BreakingBit

| Digital Cryptocurrency Advisors | Blockchain Evolution — Breaking Bit — Private Digital *Money* | Blockchain Digital Payments

[Ash Crypto @AshCrypto]

THIS IS THE MOST IMPORTANT POST YOU'LL READ TODAY.

This week, someone lost $6.6 Million in Ledger wallet drain.

He bought the dip, didn't panic sell, and then one wallet switch cost him all 80 $BTC.

Most drainers need your wallet to be online or need you to sign something you didn't read.

So here's how to set up a wallet on a spare iPhone that goes online once and never again.

1. Buy a new, sealed iPhone

The cheapest model works. Buy it from a store, never secondhand. A used phone could be tampered with before it reaches you.

2. Make a new Apple ID

Use it only on this phone. If your main Apple ID ever gets hacked, this phone stays out of it.

3. Turn off Face ID and Touch ID

Use a long passcode with letters and numbers. Face ID can be unlocked by holding the phone up to your face, even against your will.

A 6-digit code can be cracked in about a day. A 10+ character one would take thousands of years.

4. Turn on Lockdown Mode

Settings > Privacy & Security > Lockdown Mode. It switches off the features spyware usually uses to break in.

Also, in your passcode settings, keep USB accessories switched off. That stops the charging port from passing data while the phone is locked.

5. Download the wallet app

On your home WiFi, download an offline wallet app that signs with QR codes. Pick one that's open source. This is the last time the phone goes online.

6. Cut every connection

Remove the SIM and delete any eSIM. Turn on Airplane Mode. Turn off WiFi and Bluetooth. Leave it like this forever.

7. Create your wallet

Write the 24 words on paper or steel. Never take a photo of them, and never type them anywhere.

If the phone dies, those words are how you get your coins back.

8. Move coins with QR codes

On your normal phone, install that wallet's watch-only companion app. It can see your balance but can't spend anything.

To send coins, it shows a QR code. Scan it with the offline iPhone, check the details, and approve. The iPhone shows a QR back. Scan that with your normal phone, and the transaction goes out.

Your keys never leave the offline phone.

9. Store it switched off

Turn it fully off before putting it away. A switched-off iPhone is much harder to break into.

Every few months, charge it to about 50%. A battery left dead for years can get ruined.

It takes one afternoon. After that, your keys never touch the internet again.

Save this for later.

[Documenting ₿itcoin 📄 @DocumentingBTC]

Here is why Bitcoin will 100x in value

[Documenting ₿itcoin 📄 @DocumentingBTC]

The Head of Cryptography at Coinbase @LindellYehuda is not worried about AI breaking Bitcoin’s math. This video explains why

[shobhanai @HeyShobhan]

A billionaire sat in a room for 42 minutes and listed every psychological trick that makes people lose money. for free. the finance industry has spent thirty years pretending this recording does not exist.

he didn't sell a course. he didn't write a newsletter. he sat in a chair at 96 years old and explained why brilliant people do the dumbest things with their money. then he explained why they will keep doing it.

MBA programs charge $200,000 to teach behavioral finance. he covered 25 biases in one sitting. some of them are still not in any curriculum. he gave the entire framework away on camera.

the part nobody talks about: he called crypto antisocial. he said index funds will crush most managers. he said private equity is full of wretched excess. he said all of this in a room full of people who manage money for a living. nobody argued.

a hedge fund analyst at a top firm told me this is the first thing they send to anyone who joins the desk. not a book. not a model. a 42-minute video of a 96-year-old man explaining why you will be wrong and how to recognize it before it costs you everything.

40 million people have heard his name. almost none of them have watched him explain the 25 ways their own brain is working against them.

the lecture is free. he died the following year. it is in the video.

[Dominic Frisby @DominicFrisby]

Printing Just A Little Bit

I’d say we are roughly at the 2 minute mark …

[The Bitcoin Historian @pete_rizzo_]

JUST IN: 🇺🇸 $15 TRILLION BLACKROCK JUST BOUGHT OVER $195,000,000 WORTH OF #BITCOIN FOR ITS IBIT ETF

THE INSTITUTIONS ARE BACK

THIS BULL RUN IS ONLY BEGINNING 🚀

[Cole Walmsley @Cole_Walmsley]

If you want the short thesis of Bitcoin, here you go:

1. Bitcoin is a decentralized monetary system. It is controlled by nobody. It was designed this way. This is significant because the main problem with money over the course of human history is centralized corruption.

2. Bitcoin has a predetermined set of rules that governs the functioning of Bitcoin as a monetary protocol. This hardcodes the rules in advance, rather than leaving them up to the ongoing discretion of a central authority, like a government or central bank, that can change the rules wherever they feel like it, while citizens are left playing a vague guessing game as to how their money is going to be manipulated.

Bitcoin’s rules are also fully open-source. Everyone can see the rules of the system. Anyone can inspect how the system functions. Whereas fiat money is vague, unpredictable, and manipulated, Bitcoin is transparent, predictable, and unmanipulated.

3. Bitcoin has a fixed supply cap of 21 million BTC. It was designed to never be inflated past that point. The decentralized network running Bitcoin’s predetermined rules protects and secures this supply cap. Bitcoin makes inflation, and all of its evils, go extinct.

4. Bitcoin removes the middleman from money because a middleman-model introduces the need for trust. Trust gives an authority power over the system. Power opens the door to corruption. This is the money-power paradox: If someone has the power to determine the truth of the money, they also have the power to corrupt the money.

For example, in the fiat banking system, when you send someone money, you have to trust that your bank will update the money ledger properly, and the other person has to trust that their bank will update their ledger properly. Both banks have to trust that the central bank will update the ledger held between banks properly. This trust enables banks and centralized powers to add and remove money from the ledger, censor transactions, remove people from the ledger, deny access to the ledger, seize or confiscate funds, conduct financial surveillance, and more.

As Satoshi Nakamoto says, “The history of fiat currencies is full of breaches of that trust.”

5. Satoshi solved the trust-based model by introducing a peer-to-peer cryptographic-proof model. Think of it like a cash transaction. When you give someone a cash bill, there is no middleman standing in between you and the receiver. It is a peer-to-peer transaction. Two parties come to a monetary agreement, you hand them the bill, they receive it, and the transaction is done. Satoshi created this dynamic in electronic form, which is why he titled the Bitcoin whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System."

Satoshi was able to create this by designing a system that used cryptographic proof to demonstrate and ensure participants were behaving honestly and that the predetermined Bitcoin rules were being followed. Tens of thousands of Bitcoin nodes (it’s more than that) all around the world independently and constantly verify that the system is running properly. Because they are all running the same rules, and because those rules define exactly how the global network reaches consensus, and because those rules are transparent, predictable, and unmanipulated in an open-source and decentralized network, the Bitcoin system is able to operate with verifiable consensus.

As the saying goes, “any sufficiently advanced technology is indistinguishable from magic.” What seems impossible or magical today becomes normal once people learn how it works. “Mastering Bitcoin” by Andreas Antonopoulos is a great resource if you’re interested in digging into the bones of Bitcoin’s underlying technology. The text of the book is available for free under an open license in the respective GitHub repository.

6. Proof-of-work is the heart of Bitcoin. It is what connects and aligns Bitcoin with natural law. As Satoshi Nakamoto designed Bitcoin, the only way for the Bitcoin ledger to be updated, and the only way new bitcoins can be created, is if a miner demonstrates “proof-of-work.”

In Bitcoin’s case, “work” means harnessing real-world energy — be it solar, wind, hydropower, nuclear, natural gas, or otherwise — that is then used to generate electricity to run Bitcoin mining computers that perform proof-of-work. A gasoline car must use real-world gasoline to power itself. The Bitcoin network must use real-world energy to power itself.

Miners gather unconfirmed transactions within the network into a block, and then try to find a specific number in order to “solve” that block. They run their mining computers using real-world energy in an attempt to guess that number. Once they guess the number, they announce to the network that they’ve found it. From there, the nodes verify that the number meets the predetermined Bitcoin target and that all transactions within the miner’s block adhere to Bitcoin’s rules. Once the nodes verify that the work is valid, the block of transactions is added to the official history of Bitcoin, and the ledger is updated. This is how the “work” of the miners is “proven.”

The Bitcoin protocol awards the winning miner with transaction fees attached to transactions within the block and a predetermined amount of new bitcoins. This is how Bitcoin's supply comes into existence. The more computational power a miner has, the more guesses they have, the more likely they are to win and be rewarded. This incentivizes miners to harness cost-effective energy from the real-world to perform proof-of-work. This is what connects the digital Bitcoin network to the physical natural world, but it is also what protects the Bitcoin network from attack.

In order to overrun the Bitcoin network, you must harness at least 51% of all the energy in the Bitcoin network, but that energy is massive: as of this writing, the computing power of the Bitcoin network does 988 quintillion calculations per second. In 2013, global Bitcoin computing power was already 256 times faster than the world’s top 500 supercomputers combined. Computing power is over 211,000 times more powerful today than in 2013.

In terms of computing power, there is no computer network remotely close to Bitcoin. All this to say... You would have to harness a ridiculously absurd amount of energy to 51% attack the network, but, as Satoshi says in the whitepaper, the incentives don’t play out in favor of the attacker anyways, “The incentive may help encourage miners to stay honest. If a greedy attacker is able to assemble more CPU power than all the honest miners, he would have to choose between using it to defraud people by stealing back his payments, or using it to generate new coins. He ought to find it more profitable to play by the rules, such rules that favor him with more new coins than everyone else combined, than to undermine the system and the validity of his own wealth.” Incentives are why Bitcoin works.

7. The significance of proof-of-work is that it ensures that the Bitcoin network is constantly in harmony with nature. If natural energy is not used in a verifiably honest way, the Bitcoin network cannot function. Every bitcoin ever created has come from the harnessing of real-world energy. Every Bitcoin transaction ever confirmed has been processed through real-world energy. All activity within the Bitcoin network comes from the processes of nature. Whereas fiat breaks the laws of nature, Bitcoin harmonizes with them. Bitcoin *is* nature in digital, monetary form.

8. Bitcoin is superior money. It transfers value most effectively across space, scales, and time, because it fulfills the requisite properties of money better than anything else. Most especially, it finally introduces an impenetrable network to protect the money from corruption, which is something humanity has never seen before. All other attempts at cryptographic money, an industry referred to as “crypto,” are inferior to Bitcoin because, at best, they can match the properties of Bitcoin (which is all we need for money), but they will never have the computational power of Bitcoin. This means that all of “crypto” is, at best, a less-secure version of Bitcoin. Forms of intelligence do not choose that which decreases their chances of survival, which is why humanity will choose the most-secure version of superior money, which is Bitcoin. This is why many say, “Bitcoin, not crypto.”

9. Bitcoin separates money from State. The monopoly between money and State is the root corruption plaguing today’s society, thus, the separation of money from State is the most important technology that can exist.

10. Bitcoin is money that progresses forward — its value goes up over time. Fiat is money that progresses backward — its value goes down over time.

Backward money → backward society. It is antithetical to individual and collective progress to denominate our energy with something that loses value. Money that moves in a negative direction is not a positive thing. Money that moves in a positive direction is a positive thing.

11. Fix the money, fix the world.

12. There are other aspects of Bitcoin’s thesis not covered here, but those are best saved for a long-form publication, which is why I am writing a book titled, “The Bitcoin Thesis.” Regardless, one thing remains: if you want the truth, follow the money.

[The Bitcoin Historian @pete_rizzo_]

JUST IN: #BITCOIN IS NOW OFFICIALLY TRADING JUST BELOW ITS 200-WEEK MOVING AVERAGE

EVERY TIME THIS HAPPENS, BTC PRINTS A CYCLE LOW

CHART SAYS IT ALL

PARABOLIC SOON 🚀

[The Bitcoin Historian @pete_rizzo_]

BREAKING: CRYPTO EXCHANGE GIANT COINBASE JUST ANNOUNCED IT BOUGHT $53,000,000 MORE #BITCOIN AND THAT IT'S STILL BUYING EVERY WEEK

THEY NOW HOLD OVER 17,000 BTC WORTH NEARLY $1,200,000,000

THEY ARE STILL BUYING MORE BTC IN THE MIDDLE OF ONE OF THE WORST BEAR MARKETS ON RECORD

THE WORLD'S LARGEST EXCHANGE HAS DIAMOND HAND CONVICTION

LEGENDS 🔥

[Nigel Farage @Nigel_Farage]

I agree.

[Emotion & Music @Emotion78687]

That's what true talent is.

[Crypto Tice @CryptoTice_]

I'M SORRY BUT NOBODY IS TALKING ABOUT WHAT BITCOIN JUST DID.

Multi-year Cup and Handle. Complete.

Breakout. DONE.
Perfect retest. DONE.
Structure confirmed. DONE.

This pattern took years to build.
And nobody noticed.

Cup and Handle breakouts don't move 20%.
They move hundreds of percent.

The retest just finished.
The launch is next.

$220K is the minimum target.
Most people will only find out after it happens.

[The Knowledge Bank @xKnowledgeBANK]

In 1983, Steve Jobs predicted the next 50 years of technology.

His predictions:
• iPhone
• Internet
• Softwares
• App stores
• Artificial Intelligence

[Jordan Walker @JayW132]

This is what a Bitcoin business looks like in the UK.

A world class hotel group in the Lake District, quietly building a Bitcoin circular economy.

@englishlakes @BenBrry 🤝🇬🇧

[Ash Crypto @AshCrypto]

🇺🇸 Tom Lee says Bitcoin could break the 4 year cycle and hit $180,000 by the end of January 2026.

[Nigel Farage @Nigel_Farage]

At 10am I will announce five major measures that will save £25bn and put British citizens first.

Watch it LIVE on X.

[Liz Truss @trussliz]

People seem to be catching up with what I said in 2022 - which is that the OBR process doesn't work and makes economic policy worse.

But the problem is deeper than that. There is a "Treasury view", shared by the Bank of England, that is Keynsian. It supports closer integration with the EU/Net Zero/high immigration and big Government.

Getting the Mini-Budget through this system was an achievement in itself. But of course these bureaucrats and their allies in the media contrived to undermine it.

The lesson is that a new, accountable system with new people needs to be put in place.

Otherwise pursuing the right economic policy for Britain - lower taxes, smaller Government, lower migration, less regulation and cheaper energy - will be impossible.

[Sky News @SkyNews]

BREAKING: Actor Gene Hackman, 95, and his wife Betsy Arakawa, 63 have been found dead at their home in Santa Fe, New Mexico, police have said.

🔗 https://t.co/XFkxAiwCxy

📺 Sky 501, Virgin 602, Freeview 233 and YouTube