It took me a while to understand this, especially as a child. I always wanted to have my possessions in mint condition. Eventually, I realized that this meant that I wasn't enjoying them.

Anyone who says Bitcoin is like digital gold doesn't know anything about Bitcoin

It is nothing like gold, literally not a single property

When you can ship a 1000lbs of gold through the Internet with no intermediary using cryptography, I'll shut up

If BTC hits $70k this week we're following everyone who replies to this.

I don’t know who does it or how.

But the bitcoin price is imo clearly being heavily manipulated and suppressed.

That’s ok though. The trick is low time preference. Just don’t get demoralized or stuck with worthless paper bitcoin while we wait.

nostr crew nashville nostr:npub1gcxzte5zlkncx26j68ez60fzkvtkm9e0vrwdcvsjakxf9mu9qewqlfnj5z nostr:npub18ams6ewn5aj2n3wt2qawzglx9mr4nzksxhvrdc4gzrecw7n5tvjqctp424 nostr:npub1yzvxlwp7wawed5vgefwfmugvumtp8c8t0etk3g8sky4n0ndvyxesnxrf8q

This isn't true.

Why? Because AI's are software, and software can't hold private keys.

Think about it. Imagine you are a software program, and you want to hold bitcoin. What are you going to do with your private key, such that the person who is running the computer you are on can't get it?

You could encrypt your private key, but then what are you going to do with the key to that encryption? Encrypting the key leads you down an infinite regress that gets you nowhere, because ultimately you have to have at least one final key that isn't encrypted.

There is a deep principle involved here, and that is: to utilize encryption YOU MUST BE ABLE TO PHYSICALLY SECURE YOUR PRIVATE KEY.

You have to place your key somewhere where no other entity can physically access it, either because it is hidden, or because it is physically impossible to access.

To have and hold #bitcoin or a #nostr account, you have to be a computer or even better a robot/human. You can't simply be software.

So in the article, the AI's don't hold the crypto. Whomever holds the computer that the AI's are running on, holds the crypto.

Cryptographic keys are philosophically very deep. There is a lot there to explore, in terms of identity, and what it means to be human.

One of the big macro questions is when will the US banking system run into the liquidity floor, requiring the Fed to end quantitative tightening? Due to current regulations and the "ample reserve" regime, banks generally have liquidity requirements relative to their overall size, and their overall size keeps growing nominally.

-Big banks ran into the liquidity floor in September 2019 at $1.5 trillion with the repo spike, and the Fed had to end quantitative tightening and resume mild quantitative easing (which was then overshadowed by the giga-liquidity-bazooka in 2020/2021).

-Smaller banks ran into the liquidity floor in March 2023 at $3.0 trillion (the new floor) with the regional bank crisis. Both the Fed and the Treasury provided liquidity in response, although the Fed has maintained quantitative tightening. Liquidity has been maintained above that level without being greatly elevated, which is probably what would have happened post-2019 if not for the pandemic/lockdown stuff thereafter.

The New York Fed thinks the liquidity floor will be reached sometime in 2025, and that they'll go back to gradual balance sheet expansion then. Andy Constan, formerly of Bridgewater, thinks it'll be late 2025. I debate him a bit on this since both of us cover this closely, and I generally think it'll be mid 2025, although there are enough moving variables that neither early 2025 or late 2025 would surprise me, so conservatively I say "by the end of 2025."

I was talking to a large institutional investor today, and he said that his contact who is a major repo operator at an investment bank, thinks the current floor is now $3.3 trillion, which is roughly where it is currently. That basically means any further quantitative tightening has to be offset by reverse repo drainage, or they'll have a repo issue and the Fed will need to end QT. My estimate is somewhere in the $3.1-$3.2 trillion range for the liquidity floor, meaning I think there's a bit more room than that repo operator. But either way it's pretty tight.

This is all kind of rambling but generally when that liquidity floor is reached and is responded to, it tends to be good for a lot of liquidity-driven assets, including bitcoin. And it'll probably be with a whimper more than a bang, kind of like the September 2019 repo crisis that nobody other than macro nerds remember.

Looks like the US Marshal Service is selling bitcoin.

The goods you want will only be available on the black market if price controls kick-in.

You think they are going to want your dollars?

Learn how to spend your Bitcoin.

Anything, but mayonnaise. A sauce made from raw eggs and oil, invented by the French to make rotten meat palatable. 🤢

I'm recording a bitcoin.review episode about OP_CAT today, drop your questions and comments below 👇

For many people entering the scene, Bitcoin is primarily a currency, not a store of value.

Hearing rich people opine about how you should never spend Bitcoin, just confirms the suspicion everyone has that Bitcoiners are greedy sociopaths.

How to lose friends and alienate people, but make it digital money.

WAKE UP. GOOD MORNING.

I don't follow enough ppl. Shill me some obscure npubs that you like.

Why is bitcoin better than gold?

Every correct answer in the next 40 mins will get a little Monday morning zap!

#asknostr

Anyone can create a Bitcoin wallet.

Not everyone can open a bank account.