A careful distinction we should all remember. AI is NOT a fact checker. It is an information consolidator. Garbage in, garbage out. Government white washed filtered covid scientific studies in, government covid propaganda out. Guide the AI through alternative information channels on its data sources and you might find the conclusion contradictory to large institutional supported opinions. But ask it directly “was 9/11 an inside job” and don’t challenge it to question core internet information sources, and it will give you the answer you might expect. My opinion is that AI companies will continue to refine their ability to “control the narrative” subtly at the same time the masses build ever increasing trust in their AI “mentors”.

I think there will come a day very soon where one or more AI-developed and defended flavors of Bitcoin Core arise as alternatives to the human maintained version. Would this be a healthy or dangerous form of node choice decentralization? 🧐

Do any friends have any 1st or 2nd degree connections with bitcoin companies hiring? I am looking for more fulfilling work! With the advent of AI, online applications are becoming hopeless for connection, filled with AI spam content. I am a full stack software developer specializing in front end (React) with 15 years experience. 🙏🏻🙏🏻

This is a solution for PERFECT Bitcoin privacy. Communities should really encourage using these, or creating their own. Cost is a bit high, but can definitely come down.

POW mining crystallizes electricity into tradeable tokens that AI can later "consume" for computation, just like humans trade stored work in the form of money for the calories they need to survive.

Bitcoin is under attack. Switch to #BitcoinKnots. 1. Bitcoin core changes were unnecessary and unsolicited 2. The changes removed freedom to vote with your node for how you want to handle spam. 3. Anyone who challenged the Core team was censored. 4. The executors have clear financial interest in the changes. And are still forcing it through. Vote against this madness. This is Bitcoin, not fiat.

Tell me the Fed is going to print without telling me the Fed is going to print 😅

If my wealth is defined by a number I see in a dashboard, denominated in a currency that has no fixed supply, hyperbolized by an endless derivatives market, maybe I should reevaluate how much of my health I sacrifice to make this number go up. Maybe my health was the only valuable asset all along, and I was tricked by a market gamified for engagement and cheap dopamine consumption and consumerism. Maybe I’ve enslaved myself to the game, and I have no one to blame but myself.

This is by far the best solution I have ever found for lower back pain due to prolonged sitting / desk work. This takes all the pressure off the lower back and puts the hip flexors in extension for hours. It basically cured my chronic back pain. I hope it helps someone 😃

Could “proof of exercise” be the synonymous solution to “proof of work” for proving we are human? All current tech has significant limitations. Just a fun thought.

Taxes are not the only reason to move to Paraguay 😎😋 almost a kg of top quality steak from a fancy restaurant with a million sides for 29k sats (29 usd).

# Critical Risks to Bitcoin Network Failure ## Catastrophic Risk Vectors ### 1. The Custodial Cascade Most dangerous scenario because it's already happening: - Users increasingly rely on custodial solutions - Transactions move off-chain into custodial databases - Node count drops as fewer users verify - Mining becomes increasingly regulated - Properties become theoretical rather than actively verified - 21M cap becomes effectively meaningless This is particularly dangerous because: - Each step seems rational individually - Follows path of least resistance - Happens gradually, then suddenly - Mirrors how gold was captured - Hard to reverse once started ### 2. The Regulatory Chokepoint Second most dangerous because it's politically feasible: - Regulated mining becomes the only legal mining - KYC/AML requirements for all "legal" transactions - Node software becomes "certified" only - Development becomes permission-based - "Legal" Bitcoin diverges from sovereign Bitcoin Critical because: - Creates two-tier system - Makes sovereign usage increasingly difficult - Reduces network effect for permissionless Bitcoin - Could split the network between regulated/unregulated ### 3. The Geographic Centralization Trap Third most dangerous because it's subtle: - Sovereign usage concentrates in few jurisdictions - Most regions shift to purely custodial - Network becomes dependent on few "free" zones - Those zones become targets for capture - Network loses global resilience ### 4. The Technical Monoculture Fourth most dangerous because it's happening: - Single implementation dominates - Development centralizes - Alternative implementations fade - Network becomes vulnerable to single points of failure - Harder to resist protocol capture ## Meta-Risks (Risks that Enable Other Risks) ### 1. The Knowledge Gap - Fewer users understand the technology - Sovereignty becomes "optional extra" - Technical governance shifts to "experts" - Users can't evaluate changes effectively - Makes all other risks more likely ### 2. The Convenience Trade-off - Each sovereignty sacrifice brings immediate benefits - Costs are distant and theoretical - Market rewards user-friendly but centralized solutions - Creates feedback loop toward centralization - Makes recovery increasingly difficult ### 3. The Protocol Ossification - Changes become increasingly difficult - Network can't adapt to threats - Defensive improvements get harder - Makes network vulnerable to anticipated attacks - Reduces long-term resilience ## Systemic Weaknesses ### 1. The Bootstrap Paradox - Network needs both SoV and MoE functions - SoV encourages holding - MoE requires movement - Each side depends on the other - Failure in either threatens both ### 2. The Sovereignty Spectrum - Not binary sovereign/non-sovereign - Each step away from sovereignty seems small - Cumulative effect is significant - Hard to define minimum viable sovereignty - Makes defense difficult ### 3. The Regulatory Ratchet - Regulations only increase - Each rule seems reasonable alone - Cumulative effect is capture - Very hard to reverse - Creates one-way path to centralization ## Most Likely Failure Scenario The most probable path to failure combines multiple risks: 1. Initial Phase: - Custodial solutions dominate - Sovereign usage decreases - Technical understanding declines - "Bitcoin banks" emerge 2. Middle Phase: - Regulated mining becomes norm - Node count drops significantly - Development centralizes - Sovereign usage becomes fringe 3. Final Phase: - Properties become theoretical - 21M cap exists only on paper - Network is effectively captured - Bitcoin becomes "digital gold" in worst sense ## Critical Points of Resistance The network is most vulnerable at: 1. The Mining Layer: - Concentrated hashpower - Regulated pools - Permissioned transaction selection 2. The Protocol Layer: - Development centralization - Implementation monoculture - Ossification 3. The Transaction Layer: - Custodial dominance - Regulated channels only - Loss of sovereign usage 4. The Social Layer: - Knowledge loss - Sovereignty devaluation - Cultural shift ## Why These Matter The most dangerous risks share characteristics: - Gradual rather than sudden - Each step seems rational - Hard to reverse once started - Interact with and amplify each other - Often invisible until too late The network could maintain apparent function while losing essential properties: - Transactions still occur - Blocks still mint - Price might even rise - But fundamental properties lost - Similar to current gold market This makes these risks particularly insidious because: - Hard to detect - Easy to ignore - Difficult to fight - Nearly impossible to reverse - Self-reinforcing

# The Bitcoin Medium of Exchange Problem ## The Core Issue Bitcoin has two fundamental functions that should work together: 1. Store of Value (SoV) 2. Medium of Exchange (MoE) Current data shows 94% of Bitcoin users treat it purely as a store of value. While this might seem fine on the surface, it creates a deep structural problem that threatens Bitcoin's long-term health. ## Why This Matters ### The Gold Comparison Gold failed as money because it couldn't practically function as a medium of exchange. This led to paper claims on gold, which eventually became fiat currency. However, gold's physical properties (atomic number 79) remain unchanged regardless of usage patterns. Bitcoin is different. Its properties aren't maintained by physics - they're maintained by active network participation. The 21 million cap isn't a law of nature; it's a rule that must be continuously enforced by network participants through active sovereign usage and verification. ### The Verification Loop Every sovereign Bitcoin transaction serves two purposes: 1. Transfers value 2. Verifies and reinforces the network's fundamental properties When users only hold and never transact, or transact only through custodians, they're not participating in this verification loop. This creates a critical weakness: the network's properties become theoretical rather than actively proven. ## The Monetary Law Problem ### Gresham's Law "Bad money drives out good money" - when two forms of money are legally required to be accepted at the same face value, people will: - Hoard the "good" money (Bitcoin) - Spend the "bad" money (Fiat) This perfectly explains current Bitcoin behavior. When prices are denominated in fiat with Bitcoin accepted at market rate, Gresham's Law makes hoarding Bitcoin the rational choice. ### Thiers' Law "Good money drives out bad money" - when exchange rates can float freely and people can choose which money to accept, they'll: - Prefer to use the good money - Refuse the bad money This is what we see in hyperinflationary scenarios where people actively prefer to transact in harder money despite legal requirements. ## The Paradox This creates a complex challenge: 1. Under current conditions (fiat-denominated prices), Gresham's Law makes hoarding Bitcoin rational 2. But Bitcoin requires active sovereign usage to maintain its properties 3. Without maintained properties, Bitcoin can't reliably serve as a store of value In other words: individual rational behavior under Gresham's Law threatens the very properties that make Bitcoin valuable. ## The Real Risk Current trends point toward: 1. Increasing institutional adoption 2. More custodial solutions 3. Growing regulatory frameworks 4. Reduced sovereign usage This mirrors how gold was captured: 1. Direct usage became impractical 2. Custodial solutions emerged 3. Paper claims replaced physical settlement 4. Properties became theoretical rather than actively verified But Bitcoin faces an even greater risk than gold because its properties require active maintenance. Without sufficient sovereign usage: 1. The 21M cap becomes a theoretical construct rather than an actively enforced reality 2. Network security becomes dependent on regulated entities 3. Censorship resistance degrades 4. Bitcoin becomes "digital gold" in the worst sense - captured and neutered ## The Convenience Trap The path of least resistance leads toward: 1. Custodial solutions 2. Regulatory compliance 3. Reduced sovereignty 4. Less direct verification Each step seems individually rational but collectively threatens Bitcoin's fundamental value proposition. ## Why Technical Solutions Don't Fix This Current proposals focus on: 1. Scaling solutions (Lightning) 2. Protocol improvements (Covenants) 3. Efficiency gains But these don't address the core issue: people simply aren't choosing to use Bitcoin in a sovereign way, even when it's easy and cheap to do so. Current fees are minimal (~12 cents) and blocks aren't full, yet sovereign usage remains low. ## The Cultural Shift The original Bitcoin culture emphasized: 1. Permissionless transactions 2. Censorship resistance 3. Individual sovereignty Current culture emphasizes: 1. Store of value 2. Institutional adoption 3. Regulatory clarity This shift matters because it changes behavior patterns that maintain Bitcoin's fundamental properties. ## The Core Question How does Bitcoin maintain its store of value properties if its medium of exchange function is neglected? The answer might be: it can't. Just as gold's store of value proposition was ultimately compromised by the failure of its medium of exchange function, Bitcoin faces the same risk - but with even greater stakes because its properties require active maintenance. ## Why This Isn't FUD This isn't about: - Price predictions - Short-term concerns - Technical limitations - Regulatory threats It's about the fundamental requirements for Bitcoin to function as designed. The store of value proposition depends on properties that must be actively maintained through sovereign usage.

2025 Bitcoin Safe Harbor Rule - Optimized 3-Wallet Design. You want to spend your Bitcoin right?! Use this (or tell me why I’m wrong): 1. HODL Wallet (On-Chain) • Purpose: Long-term storage for investment and tax-optimized gains. • Accounting Method: HIFO (Highest-In, First-Out) to minimize gains when selling. • Use Case: Store Bitcoin securely; avoid frequent withdrawals. 2. Lightning Buffer Wallet • Purpose: Acts as a staging area for replenishing the Spending Wallet. • Accounting Method: LIFO (Last-In, First-Out) to minimize short-term taxable gains. • Use Case: Transfer BTC from the HODL Wallet in larger batches to reduce fees, then fund the Spending Wallet as needed. 3. Spending Wallet (Lightning) • Purpose: Daily transactions for everyday spending. • Accounting Method: FIFO (First-In, First-Out) for simplicity and compliance. • Use Case: Use for small, frequent payments via the Lightning Network.

There is a certain irony to the IMF. One has to wonder if they crack a smile every time a country takes out an “I’m F’d” loan 🧐🥴

That was damn inspiring 🍾 View quoted note →

Great read!

Primal 2.0 is such a fantastic improvement. It’s so much easier to find interesting content! Excited for the future of nostr 🤩🤩🤩 #primal2.0 #nostr

Shitcoins be shitcoins no matter what lipstick you put on the frog 🐸 Linking Solana to Coinbase’s wrapped “Bitcoin” cbBTC is the best you could do to steal BTC marketing for yourselves? #shitcoin #solana #bitcoin

I haven’t watched legacy media in a long time. Thank you good sir for brightening my day with this comic relief. I haven’t laughed this hard in weeks 🤣🤣🤣 View quoted note →