Rabbit Hole Recap LIVE with @arbedout: Week of 2021.10.18
10/23/2021 · 55 min · transcript via mlx
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Key topics
— Bitcoin reached a new all-time high of $66,950 this week; the network is now 6.1% below that peak at $62,860.
— The first U.S. Bitcoin futures ETF (ProShares) was approved, though it uses cash-settled futures with rollover costs rather than spot Bitcoin exposure.
— Argentina's entire population had their identity data breached from a government database, highlighting the dangers of centralized KYC systems and biometric collection.
— WorldCoin launched an "orb" biometric scanning system to distribute a new cryptocurrency via retina scans, raising serious privacy and security concerns.
— Jonas Schnelli stepped down as a Bitcoin Core maintainer due to burnout and legal pressure concerns, sparking discussion about developer protection and pseudonymity in open-source Bitcoin work.
— Houston Firefighters Pension Fund allocated $25 million to Bitcoin (and Ether), signaling institutional adoption of crypto assets as pension funds seek alternatives to combat underfunding.
Market & price signals
— Bitcoin hit an all-time high of $66,950 this week and is currently trading around $62,860 (6.1% below ATH). Block height is at 706,058 with 90% of all Bitcoin nearly mined. The next difficulty adjustment, estimated 3.5% up, is roughly 1,558 blocks away. Average block time is 9 minutes 40 seconds. Transaction fees are at all-time highs on Clark's dashboard. GBTC (Grayscale Bitcoin Trust) hit an all-time high discount of negative 22% off spot price; Barry Silbert's potential ETF conversion of GBTC to ticker BTC by end of 2022 drew limited confidence from attendees.
Actionable insights
— Avoid futures-based Bitcoin ETFs in favor of spot exposure; if you must hold ETF exposure, understand rollover costs and consider the risk that custodial vehicles may restrict withdrawal to Bitcoin in future market stress.
— Use collaborative custody (multisig where you hold two keys and a trusted third party holds one) rather than single-point-of-failure self-custody or full third-party custody, especially as Bitcoin holdings grow in value.
— Never scan your biometric data or provide personal identifying information to centralized systems claiming to distribute new currencies; proof-of-work remains the only fair, trustless distribution mechanism for new money.
Episode sponsorships
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