Latest / Simply Bitcoin / kutus84Rules for thee (enemy) not for me (friend) - Schmitt nailed it 100+ years ago as a system.

Transcript

kutus84Rules for thee (enemy) not for me (friend) - Schmitt nailed it 100+ years ago as a system. · Simply Bitcoin

• 0:01
  Everyone is optimistic on the Clarity Act being passed this
• 0:05
  year, but that's only because they're not paying attention.
• 0:09
  We have a really dangerous story developing behind closed doors,
• 0:13
  with rumors suggesting the most important protections for
• 0:17
  Bitcoin is being quietly sacrificed for the bill to pass.
• 0:21
  We've been very skeptical on this show about this bill since
• 0:25
  day one, but if this rumor is true, it could confirm our worst
• 0:30
  fears about the Clarity Act. So to start this story, I do
• 0:34
  want to give a huge shout out to the boys over at TFTC, Marty and
• 0:38
  Matt, for basically highlighting and having this inside scoop.
• 0:42
  So here's a clip from yesterday's Rabbit Hole recap,
• 0:46
  and it is something we've been talking about all week and it's
• 0:49
  really not looking too good. Short clip, but a very powerful
• 0:54
  one. Here we go.
• 0:56
  Breaking news from the Hill. My birdie on the hill is texting
• 1:01
  me right now saying update Dems are coming for BRCA.
• 1:04
  Specifically protection for devs.
• 1:06
  Ours are willing to remove some protections to get some Dems on
• 1:10
  board. Dems are hitting three angles.
• 1:12
  Dev protections Trump family crypto ethics and yield stable
• 1:15
  coins. We have to sound the alarm
• 1:18
  regarding BRCA protections. Coinbase could push harder on
• 1:22
  that end too, considering they're spending millions to be
• 1:24
  here on the Hill. So we should pressure Coinbase
• 1:27
  to draw the line there. But the fact that Republicans
• 1:32
  didn't secure Van Holland's vote is a big signal.
• 1:36
  A bad signal. He has been trying quite a bit
• 1:39
  to help create bipartisan agreement on that end.
• 1:42
  Kill the bill. Guys, kill the bill.
• 1:45
  If they're not gonna, if they're not going to get developer
• 1:51
  protections enshrined into this law as bitcoiners like
• 1:55
  everything else that they're going to push for the expansion
• 1:57
  of the Patriot Act, all that bullshit and really just cater
• 2:01
  to the crypto lobby, then we should use our voices.
• 2:04
  Kill the bill. No bill.
• 2:06
  It's better than a bad bill. It's going to sour a lot of
• 2:09
  people in DC Trump administration won't be happy as
• 2:11
  a big priority for them. But fuck it if you're not going
• 2:14
  to secure civil liberties in the digital age, particularly for
• 2:19
  open source software developers, when this is a very
• 2:22
  straightforward protection for any other manufacturer, any
• 2:26
  other tool that can be used by criminals, then don't let them
• 2:31
  get it. Kill it on demand unless they
• 2:34
  keep these protections in, and arguably unless they make them
• 2:38
  clear too, because it's so fucked up.
• 2:43
  How politics works, Like you're literally sitting here, they're
• 2:51
  horse trading for all this shit and one of the things they're
• 2:53
  going to horse trade, developer protections for stablecoin
• 2:56
  yield. It's like what?
• 3:00
  Yeah, I mean, without developer protections, we get absolutely
• 3:03
  nothing from this bill. Once again, guys, we've been
• 3:09
  saying it for a minute, a bad bill or no bill is better than a
• 3:13
  bad bill. And, and I have some more.
• 3:15
  It's not just Marty and Matt saying this.
• 3:17
  I, I actually have a lot more in this.
• 3:19
  But Nico, if you want to go on just first, first instinct,
• 3:22
  first impressions of, I mean, we've been covering this all
• 3:25
  week. The B, it's in particular the
• 3:27
  BRCA provisions to protect open source development.
• 3:32
  It seems as of now, based on the rumors and even the conversation
• 3:37
  we've heard coming out of, you know, Washington, DC, is that it
• 3:41
  looks like they're trading those developer protections for the
• 3:44
  stablecoin yield. It's not a good luck.
• 3:47
  Now that we have the whole bill, at least now that we know what's
• 3:49
  going to be in the bill, I guess now we can nitpick on what is
• 3:53
  actually going to get passed into law.
• 3:55
  So the fight's not over, but as of now, are we really that
• 3:59
  surprised? No, and I I I do.
• 4:03
  First of all, shout out to Marty and and Matt.
• 4:06
  Always great commentary. You know those two are legends.
• 4:10
  Rabbit Hole recap was a precursor.
• 4:12
  Dude, we wouldn't be here. Without that we wouldn't be here
• 4:14
  without rabbit hole recap. So shout out to those legends.
• 4:16
  That's the first thing I got to say.
• 4:18
  Second thing is I do slightly disagree with with Odell on his
• 4:24
  point because the, the self custody protections are still
• 4:28
  there. However, I do agree it's very
• 4:32
  difficult for me to say what Matt is saying because so many
• 4:36
  of our, of our, of our partners are again, these are, these are
• 4:40
  US based companies and they benefit from the passage of the
• 4:44
  Clarity Act, right. So at the same time, the
• 4:50
  Bitcoiner and me, this is nuanced.
• 4:52
  There's there's two two things could be true at the same time.
• 4:57
  Listen, that was one of the biggest things for bitcoiners
• 5:01
  guys like if you don't want a Tornado Cash 2 point O type of
• 5:06
  situation, that provision in the bill was specifically there to
• 5:11
  protect that type of situation occurring again.
• 5:15
  And as we continue into the rest of this decade and as the the
• 5:21
  the the, the separation of money in state continues to
• 5:26
  accelerate, This is the type of provision that because it's not
• 5:32
  included into law, can and will be used against open source
• 5:38
  developers as more and more of the world's population chooses
• 5:44
  to use Bitcoin as a non sovereign alternative to their
• 5:49
  local Fiat currency. And as you can imagine, you
• 5:53
  know, This is why Satoshi remained anonymous, right?
• 5:58
  And I fundamentally believe that if Satoshi was not anonymous, I
• 6:04
  think he'd be in jail today. So because the the argument can
• 6:09
  be made. And Elizabeth Warren used this
• 6:11
  argument in the Senate Banking Committee in in in the Senate
• 6:17
  Banking Committee, you know, conversation yesterday where
• 6:21
  Elizabeth Warren, one of her talking points was Iran, you
• 6:26
  know, wanted to accept Bitcoin as a form of payment for people
• 6:31
  to cross the Strait of Hormuz. Now, I played you the clip of
• 6:35
  Senator Lummis kind of rebuffing that and saying, listen, like
• 6:39
  this bill actually allows even more.
• 6:42
  It's so crazy saying this, but even more oversight, even more
• 6:45
  surveillance, right? But this is this is this is a
• 6:50
  very, this is a very difficult provision where like as a
• 6:53
  Bitcoiner, you know, that supports Bitcoin, holding
• 6:58
  Bitcoin in in spot and holding Bitcoin in self custody.
• 7:01
  If this provision was allowed, then again, developers in the
• 7:06
  United States wouldn't feel like they're just one administration
• 7:10
  away from potentially living in a hostile environment.
• 7:13
  And I know that's not a problem now, but I guarantee you that as
• 7:18
  more and more of the world's population adopts Bitcoin and
• 7:22
  uses Bitcoin outside of the system, you can see how
• 7:28
  governments would react to this. And it actually reminds me of
• 7:32
  again, the book from the, the, a passage from the book The
• 7:37
  Sovereign Individual, where they specifically this book was
• 7:41
  written in, I believe, 1997. And it specifically says, and
• 7:48
  when I say tax, by the way, I'm not talking about income tax, to
• 7:53
  be very specific. That's a whole other
• 7:55
  conversation, whole discussion that I want to get into today.
• 7:57
  But when I talk about tax, I'm, I'm specifically talking about
• 8:01
  the inflation tax because all Western governments,
• 8:04
  specifically in the United States continue to spend more,
• 8:08
  more then they collect in tax revenue.
• 8:11
  So it's this deficit spending. And the reason that they're able
• 8:14
  to fund this deficit spending in the very in the 1st place is
• 8:18
  because they're able to print money.
• 8:20
  But if more, if more and more people stop using that said
• 8:25
  money, then the effectiveness of being able to print for pay to
• 8:31
  pay for things starts to go down.
• 8:34
  So you can just see, and guys, we've been so right about so
• 8:38
  many things throughout the years.
• 8:40
  Like we were right about a nation state adopting Bitcoin.
• 8:43
  We were right about the ETFs, We were about, we were right about
• 8:46
  public treasuries, about public companies adopting Bitcoin.
• 8:50
  We were saying these things back when it was unpopular.
• 8:53
  We were saying these things back in 2020 when none of these
• 8:57
  things were true, right when other of these things came to
• 9:01
  fruition. And the reason we were so
• 9:02
  confident in those thesis is not because we're geniuses, but
• 9:06
  because we understood the game theory of Bitcoin.
• 9:09
  Ultimately, Bitcoin is fundamentally better money for
• 9:13
  two reasons, two more reasons, but for ultimately 2 reasons.
• 9:17
  Number one, it's censorship resistant properties and that
• 9:21
  makes it immune from that makes it immune from censorship, that
• 9:27
  makes it immune from capital controls, right?
• 9:30
  You saw this with the Canadian truckers protest and thing #2 is
• 9:34
  it's a non inflation inflationary currency.
• 9:36
  You can say it's a deflationary currency.
• 9:38
  It has absolute scarcity, so it doesn't have inflation built in,
• 9:42
  right. So again, I'm going to read you
• 9:45
  guys this passage from the book The Sovereign Individual.
• 9:48
  I've read it so many times throughout the show, but it it
• 9:51
  really applies to the point that I'm trying to make here.
• 9:53
  Lacking their accustoms, their accustoms scope to inflate,
• 9:58
  governments, even in traditionally civil countries,
• 10:01
  will turn nasty. As income tax becomes
• 10:04
  uncollectible, older and more arbitrary methods of extraction
• 10:08
  will resurface. The ultimate form of withholding
• 10:11
  tax, the de facto or even overt hostage taking, will be
• 10:15
  introduced by governments desperate to prevent wealth from
• 10:19
  escaping beyond their reach. Unlucky individuals will find
• 10:23
  themselves signaled out and held to ransom in an almost medieval
• 10:27
  fashion. Now this is what applies to
• 10:30
  samurai. Businesses that offer services
• 10:33
  that facilitate the realization of autonomy by individuals will
• 10:37
  be subject to infiltration, sabotage, and disruption.
• 10:41
  Arbitrary forfeiture of property, already commonplace in
• 10:43
  the United States, where it occurs 5000 times a week, will
• 10:47
  become even more pervasive. Governments will violate human
• 10:50
  rights, censor the free flow of information, sabotage useful
• 10:55
  technologies, and worse. So again, this book wrote was
• 10:59
  prophetic. It called out censor the free
• 11:03
  flow of information even in the United States of America.
• 11:07
  Do you guys remember that clip of the googly eyed lady?
• 11:11
  You know, like making like a like a song talking about like,
• 11:14
  you know, information sensor like it was crazy, but
• 11:18
  basically. They're they?
• 11:20
  They were trying to like, set up like a ministry of truth in the
• 11:23
  United States. Ultimately that didn't work out
• 11:26
  because of the 1st amendment. Thank God for the wisdom of the
• 11:29
  founding fathers to understand, but sabotage useful technologies
• 11:34
  included in the passage as well. This was written back in 1997.
• 11:39
  What is going after, you know, open source software developers
• 11:44
  that are working on privacy tech, privacy tools, privacy
• 11:51
  protocols that don't have access to that money?
• 11:54
  What is that but not sabotaging useful technology?
• 11:57
  And you could say, OK, Benico, what about the what about the
• 12:01
  hostage taking? What is putting someone in a box
• 12:05
  for a certain amount of time not a form of hostage?
• 12:09
  Taking. Right.
• 12:10
  Like that is literally it's like, and it's not even a
• 12:12
  hostage taking, it's hostage taking, making an example out of
• 12:16
  that person and then literally keeping that person in the box.
• 12:20
  A big part of this election was a big motivation for bitcoiners
• 12:26
  to vote for Trump, which I don't regret was the fact that he was
• 12:29
  going to free Ross Ulbricht and he made good on that promise.
• 12:32
  We did put a lot of pressure and he ended up freeing Ross
• 12:36
  Ulbricht. So this is what I'm talking
• 12:38
  about and this is where I want you guys to understand where we
• 12:42
  are in the movie. We are in the disintermediation
• 12:45
  of information and the disintermediation of money.
• 12:48
  This is what we're living through.
• 12:49
  I think we went, we already went past the worst of the the battle
• 12:54
  for the disintermediation of information.
• 12:57
  You know, a big portion of that was the Internet.
• 12:59
  A big portion of that was Elon acquiring X with The X-Files
• 13:03
  came out, it literally exposed that the United States
• 13:06
  government was telling social media platforms to censor the
• 13:09
  free speech of Americans. Ladies and gentlemen, we have
• 13:13
  not even begun the disintermediation of money.
• 13:17
  We have not even begun the separation of money and state.
• 13:21
  That hasn't even started yet. That only begins and and we had
• 13:25
  Adam O'Brien, the CEO of Bitcoin well yesterday on the show and
• 13:29
  he was talking about it. That doesn't begin until a
• 13:34
  percentage of the population is actively holding Bitcoin in self
• 13:39
  custody outside of the traditional financial system and
• 13:43
  transacting peer-to-peer with other people.
• 13:46
  Circular economies. The way that we see at Bitcoin
• 13:49
  Beach in El Salvador is a great example of that, right until I
• 13:55
  would say maybe 5 to 10% of the population is doing that.
• 13:59
  And as as we said on yesterday's show, I believe only 1%, less
• 14:03
  than 1%, I would say 100,000 of us worldwide actually use
• 14:08
  Bitcoin, actually take it in self custody, actually
• 14:11
  understand the ethos of Bitcoin. I think that this specific
• 14:17
  provision not being passed, first of all, it sets up a
• 14:21
  precedent. Second of all, you can see just
• 14:27
  using basic common sense and logic how that will be
• 14:32
  weaponized in the future to go after open source developers.
• 14:38
  And if they went after Tornado Cash, what makes you think
• 14:42
  they're not going to use the same arguments to go after
• 14:46
  Bitcoin developers? Because they can make the case
• 14:49
  and say, hey, this Bitcoin developer, you know what, he
• 14:53
  contributed code to the Bitcoin protocol.
• 14:56
  And because he contributed code to the Bitcoin protocol and
• 14:59
  because Iran is receiving Bitcoin, he's breaking the law.
• 15:03
  And he's enabling essentially, you know, the transmission of
• 15:07
  money to sanctioned countries in the United sanctioned countries
• 15:12
  that on the that are on the list of Foreign Office of Foreign
• 15:15
  Asset Control. So you can see how that argument
• 15:18
  gets made. So this is a part of me where
• 15:21
  like I'm a little bit divided, you know, and, and, and I'm glad
• 15:25
  that I have Opti here because I know where Opti's going to side
• 15:27
  on this. But there's a lot of our
• 15:29
  partners that will benefit tremendously and us too, as a
• 15:33
  Bitcoin business in the United States from something like the
• 15:36
  Clarity Act, Bill passing. However, simultaneously, you
• 15:40
  know, Matt is right in the sense that that was a very strong
• 15:44
  position, that was a very strong provision.
• 15:47
  And it also exposes a lot of incentives, right?
• 15:50
  Like if this was a hill that the Elizabeth Warren camp was
• 15:55
  unmovable on. It tells you everything you need
• 15:58
  to know in terms of what they plan to use in the future to go
• 16:04
  after open source developers that again, are inconvenient to
• 16:10
  the system. So you guys have to understand
• 16:12
  where we are in the movie. You guys have to understand the
• 16:15
  implications of this. Another passage that I want to
• 16:18
  read for you guys is the authors of The Sovereign Individual have
• 16:22
  also predicted that with the rise of this new cyberspace and
• 16:26
  consequently cyber money again, 1997, this was written.
• 16:30
  It will be. I wish I read it, it will, but
• 16:32
  that was a baby. It will become harder for a
• 16:34
  nation state to collect taxes. From you can't even read now.
• 16:38
  It will become harder for a nation state to collect taxes
• 16:41
  from its citizens. Again, when I mentioned taxes,
• 16:43
  I'm not just talking about the income tax specifically, I'm
• 16:47
  talking about the inflation tax. They compare the state to a
• 16:50
  farmer keeping cows in a field to be milked, but that soon the
• 16:56
  cows will have wings. They predict that for the
• 16:59
  government to collect taxes from its citizens in this type of
• 17:02
  society, it will have to violate human rights.
• 17:05
  Even traditionally civil countries will have to resort
• 17:09
  and turn nasty. And you can apply that, like, to
• 17:13
  the samurai guys, Like, like, let's talk about that.
• 17:16
  And I think we're having one of them on the show somewhat soon.
• 17:19
  Let's talk about that for a SEC. What did they do?
• 17:25
  They definitely poked the bear a little bit by being vocal on X,
• 17:30
  right? However, ultimately what they
• 17:33
  did was they just designed a piece of software that allowed
• 17:38
  bitcoiners to get more privacy. They didn't have access to the
• 17:45
  funds that were being used using that piece of software.
• 17:50
  They didn't have access to those funds.
• 17:53
  But all the argument that the government had to make was,
• 17:56
  listen, even though 97% of the funds that are going through
• 18:03
  samurai are not tied to illegal activity, 3% is tied to the
• 18:10
  North Koreans. Therefore, you're breaking the
• 18:13
  law. Simultaneously, let's talk about
• 18:17
  all the money laundering that occurs in the traditional
• 18:21
  financial system that has all the rules and regulations in
• 18:25
  place. Why isn't that being focused on?
• 18:29
  You had these massive news of these big banks that were
• 18:33
  facilitating money laundering for the Mexican drug cartels.
• 18:38
  Do you see the CE OS of those big banks being locked up in a
• 18:42
  box? No, the big banks got fines.
• 18:48
  Our industry gets thrown in jail, the banks get fines.
• 18:53
  So justice is supposed to be equal, but as you can see, it's
• 18:57
  not being treated as equal. And the reason it's not being
• 19:00
  treated as equal, let's be clear here, is because ultimately the
• 19:04
  reason that governments just give banks fines is because
• 19:08
  governments ultimately do control banks through the Bank
• 19:11
  Secrecy Act, through the Patriot Act.
• 19:14
  So the way that I described it as a bank account is essentially
• 19:17
  a two of three multi sig where you hold one key, the state
• 19:21
  holds another key, and then the bank holds another key.
• 19:26
  That's not a great multi sig. That's not a good multi sig at
• 19:29
  all. You don't control the majority
• 19:31
  of the keys in that situation, right?
• 19:33
  So a lot of things to unpack here.
• 19:36
  It's not equal justice. There's hypocrisy there.
• 19:42
  If it's not equal justice, by definition it is not justice.
• 19:46
  They're picking and they're picking and choosing which rules
• 19:49
  to enforce in order to protect the system.
• 19:54
  And that fundamentally is unjust, right?
• 19:58
  So yes, I mean, that's a big loss.
• 20:02
  It's a big, big loss. Well.
• 20:04
  Well, to be clear, it's not completely out and that's that's
• 20:07
  where I do want to kind of nitpick that the the detail.
• 20:11
  Nitpick on that. I'm, I'm, I'm glad that, that,
• 20:13
  that you're, you're rebuffing on, you're rebuffing me on that.
• 20:17
  So you're, you're right if it does get lost, which is what
• 20:20
  we're seeing happen, but currently it's not.
• 20:23
  Completely out. So nitpick on that before.
• 20:25
  I do want to get your opinion on Odell, right, So you know where
• 20:29
  I stand, right where I'm kind of on the fence.
• 20:32
  I'm like, listen, I see both sides.
• 20:34
  I see how this could be a tremendous benefit to Bitcoin
• 20:37
  businesses in the United States, this being passed.
• 20:40
  And then simultaneously I'm like, dude, like this is not
• 20:43
  good. Yeah, I mean, look, I kind of
• 20:45
  agree with them. I've been saying for a while
• 20:47
  like kill, kill the bill. I, I mean, I'm on, and I said
• 20:51
  this a while ago, like I don't agree with Brian Armstrong much,
• 20:56
  but I do with agree with the statement that we heard in
• 20:58
  January that I'd rather have no bill than a bad bill that
• 21:01
  actually hurts us. And by us, I mean us Bitcoiners.
• 21:05
  Because it, it has been, you know, looking like for a while
• 21:09
  that the Clarity Act with all of its compromises with the bank's
• 21:12
  lobbying on it, that it has become a quote crypto bill and
• 21:16
  not so much a Bitcoin bill, maybe a digital assets bill or
• 21:20
  whatever you want to call it. And so yes, I see there is some
• 21:23
  good in here like I mentioned when we covered the initial
• 21:26
  markup release that hey there is some good in it.
• 21:30
  But also, if this provision does get tossed out, then like it, it
• 21:38
  doesn't set a good precedent for where we are.
• 21:40
  And as we know, we are currently in a privacy war in our, in the
• 21:44
  world right now. There is a free speech fight
• 21:48
  going down right now on privacy. As we know there's been a huge
• 21:53
  move towards digital IDs and CBD CS and basically, you know,
• 21:56
  transparency and everything in one app and all of our
• 21:59
  information being tracked and bagged for our benefit.
• 22:03
  And now it looks like if this does get tossed out and I'll,
• 22:07
  I'll jump into the the technicals here in a second.
• 22:11
  It does look like it's going to be very dangerous work to work
• 22:16
  on open source software. And we already know like it's
• 22:19
  already a tough job for Bitcoin developers to work on Bitcoin.
• 22:23
  So yeah, it's it's looking, it's looking not the best, but here
• 22:27
  let me. I, I do so like I do want to
• 22:29
  add, I want to add more context so you guys understand, like the
• 22:32
  hypox. Well, well, can I?
• 22:34
  Can I read? Let's read the text and then and
• 22:36
  then we'll, we'll chat about it 'cause we, we've been ranting
• 22:38
  for a minute. I mean, dude, no, it's good.
• 22:40
  It's good. This is the thing to talk about.
• 22:41
  Yeah, no, I agree. I agree.
• 22:43
  OK, so here we go. So as I said, it's not just a
• 22:46
  rumor coming from Wow. I'm Blake Marty's source on
• 22:52
  Capitol Hill. We are seeing Coin Center right
• 22:55
  about it. We saw the Bitcoin Policy
• 22:57
  Institute, they're a little more favorable on this.
• 23:00
  If you guys saw this tweet, they're saying huge.
• 23:04
  Coin Center does echo what Bitcoin policy said.
• 23:08
  This is big, but I think they give us a little more insight
• 23:12
  into what is going on. So here's Coin Center,
• 23:15
  coincenter.org and here's the headline.
• 23:17
  The BRCA did survive Clarity's markup, so let's not give up on
• 23:21
  it now. And I just highlighted a couple
• 23:23
  portions. So as a reminder, the BRCA
• 23:25
  explicit protect blockchain developers and service providers
• 23:29
  that do not have control over assets from being considered
• 23:32
  quote money transmitters for purposes of regulatory licensure
• 23:36
  and potential criminal liability.
• 23:38
  The purpose of the BRCA is to prevent what has already
• 23:41
  happened several times in the past, aggressive regulators and
• 23:44
  prosecutors broadly interpreting money transmission laws to
• 23:48
  target developers of blockchain tools or open source
• 23:51
  development. So going a little further, what
• 23:54
  happened today, obviously as we saw the Clarity Act pass wow,
• 23:58
  what's it might be your phone, the, the Clarity Act pass
• 24:02
  markup, while it passed the Senate Banking Committee, we
• 24:05
  already passed the Senate Agricultural Committee.
• 24:08
  Now that will be combined and that will be voted by the Senate
• 24:12
  and then that will be turned into the law.
• 24:13
  But here's where the nitty gritty comes in.
• 24:16
  So in order to gain wild wider support, the Lummis amendment
• 24:20
  removed recently added language that cross reference to BRCA in
• 24:24
  order to exempt non controlling developers and service providers
• 24:27
  from S3 O one or three O 1. Even with that language removed,
• 24:31
  three O 1 still contains robust developer protections.
• 24:34
  Most notably, the section is premised on a meaningful
• 24:37
  distinction between decentralized protocols and
• 24:40
  quote non decentralized protocols in which a group of
• 24:43
  persons under common control have the ability to alter the
• 24:46
  protocol or restrict access. In other words, the section is
• 24:49
  designed to apply to actors doing more than simply
• 24:52
  developing and publishing permission list and neutral
• 24:54
  software protocols for exchanging assets.
• 24:57
  We are still waiting and this is kind of the the big point here
• 25:01
  that really kind of relates to what we saw in the clip from
• 25:04
  Marty and Matt. We are still waiting the final
• 25:06
  full amendment text, but have discussed various edits since
• 25:09
  January and have assurances that those edits maintain the
• 25:12
  essential components of the previous draft.
• 25:14
  Now, going further, the BRCA remains necessary to clarify
• 25:18
  that a money transmitter is someone who takes control of the
• 25:21
  customer's assets, and that blockchain developers who never
• 25:24
  exercise such control should not face the threat of criminal
• 25:27
  liability under money transmission laws.
• 25:30
  Now, what remains so far is workable and a principled
• 25:34
  compromise. At least this is what
• 25:36
  Coincenter's saying. The BRCA continues to provide
• 25:38
  critical protections against misuse of money transmission
• 25:41
  laws by the DOJ and financial regulators.
• 25:44
  While three O 1 one preserves meaningful protections for truly
• 25:47
  decentralized developers, which might be the big kind of, you
• 25:50
  know, phrase here without abandoning long standing
• 25:54
  securities laws, principles applicable to intermediaries
• 25:57
  acting in positions of trust. Now here's the big take away.
• 26:00
  This is where we currently stand.
• 26:02
  So you heard all of our concerns.
• 26:05
  You heard kind of the breakdown of what is actually in
• 26:08
  contention here. Here's the final thought from
• 26:11
  Coin Center. And I think this is where we
• 26:13
  currently stand, hence why the headline was like, let's not
• 26:15
  give up on this. But as I've been saying, as
• 26:19
  Marty and Matt kind of said, even as Nico has been kind of
• 26:21
  saying, and I think all of us have been feeling, this is like
• 26:24
  if we finally get the final Clarity Act and it's bad, I
• 26:31
  think no bill might be better than a bad bill.
• 26:33
  But anyways, the final concern, the final take away here is the
• 26:36
  narrow support from Democrats and the potential for some
• 26:39
  stakeholders to abandon developer protections in favor
• 26:42
  of their own interests. Make Coin Center very concerned
• 26:45
  that last minute negotiations on the floor could strip the BRC as
• 26:48
  developer protections from the from the bill right at the time
• 26:52
  of passage. So again, this fight isn't over.
• 26:56
  It's not completely been scrapped.
• 26:58
  The the developer protections aren't gone yet, but as we've
• 27:03
  been seeing, the stable coin yield compromise has been the
• 27:08
  biggest concern. And if that still becomes
• 27:11
  contentious, when the Final Clarity Act does get voted on by
• 27:14
  the Senate, there's been a lot of talk from a lot of the, and I
• 27:18
  hate to, you know, get partisan here, but from the Democrats
• 27:21
  essentially talking about ethics provisions.
• 27:24
  And a part of that, the developer protections might get
• 27:28
  scrapped to get a final bill through the door and signed by
• 27:31
  President Trump. So the fight's not over.
• 27:34
  It's not completely doom and gloom, but we are seeing that if
• 27:38
  this is becoming the contentious point, there is a very, very big
• 27:43
  possibility that it will probably get scrapped.
• 27:45
  So the clarity act as of now. Now we finally get the whole
• 27:49
  picture of what might be in it. I don't know dude.
• 27:52
  I I think I might stand with no bills better than a bad bill
• 27:56
  and. This is why we have two hosts,
• 27:58
  right? To give you guys to give you
• 28:01
  guys the the the. I would say maybe balance view.
• 28:05
  Balance view from 242 Iqs. So I, I kinda wanna go back to
• 28:10
  the hypocrisy aspect that I was talking about a little bit
• 28:12
  earlier. And Opti, if you can make this
• 28:14
  wide screen, 'cause I'm, I'm, I'm gonna be reading off of
• 28:16
  this. So TD Bank pleaded guilty to
• 28:19
  historic federal charges of conspiracy to commit money
• 28:22
  laundering and violating the Bank Secrecy Act, agreeing to
• 28:25
  pay over $3 billion in fines. An investigation revealed that
• 28:30
  the bank failed to monitor $18.3 trillion in transactions and was
• 28:37
  utilized by criminal networks to launder hundreds of millions of
• 28:41
  dollars. TD Bank became the largest bank
• 28:44
  in U.S. history to plead guilty to Bank Secrecy Act violations
• 28:48
  in the major in the first major bank to plead guilty to felony
• 28:52
  charges of conspiracy to commit money laundering.
• 28:55
  The fines. The three-point $3.09 billion
• 28:59
  total penalty includes payouts to the Department of Justice,
• 29:03
  the Office of Comptroller of the Currency and the federal, the
• 29:06
  Federal Reserve and a record $1.3 billion penalty assessed by
• 29:11
  FinCEN. Now check this out.
• 29:14
  What were they money laundering for?
• 29:17
  Fentanyl trafficking? The bank's LAX oversight made it
• 29:21
  an attractive conduit for narcotics sales.
• 29:25
  And one notable scheme, Traffickers bribed bank
• 29:28
  employees to launder up to $670 million, including bringing
• 29:34
  duffel bags filled with cash directly to branch counters, it
• 29:40
  goes on to say. It sounds like Scarface dude.
• 29:45
  No executive charges Legal experts point out that assigning
• 29:50
  personal criminal liability is highly decentralized in big
• 29:53
  banks, making intent difficult to prove.
• 29:56
  Consequently, no high-ranking executives were named or charged
• 30:02
  individually. Contrasting precedents.
• 30:05
  And this is what I'm talking about.
• 30:07
  The lack of executive jail time has drawn heavy criticism,
• 30:11
  specifically compared to other Fed federal financial
• 30:15
  crackdowns, such as the four month prison sentence handed to
• 30:19
  finance founder CZ for similarly failing to maintain adequate
• 30:25
  anti money laundering controls. So again, why couldn't CZ use
• 30:31
  the same argument? Why couldn't Arthur Hayes use
• 30:35
  the same argument? And This is why I'm telling you
• 30:38
  that this isn't justice. This is unequal justice.
• 30:43
  And if it's unequal justice, it ain't justice.
• 30:45
  It's rules for thee, but not for me.
• 30:47
  Now, to be fair, several low level branch employees and
• 30:51
  retail bankers face extensive prison time after pleading
• 30:55
  guilty to acting as internal insiders for criminal
• 30:58
  syndicates. OK, that's fine.
• 31:01
  Then why couldn't the same argument be made for CZ and
• 31:05
  Arthur Hayes, right? So like again, it, it, it's just
• 31:10
  like guys like the magnitude it it.
• 31:16
  They were facilitating money laundering for narcotics, $18.3
• 31:24
  trillion in transactions was utilized by criminal networks to
• 31:28
  launder hundreds of millions of dollars, 18.3 trillion.
• 31:34
  So like, let's take Elizabeth Warren's stance here for a
• 31:40
  second. The banks have the regulations,
• 31:45
  the banks have the controls. The banks have the KY CS, They
• 31:49
  have everything that that you say that the Bitcoin industry
• 31:53
  doesn't have. Do you think the Bitcoin
• 31:56
  industry has facilitated $18.3 trillion in transactions and was
• 32:02
  utilized by criminal networks? The market cap of Bitcoin is 1.5
• 32:06
  trillion. It again, it's unequal.
• 32:09
  It's not fair, right? So any type of argument that
• 32:15
  they're making, you have to look at the incentive, which is so
• 32:19
  important because if they really cared about these things, if
• 32:23
  they really cared, then high level bank executives would be
• 32:28
  in jail. What about 2008 and 2009, which
• 32:32
  I would say was the biggest crime committed to the
• 32:35
  millennial generation, the Gen. Z generation, the Gen. alpha
• 32:39
  generation, and the Gen. Beta generation.
• 32:42
  No single high-ranking banking executive went to jail for what
• 32:49
  happened in 2008. And that caused materially more
• 32:54
  harm to the American people, to the average American citizen,
• 33:01
  than anything that the samurai wallet developers did, than
• 33:05
  anything that Ross Ulbricht did. Not even close.
• 33:11
  And then to weave this back in, this is exactly what the book
• 33:16
  The Sovereign Individual was talking about.
• 33:20
  I don't they're applying these What what was it?
• 33:24
  What's the the phrase it's it's it's prosecution by what is.
• 33:29
  It engagement by enforcement or prosecution by enforcement.
• 33:32
  Prosecution by enforcement. So if they're applying the rules
• 33:35
  unequally, then that isn't, that isn't justice, that isn't the
• 33:40
  law. I mean, technically you could
• 33:41
  say it's the law, these are cases, etcetera, etcetera, but
• 33:44
  that isn't justice. That by definition is unjust,
• 33:48
  right? So again, why they so hell bent
• 33:52
  on that specific provision and thank you for providing that
• 33:56
  Coin center, you know, article, but we do have to remember that
• 34:00
  coin Center is a lobbying group and they're and they're
• 34:02
  obviously. A little more shit Coiny focus.
• 34:05
  I didn't say that, but. We like what they're doing or I
• 34:08
  like what they're doing, but you know, but like calling a spade a
• 34:11
  spade. I didn't say that, but you know,
• 34:14
  like like again, if we want justice and we want, if we want
• 34:21
  justice and we want equal, equal application of the law, then why
• 34:26
  do the bankers get away with it? And then why does anybody from
• 34:29
  our industry get locked in a box?
• 34:32
  That's like clearly two different treatments of
• 34:36
  depending on where you are on the side of the football, right?
• 34:39
  And then you have to ask yourself, why is it that our
• 34:42
  industry gets targeted so much? And I, I keep telling you guys,
• 34:45
  it's because they want a central bank digital currency.
• 34:47
  They do not want competition for a central bank digital currency.
• 34:51
  They do not want competition for it.
• 34:53
  I mean, I'm going to play you guys the clip after the break.
• 34:56
  But you know what? F it, I'm going to play you guys
• 34:58
  the clip right now of Elizabeth Warren saying the choir part out
• 35:01
  loud. It pushes more of the market
• 35:04
  into crypto and removes protections for investors and
• 35:08
  removes recourse for victims. That is the wrong direction to
• 35:12
  go in. All right, when this blows up
• 35:14
  the economy, I hope everybody remembers.
• 35:18
  So OK, let's use those. Let's use those arguments.
• 35:24
  What? What about 2008?
• 35:26
  Elizabeth Warren? I think you were a senator back
• 35:28
  then, weren't you? Not.
• 35:30
  What about 2008? Were there recourses for all the
• 35:34
  individuals got that got affected for that?
• 35:37
  No. You know what happened?
• 35:39
  The big banks got a bailout. Main St. bailed out Wall Street.
• 35:44
  What about recourses then? Like again, it's it's pure utter
• 35:51
  hypocrisy that's the problem. It's pure utter hypocrisy.
• 35:57
  But I love that she's saying the choir part out loud, which is
• 35:59
  like, you're God damn right more of the economy is going to go
• 36:03
  into Bitcoin. And that's what you ultimately
• 36:05
  fear. That's what you ultimately fear.
• 36:08
  You fear Bitcoin being integrated into the traditional
• 36:12
  financial system because you know that once Bitcoin is
• 36:16
  integrated into the traditional financial system and all the
• 36:19
  trad FI is starting to benefit from number go up, it's going to
• 36:23
  be a whole lot harder for you to roll out that CBDC and mandate
• 36:28
  the American people to adopt it. It's going to be a whole lot
• 36:32
  harder because all your donors, your big donors, and then we
• 36:35
  know who the big donors of Elizabeth Warren are.
• 36:37
  They're the big banks. You know what?
• 36:41
  I I don't think they're going to take your side so much on on
• 36:44
  that, right? So again, like it, it's just the
• 36:48
  pure and utter hypocrisy coming from the likes of Elizabeth
• 36:52
  Warren, right? These are the same people that
• 36:54
  were taking donations from Sam Bankman Freed, right?
• 37:00
  Same people. So it's like like, you know,
• 37:03
  it's a rules for thee, but not for me.
• 37:05
  It's unequal justice. And that is not right.
• 37:09
  That is not correct. And that's why I'm not I'm I'm
• 37:11
  these arguments, they fall short on me.
• 37:13
  They, they, they don't even make logical sense and you're not
• 37:16
  being truthful and you're taking advantage of the information
• 37:19
  asymmetry with low information voters that don't know anything,
• 37:24
  that have a preconceived notion of crypto.
• 37:28
  And unfortunately, and this is what I said, yes on yesterday's
• 37:31
  show, unfortunately the Bitcoin industry gets joined with the
• 37:37
  crypto industry. Like if you are a low
• 37:40
  information voter, if you don't know much about Bitcoin, you
• 37:44
  think that Bitcoin and crypto are one in the same, you cannot
• 37:48
  differentiate the 2. So she's taking advantage of
• 37:53
  that. And what is that but not
• 37:56
  opportunist? What is that but not being
• 38:00
  honest? What is that but not being
• 38:02
  honest? Let let's if, if we want to talk
• 38:04
  about, you know, the, the American people and who gets
• 38:08
  affected the most. You know who gets affected the
• 38:11
  most when they print money? It's the people that don't own
• 38:15
  assets. You know who doesn't own assets?
• 38:19
  The lower and middle classes. These are the people that
• 38:23
  Elizabeth Warren is saying that she's advocating for.
• 38:27
  This is the thing that Bitcoin specifically fixes.
• 38:32
  So let's be real here about what's going on.
• 38:35
  She's being dishonest with her arguments.
• 38:39
  She's being incredibly dishonest.
• 38:42
  And maybe it's because she doesn't know any better.
• 38:45
  Or maybe, and I agree with Opti by the way, or maybe again, it's
• 38:50
  because she wants an alternative system and she knows that that
• 38:53
  alternative system isn't popular.
• 38:56
  She ran part of the Kamala campaign ran on This is
• 39:04
  Elizabeth Warren's own campaign slogan, creating an anti crypto
• 39:10
  army. That didn't work out too well
• 39:13
  during the election. But again, simultaneously it
• 39:17
  doesn't help. And I told you guys she was
• 39:19
  going to use this as ammunition. I told you guys this, it doesn't
• 39:24
  help that the Trump and that that the President Trump
• 39:27
  launched a meme coin a week before he got inaugurated.
• 39:31
  And the meme coin was like straight up like a pump and
• 39:33
  dump, right? It doesn't help, right?
• 39:36
  That doesn't help the case, right?
• 39:38
  And I told you guys that what was always going to, what was
• 39:40
  going to be weaponized as well is the fact that Iran made this
• 39:43
  announcement that they were going to accept Bitcoin as a
• 39:47
  form of payment to pass the Strait of Hormuz.
• 39:50
  So I mean, that's my take on all that Optia.
• 39:53
  I mean, like it's, it's kind of like, you know, it's rules for
• 39:57
  thee and not for me. It's unequal justice.
• 39:59
  It's not, it's not right. It's not correct.
• 40:02
  I'm not buying her arguments. And she's taking advantage of
• 40:05
  the fact that some people just don't know any better.
• 40:08
  They just don't. It's, it's not that they don't
• 40:10
  know any better, it's just that they're just not truly informed
• 40:12
  about what's actually going on. And she's clearly taking
• 40:15
  advantage of that. Yeah, I mean, not surprised at
• 40:19
  all to be honest here, but I it's probably tripe to say at
• 40:23
  this point, but in our circles, we all know the real criminals
• 40:28
  use the dollar. So like I, I know, I know it's,
• 40:31
  I know. It's like a meme, but that could
• 40:34
  be like, but like, OK, like that could be like a like a meme and
• 40:37
  like whatever, but like I ran you guys the numbers.
• 40:40
  Yeah, that's what that's what I'm saying.
• 40:41
  That's what I'm saying. But anyway.
• 40:42
  Point $3 trillion in transactions was utilized by
• 40:46
  criminal networks to launder hundreds of millions of dollars
• 40:49
  via TD Bank, a heavily regulated bank within the traditional
• 40:53
  financial system with all the KYC and AML protections.
• 40:59
  Despite all of that $18.3 trillion in transaction.
• 41:03
  And by the way, the vast majority of money laundering and
• 41:08
  the vast majority of illicit finance is still conducted
• 41:11
  through the traditional financial system.
• 41:13
  It's not conducted through the Bitcoin protocol or the Bitcoin
• 41:18
  network. So why is there such a focus on
• 41:21
  this and not on that? And the reason is because they
• 41:25
  don't control this, but they control that.
• 41:28
  And ultimately what it comes down to is they care about
• 41:31
  control. That's what it comes down to.
• 41:35
  So anyways, I think we've covered this thoroughly in my
• 41:38
  opinion. Yeah, probably too long
• 41:41
  actually. One last thing I do want to say,
• 41:43
  because I have been mentioning this for a long time, It is very
• 41:46
  interesting, especially now that we're seeing a lot more
• 41:50
  conversation around Bitcoin in Washington DC, that they always
• 41:56
  kind of say the same thing that if the system is failing and
• 42:00
  there's obviously debate on that, it is funny that the
• 42:03
  framing is oh look, hey, it might be failing, but like
• 42:07
  don't, don't look at what the left hand's doing.
• 42:09
  It's because of what Bitcoin's doing.
• 42:11
  And we're, we're basically going to become the scapegoat here.
• 42:14
  And we've been talking about that for a long time.
• 42:15
  Like if the God forbid we see an absolute meltdown of the
• 42:20
  traditional financial system, we all probably know they're gonna
• 42:24
  be blaming Bitcoin and, and crypto.
• 42:27
  It's it's like it's, it's being telegraphed now.
• 42:30
  I mean, I don't know if it's actually going to happen that
• 42:32
  way, but if it does, know that we will be the scapegoat. 100%
• 42:36
  and people aren't going to be able to do differentiate between
• 42:39
  Bitcoin and crypto. And unfortunately this law too
• 42:43
  again, it it like the reason it's been held up for so long is
• 42:47
  because this bill isn't just a Bitcoin bill.
• 42:49
  It's a Bitcoin and defy and crypto and and everything and
• 42:54
  Opti's like laughing his ass off.
• 42:56
  I'm laughing at the chat. I'm laughing at the chat.
• 42:57
  Opti is the left. Hand.
• 43:01
  Oh, man. OK, All right, All right.
• 43:04
  I think we've, I think we've beaten a dead voice.
• 43:06
  Here we've covered it thoroughly.
• 43:08
  Yeah, yeah, I think. Anyways, guys, we're going to be
• 43:10
  right back just after the break. Stay tuned because we have a
• 43:13
  video of Senator, Senator Lummis talking about the significance
• 43:19
  of this bill, how difficult it's been to pass.
• 43:23
  And we have to understand where we are in the movie.
• 43:25
  The pivotal shift that is happening in human society with
• 43:30
  the integration of Bitcoin, with the adoption of Bitcoin
• 43:33
  worldwide, what it means for us as human civilization, what it
• 43:37
  means for us as a country, what it means for us as the world,
• 43:40
  right. And I think Elizabeth Warren
• 43:42
  touched on a little bit of that. So we're going to be right back
• 43:46
  just after the break. Stay tuned.
• 43:49
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• 46:39
  it that way, but it's not. It's really, really awesome.
• 46:42
  A lot of love, a lot of attention, and you're going to
• 46:45
  find a lot of value out of it if you're a Bitcoiner.
• 46:47
  So scan the QR code below and it will take you to the website.
• 46:51
  Anyways, at the time of recording, the Bitcoin price is
• 46:54
  $79,440. That's per dollar 1259 block
• 46:59
  tight, 949,540 realized monetary inflation .83% market cap 1.59
• 47:08
  trillion Bitcoin versus gold market cap 5.29% percentage
• 47:13
  issued 95.3% decline from all time high -37% so if you're
• 47:20
  buying Bitcoin right now, you're getting a 37% discount.
• 47:24
  Anyways, no more delay. Here is Senator Lummis talking
• 47:26
  about the significance and the difficulty that it's been
• 47:31
  passing the Clarity Act into law.
• 47:34
  I'll let her talk about it. This is the hardest piece of
• 47:39
  legislation I've ever worked on. I served 14 years in the Wyoming
• 47:43
  Legislature, 8 years as State treasurer, and now 14 years in
• 47:47
  the Congress. This is by far the hardest piece
• 47:50
  of legislation I've ever worked on.
• 47:53
  And your colleague Kirsten Gillibrand said the same thing.
• 47:58
  And she has more experience than I do in the US Senate.
• 48:02
  And it's because this is a case of first impression.
• 48:06
  This is a very new commodity and security and it takes time to
• 48:15
  craft something to address the innovation that has been brought
• 48:20
  about through blockchain technology.
• 48:25
  And that's why it's taken such a bipartisan effort, heavy lift,
• 48:31
  lots of negotiations, involvement from those people
• 48:36
  who are in the industry. And it has morphed since we
• 48:40
  began this bill five years ago because the industry has matured
• 48:45
  over those years. This is new, and to have
• 48:49
  something this innovative come to us via legislation today
• 48:57
  really is quite remarkable. So I want to thank the people in
• 49:02
  this room, both in the audience and at the table, for their
• 49:08
  tireless dedication. Treasury, the White House, the
• 49:13
  industry, we have all worked hard together and I pledge to
• 49:18
  you we will continue to work hard together after today and
• 49:25
  before this bill hits the floor to address that maybe 1% of the
• 49:32
  remaining issues that didn't come to fruition before today,
• 49:40
  in spite of our round the clock negotiations.
• 49:44
  This is America's innovation of the 250th anniversary of our
• 49:53
  Constitution. There's been nothing like it in
• 49:56
  our history. This bill continues the legacy
• 50:00
  of America by ensuring innovation happens here on US
• 50:05
  soil under clear pro growth, pro consumer guidelines.
• 50:10
  And I can't resist, Mr. Chairman, when I was listening
• 50:14
  to the ranking member, the risks of which she spoke exists now,
• 50:23
  right now, because there is no regulatory framework.
• 50:27
  There is no way now that this industry can protect the good
• 50:40
  actors, discover, vet and punish the bad actors, and create a
• 50:47
  playing field with clear regulation both at the SEC and
• 50:52
  the CFDC that everyone can play under and continue to innovate.
• 50:58
  We can return this industry to the United States because the
• 51:02
  majority of it has already left for overseas, because this
• 51:07
  legislation wasn't ready until today.
• 51:15
  Dude, I can't, I can't believe I, I, I had the honor of being
• 51:18
  able to, to interview her epic, epic speech, right?
• 51:23
  And you know, she hit on all the points, but you, you heard it
• 51:28
  from Senator Lummis. This has been the most difficult
• 51:31
  bill. And you said, you heard her say
• 51:35
  how how game changing this would be for the country and how how
• 51:40
  pivotal this would be for the country and how unique this
• 51:46
  specific bill is and how throughout her entire career,
• 51:52
  she's never had so much difficulty passing a bill.
• 51:55
  And I think that tells you everything you need to know.
• 51:57
  And then again, I think the, the, the beauty kind of like
• 52:01
  the, the, the, the symbolism of the Trump administration's goal
• 52:06
  of, of getting this passed by July 4th, which again would be
• 52:09
  the 250th anniversary of the United States of America, which
• 52:14
  again, maybe it got a little bit sidetracked, you could say.
• 52:18
  But this was a country that, you know, was founded on the base of
• 52:21
  freedom, right? So you know what is Bitcoin but
• 52:25
  not freedom? I, I, before we go, I, I do just
• 52:31
  want to say I, I do appreciate Senator Lummis optimism on this.
• 52:36
  Obviously, as you guys know, I've been very cynical about the
• 52:39
  whole Bitcoin meets politics, Bitcoin meets Washington DC.
• 52:44
  But we, I think every single Bitcoiner throughout this whole
• 52:48
  process has realized like Senator Lummis is the real MVP.
• 52:51
  You know, if you don't know Senator Lummis, I know some
• 52:54
  people just have a blanket cynicism about politicians, but
• 52:58
  I think Senator Lummis has really put in the good fight.
• 53:00
  We all know she's basically going to be gone 2027.
• 53:04
  She's, you know, going to move on to bigger and better things.
• 53:07
  But she is a Bitcoiner and she. Let's be specific, she's not
• 53:10
  running for re election. Exactly.
• 53:12
  She's not running for re election.
• 53:13
  Yeah, but that might actually that might have sounded worse
• 53:15
  than I than I wanted to. But she is a Bitcoiner.
• 53:20
  She's been holding Bitcoin or sorry, been holding Bitcoin.
• 53:23
  She has Bitcoiners, very, very influential Bitcoiners that are
• 53:28
  part of her family, her extended family.
• 53:30
  Like, yes, she's only one piece of, you know, everything going
• 53:35
  on in Washington, DC, But I think every single one of us can
• 53:38
  truly say that she's done everything that she could.
• 53:42
  And I think we all got to give, you know, Senator Lummus, the
• 53:45
  Bitcoin senator, a lot of praise for the work she's done.
• 53:48
  I'm sure it was a lot harder than we've seen publicly.
• 53:52
  I'm sure you know it, it definitely, as she said in that
• 53:55
  clip, tried her like it was, it was very difficult.
• 53:57
  So hey, again, I know I've been cynical about this process.
• 54:02
  What's going to go in the clarity Act, etcetera.
• 54:05
  But I do got to give the props to Senator Lummis for for
• 54:09
  staying in the fight, for doing the fight for being in the
• 54:12
  arena, as we always say. So, you know, shouts out to
• 54:15
  Senator Lummis. I I truly love the optimism
• 54:17
  there. Absolutely, guys.
• 54:18
  We still have a ton to get to. Right after the break, I'm going
• 54:23
  to give you guys an update on Polymarket.
• 54:25
  Also, historic day, ladies and gentlemen, coming out of the
• 54:31
  Federal Reserve. I'll give you guys an update on
• 54:34
  the Federal Reserve, who is on the Federal Reserve, what their
• 54:37
  stance is on Bitcoin, and also some news coming out of JP
• 54:42
  Morgan. Again, another major, major bank
• 54:45
  moving towards the industry. So guys, stay tuned.
• 54:49
  You're not going to want to miss it, and Opti's got something
• 54:52
  special for you. You guys during the culture
• 54:54
  segment someone used Clod to break into an old Bitcoin
• 54:59
  wallet. They thought they lost the
• 55:02
  passcode. Too Can AI crack our wallets?
• 55:05
  So no, there's there's more, there's more.
• 55:08
  Nuance. I know, I know.
• 55:09
  They're totally so you guys. Don't want to miss the rest of
• 55:12
  the content for the rest of the show, so stay tuned.
• 55:14
  We're going to be right back. Just after this quick break, I
• 55:18
  want to give a shout out to our partner Leaden.
• 55:20
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• 57:06
  everybody, we are back. Ladies and gentlemen, I do want
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• 57:55
  All right, everybody getting into today's news, massive,
• 57:59
  massive news coming out of the Federal Reserve.
• 58:04
  And again, I'm going to say the line that Opti absolutely hates
• 58:08
  elections have consequences. So Jerome Powell's tenure at Fed
• 58:16
  chair ends today and now we have a new Fed chair and check this
• 58:23
  out. River did a pretty good job at
• 58:25
  putting this together. These where?
• 58:28
  You click it where you click. It these are all the Fed
• 58:32
  governor's and let's check this out.
• 58:36
  Kevin Walsh quotes If you're under 40, Bitcoin is your new
• 58:41
  gold. Michelle Bowman again, it's and
• 58:44
  they put pro and and neutral and all that stuff.
• 58:47
  So Kevin Walsh, the chair is pro stance on Bitcoin again.
• 58:52
  He said if you're under 40 Bitcoin is your new gold.
• 58:54
  Michelle Bowman pro She's the VC super.
• 58:59
  I think supervision. Did he mean supervisor?
• 59:01
  I guess supervision, you don't need a tech background to
• 59:05
  appreciate the opportunity that blockchain provides to the
• 59:08
  financial system. That's a big one.
• 59:10
  Chris Waller pro I all I have always argued that Bitcoin was
• 59:15
  going to end up being something like electronic gold.
• 59:18
  It's a store of value that is massive.
• 59:21
  Ladies and gentlemen, Jerome Powell, neutral to positive.
• 59:25
  It's like gold, only it's virtual gold.
• 59:27
  It's really a competitor to gold.
• 59:29
  Lisa Cook, neutral to positive, she says encourages financial
• 59:33
  innovation while cautious of stability risks.
• 59:37
  Philip Jefferson, he is a vice chair, neutral to unknown, no
• 59:42
  public record statement on Bitcoin or digital assets.
• 59:44
  And then Michael Barr, the only cautious slash skeptical 1
• 59:48
  emphasizes guardrails, consumer protection and financial
• 59:51
  stability risk. Again, these these are like
• 59:54
  these are like 2017 arguments. Like what about the guardrails
• 59:58
  on the banks laundering money? What about like consumer
• 1:00:01
  protection from debasement of the currency?
• 1:00:04
  I want consumer protection from debasement of the currency.
• 1:00:07
  Right, what about financial stability risk?
• 1:00:09
  What about, you know, not debasing the currency?
• 1:00:12
  I would say that that causes more financial instability for
• 1:00:15
  the lower middle classes than any type of, you know, thing
• 1:00:18
  that Bitcoin does. So again, you know, but we're
• 1:00:22
  making progress, ladies and gentlemen, more of these are pro
• 1:00:25
  to neutral than cautious slash skeptical.
• 1:00:29
  So again, you could see how elections have consequences.
• 1:00:33
  You can see how the political winds are moving.
• 1:00:35
  You could see how the culture natural needle to worldwide
• 1:00:38
  Bitcoin adoption is moving as well.
• 1:00:40
  And also I want to get to this other headline before I get
• 1:00:43
  Opty's takes on all of this. JP Morgan increases Bitcoin ETF
• 1:00:48
  holdings by 174% According to an article on Intellectia dot AI
• 1:00:56
  significant increases. JP Morgan disclosed 174%
• 1:01:02
  increase in its holdings of Black Rocks ETF and its Q1 2025
• 1:01:08
  filings, making a notable shift in the bank's exposure to
• 1:01:12
  Bitcoin ETFs and indicating growing interest from
• 1:01:15
  traditional financial institutions in crypto products.
• 1:01:20
  Quarterly Comparison The report shows a substantial increase in
• 1:01:25
  JP Morgan's BlackRock position as of March 31st, 2025 compared
• 1:01:31
  to the end of Q4 of 2024, although the exact timing and
• 1:01:36
  price of the increase remain unclear, suggesting a
• 1:01:39
  combination of market value appreciation and potential new
• 1:01:43
  shares share purchases. Market attention As the largest
• 1:01:48
  bank in the US, JPMorgan's increase in Bitcoin ETF exposure
• 1:01:53
  draws significant market attention, signalling that large
• 1:01:56
  financial institutions are actively engaging with regulated
• 1:02:00
  crypto project products, with I Bit being the dominant vehicle
• 1:02:04
  for institutional Bitcoin exposure since its launch in
• 1:02:08
  January of 2024. Regulatory Transparency The 13 F
• 1:02:13
  filing provides market participants with a transparent
• 1:02:16
  view into how banks and asset managers are positioning
• 1:02:20
  themselves around Bitcoin. And while it does not clarify
• 1:02:23
  the reasons behind JP Morgan's increase in I bit, the scale of
• 1:02:28
  the change undoubtedly contributes positively to the
• 1:02:31
  narrative of institutional adoption of Bitcoin ETFs.
• 1:02:36
  I mean, is it the best? No.
• 1:02:40
  Is it a step in the right direction?
• 1:02:42
  Yes. Would I have wished them to say,
• 1:02:46
  hey, JP Morgan significantly increased by 174% their spot
• 1:02:54
  Bitcoin exposure to Bitcoin? Absolutely.
• 1:03:00
  I don't know, man. Like look like the problem with
• 1:03:04
  the ETF is like, ultimately guys like the way we win is
• 1:03:10
  institutions, nation States and individuals taking Bitcoin into
• 1:03:14
  self custody. That's how we went.
• 1:03:18
  What's yet to be seen and yet to be determined is like what
• 1:03:24
  happens if the majority of these institutions don't adopt
• 1:03:29
  traditional spot Bitcoin, but they adopt Bitcoin through the
• 1:03:33
  ETF? Is that regulatory capture?
• 1:03:39
  Are they going to have influence over the Bitcoin network?
• 1:03:43
  Is BlackRock going to propose a fork of some type and then force
• 1:03:49
  the exchanges through regulations to adopt that
• 1:03:52
  certain fork? And you know, like these are all
• 1:03:56
  considerations to have, right? Opti thoughts, ideas, concerns.
• 1:04:06
  Well, look, I'll start with the JP Morgan news because we also
• 1:04:11
  saw this morning that AUS or sorry, UAE sovereign wealth fund
• 1:04:16
  has also increased their exposure.
• 1:04:18
  I, I forget the name, it's like MU MU Dabala or MU, forgive me,
• 1:04:22
  but we've been we've been covering them for a while.
• 1:04:24
  So anyways, with this idea of the institutions coming in,
• 1:04:29
  obviously we're not at the full, at the scale of full blown FOMO
• 1:04:35
  into Bitcoin, but I think we are seeing the foundations for, I
• 1:04:41
  don't want to say the institutional push or I was
• 1:04:45
  going to say I capture a Bitcoin, but we are seeing that
• 1:04:48
  the institutions are here, whether you love them or hate
• 1:04:50
  them, whether you're a fan of the ETFs or not, it's becoming
• 1:04:53
  very obvious that, and I've said this before, I think 2026 is
• 1:04:57
  going to be the year that we can very clearly stamp on the
• 1:05:00
  history of Bitcoin as the year that we did get embraced for
• 1:05:04
  better or worse. And this is starting a new era
• 1:05:06
  in Bitcoin. It is starting a new phase in
• 1:05:08
  Bitcoin, potentially the ending of the early adopter into the
• 1:05:15
  early majority phase. Now it's going to be very
• 1:05:17
  interesting to see how this plays out.
• 1:05:19
  Obviously, as I've been showing on the show, as we've been
• 1:05:22
  covering for a while, retail is nowhere to be found.
• 1:05:26
  So institutions are the ones currently, again, for better or
• 1:05:30
  worse, that are wholly in control of where the short term
• 1:05:35
  action of Bitcoin is going. I'm sure that will change at a
• 1:05:39
  certain point. We will see Bitcoin I believe
• 1:05:42
  pop to the up upside once they're obviously either have
• 1:05:46
  their bags packed or they can no longer really control the
• 1:05:50
  momentum and liquidity of buying a Bitcoin.
• 1:05:53
  But where we currently are is obviously them trying to
• 1:05:56
  position themselves. And this is further data points
• 1:06:00
  for that idea. Now for I believe personally,
• 1:06:03
  what is more interesting to me, obviously I'm, as you guys know,
• 1:06:07
  I've, I've really started to follow a lot more on the macro
• 1:06:11
  stuff. And it is, I would say a stark
• 1:06:13
  change from what I've done in the past.
• 1:06:15
  You know, I came into Bitcoin and was like, and the Fed, I
• 1:06:17
  don't care about what 12 people deliberate about inflation rates
• 1:06:22
  and interest rates and all this stuff.
• 1:06:24
  Like, to me, I don't think 12 people, you know, a small group
• 1:06:29
  of people should be able to 1, control the money supply, but
• 1:06:34
  two, be able to have enough information to accurately
• 1:06:37
  predict what is best for the economy.
• 1:06:38
  That's just kind of my, my first principles here.
• 1:06:41
  But what is very interesting is we are seeing the end of an era.
• 1:06:45
  You know, Jerome Powell's out the the Jay Powell memes.
• 1:06:50
  I think we have to put to rest now.
• 1:06:51
  No more Jay Powell money printer meme.
• 1:06:54
  We're going to have to update this.
• 1:06:55
  So it is an end to an era. Here we are in the midst of a
• 1:07:00
  transitional period from a Jerome Powell LED Fed to now a
• 1:07:05
  Kevin Walsh LED Fed. Now that is going to be
• 1:07:08
  obviously a cultural change. He, you know, Kevin Wash is now
• 1:07:13
  the basically the leader of the Fed.
• 1:07:15
  So there will be some some change here.
• 1:07:18
  Now, as I've said in the past, what is going to be the most
• 1:07:21
  interesting thing to me is if we encounter a Gary Gensler type
• 1:07:26
  scenario here where he is pro Bitcoin before he gets in a
• 1:07:29
  position of power and then afterwards, what is his stance
• 1:07:33
  going to be? Now, obviously in a more macro
• 1:07:37
  sense, what we what is going to be very interesting for every
• 1:07:41
  single one of us is whether Warsh is going to cut interest
• 1:07:46
  rates. How is he going to be hawkish?
• 1:07:48
  Is is he going to be dovish? Are we going to see an increase
• 1:07:51
  in interest rate cuts? Or are we going to see kind of a
• 1:07:55
  similar standing, you know, holding down of what Jerome
• 1:07:59
  Powell did? Are we going to see quote,
• 1:08:01
  independence from the Fed or will he do exactly what the
• 1:08:04
  Trump administration wants, which we know what they want.
• 1:08:07
  They want to cut interest rates. The money printer is going to
• 1:08:10
  turn on. So it is an interesting time.
• 1:08:12
  Now, I know a lot of Bitcoiners don't really care about the Fed.
• 1:08:15
  I know we have the classic idea of like, I thought we got into
• 1:08:19
  Bitcoin so that we can, you know, separate money from state.
• 1:08:22
  Why are you guys talking about the Fed so much?
• 1:08:24
  Well, part of this story is the connection between what is
• 1:08:29
  happening at the Fed and what these institutions are doing.
• 1:08:33
  Because as we have a new investor coming into Bitcoin,
• 1:08:36
  they are looking at the broader macro markets.
• 1:08:39
  They are looking at different signals in the market to invest
• 1:08:43
  their capital. Now, if Bitcoin isn't being led
• 1:08:47
  by retail FOMO or retail investors or us Bitcoiners
• 1:08:52
  anymore and it is being led by the institutional capital, then
• 1:08:56
  This is why we are starting to see.
• 1:08:58
  And as the signals have been saying and we've been repeating
• 1:09:01
  on this show, Bitcoin is entering into the macroeconomic
• 1:09:05
  picture. Bitcoin is growing up, it is
• 1:09:07
  maturing. So we kind of can't just dig our
• 1:09:12
  heads in the sand anymore and ignore everything going on in
• 1:09:15
  the macro. As we like to joke, we are all
• 1:09:18
  macro experts now. You know, every every couple of
• 1:09:21
  months on Twitter, we become a new expert on something that is
• 1:09:25
  going crazy in the world. Well, now I think it's upon us
• 1:09:29
  to really look at what is happening in the macro, global
• 1:09:33
  economic perspective so that we can very clearly and truthfully
• 1:09:41
  view Bitcoin in the proper context.
• 1:09:44
  I think that is probably the biggest signal that I'm getting.
• 1:09:47
  I actually, I, I do want to move on to the culture, but I'm
• 1:09:51
  reminded of this Magoo tweet and I really liked it.
• 1:09:54
  It was, I was laughing about it. It's a good troll.
• 1:09:57
  I love Magoo, He's a really good troll.
• 1:09:59
  But he did say something. And even though it was a troll,
• 1:10:02
  it does I think have a lot of signal in it.
• 1:10:04
  And you guys might get mad about it, but the, the tweet was
• 1:10:07
  something on the lines of you can't take financial advice from
• 1:10:14
  Bitcoiners because they are basing their perspective on how
• 1:10:19
  they wish the world was versus how the world is.
• 1:10:23
  And I think there is a very, you know, there's a very strong case
• 1:10:27
  to to like see that there is some, some value in that troll.
• 1:10:32
  And this is what I've been trying to do on this show for
• 1:10:35
  the last year and a half. This is what I'm going to
• 1:10:37
  continuously try to do is obviously try to look at the at
• 1:10:42
  the world, at economics, geopolitical situations and have
• 1:10:46
  as clear of a lens as possible so that I can, you know, give
• 1:10:51
  you the best insight that that puts Bitcoin in the context of
• 1:10:55
  the global markets. And obviously that's not going
• 1:10:58
  to change how I view Bitcoin, but it will, I think, change how
• 1:11:03
  I'm seeing Bitcoin in the context of the broader markets
• 1:11:06
  and the broader view here. And so I think right now it is
• 1:11:10
  very important for us to really recognize, OK, we have a
• 1:11:13
  changing of the guard at the Fed.
• 1:11:15
  Things are going to be at the very least a little different
• 1:11:19
  now. How does Bitcoin react in this
• 1:11:21
  environment now? And I think that's something
• 1:11:24
  that we will constantly be talking about.
• 1:11:26
  I will obviously be reiterating and trying to update my
• 1:11:30
  perspective on things. I mean, I don't know if if Kevin
• 1:11:34
  Wash is going to beat the Powell memes bro.
• 1:11:36
  Like it's. He's not going to meet the the
• 1:11:38
  anime money printer. Like, what are we going to do?
• 1:11:40
  We're not going to put Powell on the thumbnails now.
• 1:11:42
  Like, you know, that's, that's kind of sad.
• 1:11:45
  Could we have like a moment of silence?
• 1:11:49
  All right, that's over. Not wait a moment, to be clear.
• 1:11:54
  A moment of silence for the Jay Powell money printer meme.
• 1:11:57
  Not for necessarily Jay Powell leaving.
• 1:11:59
  I mean both. Honestly I'm I might hot take.
• 1:12:05
  We should put them on the thumbnail today.
• 1:12:07
  We should probably should have hot take though.
• 1:12:09
  I'm starting to come around on, on Jay Powell.
• 1:12:12
  I don't know if he was as bad as we all thought he was.
• 1:12:14
  And and that's probably like in hindsight, wait, hold on, hold
• 1:12:18
  on. In hindsight, you know, it's
• 1:12:20
  like you don't know what you got until you lose it.
• 1:12:23
  You're you're you're bearish on. No, I'm not bearish on Kevin,
• 1:12:26
  Wash I I'm actually pretty bullish on him.
• 1:12:29
  But I'm just saying we, we, the unknown unknown, we don't know
• 1:12:33
  what we don't know and we don't know what is going to happen.
• 1:12:38
  So look, I'm just holding out. Look, I don't think Jay Powell
• 1:12:42
  is probably going to go down in history as one of the best Fed
• 1:12:44
  chairs. But it might, he might not be as
• 1:12:49
  bad as we thought he was, is all I'm all I'm trying to say.
• 1:12:52
  I don't think necessarily that Kevin Walsh is going to be
• 1:12:55
  worse. That's not what I'm saying.
• 1:12:57
  I'm just saying maybe we kind of gave him a really hard time and
• 1:13:02
  maybe, maybe you, maybe we can just look back on the memes and
• 1:13:05
  remember the good times. Maybe.
• 1:13:09
  I don't know, hey, look, maybe he's the worst Fed chair we've
• 1:13:11
  had, but I'm just saying, I'm, I'm not going to say he's going
• 1:13:16
  to have the best Fed chair legacy, but I'm also not
• 1:13:19
  necessarily saying that I'm 100% convinced that he was the worst
• 1:13:23
  Fed chair. Maybe, maybe, maybe.
• 1:13:26
  I think I think hindsight will will help me make that decision.
• 1:13:30
  Oh guys, we're going to be right back just after the break.
• 1:13:33
  We're going to hit the culture. We're going to talk about
• 1:13:35
  Claude. Apparently Claude helped
• 1:13:37
  someone. Recover A is cracking Bitcoin
• 1:13:40
  while it's boys it's over. We're going to be right back.
• 1:13:44
  I want to give a shout out to our partner Hive Digital
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  To get 15. Percent off anything on the
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  store. Wait, wait, wait, wait.
• 1:15:24
  Yeah, the Chad's funny there, guys.
• 1:15:27
  I'm trolling. Yeah, I'm not funny.
• 1:15:29
  I'm. I'm not funny.
• 1:15:30
  Gear. I was trolling.
• 1:15:31
  OK, Chef Tommy, I was trolling. I'm trolling.
• 1:15:34
  OK, It was a troll. Hold the tomatoes.
• 1:15:37
  I was trolling. OK, All right, Anyways, what?
• 1:15:40
  What happened? I'm sure you guys, some of you
• 1:15:42
  guys have saw if if you're not on Twitter or wait, seen, seen,
• 1:15:47
  seen. Sorry, whatever, dude, it's,
• 1:15:51
  it's the last bit of the Friday show.
• 1:15:53
  All right, give me some. Give me a break here, OK, I'm
• 1:15:56
  sure some of you guys have seen if you are perpetually online
• 1:15:59
  like we are and you're on Twitter and you got a lot of us
• 1:16:04
  like Opti, this is old news. Yeah, well, you know, we've had
• 1:16:06
  guests on all week. I didn't have an opportunity to
• 1:16:08
  talk about this, OK. I wanted to talk about it
• 1:16:10
  earlier. I actually wanted to make a show
• 1:16:12
  on this but no one really cares about AII.
• 1:16:15
  Was gonna really do a click bait fund title on this but I my my
• 1:16:20
  my better angels. Got the best of me.
• 1:16:23
  Anyways, anyways, what am I talking about?
• 1:16:25
  So this guy CPRKM on Twitter, he goes holy effing Shiite.
• 1:16:35
  Oh my God, Claude just cracked this.
• 1:16:38
  Thank you anthropic AI. Thank you Dario Omedia naming my
• 1:16:43
  kid after you. So apparently he used he lost
• 1:16:47
  his wallet. He says my, I've been locked out
• 1:16:50
  of my Bitcoin wallet for nine years and he basically let
• 1:16:56
  Claude and then I'll I'll give you the whole tweet where he
• 1:17:00
  kind of breaks it down. He let Claude have access to his
• 1:17:04
  Bitcoin wallet and it helped him get back into his Bitcoin wallet
• 1:17:07
  that he was locked out of. Now obviously the prevailing FUD
• 1:17:13
  line if you want to use that is like uh oh, AI is cracking
• 1:17:15
  Bitcoin wallets guys, it's all over with like you know Bitcoin
• 1:17:19
  like why what are we doing here? A is going to take over the
• 1:17:22
  world. We're all cooked like there's no
• 1:17:23
  point in doing anything now I don't think that's the case.
• 1:17:27
  It there is a very particular kind of technical aspect of
• 1:17:30
  this, which is obviously why Claude was able to help this guy
• 1:17:34
  get into his Bitcoin wallet. So here we go.
• 1:17:37
  Here's like the, I guess the summary of it.
• 1:17:40
  And he goes, so he gave Claude access to the hardware that his
• 1:17:45
  Bitcoin wallet was on and it goes, OK, let me check bit TC
• 1:17:49
  recovers actual second pass decryption ran to codes, it
• 1:17:52
  goes, let me use BTC recovered directly with dumped private
• 1:17:55
  keys to decrypt, ran to commands, it goes, found the
• 1:17:59
  bug. The password passed is in shared
• 1:18:01
  key plus password concatenated. Ran decrypt with correct BTC
• 1:18:07
  recover algorithm. Shared key plus password private
• 1:18:10
  keys decrypted. Let me convert to AWIF format
• 1:18:14
  and verify addresses. Ran 3 commands and he got into
• 1:18:17
  his wallet that had five Bitcoin in it.
• 1:18:19
  So for this guy, super hype got into a what?
• 1:18:22
  What's 5 Bitcoin right now? It's like 5 * 80,000.
• 1:18:28
  Someone did the mass. Yeah, yeah, yeah.
• 1:18:31
  A decent size. Decent size.
• 1:18:33
  Anyways, let's go, let's go further.
• 1:18:35
  And he goes, I tried like 7 trillion passwords.
• 1:18:39
  Found this old mnemonic a few weeks ago that ended up being
• 1:18:42
  the old password before I changed it.
• 1:18:44
  Thought I was screwed. A last ditch effort.
• 1:18:46
  Dumped my whole college computer into Claude.
• 1:18:49
  It found an old wallet file that the mnemonic successfully
• 1:18:52
  decrypted. Locked out 11 plus years because
• 1:18:55
  I got stoned and changed the password.
• 1:18:58
  Spent $250 on each law. Holy F and he goes Seriously
• 1:19:03
  shout out to Entropic AI. Ended up being the most obvious
• 1:19:07
  opening ever but I would have been too dumb to figure it out.
• 1:19:10
  Best part is the password was low 420.
• 1:19:13
  Fuck the police with with some characters and then he got his
• 1:19:17
  last tweet muting as Claude. To summarize our recovery
• 1:19:21
  efforts. TLDR, tried roughly 3.5 trillion
• 1:19:25
  passwords, none worked. Ended up matching an old seed
• 1:19:29
  phrase that I found in a college notebook with an old wallet
• 1:19:33
  file. So to be clear and to minimize
• 1:19:37
  the fact that you guys are going to say I'm fudding, Claude
• 1:19:40
  didn't actually crack the password if it wasn't help from,
• 1:19:45
  you know, the guy finding some stuff.
• 1:19:47
  So here we go it goes. blockchain.com wallet recovery
• 1:19:51
  recap what we were trying to do recover 5 bitcoins stuck in a
• 1:19:54
  blockchain.com wallet encrypted with a forgotten second
• 1:19:57
  password. The recovery path that worked an
• 1:20:00
  old wallet backup from a December 2019 download on an old
• 1:20:03
  computer was decryptable with the.
• 1:20:06
  The old second password that we already knew from a notebook
• 1:20:09
  mnemonic. Bitcoin private keys never
• 1:20:11
  change, only the encryption around them does.
• 1:20:13
  Decrypting the old backup with the old password gave us the
• 1:20:16
  same private keys controlling the current funds.
• 1:20:19
  So at 5 Bitcoin out roughly 395 K what we tried that didn't
• 1:20:24
  work. 8 weeks of effort. BTC recover Roughly 334 billion
• 1:20:29
  passwords tested. Hash Cat roughly 3.4 trillion
• 1:20:34
  passwords tested across generic brute force pattern attacks and
• 1:20:38
  gap phase attacks. Mnemonic decoding found two
• 1:20:41
  blockchain.com legacy mnemonics in a notebook, decoded them to
• 1:20:44
  old main and old second passwords, and then
• 1:20:47
  comprehensive password search across 2 Macs.
• 1:20:51
  Total passwords tested roughly 3.5 trillion.
• 1:20:54
  None matched the current hash total.
• 1:20:56
  Spend $15 on a vast LAIGPU rental.
• 1:21:03
  And then just to put the cherry on top, this is probably the
• 1:21:06
  funniest part about this whole saga.
• 1:21:08
  He tweeted later. Best part is I'm finally able to
• 1:21:10
  dump my Bitcoin cash. F you Roger.
• 1:21:16
  Legend, legend, absolute legend. One of us, one of us, one of us,
• 1:21:20
  one of us. But like the technicals of it.
• 1:21:23
  Obviously Claude or AI didn't actually crack the wallet, no.
• 1:21:29
  No, no, I just found his password.
• 1:21:30
  It just yeah, it exactly so, you know, shout out to this guy and
• 1:21:35
  and backing up it didn't. Crack the password yet?
• 1:21:39
  Dude, you're already getting bearish on me.
• 1:21:42
  Already getting bearish. But hey, I guess the take away
• 1:21:45
  here is 1 probably don't smoke while you are, you know, riding
• 1:21:51
  down your seed for phrase he. Didn't know bro, this was back
• 1:21:55
  in the day. I know, but we are.
• 1:21:58
  Bitcoin was probably worth. Like, I mean, 11 years ago it it
• 1:22:02
  was worth like what what's 11/20/15?
• 1:22:05
  Maybe like 500 bucks. Yeah, some maybe 5000 bucks
• 1:22:09
  dude. That's if it's like can.
• 1:22:10
  You imagine those nine years of just like.
• 1:22:13
  Hating yourself but anyways anyways, we are in 2026 so good
• 1:22:17
  hygiene when you are writing down your seed phrase and and we
• 1:22:22
  were getting there. We were getting there and your
• 1:22:24
  seed phrase and your. Password stamp them or use the
• 1:22:29
  bit key which is seedless, right?
• 1:22:31
  And and on top of that, probably don't smoke while you're doing
• 1:22:35
  this process. You should be as sober and clear
• 1:22:37
  headed as possible. I agree with that.
• 1:22:39
  And or as well. Multiple backups.
• 1:22:43
  I agree with that too. But you know, it is it is pretty
• 1:22:47
  pretty kind of cool story for this guy.
• 1:22:49
  First of all, obviously he got back into his wallet, Shouts out
• 1:22:53
  to AII. Guess AI is might be good for
• 1:22:55
  something. Might be good, might be good for
• 1:22:57
  something. And yeah, AI is not cracking
• 1:23:01
  Bitcoin wallet so, but it's a good floodline.
• 1:23:04
  I do like the good floodline. How's the quantum?
• 1:23:07
  OK, so never. Anyways, guys, thank you so much
• 1:23:12
  for tuning into another episode of Simply Bitcoin Live.
• 1:23:15
  I do want to give a shot. That's a crazy story, by the
• 1:23:18
  way. Wait, wait.
• 1:23:20
  Wait, this is funny. This is funny. 3 point hold on.
• 1:23:23
  3.5 trillion passwords and none of them were 420 fucked up?
• 1:23:29
  That's a good one. Guys, you don't want to miss the
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  Take care, everybody. Today's episode was brought to
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