#285 If You Know You Know - Bitcoin DCA Stack 268

0:00As Bitcoin has rallied roughly 30% from its current cycle low, the influencer and Bitcoin Twitter voices that have been shouting the four-year cycle is dead or never existed in the first place have been growing louder and louder again. As I have always said, every cycle has had significant ways that it has been different from the previous. But that is why the saying is, history doesn't repeat, but it rhymes. Something that has rhymed remarkably well is that the fallout from the AI-assisted hacking continues to snowball. So, is the bottom in? Or will the cycle average of 12 months from the all-time high hold? We will discuss that and more on today's episode of the Bitcoin Bulletin Podcast. This podcast is for information and entertainment purposes only. Nothing on this podcast should be construed as financial advice. All views expressed on this podcast are solely the opinions of the host and or any guests

1:03that we might have from time to time. Nothing on this podcast should be construed as a specific inducement to make a particular investment or to follow a particular investing strategy. Good and talk. Buenos dias, Morgan, and welcome to episode 285 of the Bitcoin Bulletin Podcast. I am your host Chris and I am finally back on Florida's glorious space coast. However, I am not in the Bitcoin Bulletin studio so I'm still using my traveling equipment. Hopefully I'll be back in the studio for next DCA Wednesday. But I digress. Over the last month or so, I got to visit a big chunk of the country. Among the towns that I, well, other than pass through, the towns that actually spent some time in a visit were Memphis, Tennessee, Amarillo, Texas, Tuchum, Carrey, New Mexico, Albuquerque, New Mexico, Santa Fe, New Mexico, Alamagordo, New Mexico, and White Sands National Park,

2:08Karlsbad, New Mexico, and the world-famous Karlsbad caverns, Hatch, New Mexico, twice actually, the most recent time during the annual Hatch Chilly Festival, which was really cool. Madrid, New Mexico, El Paso, Texas, Fort Stockton, Texas, Beaumont, Texas, and Pensacola, Florida, and obviously more than one buckies. Speaking of Hatch New Mexico, if you remember last episode, I shared a story about getting to meet several of the farming families and ultimately losing my drone camera in one of their really tall peak countries. Well, that already has a happy ending. I mean, it was a happy ending anyway, even though I lost my camera, I got to meet some really cool people. And so it was a really great day with just that one moment of disappointment. But a day or so later, I got a text from the owner of the Peacán Grove, and basically what he said was that he just took their backhoe and they raised the bucket up as high as they could and just started slamming on the tree as hard as they could,

3:12and the camera ultimately fell out. So while that particular camera won't be taking any more pictures, I was at least able to recover the ones that I had taken. So that was really cool. And in addition, because when I went back to pick up my camera, that was the first day of the annual Hatch Green Chili Festival. I was able to come home with some neat photographs and a fun story at about 20 pounds of fresh Hatch Green Chili. Sadly, they were out of medium and mild. I'm being facetious here because if you know me, you know I'm a Hatch Green Chili addict and you know that I like it the hot of the better. But that did make me wonder. I got there at about noon on Saturday, which was the first day of the festival, and they were already completely sold out of mild and medium. So does that mean they barely grow any mild and medium, or are there that many people that take the time to drive all the way to Hatch New Mexico to go to the festival that don't actually like spicy peppers? I guess I didn't ask. That's something I should ask

4:13next time. But I'm getting off on a heck of a tangent here besides my adventures and meeting some neat bitcoins around the country. I do have a lot of Bitcoin news that I want to talk about, and we will get right to that just as soon as we take a look at Bitcoin's current final statistics. At the time of this recording, we're sitting at BlockHeight 966,280, and Bitcoin is ringing in at a US dollar value of $78,030 US dollars. I saw it a little bit higher than that right before I started my show notes. Hopefully I bought closer to that $78,000 or even a little bit under, or I will have purchased, because our DCS stack goes off in about 20 minutes. Which is fortuitous because I do need to keep this episode a little bit abbreviated. So hopefully we'll be wrapping up not before the stack happens since it is automated, but shortly thereafter. Bitcoin's current price means that every fiat dollar that we convert into Bitcoin today will purchase 1,282 Satoshi's just a handful

5:17of Satsubara less than last DCA Wednesday because, well, the price is just about $1,000 of Bitcoin more than it was last DC Wednesday. Not quite. About a little more than 900 US dollars per Bitcoin more than last DCA Wednesday. Still remember, we are significantly below not only last cycles, or this cycles previous current all time high of around 126,000, but if you've been a Bitcoin or long enough that you've gone down the rabbit hole at all, if you're not just seeing the gains people have made and jumping in on the get rich quick bandwagon. But if you believe in the potential of Bitcoin, that Bitcoin is going to completely replace the current financial system that it's going to bank the D bank that it's going to end the ability of governments to finance forever wars just by printing the dollars to do so that they'll actually have to rely on taxation and voluntary taxation because they can't just seize your Bitcoin. Not if you have it in your own hardware while it that is.

6:22And so if they want, if there's something the government finds really, really important, they're going to have to convince the taxpayers to do it instead of just devaluing the value of your hard work, the value of your life savings by printing the money do so. If you believe any or all of that, well then you know the Bitcoin is going to go to well beyond its current all time high, well beyond a million, well beyond $10 million of Bitcoin. You know, perhaps as high as $1 billion per Bitcoin, I know that sounds like pie in the sky, but if you've been following Bitcoin any like the time, not necessarily since it was 20 or 30 Bitcoin for a dollar or even a dollar per Bitcoin. But if you were there the first time Bitcoin broke a thousand dollars or the first time it broke 10,000 or the 2017 run up to 20,000, well you've seen Bitcoin 20X or more in just a span of a couple of months. And so you know that Bitcoin going from 78,000 to a million can happen in the flash of a pan and then going from a million to 10 million, well that's only a 10X from there. And then tell me how to a million is just another 10X from there. So I digress the point being 78,000

7:26dollars is a bargain for the hardest money ever discovered something that's going to completely revolutionize so many aspects of life everywhere in the world. And you could score a whole Bitcoin right now for just 78,000. I mean think about the opportunity there. Let's say Bitcoin only hits a million dollars during our lifetime. Think of Bitcoin as a savings bond. I know saving bonds are just fiat government tools. But for the purposes of this thought experiment, think of Bitcoin as a saving bond. You're able to put 78,000 dollars down today and get a million dollars whenever that happens, whether that happens next having or that happens in 2032 like some people predicting. But eventually if you believe it will happen, those are Nancy Pelosi level returns. Those are reverse Kramer level returns beyond what Hillary Clinton was able to make when she was doing her backroom deals with her cattle futures and her whitewater real estate investments back in the 90s.

8:28Truly, truly astounding that because we're so early in addition to being able to take advantage of the freedom, maxing properties of Bitcoin that you will also be able to take advantage of of those financial gains that we get from being early as long as you were stacking steadily and building as large a stack as you as you feasibly can. Bitcoin's current price means its market cap is currently $1.57 trillion US dollars from $1.55 trillion last week even though the price is up less than $1,000 for Bitcoin. For those of you who value your wealth in the previously hardest money known demand before Bitcoin came along, for those of you who value your wealth in the analog version of Bitcoin, the antique grandpa version of Bitcoin, it will currently cost you 18.5 ounces of gold to purchase just one Bitcoin. And plebs, that's a bargain as well. When we first started doing this podcast,

9:30you could buy one Bitcoin for substantially less gold. And despite the fact that gold is rallied because as we spoke about, well I've spoken about many times, but we did a segment in last week's podcast where we talked about the fact that as the government's print money and the value of the dollar collapses, it makes it look like everything's getting more expensive. So the stock markets at all time highs, the price at gold is at all time highs, priced in Fiat. And really it's not increasing its value, the US dollar is decreasing in value. So you see that reflected in the number of ounces of gold that it takes to purchase just one Bitcoin. You know when gold was, well with Bitcoin first broke $1,000 per Bitcoin, gold was roughly around $1,000 per ounce. And so we were talking one ounce of gold, the one-to-one ratio, gold to Bitcoin. And now it's 18.5 and that's going to continue to spread as the price of everything, including gold, trans to zero and Bitcoin. Gold,

10:33may trend to zero a little slower than you know everything else, but it will eventually, it will eventually be pounds of gold to purchase just one Bitcoin, not ounces. For those of you who value your wealth and something a little more edible, people like Peter Schiff like to say that gold is tangible, that you know it has intrinsic value because you can hold it in your hand. Well you can hold pizza in your hand and it has more intrinsic value than gold by that logic because you can actually eat it and stay alive. But at the time of this recording, one Bitcoin will currently purchase you 4,364 large pepperoni pizzas from Papa John's. If you try to spend one Bitcoin, if you cashed out one Bitcoin and you doled it out in chunks buying one pizza day every day, it would take you just a few days under 12 years before you exhausted those Bitcoin funds at one pizza day. Obviously hopefully you wouldn't

11:34sell your Bitcoin, liquidate the entire Bitcoin and then put that cash in the savings account because the price of pizza will go up over those 11.95 years as the US dollar value declines, continues to road of purchasing power and the value of Bitcoin will continue to climb as well. So if you were just doling out Satoshi's for pizza, we're probably already well past the point where you would ever be able to spend an entire Bitcoin on pizza purchasing one pizza day because think about it. 12 years from now is three more having cycles and three more fresh bull runs, three more all-time highs at least. Even if you aren't a believer in the four-year having cycle and we're going to talk about that a little bit more as well in just a minute. But even if you're not, I think it's pretty easy to assume that 10 years from now, 11 years from now, 12 years from now, the price of Bitcoin is going to be substantially higher than it is now, making it impossible to spend an entire Bitcoin just eating pizza. You'd have to be a little more creative like the old movie Brewster's Millions where he's it's a it's like a 40 more than 40-year-old

12:41movie and it starred Richard Pryor and basically the plot of the movie if you haven't seen it is he stands to inherit a lot of money but the kicker is he's given a lump sum and he has to spend all of it in a certain amount of time. Can't have anything of value left over when the clock runs out or he inherits nothing and that turned out to be a lot harder for him than he assumed it was a pretty funny movie. It's obviously quite dated because it's a Richard Pryor movie and it's it's very old but the point being he was spending a currency that doesn't increase in purchasing power and still had a hard time doing it and so would be the case with Bitcoin but exponentially so because the value of that Bitcoin and the goods you're trying to purchase is going to go through the roof during that time as well. You know if you zoom out maybe the price of Bitcoin goes up one day down another but one of the neat things about Bitcoin is it teaches you to adjust your time preference. There's one particular influence on Twitter he's a podcast host now too and I don't want to call

13:43him out by name because he's way younger than I am and I don't know how long he's been a Bitcoin or I think he's relatively new maybe he's been through one whole cycle now but the point being he's still very much in the fiat mindset he's you know when SpaceX had his IPO he was he was hyped and excited about pumping SpaceX and he's hyped and excited about MSTR and STRC and Misty before that and it just seems to have a very fiat mindset so he's at the point in his journey where he knows enough about Bitcoin that he knows it's the future he's hosting a Bitcoin podcast but he hasn't adjusted his time preference yet. You know a high time preference means that you want things now it's it's the gimme gimme gimme mentality where you see a shiny object you have to you have to have it now you you'd never pass the marshmallow test where you know if you if you don't eat the marshmallow right away you'll get a second one later but if you choose to eat it right now you get to eat the marshmallow right now. Well Bitcoin because it's a an appreciating asset because

14:44things depreciate and value against Bitcoin the value of that Bitcoin goes up as opposed to the US dollar continuously trending down it makes you reassess things now Keynesians like to say well that's why it can never be a monetary system because dollar the dollar has to lose value to encourage you to spend it and that's a retarded argument safety and a most put that to bed brilliantly brilliantly on more than one occasion but the point being just because the value of your Bitcoin is going up doesn't mean you're not going to buy dinner tonight it doesn't mean that you're not going to go see your family at Christmas time or that you're going to you know take a vacation with your family in the summer but what it does mean is you're less likely to buy stupid crap little shiny objects that you don't need I can't tell you the number of people I follow in Twitter that used to smoke or used to be alcoholics and it was Bitcoin that convinced them to give up smoking or to stop drinking altogether or maybe drink a lot less because you know when they'd go buy that pack of cigarettes they would see the Satoshi opportunity cost in that or when they'd

15:45go buy that bottle of booze or the six pack of beer they would see well you know that's 20,000 Satoshi's that I'm going to blow on that six pack of beer that I that I could put away from my future those 20,000 Satoshi's you know if we ever hit dollar sat parody that's a 20,000 dollar six pack of beer is the opportunity cost there so Bitcoin tends to adjust your your time preference tends to make you think more about the future and the longer term and and that's a good that's a good healthy thing and I think eventually everybody comes to that in their stage of the Bitcoin journey and so along those lines when we look at things like the price of Bitcoin or network hash rate or adoption the adoption curve etc you need to zoom out because sure there's ups and downs but then obviously we need to zoom out of the price of Bitcoin it goes from not worth anything to even though it's only worth only worth $78,000 right now you know that trend line slopes up and to the right all right that metric that you know has been my absolute

16:50favorite metric to break down the entire history this podcast well that's Bitcoin's 24 hour average on chain transaction rate and plebs currently it's the highest we've seen in three months maybe not the highest it's been ever at any given point time in three months but at least for our DCA Wednesday snapshot you know weekly every Wednesday about this time of day we have not seen more transactions per second for the last three months than we're currently seeing for example last week we were averaging 6.73 transactions per second and right now Bitcoin is screaming along averaging 8.59 transactions per second plus we've only seen it higher than that a handful of times during this podcast and usually that's at the peak of the spam being written to Bitcoin whether it's the ordinals and inscriptions your JPEGs whatever when they were the trendiest when the network is being spammed the most with them that's the only times we ever saw Bitcoin blast

17:52well really ever above seven transactions per second so being 8.59 transactions per second is incredibly healthy some of that might have to do with the fact that people are doing more on chain transactions than they were just a few days ago we'll get into that in the new segment as well but the point being that is really really really robust Bitcoin activity again I remind you when we first started this podcast it was not unusual to see less than two transactions per second and anytime we saw 3.14 pi or 3.15 transactions per second well that was indicative that we were in a bull run and there was a lot of excitement a lot of euphoria around Bitcoin and so now we're seeing double or triple or even quadruple in some cases the amount of on chain activity over just the five years that I've been doing the Bitcoin bull in podcast that is bullish certainly certainly very encouraging speaking of all that on chain activity well I only have one

18:55mempool to look at because normally I source Clark Moody's dashboard their mempool and mempool.spaces mempool for a lot of my data some of the data on Clark Moody's dashboard right now is uh it's not up to date they're still showing the same block height as about last week with hundreds of hours since the last block obviously that's not the case so I don't have their mempool statistics at the moment but mempool.spaces with their much larger much more liberal mempool well they're showing 78,237 transactions pending and that's still down almost 5,000 transactions from last DC at Wednesday so the mempools are doing their thing the the pending transactions are being written to blocks uh tiktok next block Bitcoin is chugging right along that is encouraging because in 2017 we weren't seeing more than four transactions per second on average when we were in the euphoric stage of you know November of December of 2017 and Bitcoin is running up to

19:58its then $20,000 all time high and we were seeing mining fees in the neighborhood of 50 to $100 for a high priority transaction $50 for even a low priority transaction and that hasn't happened mining fees are still low and that is because Bitcoin is able to digest all these transactions get them processed mind into blocks and that is also bullish so along those lines if you need to make an on-chain transaction it is as cheap as ever to do so both fiestimates I'm looking at are saying that a fee of just one sat per v byte will be mined in the next block that is the original default minimum fee for most mempools mempool.spaces one of the reasons they have more transactions is because they include transactions with less the one sat per v byte uh cart moody stashboard for example does not hence the discrepancy in their mempool sizes but plebs one sat per v byte is just 11 cents in u$1 terms on average when you take into account the average transaction size multiplied by one sat

21:04per v byte 11 cents I just mailed a package we just mailed a package back to family and it was uh it was it was just an envelope it wasn't a letter but uh it was a very lightweight pendant basically university pendant not pendant pendant like flag and uh it that cost $9 to mail just just send a a novelty item to a family member as a gift cost $9 to mail and you can wield the most powerful technology financial technology ever discovered and you can do so with the speed of light permissionlessly no third party intermediator acquired no government approval required nobody that can revoke that transaction and you can do it for just 11 cents and of course if you have a spam transaction to one right to the blockchain mempool that space is saying that a fee of slow as point two sat per v byte will eventually be mined so uh that that is just amazing point two sat per v byte for a

22:08no priority transaction since the last bitcoin bullet podcast there has been an increase in how difficult it is to mine a block basically we had a 1.31 percent difficulty increase so that just erased the 1.3 percent decrease from the previous mining difficulty adjustment now this is a zoom out thing as well just like the price of bitcoin goes up sometimes and it goes down sometimes the amount of computing power securing the network sometimes it goes down but usually if you zoom out it's been trending up into the right for example it's currently estimated that there are about 916 x-a-hash of computing power securing the bit the bitcoin network and when we first started this podcast five years ago that was about 85 x-a-hash so an increase of 10 x if you zoom out but there are those times when we've seen brief pullbacks one of the things that I think is the most more genius aspect of the bitcoin protocol is this bitcoin mining difficulty adjustment once the

23:13toshi wrote the bitcoin code he wanted to guarantee that on average one block of bitcoin is mined every 10 minutes and of course knowing that more people would adopt bitcoin more people would be mining bitcoin at the time it would just matter of running the bitcoin protocol but now you have to actually you know run a miner but I digress the point being that that amount of computing power dedicated to the bitcoin network was going to increase so how does he keep the block time from decreasing to where blocks are just flying in one after another well the bitcoin protocol looks at how fast blocks are coming in it does so once every 2016 blocks which if the blocks are coming in on average of once every 10 minutes should take right about two weeks and if they're coming in too fast well it makes it harder to mine the next block if they're coming in too slow and sometimes that happens it gets a little easier to mine as such we're now 1,461 blocks away from the next mining difficulty adjustment so not even halfway there since the difficulty adjustment happened just between the last two

24:17episodes so at about 10 days we're going to see another mining difficulty adjustment sometime around September 19th and it's looking like it's going to be a fairly hefty increase after flirting with increases and then decreases and increases and then decreases for the last couple weeks last couple months it's looking like the next adjustment will be an increase of anywhere from 2.5 to 3.4% and that is because since the last difficulty adjustment during this difficulty epoch blocks have been averaging nine minutes and 39 seconds obviously that is faster than once every 10 minutes for a while we were seeing a period of time where hash rate appeared to be coming off the network a lot of people retributing that to some of the large commercial miners either pivoting some of their computing power to AI or retiring some of their older miners that weren't as efficient that weren't as profitable but whatever the reason that drop off and hash power has apparently come

25:18to an end because the estimated computing power is securing the network is up about 5X a hash from last DC Wednesday and those blocks as a result are coming in significantly faster as well hence the looming difficulty increase again if you're just a pleb if you're just stacking sats all that you're really needed to know is that Bitcoin is functioning exactly as Satoshi intended if you're a miner maybe you're going to get 2 or 3% less profitable in about 10 days all right on to the news well the big news that everybody is talking about for the most part is the liquid side chain attack that happened on September 6th now depending on who you listen to this is either a white hat hacker hacker that was doing the right thing that was that was exposing that had found an exploit and was uh and stole the Bitcoin so that they could they could give it back and and uh and and help liquid or the other flat side of the story is that this hacker found a way

26:24to steal 4200 Bitcoin or so right around 4000 Bitcoin and they returned 3400 of it and kept 600 of it as a penalty fee uh basically what happened was that uh roughly Sunday morning depending where you're at an attacker exploited the elements bug in liquid to create 4000 unbacked liquid Bitcoin and then they they they they side swapped them out and and cash them out which drained almost all of the Bitcoin that liquid had in their network I think it was 4000 of the 4200 Bitcoin that they were using to back the liquid Bitcoin tokens the big takeaway here plebs is liquid is a shit coin it's not Bitcoin it's a token they call it a side chain but it was a token that had some benefits to it but what you did is you locked up Bitcoin in theory and exchange for

27:25those tokens on a one-to-one one-to-one ratio and you know we found out that there's Bitcoin and then there's shitcoins and that um shitcoins with their complications etc you know a lot of the these altcoins they have more features the more programmable than Bitcoin but as a result they're more complicated and they're more vulnerable to attack and uh and apparently so was the same with uh with liquid along these lines I've been parroting not your keys not your coins for the entire history this podcast and certainly if you have your Bitcoin tied up in liquid well then you don't hold the keys to your actual Bitcoin you know the whole not your keys not your coins has been parroted for so long that you know it's just abbreviated now you know NYK NYC kind of like if you know you know it's abbreviated commonly you know iwaykyk and you just see that you know instantly what they're talking about this story pains me particularly because one of the newer in real life bitcoins that I know that I've roadtrip to a couple out of town Bitcoin meetups with

28:31relatively new on their journey got in during this last bull run maybe been a bit coin for two years now uh they had every single one of their Bitcoin in liquid they went to their very first Bitcoin meetup I think it was like a Bitcoin day maybe it was Bitcoin day Naples Florida I don't want to quote that because it could be wrong but that's my recollection that it was a Bitcoin day Naples and someone sold him on liquid and they they download a liquid wallet they gave him his first his first little piece of liquid Bitcoin and he started stacking Bitcoin to his liquid wallet and I tried to get him to migrate to a hardware wallet I actually did a podcast episode on this it was shortly after the all time high sometime like November and December and he had a hardware wallet and he kept trying to migrate his Bitcoin it was just one problem after another and and he he never got it done so hopefully he did

29:32because this blood potentially lost all of his Bitcoin to this hack and this leads me to another it's not really a tangent but maybe not even really a sidebar but another point about about these hacks because clearly this hack was a result of you know AI being used to discover vulnerability and code the same thing that happened to cold card that led to the cold card hacks the same thing that happened to BTC pay server and and a bunch of other vulnerabilities that were discovered by people running the code through AI looking for ways to hack into the code and we talked a little bit about four year cycles and about how people are saying that the cycles are over or they never really existed and I've always said that I don't have a crystal ball that we will only know when the bottom is in in hindsight months perhaps after the low is in when you haven't had another one and you've got the next bow run you'll be able to look back and say

30:34what the low was until then nobody really knows but one of the things I did say would be consistent with other cycles was that every previous cycle we've had a big drawdown like think about when we had block by in teraluna and all that collapse and we've had what looked like it was surely going to be the cycle low Bitcoin was at its previous cycles all time high and it had never gone below that before and then we had we had just we had a cascading series of events and it culminated in the FTX collapse when we realized that that FTX was a scam that they didn't really have the Bitcoin they said they did and then Bitcoin went to set its ultimate low and that was months after Bitcoin began it's it's it's drawdown because of all the other scams and so what we're seeing right now is kind of consistent with that I mean maybe the bottom is in it it's possible it's possible it is again this is why we say that history doesn't repeat but it rhymes

31:35and so far it's been several days since the liquid attack we haven't really seen Bitcoin retrace as a result of it and people lost more Bitcoin to liquid than than they've known than so far has been known to have been lost in the cold card hack so maybe it's just that it wasn't as scary because the people that lost their money in the cold card hack thought they were doing everything right and the people that lost money to the liquid scam well they were clearly dabbling in shit coins you know they were holding the liquid coin and not not Bitcoin so I guess maybe that's less surprising so it would have less money in back on Bitcoin itself but the big story here is that you know AI is finding serious vulnerabilities throughout the Bitcoin infrastructure not in Bitcoin itself fingers crossed knock on wood but in these overly complicated side chains and hardware wallets and and third party projects speaking of hardware wallets the cold card exploit

32:35isn't quite over a cold card just recently I guess on September 4th once again updated to security guidance requesting that you update your firmware once again and what and reminding you that updating your firmware does not secure the affected seed if you're still using cold card and you're not using it at least as a part of a multi vendor multi sig I don't know what to say I you know if you have a three or five multi sig and one of the five as a cold card and you rolled your own dice then based on what what we know now you know you're probably okay but man knowing that cold card was either extreme incompetence mixed with arrogance or potentially even a retirement attack I mean it's a lot of people are putting together a pretty compelling argument that there was just so much of this of such basic so many basic things that were just so

33:35obvious that that that were wrong with cold card that there's just no way you know that Occam's razor whatever it says the the simplest outcome is is usually the most likely that you know that's the whole never attribute to malice what is easily explainable by stupidity but I don't know I tend to think because I know my personal opinion of NVK was that he was extraordinarily arrogant watching him mock people for doing things that were less stupid than trusting him you know and then then then knowing that the watching is meltdown when when foundation passport built basically the cold card clone using you know the open source software that he borrowed himself and that he rushed to change the software purely because he wanted to make it close source so that people could never copy him again and let him to rush and make mistakes so I don't know I'm

34:38not going to say it through a time and attack but my point is regardless whether it was on purpose or arrogance and incompetence I don't know why anyone's trust in cold card still little more positive news we spoke about some massive Bitcoin ETF inflows the last two episodes in a row and that trend has continued with the Bitcoin ETFs recording their biggest single inflow day in almost a year the biggest inflow since January in fact with the with September 3rd showing $730 million of net inflows into the Bitcoin ETFs so normies tradify people a lot of boomers people that you wouldn't expect to become Bitcoiners that you wouldn't expect to rock Bitcoin because you know they tend to be tech and financial dinosaurs are apparently pouring their money back into Bitcoin or at least into Bitcoin products and

35:40the same thing goes for you know if you have a 401k or an IRA through work that you know you're getting match funds from your employer so maybe stupid to turn down free money and you only have a few things that you're allowed to invest in and you can't invest in Bitcoin for example but you can't invest in ETFs so maybe a little more of that is happening but the point being $730 million of ETFs were purchased on September 3rd alone and since those ETFs are theoretically back to one to one with Bitcoin that means that $730 million for the Bitcoin came off the market at the expense of those Bitcoin ETF investors so bullish even though you know ETFs are shitcoins speaking of Bitcoin buyers last week we noticed that for the first time noted that for the first time in several months Michael Seller was back at buying Bitcoin for strategy but apparently that was a one-shot deal because this week's strategy did not purchase

36:41any Bitcoin again instead spending $176 million to buy back its own securities to try and show up show up SDRC for example so while that's not necessarily you know oh that's not that's not bearish or bullish news that's that's Michael Seller doing Michael Seller things but we got used to Michael Seller taking the thousands of Bitcoin off the market every week and we have every every reason to believe he will again once I once he feels like he has his what does he call them his his well his his yield products his financial products short up at the expense of his Bitcoin treasury but again you can't really fault him because he's thrown his hat over the fence he has these you know these securities that he sold that are promising 10 and a half 11 12 percent interest per fertility or dividend in perpetuity with no

37:45no end in sight no no no ability to convert into SDRC or into strad into MSTR stock like like some of his other deals have been some he's doing what he's doing and you know Bitcoin ultimately doesn't care but it is you know a lot of people put Michael Seller up on a really tall pedestal and thought of him as kind of like the ultimate Bitcoin bowl the the ultimate Bitcoin giga Chad and apparently he's not living up to those those expectations at least not this week meanwhile those strive who doesn't hold anywhere near as many Bitcoin as as strategy does well strive is still purchasing strive bought another 1,375 Bitcoin for $109 million this week at an average price of 79,281 bringing their total holdings up to 24,531 Bitcoin nothing compared to the

38:50more than 800,000 Bitcoin that strategy holds but still incredibly significant still making them one of the largest holders of Bitcoin out there I know the piece of news that I think people have put way too much stock into is the clarity act that's been languishing in Congress apparently it appears that there may be a Senate procedural vote on September 15th to finally advance the clarity act there's a lot of people putting a lot of weight in the clarity act saying that if the clarity act passes the price of Bitcoin is going to pump the clarity act doesn't pass the price of Bitcoin will pull back the clarity act really doesn't have anything to do with Bitcoin in fact it has a lot less to do with Bitcoin than it even did when it was first introduced you know it's really more of a stablecoin regulatory bill that's been co-opted by by the likes of of Coinbase etc so I don't put any stake into whether the clarity act passes or not whether it has a short time short term impact on Bitcoin's prices or not when you zoom out it will be a blip either up or down that you won't even notice

39:54but it's an interesting story that a lot of people are following speaking of putting people on a pedestal we had El Salvador and president Naya Bickeli making El Salvador a Bitcoin country putting El Salvador on a Bitcoin standard accumulating Bitcoin it one Bitcoin a day for their national Bitcoin treasury using Bitcoin as legal tender issuing their national chief of wallet and giving every citizen what was it $20 of the Bitcoin and then they bet the knee to the IMF to guarantee some IMF loans and they made them close the chief of wallet revoke their the the the legislation that officially made Bitcoin legal tender and promised not to buy any more Bitcoin with government money Bickeli was out there tweeting or other on on other in in many other ways saying that we're still stacking Bitcoin there we're still posting their Bitcoin wallet showing that they're stacking at least one Bitcoin a day apparently in defiance of the IMF well it turns out that might not have been

40:58all it appears to be nobody saying that that that El Salvador was not continuing to stack Bitcoin but apparently they were either being sneaky and and given it to the man sticking it to the IMF by coming up with a loophole or maybe trying to save a little face but apparently all of the Bitcoin that El Salvador has purchased since June of 2025 some more than a year now has actually been purchased by private money private donations who who knows where that money's coming from I have some ideas some some some guesses to where it could have been coming from but there's nothing official yet so take that news however you want it either El Salvador might not be that shining city on the hill that a lot of us thought it would be or El Salvador is standing behind Bitcoin and doing what they need to do to get those IMF loans while sneakily still acquiring Bitcoin guess I'll leave that up for you to decide all right it is time to move on to our weekly DCA segment

42:03I've been talking long enough that our DCA purchase has triggered what is DCA you might ask especially for just listening for the first time well DCA is an investment strategy where you invest your money in equal portions at regular intervals regardless of price of course that's short for dollar cost averaging so it's to set it and forget it mentality where you say I'm going to invest regardless whether you're converting into Bitcoin or investing in a stock or buying shiny rocks or whatever you're doing you're taking that fixed amount whether you say it's going to be a thousand dollars a month or a hundred dollars a week or whatever that's the set it forget it mode and so for us I decided I wanted to keep it simple and relatable to as many people as possible and I chose just a humble 20 us dollars and for a regular interval I chose weekly that is a really common interval because most people that put money away for their future will they they do so when they get paid and at least here in the United States most people I know get their paycheck either every Friday or every other Friday so weekly or by weekly would be the common

43:07interval that those people would be making their investments but again these are you do you things if you are a Michael Saler putting away 20 dollars a week might not make any difference to you at all in the long run but if you're listening someplace where you think 20 dollars is a lot of money and you're wondering how you're going to come up with 20 dollars every week that you might need for food or groceries well then it will certainly make a big difference in your life but again those are you do you things I wanted to show that a humble 20 dollars a week will still add up to an appreciable stack of Satoshi's and if you're stacking more well then you're just going to be better off today we'll mark our 268th weekly dollar cost average episode we began our DCA series all the way back on July 28th of 2021 so more than five years ago now and in the 267 Wednesday since we've now converted 5,340 US dollars at just 20 dollars a week into a stack of 12,271,378 Satoshi's

44:10and by ignoring the price and just plugging away once a week we've done so at a pretty enviable average cost basis our average purchase price is just 43,515 US dollars in 90 cents the plugs I want to remind you we started between the twin tops of 2021 so we started by purchasing all the way up to the then all time high of 69,000 but then we purchased all the way through the bear market all the way through the Bitcoin winner and all the way back up to the current all time high of 126,000 but by ignoring the price investing just 20 dollars in a Bitcoin every week our average price is still significantly less expensive than Bitcoin's bear market price currently at just 43,515 US dollars in 90 cents on average so we've already made our stack because I automated our DCA purchase several months ago I did so strike was offering zero fees if you automate your Bitcoin purchase if you set up a DCA with them

45:12strike is not a sponsor of this podcast we have no sponsors occasionally listeners send boosts to the podcast so maybe you could think of yourself as a sponsor if you're streaming sats are boosting us while listening to podcasting 2.0 but we have no commercial sponsors I just thought there's no way I could not take advantage of free stacking previously we'd been using cash app and paying 2.5% of that 20 dollars just in stacking fees so not all all of that 20 dollars is going to Satoshi's and every penny of the 20 dollars now is going to our sats so we purchased uh where we purchased about 45 minutes ago and we did so in Bitcoin was priced at 78,134 dollars in 16 cents so our humble 20 dollars bought us another 25,597 sats that does a couple things it increases our average cost basis by about 70 dollars to 43,134 dollars in 16 cents but

46:21more importantly it increased our stack to 12,296,975 sats now Satoshi's is confusing to you and you don't know what 12 million sats is Satoshi's is the smallest unit of Bitcoin there are 100 million sats in every Bitcoin so 12 million is 0.12 Bitcoin so we have 0.12296,975 Bitcoin and that is not too shabby because looking at in fiat terms when those 12 million sats are compared to fiat at a US dollar price of 100,000 dollars a Bitcoin something that I think we will in the next few months our current stack will have a US dollar value of 12,296,975 sats not too shabby considering we've only converted now 5,360 dollars into Bitcoin so Bitcoin is just getting going it's already worth more than we spent and when we reclaim the

47:23all time high we will have more than doubled our investment but when Bitcoin hits that 1 million mark which whether that happens after the next having or whether that happens a cycle after that nobody knows but from 100,000 to 10 to 1 million is only a 10 x and again we saw Bitcoin more than 20 x in previous cycles so 10 x is certainly within the realm of possibility definitely within a couple of cycles but when Bitcoin does hit 1 million US dollars not if but when our current stack will be worth 120,969.75 sats now we're talking Nancy Pelosi level returns for just investing or sorry converting because investing is not really the right word here 5,360 US dollars and plus we did that it just 20 dollars a week if you've been stacking a 100 dollars week or a thousand dollars a week you have even more Bitcoin if you've been stacking at the same timeline that we have you have the same average cost basis but for example if you were stacking

48:26200 dollars a week you already have more than a Bitcoin instead of 0.12 Bitcoin you have 1.2 Bitcoin so you're doing even better but I don't think Bitcoin will stop at a million I already said that I think 1 billion dollars is ultimately in the cards for Bitcoin but even if Bitcoin just hits a humble 10 million dollars a Bitcoin as Adam backed predicted Bitcoin will do of course in 2022 Adam backed said that by the year 2032 after that having one Bitcoin will be worth more than 10 million dollars if and when that happens our humble stack without adding one more Satoshi will be worth more than 1 million US dollars 1 million 229 thousand 697 and 50 cents to be exact well beyond Hillary Clinton Nancy Pelosi and reverse Kramer returns I've mentioned the billion or the B word a couple times and I do so because well if you divide the entire global

49:28financial system by 21 million Bitcoin you get a number much higher than a billion dollars but either way Jury and Timmer who was the director of global macro at fidelity investments will they said that fidelity predicted that by the year 2038 one Bitcoin will be worth that billion dollar mark and if and when that happens our humble stack will have a staggering generational wealth value of 122 million 969 thousand 720 750 US dollars plebs if you've been stacking 200 dollars a week that will make you a billionaire instead of a hundred millionaire all for just humbly plugging away well in that case 20 dollars a week for the last five years either way not too shabby considering that we've invested now converted now just 500 536 US dollars in a Bitcoin humbly stacking 20 dollars a week all right plebs that is going to be it for this episode but before I go I want to

50:30ask you to please help support this podcast by feeding that algorithm monster by making sure that you're following and have automatic downloads enabled to this podcast on each and every podcast app that you tend to listen on and that you're following us on Twitter where we are at BTC bulletin pod I'm sorry X so always going to be Twitter to me kind of like the sears tower Chicago is still the sears tower and Lake Shore Boulevard it's still like sure Boulevard but for everybody that's following us on X the more likely people that are surfing for Bitcoin content on X will be to find out information about this podcast maybe they don't know that you can buy as little as 20 dollars of the Bitcoin maybe they don't know about dollar cost averaging and because you follow us on X they see our posts and it helps orange pill them and ups get them started on their stacking journey most importantly though I love feedback I like to know what you think about this podcast what you like what you don't like what you'd like to see me cover in future episodes or just shout out and say hi of course you can send a shout out or a boost by listening to podcasting 2.0 such as fountain on

51:34podcast too but it's such as fountain but you can also send me a DM the DMs for this podcast are open I'm looking at him right now and I do reply to each never listener if you're not on X if you're not on social media in general good for you but you can also send me a humble email the email for the podcast is Bitcoin bulletin at protonmail.com that's Bitcoin bulletin at protonmail.com but most importantly I will see you next week and every week while we continue building towards that shiny orange future together at least as long as there's people willing to trade us worthless paper monopoly money for satosis until then though keep on stacking those sats you sexy sats stackers