Rabbit Hole Recap: Week of 2020.01.04
1/7/2021 · 106 min · transcript via mlx
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Key topics
— OCC letter permitting banks to use independent node verification networks (blockchains) and stablecoins for payment activities, though hosts debated its actual impact versus hype on Twitter.
— Marathon Patent Group and DMG Blockchain Solutions launching a compliance-focused mining pool (DCMNA) that will filter OFAC-designated transactions, raising censorship resistance concerns at scale.
— Stratum V2 protocol development (funded by Square Crypto) as a critical long-term solution to decentralize mining pool block construction and eliminate regulatory pressure points.
— Iran cracking down on 1,620 illegal mining operations consuming 250 megawatts, demonstrating state opposition to sovereign Bitcoin mining.
— Strike Global announcement enabling instant cross-border value transfer using Bitcoin and Lightning between fiat currencies (USD, euros, etc.) for end users.
— Blockstream Jade hardware wallet release using M5 Stack platform; hosts noted missing PSBT support and questioned Bluetooth inclusion over QR-code-only design.
Market & price signals
— Bitcoin trading at $39,040 to $40,000+ during the episode; hosts noted roughly $21,000 gain in 21 days and discussed approaching a trillion-dollar total crypto market cap. Mining profitability reached highest levels since 2017 (33 million daily at one point). Lightning network public capacity at 2,186.77 BTC ($85.3M). Mempool showing 43,187 transactions; one sat/byte available for week-long confirmation waits. Sats-per-dollar exchange rate around 2,561 sats per dollar at episode start.
Actionable insights
— New Bitcoin users should dollar-cost-average (DCA) weekly rather than time the market or wait for a major pullback that may never come; treat Bitcoin as a savings account to reduce emotional stress during volatile rallies.
— If a 28% flash crash to $28,000 would cause panic or force selling, you are overleveraged; adjust position size and purchase cadence to remain comfortable during multi-month bear markets.
— Monitor Stratum V2 adoption progress as a more meaningful indicator of Bitcoin's censorship resistance than regulatory clarity headlines; decentralized mining pool protocols matter more than OCC letters for long-term network security.
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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