SLP33 Kara Haas - Bitcoin & Crypto Audit and Accounting

Fabian Jahr and Gloria Zhao rejoin me to discuss whether big projects can be done inside Bitcoin core. We delve into AssumeUTXO, ASMap, developer funding, and meritocracy in the developer community. Summary In this episode, Stephan discusses the upcoming Bitcoin Core version 28, its new features, and the ongoing development efforts with Fabian and Gloria. They delve into the pace of change within Bitcoin Core, the importance of communication and collaboration in software development, and the challenges faced by developers in getting projects approved. The conversation also covers the AssumeUTXO project, its implications for node operation, and the significance of funding and competing implementations in the Bitcoin ecosystem. The episode concludes with insights into future projects and the collaborative nature of Bitcoin development. Takeaways Bitcoin Core version 28 introduces exciting new features. The development process involves both small bug fixes and significant changes. Communication and collaboration are essential for project success. AssumeUTXO allows for quicker node synchronization. The decentralized nature of Bitcoin development presents unique challenges. Funding can influence project focus but should not dictate it. Competing implementations can complicate backward compatibility. Iterative development is crucial for large projects. Engaging the community early can lead to better outcomes. Future projects like ASMap and Cluster Mempool are on the horizon. Timestamps: (00:00) - Intro (00:32) - What to expect from Bitcoin Core V28.0? (05:10) - What should be the pace of change for Bitcoin Core? (11:15) - How does one decide which is a worthwhile project to work on? (14:15) - Why did it take so long for AssumeUTXO to go live? (20:38) - AssumeUTXO explained (22:04) - Sponsors (25:40) - BtcpayServer ‘s Fast Sync  (27:36) - Developer funding landscape in Bitcoin; Working on FOSS  (31:27) - What are the effects of having various implementations of Bitcoin Core? (35:05) - What does it take to successfully merge a PR? (37:31) - What is the ASMap project? (48:34) - Sponsor (49:58) - Importance of soft skills & meritocracy in Bitcoin’s developer community (1:00:13) - Upcoming projects; Closing thoughts  Previous Episodes:  ` SLP214 Pierre Rochard & Fabian Jahr – Where Are All The Bitcoins?:  https://youtu.be/PQWy_UR9PzY  SLP216 Gloria Zhao Learning Bitcoin Core Contribution & Hosting PR Review Club: https://youtu.be/O-Q-SmuXjS4  SLP404 Gloria Zhao - What Do Bitcoin Core Maintainers Do?: https://youtu.be/a61lUwlOF80  v3 Transactions and Package Relay with Glozow (SLP511): https://youtu.be/H1o7TgTCMjk  Links:  Bitcoin Core v28.0: https://bitcoincore.org/en/download/ ASMap: https://delvingbitcoin.org/t/asmap-creation-process/548 AssumeUTXO tracking: https://github.com/bitcoin/bitcoin/issues/29616 https://bitcoinops.org/en/topics/assumeutxo/  TRUC / v3 topic: https://bitcoinops.org/en/topics/version-3-transaction-relay/ Package relay topic: https://bitcoinops.org/en/topics/package-relay/ Package relay tracking: https://github.com/bitcoin/bitcoin/issues/27463 https://brink.dev Testnet 4 PR: https://github.com/bitcoin/bitcoin/pull/29775 BIP94: https://github.com/bitcoin/bips/pull/1601 CISA website: https://cisaresearch.org CISA fellowship: https://x.com/ck_SNARKs/status/1817928417184203162  Sponsors: Bold Bitcoin CoinKite.com (code LIVERA) mempool.space/accelerator  Stephan Livera links: Follow me on X: @stephanlivera Subscribe to the podcast Subscribe to Substack

26 Okt 20241h 2min

Summary In this conversation, Keith Gardner from Branta, discusses the importance of security in Bitcoin transactions. Keith shares his background in engineering and how he became involved in Bitcoin after recognizing the complexities and risks associated with traditional finance.  The discussion covers common phishing and address replacement attacks, the innovative solutions offered by Branta to enhance transaction security, and the future of Bitcoin in relation to mobile integration and privacy concerns. Keith emphasizes the need for user-friendly tools that can help prevent scams and ensure safe transactions in the evolving landscape of cryptocurrency.  The discussion also covers long-term strategies for Bitcoin custody, innovations in software security, and key takeaways for individuals to safeguard their investments. Takeaways Keith Gardner transitioned from engineering to Bitcoin due to complexities in traditional finance. Branta was created to address the fear of losing Bitcoin through phishing attacks. Phishing and man-in-the-middle attacks are significant threats in Bitcoin transactions. Branta aims to provide a solution that verifies Bitcoin addresses before transactions. Mobile integration is a future goal for Branta, focusing on QR code technology. Branta operates as an invisible layer alongside existing wallets to enhance security. Privacy is a critical concern, and Branta ensures user data is protected. The software does not handle private keys or expose user Xpubs. Branta's future developments will include support for the Lightning Network. The goal is to make Bitcoin transactions safer and more user-friendly. Ensure secure transactions by verifying addresses before sending funds. Phishing attacks are prevalent; always guard your inbox. Education on security practices is crucial for crypto users. Creating friction in transactions can prevent impulsive decisions. Long-term strategies for Bitcoin custody are essential for security. Utilize multi-sig and cold storage for larger amounts of Bitcoin. Be cautious of urgency in requests for sensitive information. Nostra's web of trust can enhance security in transactions. Regularly check the authenticity of software before downloading. Treat your Bitcoin as if it were worth significantly more. Timestamps: (00:00) - Intro (00:36) - Keith’s background; What is Branta? (03:10) - Recent attack vectors on Bitcoin (Phishing and Address Replacement) (08:13) - Is Branta mobile friendly?  (12:12) - Is Branta for personal use or businesses? (17:09) - Integrating Lightning & other Layer 2 solutions  (18:24) - Sponsors (26:01) - Privacy concerns and User Data Protection (31:36) - Guarding against Phishing & Spoofing attacks (34:37) - Why is friction important in financial transactions? (38:50) - Bitcoin custody is a long-term responsibility  (39:15) - Sponsors (44:45) - What are the possible risks with Branta? (53:14) - Key takeaways for protecting your Bitcoin Links:  https://x.com/unfakekeith  https://x.com/BrantaOps  https://www.branta.pro/  https://github.com/BrantaOps  Sponsors: Bold Bitcoin CoinKite.com (code LIVERA) mempool.space/accelerator  Nomadcapitalist.com/apply Stephan Livera links: Follow me on X: @stephanlivera Subscribe to the podcast Subscribe to Substack

23 Okt 202454min

Harris Irfan, CEO Cordoba Capital Markets & Advisor at @OnrampMENA joins me to discuss challenges and opportunities within Islamic finance, ethics of finance in business and the intersection of Islamic finance and Bitcoin. Harris highlights building a financial system focused on real economy transactions, sharing insights on finance, custody, and Bitcoin investment.  Summary In this conversation, Harris Irfan discusses his journey from conventional finance to Islamic finance and Bitcoin. He explores the challenges and opportunities within Islamic finance, particularly in relation to ethical finance and risk-sharing principles. The discussion delves into the intersection of Islamic finance and Bitcoin, highlighting the potential for Bitcoin to serve as a sound monetary system that aligns with Islamic principles. Harris emphasizes the importance of creating a financial system that prioritizes real economy transactions over speculative practices, and he shares insights on the future of finance, custody, and investment decisions in a Bitcoin standard. Takeaways Harris Irfan transitioned from conventional finance to Islamic finance and Bitcoin. Islamic finance emphasizes ethical finance and risk-sharing principles. Bitcoin is viewed as a modern form of sound money, potentially more Islamic than gold. The challenges of Islamic finance are exacerbated by the fiat banking system. Custody solutions for Bitcoin are evolving, with a focus on self-custody. Cultural perspectives on money influence the adoption of Bitcoin in Muslim communities. Trade finance can be structured to align incentives between investors and businesses. The VC industry may need to adapt to a sound money standard. Hurdle rates for investments will change in a Bitcoin economy. Optimism about the future of Bitcoin is essential for its growth. Timestamps: (00:00) - Intro  (01:04) - Harris’s background with finance & Islamic banking (07:44) - Comparing Fiat banking with Islamic finance  (12:06) - The intersection of Islamic finance and Bitcoin (18:21) - Custodying Bitcoin - Individuals vs. Trusted custodians (25:51) - What are misconceptions about Bitcoin among muslims? (30:20) - What are the cultural differences when operating on a Fiat Standard vs Sound Money Standard? (33:27) - What does it mean to share risk in finance? (39:12) - The viability of different financial models (45:35) - What would finance look like in a Full Reserve Bitcoin banking world? (54:17) - How does one navigate with morality & ethics in the current Fiat world? (59:00) - Bitcoin compared to hurdle rates in investment decisions (1:02:11) - Outro Includes Paid Partnerships (16:04) - Sponsors (38:11) - Sponsor Links:  https://x.com/harris_irfan  https://www.ccmkts.com/ Sponsors: Bold Bitcoin CoinKite.com (code LIVERA) mempool.space/accelerator  Stephan Livera links: Follow me on X: @stephanlivera Subscribe to the podcast Subscribe to Substack

18 Okt 20241h 2min

Summary In this episode, Kenji Tateiwa, CEO of Agile Energy X, discusses his extensive background in nuclear engineering and the impact of the Fukushima disaster on public perception of nuclear energy. He explains the innovative concept behind Agile Energy X, which leverages wasted renewable energy through Bitcoin mining to address curtailment and grid congestion issues in Japan. Kenji elaborates on the unique flexibility of Bitcoin mining as an energy buyer and its potential role in the future energy landscape, including the integration of circular economy principles. The conversation also touches on the challenges and opportunities in Japan's energy production, particularly regarding nuclear energy and the need for a diverse energy portfolio. Takeaways Kenji Tateiwa has a strong background in nuclear engineering. The Fukushima disaster significantly impacted public perception of nuclear energy. Agile Energy X aims to utilize wasted renewable energy through Bitcoin mining. Bitcoin mining can help solve curtailment and grid congestion issues. The concept of 'Megawatt to MegaHash' connects energy production to Bitcoin mining. Bitcoin mining is flexible and can be turned on and off as needed. AI data centers are less flexible compared to Bitcoin mining. Agile Energy X has a two-pronged strategy to hedge against market fluctuations. The circular economy can be integrated into energy solutions. Japan's energy future requires a diverse mix of energy sources. Timestamps: (00:00) - Intro (00:50) - Who is Kenji Tateiwa and what is TEPCO? (05:34) - What are the various components of energy markets? (06:30) - Fukushima and the perception of nuclear energy  (09:42) - What is Agile Energy X & why was it created? (14:15) - Convincing TEPCO to mine Bitcoin; Solving the energy issue (16:14) - Understanding Curtailment and Grid Congestion (20:06) - Sponsors (23:10) - Megawatt to MegaHash: Bridging Energy and Bitcoin (25:42) - Bitcoin Mining vs. AI Data Centers (29:02) - The competitive landscape of Bitcoin mining (33:26) - Sponsors  (37:58) - Challenges and opportunities in Nuclear Energy (42:12) - Curtailment of renewable energy could reach 42% in Japan by 2050? (45:41) - Scaling Bitcoin mining in Japan (47:02) - What is “The Ultimate Circular Economy”? (51:28) - The future of Japanese energy production (53:44) - The future of Agile Energy X Links:  https://agileenergyx.co.jp/en/   Sponsors: Bold Bitcoin CoinKite.com (code LIVERA) mempool.space/accelerator  Stephan Livera links: Follow me on X: @stephanlivera Subscribe to the podcast Subscribe to Substack

14 Okt 202455min

Lawrence Lepard, Managing Partner, Equity Management Associates, joins me to discuss the national debt crisis, inflation, possible price suppression of hard assets and the contrasting roles of gold and Bitcoin as sound money.  Summary In this conversation, Stephan Livera and Lawrence Lepard delve into pressing economic issues, including the national debt crisis, inflation, and the contrasting roles of gold and Bitcoin as sound money. They discuss the implications of the upcoming US election on economic policies and the market dynamics of gold and Bitcoin. The conversation also touches on the potential for economic suppression and the future predictions for both gold and Bitcoin in light of current financial trends. Takeaways The national debt is accelerating and poses a significant risk. Inflation is likely to rise again due to government policies. Gold is currently viewed as a safe haven, but Bitcoin is seen as the future of sound money. The upcoming US election could have major implications for Bitcoin and economic policies. Gold ETFs have been shrinking while Bitcoin ETFs are growing, indicating a generational shift in investment. The suppression of gold prices has been a long-standing issue, but Bitcoin may not face the same challenges yet. Future predictions suggest Bitcoin could reach $300,000 and gold could hit $5,000 in the next economic crisis. The need for sound money is becoming increasingly urgent as the dollar loses value. A monetary reset may be necessary to address the current economic challenges. Investors should consider diversifying into sound money assets like Bitcoin and gold. Timestamps: (00:00) - Intro (01:09) - US Govt. debt spiraling out of control (07:17) - Gold’s reaction to crisis (10:14) - Is inflation inevitable?; Managing interest rates (18:24) - CPI & asset inflation; Overvaluation of assets (24:18) - Sponsors (26:34) - Who is buying the Gold?; Gold vs. Bitcoin  (31:10) - Sponsors (33:12) - What does the US election mean for Bitcoin? (40:10) - What would cutting the size of the state look like? (45:58) - The significance of Bitcoin advocacy (48:43) - Gold & Bitcoin price suppression?  (55:00) - Possible Executive order on Bitcoin in the future? (57:07) - Will ‘The Next Big Print’ send Bitcoin to $350K? Links:  https://x.com/LawrenceLepard https://ema2.com/   Sponsors: Bold Bitcoin CoinKite.com (code LIVERA) mempool.space/accelerator  Nomadcapitalist.com/apply Stephan Livera links: Follow me on X: @stephanlivera Subscribe to the podcast Subscribe to Substack

5 Okt 20241h 3min

After a long and choppy bull-crab market, Dr. Ross notes that the bull market is here! Dr. Jeff Ross, founder, Vailshire Capital Management, joins me to discuss the ongoing sentiment in the markets, global liquidity, pitfalls and opportunities of this bull cycle, holistic living and more! Summary In this conversation, Dr. Jeff Ross discusses his transition from a bearish to a bullish outlook on Bitcoin and the broader market, emphasizing the importance of liquidity and central bank policies. He explains how liquidity flows impact asset prices, particularly Bitcoin, and outlines his predictions for economic growth and market behavior in the coming years. The discussion also touches on wealth inequality, the role of Bitcoin in addressing economic disparities, and strategies for investors, including the controversial 8% withdrawal rate for Bitcoin holders. Takeaways Liquidity is the key driver of asset prices. The transition from bear to bull markets is influenced by liquidity flows. Central banks play a significant role in market dynamics. Bitcoin is seen as a solution to wealth inequality. The US dollar remains the strongest currency despite global challenges. High liquidity environments lead to increased risk-taking behavior. Investors should consider Bitcoin as a significant part of their portfolio. Timing the market can be beneficial for fund managers but not for regular investors. The 8% withdrawal rate is reasonable for Bitcoin holders. Future economic growth may surprise - to the upside. Timestamps: Timestamps: (00:00) - Intro (00:48) - Why is Dr. Jeff bullish?; Shift from bull-crab to bull (03:29) - The significance of M2 Money Supply & Global Liquidity (07:44) - Will the Fed rate cut increase asset prices? (10:38) - Liquidity into 2025? (16:09) - Recession fear overblown? (22:05) - Ever-increasing US Govt. debt and currency collapse across the world (30:07) - “Easy money begets stupid & risky behavior” (37:35) - Detachment of Bitcoin halving cycles from other major cycles (40:10) - Bhutan on a Bitcoin stacking spree; Changing world-order (44:01) - How do Gold & Bitcoin perform in a high liquidity environment? (47:23) - Asset allocation wrt Bitcoin for Institutional investors (53:23) - $475K Bitcoin target in play? (57:12) - Caution to take during a bull cycle (1:00:47) - Financial independence & 8% Withdrawal Rate? (1:07:24) - Closing thoughts Links:  drjeff@nostrplebs.com  https://primal.net/p/npub1k7vkcxp7qdkly7qzj3dcpw7u3v9lt9cmvcs6s6ln26wrxggh7p7su3c04l  Sponsors: Bold Bitcoin CoinKite.com (code LIVERA) mempool.space/accelerator  Stephan Livera links: Follow me on X: @stephanlivera Subscribe to the podcast Subscribe to Substack

29 Sep 20241h 11min

Andy Edstrom, Head of Managed Wealth at Onramp Bitcoin rejoins me to discuss the govt. debt levels, retirement planning on Bitcoin, price modeling, risks of leverage yield on Bitcoin and more! Summary In this episode, Andy Edstrom returns to discuss the evolution of Bitcoin since their last conversation, touching on price modeling, the risks of leverage, and the future of Bitcoin loans. They explore the implications of government debt, the role of gold, and the potential for yield in a Bitcoin standard. The conversation emphasizes the importance of understanding market dynamics and preparing for various economic scenarios. Takeaways Bitcoin's evolution has led to increased participation and conversation on the world stage. Price modeling in Bitcoin is fraught with challenges and often fails to predict future movements. Leverage in Bitcoin can lead to significant losses, as seen in past market downturns. The future of Bitcoin loans is uncertain, with a need for better credit analysis and terms. Retirement planning in a Bitcoin world requires careful consideration of inflation and spending habits. Government debt is at an all-time high, raising concerns about future economic stability. Gold still plays a role in the financial landscape, but Bitcoin is seen as the future. Yield may still exist under a Bitcoin standard, but it will differ from current fiat systems. The importance of maintaining on-ramps and off-ramps for Bitcoin in the future cannot be overstated. Expect wild times ahead as economic conditions continue to evolve. Timestamps: (00:00) - Intro (01:14) - How has Bitcoin changed since 2019? (04:12) - How significant are Bitcoin Price Models? (11:28) - Preparing for all possible scenarios when Bitcoin price appreciates (14:27) - Should you time the market?; Volatility, Retirement and Tax events to consider. (22:01) - How has the market for leverage on Bitcoin evolved? (27:45) - Sponsors (30:40) - The case for loans with Bitcoin as a collateral  (38:04) - Retirement planning and achieving FIRE with Bitcoin? (43:20) - Bitcoin on its way to $400K? (50:14) - The instability of the growing US Govt. Debt - what happens next? (55:25) - Sponsors (57:47) - The Haves and the Have Nots; Overvaluation of property markets (1:01:57) - What does yield look like on a Bitcoin Standard?  (1:13:22) - Closing thoughts Links:  https://x.com/edstromandrew  https://www.amazon.com/Books-Andy-Edstrom/s?rh=n%3A283155%2Cp_27%3AAndy+Edstrom  https://x.com/OnrampBitcoin/status/1836029421922263074  Sponsors: Bold Bitcoin CoinKite.com (code LIVERA) mempool.space/accelerator  Nomadcapitalist.com/apply Stephan Livera links: Follow me on X: @stephanlivera Subscribe to the podcast Subscribe to Substack

23 Sep 20241h 15min

With growing institutional adoption of Bitcoin through custodians, investors will demand transparency through ‘Proof of Reserves’. Alexander Leishman, CEO & CTO, River joins me to discuss more of the institutional adoption of Bitcoin, Coinbase’s hesitation towards Proof of Reserves, US Govt. debt and more. Summary In this episode of the Stephan Livera podcast, host Stephan speaks with Alex Leishman, CEO and CTO of River, about various topics surrounding Bitcoin, including the current state of exchanges like Coinbase, the importance of proof of reserves, and the growing adoption of Bitcoin among businesses. They discuss the implications of stablecoins, the comparison between Bitcoin and gold, and the future of Bitcoin technology. Alex emphasizes the need for transparency in the industry and the importance of maintaining a solid foundation for Bitcoin's development. Takeaways Coinbase likely has the coins they claim, but proof is needed. Proof of reserves should include liabilities for full transparency. Bitcoin adoption is growing among businesses of all sizes. Stablecoins serve as a necessary tool for many users. The future of Bitcoin as a store of value is promising. Gold's historical significance may not hold against Bitcoin's advantages. Self-custody remains a challenge for many Bitcoin users. Bitcoin technology is evolving, focusing on reliability and security. The political landscape may influence Bitcoin's regulatory environment. Community education is crucial for fostering trust in custodians. Timestamps: (00:00) - Intro (00:34) - Does Coinbase hold all the Bitcoin they claim to? (02:33) - What happens when liabilities are more than assets? (06:44) - @River ‘s Proof of Reserves - Explained (10:32) - How does Proof of Reserves mitigate the risk of ‘Paper Bitcoin’? (12:07) - Sponsors (14:22) - Why Proof of Reserves could be difficult to implement for Coinbase? (17:56) - Why Business Bitcoin adoption grew by 30% in 1 year (21:30) - The increasing US Govt. debt & the role of Bitcoin (23:08) - Gold vs Bitcoin  (26:32) - Risks of centralization of Bitcoin custody through ETFs (30:45) - Sponsor (34:15) - Bitcoin’s role in commerce - Store of Value of Medium of Exchange? (38:00) - Does Bitcoin need an upgrade? (41:24) - Are stablecoins a hindrance to Bitcoin adoption? (47:20) - US Presidential election affecting Bitcoin (52:56) - Way forward with Bitcoin Development (56:45) - Closing thoughts  Links:  https://x.com/Leishman  https://x.com/River/status/1831374555530830304  https://x.com/Leishman/status/1836406012405772568  Sponsors: Bold Bitcoin CoinKite.com (code LIVERA) mempool.space/accelerator  Stephan Livera links: Follow me on X: @stephanlivera Subscribe to the podcast Subscribe to Substack

19 Sep 202457min