Rabbit Hole Recap: Week of 2020.04.13
4/16/2020 · 74 min · transcript via mlx
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Key topics
— Bryan Bishop released a prototype for Bitcoin vaults using sharding, pre-signed transactions, and covenants to enable theft recovery without losing all funds.
— Ransomware operator Sodinokibi now defaults to Monero but charges a 10% Bitcoin premium, revealing the practical privacy cost of Bitcoin's current fungibility issues.
— Trezor Model T v2.3.0 added passphrase wallet toggling, duress wipe PIN, and SD card two-factor authentication to mitigate seed extraction risks from physical access.
— Central banks recommend global stablecoin bans; DeFi platforms like MakerDAO face lawsuits and regulatory pressure, validating Bitcoin's original censorship-resistance thesis.
— Apple and Google are embedding Bluetooth-based contact tracing into operating systems, normalizing surveillance; GrapheneOS offers a privacy-focused alternative.
— The ninth anniversary of Black Friday (2011) highlighted how trusted third parties enable asset seizure—a core lesson for why Bitcoin and decentralization matter.
Market & price signals
— Bitcoin price: $7,003 at time of recording. Difficulty retarget in 678 blocks showing 11.4% upwards adjustment; blocks averaging 9 minutes 1 second. Lightning Network Tor capacity at 42.2%. Fee-to-subsidy ratio at 1.62%, depressed from recent highs. Market described as "choppy—up, down, sideways." Stimulus checks drove multiple friends to purchase Bitcoin via Cash App within days of distribution.
Actionable insights
— Implement privacy tools like CoinJoin on every spend to strengthen Bitcoin's fungibility and raise the cost of chain analysis; privacy improvements directly correlate with adoption and long-term value.
— Reject DeFi leverage and stablecoin platforms in favor of holding Bitcoin directly; finite supply (21 million) ensures appreciation over time as low-time-preference adoption increases without unnecessary counterparty risk.
— Run GrapheneOS or avoid smartphones entirely; build local resilience and minimize exposure to state-level surveillance infrastructure being normalized through operating systems.
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.
— Unchained Capital: Head over to www.unchained-capital.com/vaults to set up collaborative custody vaults where you hold two keys and they hold one, plus access integrated lending with Bitcoin collateral that is never re-hypothecated. They also support open source projects including SLIP 39, Smart Custody, Hermit, and Caravan.
— Cash App: Download the app and use promo code STACKINGSATS to receive $5, with $5 contributed to OWLS Lacrosse. The app offers the Boost program with discounts at retailers (Whole Foods 10% off, coffee shops $1 off, Taco Bell 10% off, Chick-fil-A), plus Bitcoin buying, selling, and sending with Lightning Network integration. New Cash App customers can use code TFTC10 when signing up and send at least $5 to a friend in the first two weeks to get $21 added to their balance; terms apply. Bitcoin services provided by Block, Inc.—see https://cash.app/legal/podcast for disclosures.