#bitcoin mining + data geek, engineer, co-founder Try.com (RIP 2012-2019) investor @pipe @mainstreet @bankmercury @getvgs @tellerapi, left SF before it was cool

Joined February 2009
Arush retweeted
some of my quick responses to the falsehoods and misrepresentations in the House memo on bitcoin mining
Dear Committee on Energy and Commerce, @nic__carter has some corrective words for you on Thursday's hearing "Cleaning Up Cryptocurrency: The Energy Impacts of Blockchains" @BrianBrooksUS take notes. Give us a fair shake @pallonefornj @cathymcmorris @RepBobbyRush @RepFredUpton
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Arush retweeted
Proof of Stake is such a faithful recreation of fiat that they even copied the Triffin dilemma This is the same phenomenon we’re seeing with the worldwide shortage of dollars destroys assets when the base money is deflationary (Dollar Milkshake Theory)
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Great explanation of HTLCs and the foundational knowledge you need to understand Watchtowers
If you’ve done any research on the lightning network you’ve probably heard about Hash Time Locked Contracts (HTLCs): What exactly are they? Why do we need them? How do they enable trustless payments? I’ve been working with lightning for years, let me break it down for you 👇
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A deflationary Ether, a gas token, means the incentives are: 1. hold ETH 2. don’t spend ETH 3. alts asymptote to zero against ETH pair 4. sell dying alts for more ETH Devs need to fix broken incentives for any hope in the long term
Surprise surprise, a deflationary base asset is not good for Ethereum apps
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Proof of Stake is such a faithful recreation of fiat that they even copied the Triffin dilemma This is the same phenomenon we’re seeing with the worldwide shortage of dollars destroys assets when the base money is deflationary (Dollar Milkshake Theory)
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Surprise surprise, a deflationary base asset is not good for Ethereum apps
Hot take: Deflation is not good for growth. We want people to use their Ether so that the system grows not to hold it tight till it becomes obsolete. We don't want to be the next buttcoin, do we?
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Options are classified as derivatives because options traders speak an entirely made up derivative of the English language
really interesting option prints today: someone traded total of 25,000 x 50,000 of the Jun ETH/USD $10k / $20k 1x2 call spread. buyer effectively collecting around 15v of skew to get short dvega/dvol on this trade. roughly $155k by $135k vega; 38% of 24h volume at time of trade
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it appears meek has completely defeated music piracy, an historic moment for the industry
You gone need a eTh address to hear this new mixtape … google how to get one asap! Now I can really rap ❤️‍🔥❤️‍🔥❤️‍🔥❤️‍🔥❤️‍🔥❤️‍🔥
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China’s “middle-income trap” eerily similar to Vitalik’s “medium-sized blocks” trap - great early traction but not competitive enough to beat new cheap labor, neither able to command a premium over the king Also, “Made in China” is pretty on brand for Ethereum let’s be honest
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A tap of the 200 WMA seems logical, eyeballing it at around ~$370 Dec 22 rather than $390
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What most old school bitcoiners get wrong in 2022 is most people will not self custody, centralized hodling is inevitable so might as well earn yield Legitimate and safe btc yield products are coming
humans will never be responsible enough to self custody assets simply too fallible so we introduce 3p custody which introduces some centralization some centralization = trust don't verify if going to trust anyway might as well be good ux now where'd you leave the car keys?
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Bitcoin may have crossed the chasm but doesn’t reach mass adoption until the late majority gets burned by shitcoins. That hasn’t happened yet
Maybe 2022 is the year where retail realizes that 99.9% of altcoins are crap & decide to FOMO into #bitcoin because they finally understand there is no such thing as the next Bitcoin.
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We need a catastrophic bear market
The ol’ 8th touch of support pattern
Imagine you could buy a home with zero down - w/o selling your btc - w/o margin call - w/o silly 25% LTV ratios more like 90% and no - w/o risk of losing your 🌽
Even better if bond capital is for zero down mortgages using bitcoin as deposit instead of cash btc borrowing is zero loss biz. btc+home blended collateral means no daily mark to market or liquidation risk if btc dumps. Lender has most pristine collateral known to man @4nkush
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Now imagine swapping all tradfi mortgages to ones with bitcoin as deposit instead of cash Suddenly all stagnant cash deposits on Earth are used to buy bitcoin …and bitcoin eats the whole mortgage bond industry
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Interesting development from CFTC as it relates to treating exchanges - perhaps possible to argue that an “algorithm” that provides market making functionality (eg AMM) for derivatives doesn't have to register as a licensed market… kinda scary IMO
I believe this CFTC Order may end up being one of the most relevant and telling regulatory actions for DeFi founders and investors yet. More than any other prior order, the CFTC directly emphasizes and assesses some of the key elements of "true" DeFi platforms in this order.
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If GBTC becomes an ETF wouldn’t it automatically sell 20% of the stack to close the premium gap? If that logic plays, it’s 128k bitcoins to hit the market. Even assuming some buy pressure it’s not gonna cover 128k #btc @twobitidiot @dilutionproof @_Checkmatey_ @TXMCtrades ?
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