscriptions using this opcode will live forever on the Bitcoin blockchain, if these inscriptions are classified as unbound and unassigned to a specific satoshi, users who minted cursed inscriptions using this opcode would be unable to sell or transfer them.
Herein lies one of the bigger concerns for people who are spending money on transaction fees to create cursed inscriptions. If they are unable to sell them in the future, significant funds would have been wasted on fees. Many users have responded to the github issue, expressing support for including these inscriptions, but the code’s maintainers are not in favor of recognizing cursed inscriptions using the OP_66 even numbered opcode.
On May 30, the new lead maintainer of ord, Raphjaph, wrote [4], “As the protocol currently stands inscriptions are not valid if they use an unrecognized even tag, so this change already makes a concession by recognizing them. For now they are unbound but we might reconsider this and bind them in the future if there are strong reasons.”
This response is not what many inscribers were hoping to hear. Similar to Bitcoin, ord is open-source software so users can fork the code if they wish to recognize these specific types of cursed inscriptions. This contentious debate is ongoing and the path forward for ord remains to be seen. Users who spent significant sums on transaction fees may be willing to switch to a new version of ord that will recognize their cursed inscriptions, but this is only a theoretical path forward at this time.
Regardless, Ordinals are a new technology being built on Bitcoin. Whether inscriptions are a flash in the pan or if they have lasting power may depend on how this issue gets resolved.
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#Inscriptions #Debate #BitcoinDeveloper #Ordinals
Links:
[1] https://github.com/ordinals/ord/issues/2045
[2] https://github.com/ordinals/ord/issues/2045
[3] https://github.com/ordinals/ord/pull/2109
[4] https://github.com/ordinals/ord/pull/2109#issuecomment-1568125568
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Liquidators Of Sam Bankman-Fried’s Alameda Research Have Scavenged $110 Million Of Bitcoin After Losing Billions
BtcCasey
May 31, 2023
Analysis by Arkham Intelligence indicates that Alameda's liquidators have managed to acquire slightly more than 4,000 bitcoin.
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Liquidators in charge of the recovery of assets for the now-disgraced Alameda Research [1] hedge fund founded by Sam Bankman-Fried currently control over $110 million worth of bitcoin held in various wallets, according to a report supplied by blockchain analysis firm Arkham Intelligence [2]. These wallets have been receiving BTC from exchanges and cold wallets as recently as March 2023, the report revealed.
The aggregation of these wallets provides insights into the liquidators' collection of BTC from Alameda's holdings. A recent transaction in April involved a 1 BTC test from Alameda's Merchant wallet. This BTC was later sent to a holding address now under the control of Alameda's Liquidators, known as 'Alameda Merchant 1.' Since the beginning of 2023, this address has accumulated 3,581 BTC, worth approximately $97.19 million at current prices.
The report states that “In total, Alameda’s liquidators have managed to secure 4,083 BTC (currently $110.81M) sourced from:
• Other Alameda Wallets: 34.94 BTC (currently worth $948.27K)
• Deribit: 467.366 BTC (currently worth $12.68M)
• WBTC Custodian: 2997 BTC (currently worth $81.34M)
• Bitfinex: 298.027 BTC (currently worth $8.09M)
° Unlabelled Wallets (possibly an Exchange): 286.7 BTC (currently worth $7.78M)”
[A screenshot from the provided report.]
“However, this is only a fraction of the BTC that Alameda controlled in the past,” the report noted. “Wallets connected to this network of Alameda’s BTC activity were worth at peak over $800M, with Alameda likely holding more BTC in Centralized Exchanges or unlinked Cold Wallets.”
Arkham Intelligence stated that it will continue to monitor the on-chain activity of Alameda’s liquidators.
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Links:
[1] https://bitcoinmagazine.com/business/sam-bankman-fried-and-ftx-largest-crypto-fraud-history
[2] https://www.arkhamintelligence.com/
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Did The New York Times Publish Manipulated Footage Of A Bitcoin Mine?
Level39
May 31, 2023
Footage accompanying a New York Times article critical of Bitcoin mining appears to have been manipulated to reinforce the paper’s bias.
https://bitcoinmagazine.com/culture/did-the-new-york-times-manipulate-bitcoin-mine-footage
This is an opinion editorial by Level39, a researcher focused on Bitcoin, technology, history, ethics and energy.
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Did The New York Times manipulate aerial drone photography for its recent article attacking Bitcoin mining, in order to make the air in Rockdale, Texas appear smoggy?
On April 9, 2023, the paper published its article, "The Real-World Costs Of The Digital Race For Bitcoin[1]," which included attacks on Bitcoin miners who purchase energy through sanctioned demand-response programs [2] within the state’s energy grid.
[Sources: Twitter[3], nytimes.com[4]]
The article featured a sweeping hero video banner [5], which was also used as a still image for social media sharing, showing smog-filled aerial drone footage [6] over operations run by Bitdeer, a Bitcoin mining company that occupies a previously-abandoned aluminum smelting plant on the outskirts of Rockdale. However, evidence suggests that the footage may have either been manipulated [7] or lacks the necessary color grading that would have maintained photojournalistic integrity and adhered to ethical standards.
Links:
[1] https://www.nytimes.com/2023/04/09/business/bitcoin-mining-electricity-pollution.html
[2] https://www.ercot.com/services/programs/load/laar
[3] https://twitter.com/nytimes/status/1645551313068097537
[4] https://www.nytimes.com/2023/04/09/business/bitcoin-mining-electricity-pollution.html
[5] https://www.tributemedia.com/blog/what-is-a-hero-banner
[6] https://vp.nyt.com/video/2023/03/27/107205_1_bitcoin_wg_1080p.mp4
[7] https://youtu.be/oN-dFfRPEkg?t=95
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Color Histograms And Image Manipulation
Color histograms are useful for analyzing the exposure and color balance of an image [1]. A color histogram is essentially a bar chart where the left side of the x-axis is black and the right side is white. The y-axis represents the number of pixels found in the image, for each part of the tonal scale between black and white. A properly exposed photograph, where the full spectrum of tonal blacks and whites are naturally found in a scene, will have pixels that span across the entire x-axis, from left to right [2]. When color data fails to span the entire x-axis, it can show that either those tones were entirely unavailable to the camera sensor, or that manipulation was performed to purposefully omit those colors.
In the side-by-side comparison below, the color histogram in the aerial footage published by the Times [3] (left) has no pixels approaching the black point. This is particularly strange for footage that has bright sun and stark shadows that are clearly visible as the camera moves over the scene. When color parameters are enhanced and corrected (as shown below in the version on the right), a brighter and more stunning scene emerges.
[The color histogram [4] for the image on the left, featured on The New York Times’ [5] website, has a distinct gap between its color data and its black point, possibly indicating either an improperly exposed image [6] or manipulation to add a smog effect [7]. The photo on the right has been color corrected, showing a normalized histogram with the full range of colors and indicating that the Times’ version seems to have been altered for effect.]
The hazy footage used by the Times may give readers a false impression that rural Texas air has been polluted by Bitcoin mining. Bitcon mines are fully electrified and, like electric vehicles [8], the mining facilities photographed by The Times have zero Scope 1 carbon emissions. In other words [9], there are no direct greenhouse (GHG) emissions [10] that occur from sources that are controlled or owned by the operators of the mines. Any indirect Scope 2 emissions [11] associated from mining’s energy use comes from the grid’s normal emissions.
Links:
[2] https://digital-photography-school.com/histograms-your-guide-to-proper-exposure/
[3] https://vp.nyt.com/video/2023/03/27/107205_1_bitcoin_wg_1080p.mp4
[4] https://en.wikipedia.org/wiki/Color_histogram
[5] https://www.nytimes.com/2023/04/09/business/bitcoin-mining-electricity-pollution.html
[6] https://digital-photography-school.com/rescuing-poorly-exposed-photos-with-photoshop-levels/
[7] https://youtu.be/oN-dFfRPEkg?t=95
[8] https://en.wikipedia.org/wiki/Zero-emissions_vehicle
[9] https://twitter.com/RiotPlatforms/status/1645473961004892162
[10] https://youtu.be/JKXeeiCa5Wg?t=1266
[11] https://www.epa.gov/climateleadership/scope-1-and-scope-2-inventory-guidance
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Reply Hazy, Try Again
The alleged manipulation appears to have been indirectly confirmed by Jordan Vonderhaar, the freelance photographer who took the aerial footage in question. Vonderhaar published another photo from the same drone [1] flight on his personal website [2], showing that the weather was perfectly clear within moments of the hazy photo published by the Times. This clear photo, from a different angle, indicates that the missing color data in the hazy photo was not due to weather conditions.
[Vonderhaar published a clear weather photo on his personal website [3], taken within minutes [4] of the photo that showed smog surrounding the same Bitdeer mine.]
Vonderhaar's clear and sunny photo was also featured on the front page of the Times’ print edition [5] (from April 11, 2023), with a color histogram that had similarities to the one found in the smoggy photo — another extended black point. Normalizing the black and white points on Vonderhaar's portfolio image reveals vibrant colors and a sunny morning in Rockdale. Notice in the side-by-side comparison below that the Times intentionally cropped out some of the blue skies when it published this particular shot:
[The image on the left was published on the April 11, 2023, front page of the Times’ print edition [6]. In addition to cropping out the blue skies, it appears to have had its black point extended, to wash out colors, as evidenced by the gap [7] between the color histogram data and the black point. Normalizing [8] the color histogram (right), brings out the full color spectrum.]
Vonderhaar’s photo on his portfolio site included full Exif metadata [9] that shows details about the imaging, such as the fact that it was taken on the morning of February 28, 2023, at 8:02 a.m. in raw [10] format, with a DJI FC220, the camera supplied by the DJI Mavic Pro drone [11].
Analysis of the shadows in the photo not only confirms this timing, but further analysis also indicates that the smoggy video footage [12] was taken only nine minutes after [13] the photo that showed clear and smog-free air surrounding the mine. Yet, the golden hues from the morning sunlight and blue skies are completely missing from the hazy hero footage. That a perfectly gorgeous moment in Rockdale could suddenly become hazy, at all altitudes and distances only nine minutes later, is nearly impossible.
[Footage filmed nine minutes apart shows both clear weather and smog. Photos by Jordan Vonderhaar (top, middle), Shademap [14] (bottom), via @yeolddoc [15].]
Responding to allegations of manipulation, Vonderhaar — who described miners as “massive polluters [16]” — publicly stated on Twitter [17] that, “Nothing about the footage was doctored. It’s humid most mornings in Texas and when the sun rises you get low level haze. This is very common.”
Leaving aside for a moment that Vonderhaar appears to be admitting that he was perhaps intentionally seeking out hazy weather for his photojournalistic spread, the nearest automated weather observation station [18], located at Hearne Municipal Airport — 40 miles to the Northeast [19] and well out of view of the aerial photography — reported low-level fog [20] at that same moment.
Indeed, Vonderhaar's clear and sunny photo shows low-level fog on the distant horizon, many miles beyond Alcoa Lake. “Low-level” fog is not a high-altitude phenomenon, and sure enough, Vonderhaar's photo shows blue skies in the upper atmosphere and golden hues that are conspicuously missing in his smoggy footage, taken a few minutes later.
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Links:
[2] https://www.jordanvonderhaar.com/
[3] http://jordanvonderhaar.com/
[4] https://twitter.com/yeolddoc/status/1652079301553004545
[5] https://static01.nyt.com/images/2023/04/11/nytfrontpage/scan.pdf
[6] https://static01.nyt.com/images/2023/04/11/nytfrontpage/scan.pdf
[7] https://youtu.be/oN-dFfRPEkg?t=95
[8] https://digital-photography-school.com/rescuing-poorly-exposed-photos-with-photoshop-levels/
[10] https://en.wikipedia.org/wiki/Raw_image_format
[11] https://commons.wikimedia.org/wiki/Category:Taken_with_DJI_FC220
[12] https://vp.nyt.com/video/2023/03/27/107205_1_bitcoin_wg_1080p.mp4
[13] https://twitter.com/yeolddoc/status/1652079301553004545
[15] https://twitter.com/yeolddoc/status/1652079301553004545
[16] https://twitter.com/jordan_vondy/status/1645446668635058176
[17] https://twitter.com/jordan_vondy/status/1645455851006640130
[18] https://www.ncei.noaa.gov/products/land-based-station/automated-surface-weather-observing-systems
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Problems Uncovered
Rory Highside [1] — a VFX artist who has expertise in CGI video effects [2] — was among the first to notice problems with the footage that the Times had used. Analyzing the video and color histograms, Highside suspected that either the color grading was mishandled or the color balance had been manipulated [3]. One of the most noticeable issues was that the “black point” was extended, which is indicative of footage that is washed out [4]. This was evidenced by the fact that, as colors approached black, there was a noticeable and unnatural gap between pitch black and the available color data where darker colors should be. Vonderhaar did not respond to these allegations on Twitter, and did not respond to questions about them by email.
[Analysis by Rory Highside [5] of Vonderhaar’s Times footage.]
Links:
[1] https://twitter.com/roryhighside
[2] https://youtu.be/MT9PA5EvMuo
[3] https://twitter.com/roryhighside/status/1645726015233351680
[4] https://photo.stackexchange.com/questions/18821/how-to-best-methods-to-correct-washed-out-jpegs
[5] https://twitter.com/roryhighside/status/1645726015233351680
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The Hazy Truth Of Photojournalism
Determining truth in photojournalism is a murky endeavor. The raw footage captured by professional-grade digital cameras can be thought of as the digital version of undeveloped film. Camera sensors capture raw data, which retains maximum image information and flexibility [1] during post-processing, but requires processing and interpolation to produce an accurate final image. The photographer must adjust various parameters, such as contrast, white balance, exposure, and color saturation — meaning the photographer always has some artistic leeway in the final product. Color manipulations are trivial adjustments in post production. It only takes one slight adjustment [2] to wash out an image. Minor adjustments are very common, and typically not an issue. But, at the end of the process, photographers have to walk a fine line between enhancing an image for visual impact and maintaining its authenticity.
Links:
[1] https://www.loc.gov/preservation/digital/formats/fdd/fdd000241.shtml
[2] https://twitter.com/level39/status/1646204720963371014
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Unedited Raw Drone Footage Is Visibly Hazy
There is perhaps an alternate explanation for why Vonderhaar’s video footage was so hazy and lacking in contrast, while his still photograph taken nine minutes earlier was sunny and cinematic. The FC220 camera on Vonderhaar’s DJI Mavic Pro drone is capable of capturing video footage in a logarithmic (log) color profile [1]. Raw log footage is a flat and low-contrast format — not intended for publishing — that preserves a wide dynamic range of details, which allows for greater flexibility during post-processing. Much like how negative film [2] has inverted colors that enable positive images to be developed, log video footage always appears hazy when its raw, unedited format isn’t properly color graded [3].It would be the photojournalist’s responsibility, then, to accurately map to the colors they witnessed in real life.
[DJI drones can record in a logarithmic (log) color profile, which appears hazy if it isn’t color graded in post-processing [4]. Source: “Shooting In D-Log - DJI Mavic Pro [5].”]
To convert log footage to an accurate color profile, a process called “color grading” or “color correction” is typically performed [6]. This involves adjusting the image's color and tonal properties to achieve a more visually pleasing and accurate representation of the scene. The proper conversion from log [7] involves mapping the tonal values in the log footage to their corresponding values, such as with lookup tables, or LUTS, to color grade the final footage.
Vonderhaar could very well have been telling the truth when he claimed [8] that “Nothing about the footage was doctored.” Indeed, publishing unedited log footage without proper color grading would quite literally result in a misleading smog effect, without having to do anything. Doing this deliberately, of course, would be unethical if it intentionally misleads viewers into seeing smog that did not exist.
Photojournalists have a duty [9] to maintain journalistic integrity and adhere to ethical standards to truthfully convey the events they witnessed. While there is no definitive "correct" color to any image, intentionally misleading readers by failing to color grade log footage is a breach of ethical standards. Photojournalists must depict the scene as faithfully as possible, avoiding anything that might distort reality. Publishing raw and uncorrected video footage, which actively removes colors from a scene and creates a misleading smog effect, is effectively a passive form of photographic manipulation. If not manipulation, then it is an egregious example of Hanlon’s razor [10].
It should be noted that Vonderhaar’s lack of color grading may not be due to malice or even artistic bias. While a professional photographer who has expertise in color correcting raw still images [11] to JPEG may possess a solid foundation in color correction and a good understanding of color theory, it does not automatically mean they have the necessary skills to color grade log video footage. Color grading log video involves a different set of skills and considerations [12] compared to color correcting raw still images [13]. Expertise in video editing software and a specific understanding of the technical aspects of working with video formats — such as frame rates, codecs and color spaces — is a requirement to adeptly work with log footage. Managing temporal continuity and ensuring consistent color grading is critical to maintaining visual coherence. It’s entirely plausible that Vonderhaar was simply unable to color grade log video. But, whether it be malice or inability, the Times should issue a correction.
Links:
[1] https://www.dpreview.com/articles/4978813437/how-to-shoot-log-video-using-dji-s-d-log-color-profile
[2] https://en.wikipedia.org/wiki/Negative_(photography)
[3] https://youtu.be/pI9vIUwqLO0
[4] https://www.dpreview.com/articles/4978813437/how-to-shoot-log-video-using-dji-s-d-log-color-profile
[5] https://www.youtube.com/watch?v=ccPJWVTdyA8
[6] https://youtu.be/o1m4LQu6BGQ
[7] https://www.dpreview.com/articles/4978813437/how-to-shoot-log-video-using-dji-s-d-log-color-profile
[8] https://twitter.com/jordan_vondy/status/1645455851006640130
[9] https://nppa.org/resources/code-ethics
[10] https://en.wikipedia.org/wiki/Hanlon%27s_razor
[11] http://jordanvonderhaar.com/
[12] https://youtu.be/DBo3zsQq6mY
[13] https://youtu.be/mPvJkhnB4xg
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The Signature Style Of The Times
The Times has a signature style for its photographs [1], where it typically darkens images when it wants to portray a somber or moody tone. However, an extended black point — resulting in washed out colors — is the direct opposite of this iconic style.
[The Times’ signature photographic style [2] uses an extended white point that slightly darkens the image.]
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Links:
[1] https://www.reddit.com/r/photography/comments/jz4ver/what_creates_a_new_york_timesstyle_photograph/
[2] https://www.nytimes.com/2020/11/22/world/europe/russia-stalin-gulag-kolyma-magadan.html
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The Ethics Of Photo Manipulation
All photography requires some form of color correction. Minor stylistic choices aside, adjustments that actively mislead readers are unethical [1]. A 2015 article in the Times [2] about a World Press Photo research project, for instance, explained that photo editors cross an ethical line, which becomes explicit manipulation, when their processing obscures an image to create conditions that were not actually in the scene:
“The only point at which processing becomes manipulation is when the toning is so great — usually by transforming significant parts of an image to opaque black or white — that it obscures substantial detail.”
–“Debating The Rules And Ethics Of Digital Photojournalism [3],” The New York Times
According to Highside, the extent of the manipulation and our ability to restore the full color potential will remain unknown unless Vonderhaar releases his original raw footage. The Society of Professional Journalists (SPJ) recommends in its code of ethics [4] that journalists need to be proactive about addressing concerns and allegations of improper conduct:
“Ethical journalism means taking responsibility for one’s work and explaining one’s decisions to the public. Journalists should: Explain ethical choices and processes to audiences. Encourage a civil dialogue with the public about journalistic practices, coverage and news content. Respond quickly to questions about accuracy, clarity and fairness. Acknowledge mistakes and correct them promptly and prominently. Explain corrections and clarifications carefully and clearly. Expose unethical conduct in journalism, including within their organizations. Abide by the same high standards they expect of others.”
–SPJ code of ethics [5]
Despite the missing color data, which can only be sourced from Vonderhaar’s unreleased raw footage, Highside was able to partially restore the washed out footage to demonstrate what the imaging could have looked like if a proper color grading had been applied. The results are striking when compared alongside the video that was published by the Times:
https://cdn.jwplayer.com/previews/J0dequ6B
Intentionally deciding not to color grade or fully correct log footage is a breach of ethical standards in photojournalism. However, if it was due to lack of ability, it can still be considered a breach of ethical standards, particularly if the Times fails to correct the misinformation or take appropriate action to rectify the situation. A fundamental principle [6] of photojournalism is to provide an accurate and truthful representation of events. Misrepresenting the visual aspects of a scene goes against this principle and compromises the integrity of the profession. It undermines the credibility of photojournalists and the publication, it damages the reputation of the profession and erodes public trust in the media.
It’s unclear why the Times is seemingly motivated [7] to deliberately portray Bitcoin mining in such a negative light. It appears to fit a long pattern of distortions and bias [8] from the newspaper, which has become more evident to readers in recent years. When the public is being misled by photojournalists into believing a small and rural Texas town has thick smog typically found in populated and polluted cities, it’s necessary and appropriate to question the paper’s ethical choices.
Vonderhaar could clear up suspicions over his work by releasing the original raw log footage. This would allow members of the public to properly assess the color grading of the footage and reveal the true details that were present [9]. If indeed the log footage was intentionally left in a low contrast state, it would be an embarrassment for the Times.
Links:
[1] http://spj.org/ethicscode.asp
[4] http://spj.org/ethicscode.asp
[5] http://spj.org/ethicscode.asp
[6] https://nppa.org/resources/code-ethics
[7] https://bitcoinmagazine.com/culture/why-the-new-york-times-attacks-bitcoin
[8] https://www.thegrayladywinked.com/
[9] https://youtu.be/fG95ikKV_AE
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This is a guest post by Level39. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Pro-Bitcoin Legislation Reigns Victorious In Texas This Year As The Legislative Session Ends
BtcCasey
May 30, 2023
In addition to the Texas bills, the latest proposed debt ceiling deal did not include the Biden Administration’s proposed 30% tax on Bitcoin miners.
Bitcoin policy advocates celebrated several victories in the recent quarter, including the success of Texas SB 1929, a pro-mining bill, and the defeat of Texas SB 1751, an anti-mining bill. VP of Research at Riot Platforms Pierre Rochard expressed gratitude [1] to everyone involved, stating, "Texas will continue to be #Bitcoin country!"
These legislative outcomes will contribute to the growth and stability of Bitcoin mining operations in Texas. As Brian Morgenstern, head of public policy at Riot Platforms reported [2], SB 1751 did not pass, ensuring the continuation of the state's usage of Bitcoin miners’ flexibility in balancing and stabilizing the power grid.
In contrast, SB 1929 successfully passed, establishing a registration process for Bitcoin miners to share information with ERCOT, enhancing transparency and grid reliability. Additionally, HB 591 was approved, providing a tax incentive for utilizing gas that would otherwise be flared into the atmosphere for on-site Bitcoin mining, promoting emissions reduction.
Another significant development was the passing of HB 1666, which introduced a proof-of-reserves regime, positioning Texas as a leader in building confidence within the digital asset ecosystem. These legislative achievements reflect the collaborative efforts of various stakeholders and industry participants, including Riot Platforms, The Texas Blockchain Council and the Chamber of Digital Commerce according to Morgenstern.
In addition to these developments, public miner stocks also surged on the news that the U.S. debt ceiling deal may be finalized soon, and that it does not include President Joe Biden’s proposed 30% tax [3] on energy used for Bitcoin mining.
While these successes mark important milestones, advocates acknowledge that their work is far from over. But the Bitcoin community remains optimistic about the future and the continued growth of the industry, with the positive outcomes achieved in Texas during this legislative session setting a favorable precedent for Bitcoin-related policies and innovation in the United States.
Links:
[1] https://twitter.com/BitcoinPierre/status/1663587667764736001?s=20
[2] https://twitter.com/MorgensternNJ/status/1663601172651835425?s=20
Paxful Announces Appointment Of Interim CEO Roshan Dharia
BtcCasey
May 30, 2023
Dharia will act as CEO as the exchange continues its transition from previous leadership under Ray Youssef.
https://bitcoinmagazine.com/business/paxful-announces-appointment-of-interim-ceo-roshan-dharia
Paxful [1], a global peer-to-peer Bitcoin platform, has announced the appointment of Roshan Dharia as the new Interim Chief Executive Officer, effective immediately. This comes after a brief shutdown period [2] of the exchange prior to the departure of Co-Founder and former CEO Ray Youssef.
According to a press release sent to Bitcoin Magazine, Dharia will be responsible for strengthening operations and exploring strategic alternatives for the company. With over eight years of experience, Dharia expressed his enthusiasm for the role, stating, "It's a great honor to become CEO of Paxful. Over the last eight years, Paxful has been a pioneer in establishing the real use cases of Bitcoin and helping millions of people in the process."
Previously a senior executive at TrustToken (now known as Archblock), Dharia led the DeFi institutional lending business. He also founded and built the investment platform PTHL Affiliates, specializing in distressed private company acquisitions and turnarounds.
Srinivas Raju, the Custodian of Paxful, expressed his confidence in Dharia's leadership, stating, "I'm delighted that Roshan has joined Paxful and will take over day-to-day management of the company. I'm confident under his leadership the business will keep building a financial system that truly serves the 100%."
Youssef’s recent departure at Paxful was reportedly [3] a result of a feud involving a myriad of accusations and legal disputes with co-founder Artur Schaback, who is currently the COO of the exchange.
Since its establishment in 2015, Paxful has experienced significant growth, attracting over 12 million users worldwide and facilitating billions of dollars in trades on its platform, according to the press release.
Links:
[2] https://bitcoinmagazine.com/business/peer-to-peer-bitcoin-exchange-paxful-suspends-marketplace
Stablecoin Issuer Tether To Begin Bitcoin Mining Operations In Uruguay
BtcCasey
May 30, 2023
The company behind the most widely used U.S. dollar stablecoin is set to enter the mining industry through collaborations in Uruguay.
Tether, the company behind the widely popular USD stablecoin, has announced its foray into energy production and sustainable Bitcoin mining operations in Uruguay. According to the announcement [1], Tether’s collaboration with a local licensed company marks the company’s expansion into the energy sector as part of its goal to become a global tech leader.
By investing in renewable energy sources, Tether said it aims to support and promote sustainable Bitcoin mining, ensuring a “minimal ecological footprint while upholding the security and integrity of the Bitcoin network.” Paolo Ardoino, CTO of Tether, emphasized the company's commitment to renewable energy, stating, "Tether is proud to spearhead a movement that combines cutting-edge technology, sustainable practices, and financial innovation."
Uruguay has gained recognition as a leader in renewable energy, with an impressive 94% of electricity generation sourced from renewable sources such as wind and solar power according to the announcement. The country's favorable conditions for renewable energy production, including wind farms, solar parks and hydropower projects, make it an ideal location for Tether's sustainable mining operations. The company also stated that Uruguay's robust and reliable grid system further ensures efficient and sustainable mining activities.
Tether is actively seeking experts in the energy sector to join its team and contribute to this innovative project. For more information on Tether's energy initiative and potential career opportunities, interested individuals can visit their website at tether.recruitee.com/energy.
[1] https://tether.to/en/tether-invests-in-energy-production-and-sustainable-bitcoin-mining-in-uruguay/
Sabre56 Announces New Partnership With GEM Mining To Host More Than 4,500 Bitcoin Miners
BtcCasey
May 30, 2023
The partnership will see half of the machines come online in Wyoming by May, with the other half coming the next month.
https://bitcoinmagazine.com/business/sabre56-announces-new-partnership-with-gem-mining
Sabre56, a Bitcoin mining hosting provider and digital asset mining consultancy, has announced a significant hosting deal with GEM Mining, an institutional-grade Bitcoin mining company. The agreement entails Sabre56 hosting 4,510 BTC miners that belong to GEM in its newly constructed facilities in Wyoming. Half of the miners will come online in May, with the remaining miners joining in June. This deal marks a significant milestone for Sabre56 as it transitions from consulting on mining projects to constructing and hosting its own facilities.
The CEO of Sabre56, Phil Harvey, expressed his enthusiasm for the partnership with GEM Mining, emphasizing their shared values and dedication to advancing the mining industry. Harvey stated, "Sabre56 is rapidly implementing a strategic shift to build full-service hosting facilities with the highest technical and environmental standards ... This initial placing of 4,510 machines by GEM Mining proves our ability to support the market's most mature players and provide industry-leading hosting solutions."
GEM Mining's CEO, John S. Warren, echoed the sentiment, emphasizing the importance of finding a partner like Sabre56 that operates in a similarly efficient manner. Warren commented, "We are delighted to place our machines with a hosting provider of such outstanding capabilities."
According to a press release sent to Bitcoin Magazine, Both Sabre56 and GEM Mining are committed to environmentally responsible growth, with Sabre56's facilities adhering to strict regulatory standards. The data centers are built for maximum energy efficiency, the announcement states, and the companies work in cooperation with utility providers, allowing for load shedding to benefit the grids they operate on.
The Bitcoin Standard Author Saifedean Ammous Joins El Salvador’s National Bitcoin Office As Economic Advisor
BtcCasey
May 30, 2023
Ammous’ expertise in Bitcoin and economics will be a valuable addition to the Bitcoin Office’s mission.
Dr. Saifedean Ammous, prominent economist and author of "The Bitcoin Standard," is poised to take on a new role as an Economic Advisor to El Salvador's Bitcoin Office. This appointment comes after El Salvador made history by becoming the first country to adopt bitcoin as legal tender [1] in September 2021.
“Having Saifedean Ammous on team El Salvador is fantastic,” Max Keiser, Senior Bitcoin Advisor to the country said in a statement to Bitcoin Magazine. “Ammous brilliantly captured the role of Bitcoin as, ‘The alternative to Central Banking’ in his now classic, ‘The Bitcoin Standard’ as well as the philosophy of Bitcoin including popularizing the idea of 'time preference' as a life-hack. This news makes me very happy.”
Ammous, known for his expertise in Bitcoin and monetary economics, is expected to provide valuable guidance and insights to the Bitcoin Office as it navigates the implementation and integration of Bitcoin into the country's economy. His extensive knowledge and research on the subject have earned him recognition within the community and beyond.
The Bitcoin Law, proposed by El Salvador's President Nayib Bukele and approved by the Legislative Assembly, has set the stage for a new era in the country's financial landscape. With Ammous joining as an Economic Advisor, El Salvador aims to leverage his expertise to maximize the benefits and address potential challenges associated with adopting bitcoin as legal tender.
The Bitcoin Office, established to oversee the implementation of the Bitcoin Law, will likely benefit from Ammous' insights on monetary policy, sound money principles and the potential economic implications of embracing a decentralized digital currency. His appointment signals El Salvador's commitment to incorporating expert opinions into their strategy and decision-making process.
Links:
[1] https://bitcoinmagazine.com/business/el-salvador-to-declare-bitcoin-as-legal-tender
Umbrel Announces New Umbrel Home Plug-And-Play Server
BtcCasey
May 30, 2023
The new Umbrel Home comes with a 2TB SSD and outperforms Raspberry Pi 4-based servers in many capacities.
https://bitcoinmagazine.com/business/umbrel-announces-new-umbrel-home-plug-and-play-server
Umbrel [1], the company behind umbrelOS [2], has introduced a new home server solution called Umbrel Home with the intent of providing users control over their data, privacy and digital lives, according to a press release sent to Bitcoin Magazine. Priced at $699, Umbrel Home is aimed at making self-hosting accessible to everyone. By leveraging umbrelOS, users can eliminate the need for third-party cloud services by utilizing a wide range of self-hosted apps available in the Umbrel App Store including a Bitcoin/Lightning node, Nextcloud, Plex and Home Assistant.
According to the press release, Umbrel Home offers accelerated performance, featuring a 2.9GHz Quad-Core Intel CPU, 2TB NVMe SSD, 16GB dual-channel RAM, and an active cooling system while consuming just 10 watts of power. This compact home server outperforms a Raspberry Pi 4-based solution in terms of CPU performance, SSD read and write speeds, RAM and memory bandwidth the release states.
Mayank Chhabra, Umbrel's Co-founder and CEO, highlighted the company's vision for Umbrel Home, saying that "Building a plug-and-play home server that was specifically engineered for umbrelOS has been our dream since day one. With the recent challenges in Raspberry Pi pricing and supply chain, we knew it was time to bring our vision to life, set a new benchmark in self-hosting, and make it accessible to users of all skill levels."
With privacy and data ownership concerns on the rise, self-hosting presents a modern solution that allows users to take ownership of their data, storage, access and sharing. In addition, Umbrel Home’s zero-configuration and one-click app installations from the Umbrel App Store make it easy to build a customized ecosystem tailored to individual needs.
Pre-orders for Umbrel Home are now available on umbrel.com, with shipping set to begin in June 2023. With its exceptional performance, user-friendly features and affordability, Umbrel Home aims to make self-hosting accessible to a global audience.
Links:
Filmmaker Alana Mediavilla On Bitcoin’s Energy Consumption, Education And Closing The Gender Gap
Becca Bratcher
May 30, 2023
Filmmaker and entrepreneur Alana Mediavilla discusses her documentary “Dirty Coin,” misconceptions about Bitcoin’s energy use and more.
https://bitcoinmagazine.com/culture/alana-mediavilla-on-bitcoin-energy-use
It’s no secret that those who feel threatened by Bitcoin will attack it. Just a month ago, The New York Times published a malicious article [1] on Bitcoin mining’s energy usage. Senator Elizabeth Warren from Massachusetts has repeatedly attacked Bitcoin from a variety of angles, going so far as to launch an “anti-crypto army” [2] targeting Bitcoin as a hazard to consumers, all while misleading the public on the environmental impact of Bitcoin.
These verbal assaults are not isolated and the examples above represent only a small piece of the uphill climb Bitcoin has to mass adoption. To put it mildly, Bitcoin is disrupting countless industries, making centralized authorities fearful of losing their monopoly on money and the power that accompanies it. Bitcoin essentially “calls the bluff” on corrupt bureaucrats and infinitely-inflatable fiat currencies that further enrich those who own assets while eating away at the purchasing power of those living paycheck to paycheck. Because Bitcoin is location-agnostic and capable of utilizing flexible loads, it naturally increases demand for the cheapest energy sources, which are often stranded natural gas or renewables [3].
So, why do many elected officials and companies attempt to denigrate and work to outlaw Bitcoin mining? Likely because their egos prevent them from understanding the value proposition of Bitcoin, but the facts speak for themselves.
Alana Mediavilla is a wife, mother, entrepreneur, business owner, filmmaker and Bitcoiner. She has a hell of a resume and a passion for storytelling. Armed with her knowledge of Bitcoin and skillset, Mediavilla decided to film and produce the documentary “Dirty Coin,” [4] which highlights the value of Bitcoin mining while simultaneously busting the theory that Bitcoin mining is bad for the environment.
It was a privilege to hear her story and I know you will find her passion for Bitcoin inspiring.
What is your professional background?
I've been an artist and entrepreneur my whole life. Couldn't help it. Started my production company in Silicon Valley 11 years ago and got recruited to be a video producer at Google Cloud for almost five years while I moonlit still running my creative agency for other big tech folks. In 2021, I parted my full-time ways with Google to focus my efforts on my company and my own IP and films.
How did you first learn about Bitcoin and what categorically drew you to it?
I learned about Bitcoin during my daughter's ballet class in Campbell, California. A friend of mine that also had his daughter in the same class told me to buy as much as I could waste on bitcoin that week. He told me it would go up, so I degened into Bitcoin. That got me paying attention to it and when my Cuban grandfather told me he knew people sending bitcoin to Cuba, I dug into what the heck Bitcoin really was. What I found out blew my mind and continues to do so to this day.
How do you typically respond to those who are dismissive of Bitcoin, especially those close to you?
I make a feature documentary explaining my position to them XD.
It's understandable to be against Bitcoin. Crypto is a clown show and many don't see the difference between Bitcoin and shitcoins. Add to that that many people were raised with an energy scarcity mentality so having some crypto "hog all the energy" definitely sounds alarming. The issue is that this is just not the case. Is the industry perfect? Hell no! But are we scrutinizing the energy use of other industries the same way? Are we studied enough to know about the situations where having an energy-hungry industry like Bitcoin mining can be a good thing, as in the cases with flare mitigation or becoming a buyer of last resort in the middle of nowhere?
Understanding more factual information about the space can't help but create better conversations about Bitcoin.
In your opinion, why is it important to close the gender gap in Bitcoin interest and adoption?
Bitcoin is for everyone. Closing the gender gap is bringing diversity of users and advocates into Bitcoin. Women are particularly good at influencing their social circles and communities. More women in the Bitcoin space means more women advocating for Bitcoin in a grassroots way. We need all kinds of people to root for financial sovereignty and that starts with conversations around the dinner table that mothers are very often responsible for leading. Whether a woman is financially independent or supporting her partner who is taking on that responsibility for the family, women understanding the importance of Bitcoin means more support to other women, people in their community, and most importantly, their families.
This is a guest post by Becca Bratcher. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Links:
[1] https://www.nytimes.com/2023/04/09/business/bitcoin-mining-electricity-pollution.html
[2] https://www.politico.com/news/2023/02/14/elizabeth-warren-anti-crypto-ftx-00082624
[3] https://bitcoinmagazine.com/business/bitcoin-uses-mostly-sustainable-energy
Memorial Day Reflections: Reinvigorating Critical Thought, Bitcoin Can Honor Service Members
Mickey Koss
May 29, 2023
For Bitcoiners, honoring service members on Memorial Day does not have to mean siding with the military industrial complex.
https://bitcoinmagazine.com/culture/bitcoin-and-memorial-day
This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. He spent four years in the infantry before transitioning to the Finance Corps.
“That was before my time… Of course it’s true, everybody knows it’s true.”
The quote above is from the movie “The Sea Beast.” And although the film never mentions Bitcoin specifically, it might just be one of the best Bitcoin movies I’ve ever seen.
Source: https://twitter.com/BetterMovieBot/status/1626491739513974786/photo/1
It is set in a fictional world gripped by perpetual war between a sea-faring economic power and a population of monsters who appear to attack ships out of nowhere. The hunters, the heroes of the story, patrol the seas in a near-constant state of combat, fighting to keep trade routes open and safe. In exchange, they are paid after presenting proof of their monster kills to the monarchy.
It was a fairly overt critique of the military industrial complex, though the deeper theme that I saw was the toxic effects that the media propaganda complex has on a society, reducing peoples’ ability to exercise discernment, and obscuring objective truth.
Learn History Or Repeat It
I think the reason why “The Sea Beast” had such an impact on me is because at its core, it is a story of what can happen to society when truth becomes obscured by revisionist history and propaganda. In the end, it was up to individuals to exercise discernment, and break the societal trance that had been propagating violence for generations. In the end, the rulers only ever had power because the people had allowed them to.
American culture and history is rich with individualism and critical thought, such as the idea that taxation without representation is immoral. This ideal ultimately led to the Revolutionary War which founded this country [1]. But now, people are afraid to have real and engaging conversations, especially in public, because it might be considered “wrong think” or offensive, ultimately leading to the cancellation of their public lives and digital exile.
https://pbs.twimg.com/media/Fp6g7BKWAAYJtKo?format=jpg&name=small
Bitcoin reinvigorates many things, but the most important I think is the discernment of truth.
Bitcoin is fundamentally an exercise in regaining your power of discernment. One must sift through a slew of propaganda and fear, uncertainty and doubt (FUD) in order to learn the truth and see true value. The journey that one must take in order to truly understand Bitcoin necessitates discernment and critical thought. And once we reach a critical mass, the intransigent minority becomes entrenched in the culture.
Furthermore, once you are able to store your hard-earned wealth in a self-sovereign way, the courage to speak freely becomes self evident. No more are the worries of cancellation and debanking. The changes in time preference as well will likely increase your savings rate, making people more financially stable and less fearful of leaving or losing a job that may be holding them back.
‘You Can Be A Hero But Still Be Wrong.’
I know that many Bitcoiners criticize the military and governments especially. They detest war in all its forms and hope to bring about the end of it with the dawn of a new, hard-money standard. This is, of course, a worthy goal. But I must urge Bitcoiners to separate the service members from the policy decisions they are charged with executing.
According to analysis from Jordan Peterson that I have seen, one of the main reasons individuals join the military is the desire to find meaning and purpose in life. Peterson argues that young men often lack a clear sense of direction and purpose, and the structure and discipline of military life can provide them with a sense of belonging and fulfillment. Additionally, the military can offer opportunities for personal growth, challenge and adventure, as well as providing a sense of pride and accomplishment.
Many have died in the pursuit, hence the day of remembrance that we celebrate on Memorial Day. And yet, some much-needed criticism has been quashed in the name of the troops.
The line, “You can be a hero and still be wrong” from “The Sea Beast” was especially striking in this context. Without the ability to see objective facts, it is difficult to ascertain objective truth. Discernment is a skill, a skill that has atrophied drastically throughout society in the passing years. It is perhaps one of the reasons why cries for the government to protect us have grown so loud.
https://pbs.twimg.com/media/Fp7HtafXsAIL8tE?format=jpg&name=small
There is no truth without debate and disagreement, characterizations of which have been elevated from being uncomfortable to becoming outright unsafe. And yet, creeping protectionism has its costs as well; the slow erosion of freedoms that we may never get back. The very freedoms that many service members have died to protect, the very service members who we are charged with remembering on Memorial Day.
If we are to remember and honor those sacrifices, perhaps the best way to do so in the current age is to exercise our discernment. Critical thinking is a skill that can be learned, or relearned in certain cases. Bitcoin helps those seeking to regain responsibility in their lives, and yes, exercise some critical thinking in order to discern fact from fiction, propaganda from news.
Bitcoin reinvigorates critical thought, critical thought leads to truth. Some have the humility to accept it. Others have to be slapped across the face with it, ultimately experiencing the pain of ego death. Truth is the only way to honor the fallen. Have the courage to choose truth, and live not by lies.
This is a guest post by Mickey Koss. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Links:
[1] https://constitutioncenter.org/blog/no-taxation-without-representation
How Bitcoin Can Preserve The Life Savings Of Refugees
Josef Tětek
May 28, 2023
Bitcoin’s unique properties make it the best way to preserve wealth in a time of crisis. But there are some things to keep in mind to prepare.
https://bitcoinmagazine.com/culture/how-bitcoin-can-preserve-refugees-savings
This is an opinion editorial by Josef Tětek, a Bitcoin analyst at Trezor.
Suppose you lead an ordinary family life in an undisclosed country. Suddenly, a crisis hits. This could be the rise of an autocratic regime, a democide or an armed conflict. Whatever the circumstances, you will most likely have two pressing problems on your mind. First and foremost, you need to get everyone to safety, preferably abroad. Second, you need to preserve as much of your savings as possible to set up your life elsewhere. Since a safe escape from a disaster-stricken country depends heavily on individual circumstances, this article will focus on a savings preservation strategy that is globally applicable.
Preserving Your Savings The Traditional Way
Protecting the value of one’s savings while fleeing a country has never been easy. Those fortunate enough to have had any wealth before a crisis strikes may find it difficult to save it when there is a sudden need to leave the country.
Real Estate
So, you own your house, and chances are that you have benefited greatly from the easy money policies of the past decade as it has grown a lot in value over the years. You may be moderately well off on paper, but how easy is it to actually turn your house into money in a short time frame? The market demand might be heavily impacted by the very crisis that is forcing you to flee — for example in a case of foreign invasion, the demand for houses in the affected region will come to a halt, while the number of homeowners looking to sell will skyrocket. So, unless you foresaw a crisis looming ahead and sold before others, chances are you won’t be able to extract much of your home’s value when you need it the most.
Savings In The Bank
But let’s say you had good foresight and sold your house in time. Now you have a lot of money in the bank. Again, if the crisis affects the entire country, chances are you won't be able to withdraw or move your money fast enough. There are many examples in history where a "bank holiday" was announced and depositors were denied their money when they needed it the most. One of the more recent examples comes from Lebanon, where banks simply shut their doors and ATMs [1] to prevent clients from withdrawing their money in the midst of an ongoing economic crisis. If you think you can protect yourself against a national currency’s devaluation by owning a dollar account, you better think twice: In Lebanon, the dollar accounts were forcefully converted to a Lebanese pound that had lost 97% of its value against the dollar since 2019 [2]. In fact, bank accounts may not be safe anywhere, as banks around the world operate in fractional-reserve mode, making them vulnerable to runs and subsequent collapses. Recent collapses of a trio of U.S. banks [3] — Silvergate Bank, Signature Bank and Silicon Valley Bank — have proven this vulnerability.
However, it's worth noting that there is usually a several days’ delay between an emerging crisis and a full-blown bank holiday. If you suspect that banks might prohibit you from accessing your money soon, you can use this window of opportunity to withdraw your money in the form of cash or quickly convert it into bitcoin while it's still possible.
Cash
Let’s say you withdrew all of your money and kept it in cash. Hopefully, it’s in dollars or euros, as otherwise it might be hard to find a use for your local currency abroad, especially if the crisis that forced you to leave impacts the exchange rate, as it often does — the Ukrainian hryvnia has devalued by 25% [4] since the start of the Russian invasion.
Traveling with large amounts of dollars or euros also involves risks, though. The first of those is a risk of theft, either by common criminals or corrupt border patrols. The second risk is that, if you’re traveling with cash worth more than $10,000 or the equivalent in euros, you need to declare them when crossing the borders of many countries, including the U.S. [5] Failure to declare can result in the confiscation of the full amount.
Did you know that the U.S. customs guards confiscate more than $200,000 from travelers on average every day? [6] And if you do in fact declare that you’re traveling with large amounts of cash, you never know where that information might end up — sensitive data that is collected can also leak. For example, in 2020, there was a major leak of detailed personal data [7], including the property records of 200 million Americans. Criminals can use this data for targeted attacks.
Cash is also getting gradually useless in the western world. In the euro area, cash usage fell [8] from accounting for 72% of all point-of-sale transactions in 2019 to 59% in 2022, and this trend is encouraged by governments that impose strict cash limits. So, even if you make it abroad with your savings in the form of cash, you’ll likely need to set up a bank account fast, which might not be a straightforward or easy task for a new migrant.
Gold
Gold used to be the most popular way to transfer value intact in the past, given that it has a worldwide demand and can be sold at relatively little discount (assuming investment-grade coins or bars are being used). Gold is also quite dense in value, as the price of 1 kilogram of gold is around $60,000 at the time of this writing [9]. Otherwise, it faces the same risks as cash as it can be easily stolen along the way. Moreover, gold isn’t accepted as a means of payment and isn’t divisible, so you’d need to exchange your full coins or bars into the local currency after you arrive in your destination country.
Stocks And Bonds
Stocks and bonds are great fair-weather instruments, but they might become as useless as bank accounts when things get hairy. Local stocks and bonds will likely be worthless abroad and their value might be impacted by the given crisis. International financial instruments (e.g., U.S.-based exchange-traded funds) would fare better, though such instruments aren’t available in most parts of the world. And even if they are available to you, access to these instruments may be affected by newly-imposed sanctions.
Does Bitcoin Fix This?
You might have noticed that all of the usual instruments for wealth preservation have common traits in the form of limited transferability and/or value tied to a specific location or jurisdiction. Physical instruments such as cash and gold always carry a risk of loss or theft along the way, while intangible instruments such as real estate, bank accounts and stocks are, for the most part, valuable only locally.
Bitcoin indeed fixes this.
First, bitcoin is intangible and is therefore very easy to transfer. You can either send bitcoin to anyone globally within minutes, or you can remember the recovery seed and literally carry the bitcoin in your head (though that carries its specific risks as well, as we’ll cover below). Compared to other intangible assets, such as bank or brokerage accounts, there is no counterparty risk — you never need to worry about your money becoming inaccessible due to bank holidays, institutional failures or newly-imposed sanctions.
Second, bitcoin is a global asset, and as such, its value isn’t linked to any specific jurisdiction. A good example of this fact is the 2021 bitcoin mining ban in China [10], which seemed like a big deal at the time, since most bitcoin mining operations were located in China. Nevertheless, bitcoin miners simply moved elsewhere, and there was virtually no impact on the price (on the contrary, bitcoin reached new highs several months after the ban [11]).Bitcoin is a global asset, but unlike gold, it can be bought or sold in all kinds of ways — on regulated exchanges, on decentralized exchanges, in ATMs, or from person to person; and the chances are, you will face a minimum spread on your exchanges.
Bitcoin’s intangibility, zero reliance on third parties and global liquidity makes it a perfect candidate for savings preservation in critical situations.
So, what are the specific methods for using bitcoin when fleeing a country?
Traveling With Bitcoin Safely
The main concern when traveling with bitcoin is to eliminate a single point of failure. If you just write down your recovery seed and put it in your back pocket, you undertake a great risk, as anyone who sees, takes or photographs your recovery seed has the ability to steal all your bitcoin. To travel safely with bitcoin, you need to minimize the possibility of loss or theft. Below are some tips on how to tackle this problem.
Bitcoin In Your Mind
To keep access to your bitcoin, the only thing you need to do is remember your recovery seed i.e., an ordered list of English words that is either 12- or 24-words long. Remembering 12 words is obviously easier than remembering 24 words, so it’s advisable to go for that option (e.g., by generating your seed on a Trezor Model T, which supports this format). Use a memory-enhancement technique such as the memory palace [12]. If you’re traveling with your family, have all the family members remember the same recovery seed; that way, if someone forgets some of the words, you’ll still be able to reconstruct the full seed.
After you memorize your seed, try recovering your bitcoin in an offline wallet, preferably a hardware device (on Trezor devices, you can perform a dry run recovery [13] that doesn’t wipe the device). Once you’re certain you have your recovery seed firmly embedded in your memory, wipe the wallet. If you want to carry your hardware wallet with you on your travels, make sure it is wiped, so that if you lose it or someone takes it away from you, there will be no possibility of its misuse.
On arrival, recover your bitcoin again in the wallet of your choice (make sure you type in your seed in an offline environment though!).
Don’t rely on your memory for longer periods. Traveling in an adversarial environment is the only situation when relying on your memory might be a good idea, but aim to minimize the time span in which you store your recovery seed in your head. For long-term storage, always write your seed down, or better yet, stamp or engrave it into steel (there are many products for this on the market; before you make a purchase, I recommend checking out Jameson Lopp’s stress tests [14]).
Relying On Your Web Of Trust
Another way to transfer your wealth via bitcoin is to simply send it as a bitcoin transaction to someone you trust. The person doesn’t even have to be in the country you aim to travel to; the important thing is that they will be able to keep your bitcoin safe during your travels, and send it back to you when you’re able to set up your new wallet in a safe environment. The most important factor here is trust. This may be off-putting to some (after all, we all know the mantra of “don’t trust, verify”), but the fact is that for some people this may be the way to go if they don’t want to rely on their memory and are certain that the person on the other side would never betray them. The person you’re sending your bitcoin to needs to be proficient in bitcoin, and ideally should own a well backed-up hardware wallet — after all, you don’t want them to hold your life savings on their mobile phones, right?
If you want to increase the security of this process, you can do so via a multisig wallet. Let’s say you set up a two-out-of-three multisig wallet and transfer your bitcoin into such a wallet. Now you can send one of the keys to Person A, the second one to Person B and carry the third one with you. Person A and Person B shouldn’t know about each other, so that there is no way to steal the bitcoin that is stored in this way. And if you lose your key during your travels, you will still be able to recover your bitcoin using the keys of Person A and Person B. You can set up your multisig wallet using Electrum, Sparrow or Nunchuk. To distribute the keys, make sure to use a secure, encrypted communicator such as Signal [15] messenger (do not use Telegram, as it isn’t encrypted by default! [16]).
Alternatively, you can utilize a Shamir backup, a cryptographically-sound method for splitting your recovery seed into multiple shares (use time-tested wallets such as the Trezor Model T to do this safely). Let’s say you do a two-out-of-three Shamir backup — the next steps are the same as we described above with multisigs. It’s advisable to reinforce the security of your Shamir backup by setting up a passphrase [17] on top of it.
Plausible Deniability
Ideally, there should be no indication that you are a Bitcoiner. That means carrying no hardware wallets, having no Bitcoin stickers on your laptop or phone, not carrying any Bitcoin books and deleting any Bitcoin/cryptocurrency apps from your phone. Do not talk about bitcoin with strangers or the border guards. If someone asks a seemingly-innocent question about bitcoin or cryptocurrencies, act ignorant or just say that you think it’s a scam. Simply said, you should look and act as a “normie.”
Do Not Rely On Exchanges
Some readers might be tempted to use their bitcoin exchange account — after all, you can log into it from anywhere in the world, right? I personally strongly advise against relying on exchanges with any portion of your savings. Aside from frequent exchange failures (just in the last twelve months, we saw the collapses of FTX [18], Celsius [19] and BlockFi [20], and a freeze on Gemini Earn [21] users), the exchange may block your funds, for example, because of sanctions or logging in from an IP address in a "wrong" country. In short, if you hold your bitcoin on an exchange, you don't really own it.
Not Just A Theory Anymore
Bitcoin is already used as a means of preserving one's savings in times of crisis. In recent years, we have seen success stories of this kind from countries as diverse as Afghanistan [22], Venezuela [23] and Ukraine [24]. Due to its global liquidity and direct controllability, bitcoin is proving to be a valuable tool in critical situations. The more knowledgeable you are about the safe transfer of bitcoin, the better prepared you'll be in the event of such a situation arising.
This is a guest post by Josef Tětek. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Links:
[1] https://apnews.com/article/financial-services-lebanon-business-8ca0f73931d60e36c1dd7d40e77c25de
[2] https://apnews.com/article/financial-services-lebanon-business-8ca0f73931d60e36c1dd7d40e77c25de
[5] https://help.cbp.gov/s/article/Article-195?language=en_US
[7] https://thehackernews.com/2020/03/us-property-records-database.html]
[8] https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.pr221220~62a7c988ef.en.html
[9] https://www.chards.co.uk/gold-price/weekly-gold-price-usd-per-kilo
[10] https://bitcoinmagazine.com/business/latest-china-ban-impacting-bitcoin
[11] https://bitcoinmagazine.com/business/how-china-ban-improved-bitcoin-in-2021
[12] https://en.wikipedia.org/wiki/Method_of_loci
[13] https://trezor.io/learn/a/test-recovery-seed-on-model-t
[14] https://jlopp.github.io/metal-bitcoin-storage-reviews/
[17] https://trezor.io/learn/a/passphrases-and-hidden-wallets
[18] https://bitcoinmagazine.com/legal/ftx-files-for-bankruptcy-ceo-resigns
[19] https://bitcoinmagazine.com/business/celsius-files-for-chapter-11-bankruptcy
[20] https://bitcoinmagazine.com/business/blockfi-files-for-bankruptcy
[21] https://blockworks.co/news/gemini-earn-users-lose-savings
[22] https://bitcoinmagazine.com/culture/bitcoin-financial-freedom-in-afghanistan
[23] https://www.nytimes.com/2019/02/23/opinion/sunday/venezuela-bitcoin-inflation-cryptocurrencies.html
[24] https://www.cnbc.com/2022/03/23/ukrainian-flees-to-poland-with-2000-in-bitcoin-on-usb-drive.html
How I Preserve My Wealth With Bitcoin
Konstantin Rabin
May 27, 2023
“I will explain why I allocate a share of my wealth to bitcoin and how I see it as ideal for preserving the value of my net worth.”
https://bitcoinmagazine.com/culture/how-i-preserve-my-wealth-with-bitcoin
This is an opinion editorial by Konstantin Rabin, a finance and technology writer.
Good ol’ bitcoin, the granddaddy of cryptocurrency, is increasingly being used as a reliable store of value for those looking to move away from the more established asset classes as it is continually proving itself as a solid hedge against inflation [1].
In fact, this is something I have been doing for some time now and, in this article, I will explain why I allocate a share of my wealth to bitcoin and how I see it as ideal for preserving the value of my net worth.
Why Allocate A Share Of Your Wealth To Bitcoin?
Despite the volatility and fear-mongering that is prevalently posterized when talking about bitcoin as a revolutionary investment vehicle, there is plenty to be said about why it is a valid contender in this market. It should be noted that no investor worth their salt would tell you to put your life savings into crypto, but there is plenty of upside potential for those looking to make long-term returns or preserve a portion of their wealth this way.
Let me just mention a few of these advantages that make this investment in bitcoin worth looking more deeply into:
Alternative store of value: Bitcoin is as good as it gets when looking for a store of value outside of third-party manipulation. Being decentralized means that it circumvents many of the red-tape aspects and fees that come with leaving your money in the hands of financial institutions. As a result, it is not subject to the same inflationary pressures that are so prevalent with companies operating in the government-controlled fiat currency system.
Potential for long-term growth: There is no doubt that bitcoin's value is extremely volatile in the short term, but its long-term trend has historically been a fairly bullish affair. The idea of HODLing [2] comes into play here, as you will really only be able to see the true value of your investment when ignoring the spikes and holding on for dear life.
Diversification: As I said before, investing in bitcoin does not mean that you dump all of your hard-earned eggs into the chaotic basket that is crypto, but you can provide some much-needed, future-oriented diversification for your investment portfolio. As bitcoin's price is increasingly uncorrelated to those of traditional assets [3], such as stocks and bonds, adding some of these digital coins to your portfolio can help spread out the overall risks that your investments might face from the old guard. In fact, what we have seen over the past few years is that bitcoin has become a new sort of semi-safe-haven asset class which many investors flock to the moment that old-school investment vehicles and fiat currencies come under pressure.
Accessibility: This goes down two lanes. On the one side, investing in bitcoin is becoming easier to do [4], with many platforms and exchanges now offering a simple and secure way to buy and hold your BTC; while at the same time, it has never been easier to liquidate this asset and get fiat cash in hand when the need arises. This scores a massive point over the stock, bond or real estate markets, which are forever plagued by liquidity issues; especially in times of large-scale financial instability.
In the long run, spending a share of your income on BTC is unlikely to make you poor. On the flip side, not allocating anything to BTC might ruin your prosperity, especially in these uncertain times when banks can go bust without warning [5], inflation seems to be ever on the rise [6] and several countries witness their fiat currencies turn into toilet paper [7].
Why I Don’t Buy Or Mine BTC
In the pursuit of acquiring bitcoin, there are always the obvious channels of hitting up some form of cryptocurrency exchange or peer-to-peer marketplace and just exchanging fiat for BTC. While there is nothing wrong with this approach, and it might be the easiest and perhaps the only option for many people out there, it is, in my humble opinion, not the best way to get your coins for wealth preservation.
You could instead go the route of the miner and spend a large fortune on buying all the equipment needed to try and get some BTC that way, but in this day and age with the average mining cost per coin being over $30,000 in many countries [8], it is more likely that you will end up with zilch long before you ever mine your first coin.
So, what would I suggest? Earn it.
Sure, not everyone can convince their boss to pay them in bitcoin, but these days, many people have a side hustle that can easily be employed in generating some digital dosh. Five years ago, offering your clients the ability to pay in crypto for your services was a nonexistent concept, but today, it is a no-brainer [9]. Right now, a large number of my clients, especially those operating in the online world, are really into paying for services via crypto. While most of them like to use stablecoins such as USDT, you can easily flip these over to BTC and keep padding your Bitcoin wallet.
One more notable online activity that I partake in to stack some BTC is for the over-18-year-olds only. No, I don’t mean OnlyFans. I do some work in and around the gambling industry and also enjoy a bit of a gamble myself from time to time, but I solely gamble for BTC.
Bitcoin betting sites have been gaining traction lately [10], thanks to their ability to protect privacy, offer deals (e.g., bonuses, commissions, etc.) and general improvements over the annoying bureaucracy inherent in fiat betting sites. Obviously, I don't recommend gambling to anyone, but this is something I enjoy occasionally, such as when my favorite UFC fighter jumps into the octagon, as it adds a bit of excitement while watching the fights, and obviously, the winnings are added to my wealth-preservation BTC fund.
My BTC Wealth Preservation Strategy
You might be wondering why I am hammering on bitcoin and not paying much heed to the rest of the crypto pack. Frankly, as most of the top tokens are following the bitcoin price like a donkey chasing a carrot [11], I don’t typically diversify things or allocate a share of my crypto investments into other major coins and tokens. Don’t get me wrong, I believe that some of the cryptocurrencies out there are useful, but, as bitcoin is what determines the value of many of the top dogs on the list, sticking with BTC as my investment coin just makes sense. (For those keen on diversifying into other crypto projects, I do have one bit of advice; stay away from meme and shitcoins [12].)
Now, let’s get down to business. Here is my advice for preserving wealth via bitcoin based on my own strategy:
Plan: Whether you are investing with fiat currencies that you get from working a day job or getting paid directly in crypto via your own projects, make sure to have a well-defined goal. Set certain annual or even quarterly amounts that you would like to reach and try your best to make it happen.
Don't panic: Always work on increasing your BTC holdings and be ready to HODL until kingdom comes. Don't pay much attention to the fiat value and don't panic sell just because you see some of those crazy price swings that bitcoin is so famous for. It is all good and well to compare exchanges and cryptocurrencies, but do not sit there stressing about where the price of BTC is sitting. Short-term dips are bound to come and go, but if you believe in BTC as much as I do, then you can rest assured that your wealth is being preserved. Keep in mind that there are only 21M BTC available, ever. As this is a finite supply and the world's population is close to eight billion [13], with more people being added every day, the value of this asset is sure to increase over time as more governments and people take hold of this new shift in finance. If and when fiat finally goes completely bust and bitcoin takes over as the major currency, an average BTC per capita in the world is going to be around 0.0025, and you most certainly want to be in the top 5% of those holding it.
Keep it secure: Bitcoin is digital, and hackers are always on the lookout for those who are not keeping a watchful eye on their money. So, to preserve my wealth safely, I keep all of my bitcoin holdings in hardware wallets stashed in a safe place. There are plenty of good exchanges and hot wallets to choose from, but if you are serious about preserving your wealth, keep it cold, keep it offline.
Why You Shouldn’t Wait To Diversify
Allocating a portion of your wealth to bitcoin can be an effective way to preserve it, and even grow it, but as the saying goes, “the best time to start is yesterday, the second best time is now.”
Don’t wait for BTC to hit $50,000 [14] before you suddenly wake up and start buying in. Set up a plan today and start diversifying your portfolio in this future-proof asset class, so you know your wealth is safe, no matter how bad your government might be.
This is a guest post by Konstantin Riban. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
Links:
[1] https://bitcoinmagazine.com/markets/inflation-hedge-bitcoin-surges-to-record-highs-as-cpi-soars
[2] https://www.investopedia.com/terms/h/hodl.asp
[4] https://www.forbes.com/sites/qai/2023/02/14/how-to-invest-in-bitcoin-for-beginners/?sh=25ed62097697
[5] https://www.reuters.com/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/
[7] https://bitcoinmagazine.com/markets/as-peso-inflates-argentina-needs-bitcoin
[8] https://www.visualcapitalist.com/cp/the-cost-of-mining-bitcoin-in-198-different-countries/
[9] https://www.statista.com/statistics/1290483/crypto-payment-acceptance-by-industry/
[10] https://cryptobetting.net/online-gambling-industry-growth-infographic/
[11] https://www.cityam.com/price-of-bitcoin-slips-as-other-cryptocurrencies-follow-suit/
[12] https://www.investopedia.com/terms/s/shitcoin.asp
Ordinals Is Bringing The NFT Industry To Bitcoin
BtcCasey
May 26, 2023
NFT influencer and founder Farokh talked to Bitcoin Magazine about the future of Ordinals and Bitcoin NFTs.
https://bitcoinmagazine.com/culture/ordinals-is-bringing-the-nft-industry-to-bitcoin
The Ordinals protocol has taken the Bitcoin world by storm. Quickly amassing over 9,000,000 inscriptions, the new protocol allows for arbitrary data to be embedded on the Bitcoin blockchain. In addition to attracting attention from the NFT industry, Ordinals have led to a major increase in the fees required to send bitcoin, eliciting new debate on how Bitcoin should deal with high fee environments [1].
In a recent interview with Bitcoin Magazine, Farokh [2], founder of the Rug Radio platform and a well-known collector within the NFT industry, shared insights into the world of Bitcoin NFTs and his vision for the Bitcoin inscription market’s future. Reflecting on his own Bitcoin and NFT journey, Farokh acknowledged the initial confusion surrounding Bitcoin in 2012, given the lack of development and user-friendly platforms at the time. However, he highlighted the rapid growth and development of NFT platforms in 2021, and how that is reflected now in the context of Bitcoin NFTs’ sudden rise in popularity.
When discussing the advantages of Ordinals, Farokh emphasized the security aspect of storing art on the Bitcoin blockchain, stating, "Ordinals now enable art to be stored on the most secure blockchain in the world, without keeping this data in external databases where it can be vulnerable to manipulation." He identified this as the biggest benefit of Ordinals over NFTs on other, less secure blockchains, recognizing the need for censorship-resistant and immutable storage solutions.
Regarding the future of Bitcoin NFTs, Farokh expressed his optimism. He also acknowledged the current challenges, such as high costs and the need for infrastructure development, but believed that with the continuous growth of the Bitcoin ecosystem, improved solutions would emerge.
Farokh also discussed the entry of luxury brands into the Bitcoin NFT space, mentioning the collaboration between Asprey and Bugatti [3]. He expressed his curiosity about high-end brands embracing ordinals and leveraging the security and authenticity provided by the Bitcoin blockchain.
When asked about the reaction of projects transitioning to Bitcoin NFTs, Farokh noted the generally positive response. He drew parallels to the early days of NFTs, where skepticism was common but ultimately proven wrong. He also highlighted the positive reception of projects like Yuga Labs’ TwelveFold [4], indicating that the acceptance of Bitcoin NFTs was gradually gaining momentum.
Looking ahead, Farokh envisioned a mature Bitcoin NFT market with user-friendly platforms accessible to retail users. He remarked, "Look how much the [NFT] marketplace has evolved ... at first, it was complicated to make a wallet. Now we have proper marketplaces." Farokh's optimistic outlook suggested a future where the Bitcoin NFT market becomes more mainstream and user-friendly, ultimately driving further adoption.
Overall, Farokh's interview shed light on the growing importance of Bitcoin NFTs, their unique advantages and the evolving landscape of the Ordinals protocol.
Links:
[1] https://bitcoinmagazine.com/technical/bitcoins-high-fees-create-controversy-and-challenges
[2] https://twitter.com/farokh
[3] https://bitcoinmagazine.com/culture/bugatti-and-asprey-announce-bitcoin-inscriptions
[4] https://bitcoinmagazine.com/culture/yuga-labs-introduces-first-bitcoin-ordinals-collection
Bankrupt Lending Platform Celsius Agrees To Purchase Bid By Fahrenheit
BtcCasey
May 25, 2023
A new company will be formed by the acquisition of embattled lender Celsius, which went bankrupt amidst the larger turmoil of 2022.
https://bitcoinmagazine.com/business/celsius-agrees-to-purchase-bid-by-fahrenheit
Bankrupt lending platform Celsius Network LLC has announced that it has selected a proposal by Fahrenheit as the winning bid to lead the company out of bankruptcy, according to reporting by Reuters [1].
Celsius, which filed for Chapter 11 [2] protection in July, sought a buyer to manage its cryptocurrency lending and bitcoin mining businesses. The chosen consortium, Fahrenheit, includes Arrington Capital, a blockchain-based venture capital firm. In addition to the consortium acquiring the company, a new board of directors, primarily appointed by creditors, will oversee the new company formed as a result of the purchase.
Celsius also revealed that it has secured a backup bid from the Blockchain Recovery Investment Consortium (BRIC), a holding company affiliated with Gemini Trust, owned by the Winklevoss twins, ensuring an alternative option in case the deal with Fahrenheit falls through.
According to Celsius, Fahrenheit will provide the necessary capital, management expertise, and technology to navigate the bankruptcy. The consortium's selection indicates a potential positive outcome for Celsius and its creditors, allowing the company to move forward under new management and ownership.
Links:
[2] https://bitcoinmagazine.com/business/celsius-files-for-chapter-11-bankruptcy
Bitcoin Payments App Bottlepay To Shutdown Services
BtcCasey
May 25, 2023
The company is encouraging users to withdraw their funds and to save transaction statements before the app’s closure.
https://bitcoinmagazine.com/business/bitcoin-payments-app-bottlepay-to-shutdown-services
Bottlepay [1], a popular consumer app for Bitcoin transactions, has announced [2] its closure on Monday, July 24, 2023, leaving users with the task of withdrawing their funds. The company stated that all accounts will be closed, and users are urged to withdraw their funds either as Bitcoin or fiat currency (GBP/EUR) from the Bottlepay app before the closure date.
Failure to withdraw funds by the closure date will result in Bitcoin being converted to fiat currency and returned to the nominated bank account, while any fiat left in the account will be returned to the nominated bank account as well.
In a statement, Bottlepay advised users to utilize the app's downloads feature to save transaction statements before the closure date. The company emphasized that Bitcoin transactions can have tax implications, making the downloaded information valuable for future reference. As the closure date approaches, Bottlepay may contact users who still have Bitcoin or fiat currency in their accounts, either through the app or via email. However, the company cautioned users to be aware of potential scams and never initiate an offboarding process outside of the app.
Regarding the next steps, users are advised to download their transaction history and close their Bottlepay accounts. Instructions on how to withdraw funds from Bitcoin and fiat accounts, as well as how to download transaction history and close accounts, can be found on the app.
In a closing note, Bottlepay expressed gratitude to its customers and apologized for the inconvenience caused by the closure. While the company refrained from making specific recommendations about what to do with Bitcoin funds, users were encouraged to exercise due diligence when selecting alternative custodial wallets or converting Bitcoin to fiat currency. The Financial Conduct Authority (FCA) register can be consulted for information on other FCA-registered cryptoasset businesses operating in the UK.
Links:
[2] https://help.bottlepay.com/en/articles/7902589-the-bottlepay-app-is-closing-down
Introducing The Rolling-Block Method: A New Way To Forecast Bitcoin Mining Difficulty
Colin Harper
May 25, 2023
Luxor describes its newly-released methodology for improving the accuracy of Bitcoin mining difficulty predictions.
https://bitcoinmagazine.com/technical/predicting-bitcoin-mining-difficulty
Since Bitcoin’s inception, network difficulty [1] has grown from 1 to as much as 48.71 trillion hashes that a miner would theoretically need to generate to find the winning one. This means it is 48.71 trillion times harder to mine a Bitcoin block today than when mining first began in 2009 — a compound increase of 20.64% per month.
At the time of this writing, Bitcoin’s difficulty is at an all-time high, which means that miners — on a BTC basis — are making less in rewards per unit of hash rate than ever before. Next to bitcoin’s price, Bitcoin’s difficulty is a primary factor that influences hash price [2] (mining revenue per unit of hash rate [3]), so miners are interested in projecting Bitcoin’s hash rate growth [4] and difficulty trends for business planning.
To this end, miners and Bitcoiners devised the constant-block-time method for estimating upcoming adjustments, but this method typically over or under estimates difficulty changes at the beginning of each difficulty epoch.
Source: Hashrate Index
To improve on this, the team at Luxor Technologies developed a new method called the “rolling-block method,” which we describe in more detail in a recent report on forecasting Bitcoin mining difficulty [5].
It’s our hope that the rolling-block method for forecasting Bitcoin difficulty could provide miners, investors and hash rate traders a better tool to plan for difficulty changes
Luxor's ‘Rolling Block Method’ For Forecasting Difficulty Adjustments
For this report, we developed a new time series forecasting method for upcoming difficulty adjustments, which improves accuracy at the beginning of the epoch compared to the constant block time method. We call this the succinctly-named “rolling-2,015-block, square-root-weighted, epoch-adjusted block time method” (or just “rolling-block method,” “adjusted-block-time method,” or “dual-epoch method”).
This new method improves upon the constant-block-time method early in the epoch by including block times from the previous 2,015 blocks, instead of just the blocks from the current epoch, which can skew forecasts early in the epoch for lack of data points. To account for the change in network difficulty between epochs, block times in the previous epoch are adjusted by the previous adjustment. And finally, we weight the average block times of the current epoch with the square of the proportion through the epoch. This final step is to diminish the impact of block times from the previous epoch as the current epoch progresses since these values do not actually determine the upcoming adjustment.
In the chart below, we can see through confidence intervals that the new method performed better than the old model at the beginning of the epoch up to block 650, but it performed slightly more poorly thereafter:
[Difficulty forecast confidence intervals. Sources: Luxor, Hashrate Index.]
This forecast, of course, is only for projecting the next difficulty adjustment. What if we wanted to forecast, say, a year into the future?
Long-Term Bitcoin Mining Difficulty Forecasting
Luxor has developed models for long-term difficulty forecasting [6], as well, but these models are obviously much more complex, since they span a longer time frame.
Our model takes the bitcoin price, transaction fees and block subsidy as inputs on the demand side, and internal data on ASIC production estimates and operating cost distributions across the industry on the supply side. Using these inputs, the model produces an equilibrium hash rate, difficulty and hash price for 18-month periods.
The model structure reflects reality; hash rate, difficulty and hash price are endogenous to the system, not exogenous determinants of one another. We can conduct sensitivity analyses with the model across all inputs as well. For example, we can forecast an equilibrium hash rate, difficulty, and hash price across a range of bitcoin prices.
The charts below present projections from our updated hash rate supply and demand model. It provides estimates for flat, bull and bear bitcoin price scenarios.
[Flat, bull and bear scenarios for hash rate and hash price. Sources: Luxor, Hashrate Index.]
Hash Rate, Difficulty And Hash Price Projection Updates
Hash rate is an emerging asset class and digital commodity market. Hash rate market participants like Bitcoin miners, hosters, lenders, investors and traders need access to the rigorous economic analysis and data available in other commodity markets.
Luxor will be committed to providing this analysis and forecasting on a quarterly basis. If you’d like to learn more, please visit this post [7].
Links:
[1] https://data.hashrateindex.com/chart/bitcoin-price-and-difficulty
[2] https://data.hashrateindex.com/network-data/btc
[3] https://data.hashrateindex.com/chart/bitcoin-hashprice-index
[4] https://data.hashrateindex.com/chart/bitcoin-network-hashrate
[6] https://hashrateindex.com/blog/the-search-for-a-hashprice-floor-or-downside-resistance/