Rabbit Hole Recap: Bitcoin Week of 2021.07.12
7/15/2021 · 98 min · transcript via mlx
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Key topics
— Blue Wallet released a Lightning Development Kit (LDK) implementation in React Native, making it the first mobile wallet to leverage LDK and enabling cross-platform Lightning support with hardware wallet channel opening.
— Trezor Suite officially launched as the replacement for the web app, featuring Tor integration for improved privacy, with planned additions of CoinJoin and full node support via Electrum or Bitcoin Core.
— BitMEX reopened its developer grant program to fund Bitcoin protocol and software contributors, signaling renewed commitment to ecosystem development.
— Multiple significant software releases shipped this week including Rust Lightning v0.0.99, Fully Noded v0.2.18 (with LND support), Sparrow Wallet v1.4.3 (with Taproot support on Signet/RegTest), and Blue Wallet v6.1.9.
— Jerome Powell testified before Congress on monetary policy, CBDCs, and stablecoins, with the Fed planning to release a CBDC white paper in the fall describing both benefits and drawbacks.
— Global unrest is escalating with major protests in France over vaccine passport mandates, riots in South Africa, and instability spreading across multiple countries.
Market & price signals
— Bitcoin trading at approximately $31,285 per BTC at time of recording (July 15, 2021). The difficulty adjustment is estimated at a downward adjustment of 5.6%, expected on July 18 (Sunday), improved from the previously estimated -11% adjustment. Network hashrate has seen some recovery since the prior week, likely due to miners relocating from China. Mempool activity remains very light at 479 transactions in Clarksman Pool. UTXO age distribution shows unspent value at 98.1 million BTC (down from higher levels). Real inflation discussed in context of purchasing power erosion—spare ribs noted at $45 per rack (previously ~$16 one year prior). In 2015-adjusted dollars, current Bitcoin price around $18,000–$19,000 (below nominal price), indicating loss of purchasing power relative to goods. If charted against M2 money supply, Bitcoin approximately at 2017 all-time high levels when adjusted for real inflation.
Actionable insights
— Disable auto-updates on all Bitcoin wallets and hardware wallet firmware; wait for updates to stabilize before upgrading, especially on mobile where keys are hot and vulnerability is highest. Use trusted sources like GitHub to verify releases before upgrading.
— Begin practicing better privacy and sovereignty with Bitcoin now—generate new seeds when moving to full-node setups, learn to use CoinJoin, implement coin control, and avoid relying on SMS 2FA; prepare defensively before regulatory or surveillance pressures escalate further.
— Consider running your own Lightning node or using Fully Noded to connect to LND over Tor via QR code scanning; this improves UX while maintaining privacy and reduces reliance on third-party infrastructure ahead of potential CBDC and stablecoin restrictions.
Episode sponsorships
Paid placements mentioned in this episode. BTC Pods is not sponsored by or affiliated with these advertisers. Links are included so you can find offers mentioned on the show.
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