Are Reversible Transactions a Good Thing?
A recent study have voiced the opinion that reversible transactions on a blockchain are a good idea as a way to combat hacking. Unfortunately, this is a simplistic worldview. The reality is that being able to roll back blockchain activity has unintended side effects that end up harming people not even involved in the hack.
News and Links
October 9, 2022 Weekly Close (USD)
BTC – 18,446.43
ETH – 1,322.60
ADA – 0.423072
Podcasting 2.0 Apps available at http://newpodcastapps.com/
I can be reached by email at email@example.com and on twitter at @McIntoshFinTech. My mastodon handle is @firstname.lastname@example.org. Looking forward to hearing from you!
Rock Guitar Intro 07 by TaigaSoundProd
Funky Life by WinnieTheMoog
Hey, sat stackers. It’s October the 10th and this is episode 76 of Generational Wealth of Cryptocurrency. I’m your host, MacIntosh. Today we’re going to talk about are reversible transactions a good idea?
Of course, no one on this podcast is a financial advisor and all information presented on this podcast is for informational purposes only now that we have the legal stuff out of the way. Let’s jump on in.
All right, so the market this week has been fairly flat. We had a weekly close for Bitcoin $19,446.43 Sunday night, $1,322.60 for Ethereum, and
then $0.42.3 for ADA. ADA was up slightly for the week by about half a cent. Ethereum was up about $50, and Bitcoin was up roughly $400 over the previous close. So, looking at the chart, I mean, it’s basically just kind of range-bound, which it has been actually for quite a while.
Now, I did want to mention tonight as part of this market update, I noticed I look quite a bit over the years, to be honest, I’ve kind of migrated from maybe more of a short-term view to a longer-term view. So when you’re dealing with a trading chart, you can go down, literally down to a few seconds, up to a minute, five minutes, 12 minutes, 15, 24, 30 minutes. These are common, an hour, four hours, eight hours, 12 hours a day, three days a week, even a month. Now, I used to spend a lot of time at the one-hour and four-hour level, kind of looking at stuff in the intraday, and then maybe really with a four-hour chart, you’re probably looking more of a couple of days at most. I’ve more been looking at the daily chart, at least, of late, really all this year, in fact, to try and look at these long-term trends. So daily chart, you’re looking at the scope, really, of a week or more at any one time.
Now, I did notice, I think I’m actually going to put this on my Twitter feed tonight while I wrap this up. The last week, like I said, we’ve kind of been range-bound, we’ve kind of been trading within this fairly small range. The low end back on last Sunday, October the 2nd, was, let’s see, 18,910, of course, right now we’re at 19,4, we’re kind of in the middle, the high end is 20,000, roughly 20,450.
I mentioned Bollinger Bands, I’m not going to go into a discussion on this episode about what Bollinger Bands really are, but they’re a mathematical model of market activity. And when you put them on a chart, when you graph them out, they show, to an extent, kind of some support levels, maybe some resistance levels as well, certainly, but you’ll also see times where these Bollinger Bands, they constrict and they expand. So right now, and for the last week, we’ve been in a period of restriction of these Bollinger Bands.
And I mentioned, well, I talked about last week how I kind of felt like we were, well, I feel like in the near term, we may be on the edge of a lot of major events. I don’t know that, certainly, but it just, just, maybe it’s because I spend so much time reading the news, to be honest, but regardless, we’ve got this constriction going on. And based with that, with other chart parameters that point, basically, to a high likelihood of going down rather than up, I think we’re fixing to see a severe drop. So we may be getting that. If we don’t, I certainly think we would drop down to 17.6, which was our June low. We may go further than that. So we’ll probably go down and test that. Assuming we don’t break upward, which we could, it could be a violent break upward, just like it would be a violent break downward.
So I don’t think this will drag on for another week. I have a suspicion that this week will be determinative. Now you’ve got other things going on. You’ve got the CPI data coming out this week. There’s actually several economic items. Last Friday, they printed the unemployment numbers. And here’s one of the interesting things. They were lower than they expected. So I don’t have the exact data. It was 3.5 or whatever, and they expected 3.7%. And believe it or not, because of that, stock market went down. The rationale is that that is actually, believe it or not, a hawkish sign.
It’s a sign that the Fed Reserve, the Federal Reserve, needs to tighten things more. Why is that? Because if unemployment is that low, then clearly the economy is doing okay. So even though we’ve got inflation going on, which we certainly do, and we’re going to be talking about more of that in the news tonight, even though we’ve got inflation going on, unemployment is still low.
So what does that mean? Most likely, the Fed is going to raise rates again, probably 0.75, probably maybe 1. I doubt it would be higher than that in a single month. So because of that rationale, the market dumped Friday afternoon. So there you go.
It’s a crazy, understanding this stuff is weird. I actually had a comment in one of my boosts tonight. We’ll talk about that when we get to the comment, about charts, about the market itself. I’ll discuss my philosophy on that.
Alright, so that’s kind of the market in a nutshell. Not a whole lot of change. We’ve got several indicators that are showing us that things are most likely going to continue down from here. I would say probably it’s about a two-thirds chance of it going down versus up. But either way, we’re going to have a move. It certainly would seem to be the indication here very soon within the next week or so. It is not common for these types of constriction events to happen, and it’s not common for them to continue for long periods of time. I don’t recall seeing any over a couple of weeks. I don’t want to be definitive about that without looking back over the charts. Strictly speaking about Bitcoin, I’m not going to talk about stock charts in general. I don’t remember seeing this elsewhere. So there you got it.
What I want to discuss this week in our topic is the idea that you can make transactions reversible on a blockchain. This idea has been around for a long time, at least since 2016 or so, and never really got any traction, at least on the major blockchains. I’m not certainly aware of every blockchain and what they may or may not do. But in regards to certainly the major blockchains, it’s never really gotten any traction.
So recently a paper was published by some Stanford researchers, and this paper’s gotten a lot of interest, and it’s very positive about reversible transactions.
So they propose this as a way to combat theft, to combat hacks. Really it would actually be a separate token from Ethereum. There would be two new tokens actually, an ERC20R for Ethereum and EC721R, which is the
token for NFTs. So this is some type of opt-in system that they’re proposing to set up. And if somebody has their funds stolen in some hack, then they could submit a freeze request to a governance group. Now this is kind of the sticky part of it.
There’s this group of judges that would vote within, quote, a day or two at most to approve or reject the request. Both sides of a transaction should be able to bring forward evidence to these judges so that they have enough information, at least in theory, to come to some kind of fair decision.
For NFTs, it would actually be really straightforward. It says that they just need to see who currently owns the NFT and freeze that account.
Triple tokens like ETH are certainly more complicated because the thief can split up the funds among many accounts. They could run them through a crypto mixer like the tornado cash mixer, which at this point is shut down, but there’s others out there. Or you can exchange them for other assets.
So they’ve come up with some ways that are supposed to track and lock these stolen funds. And so the thing is, like I said, this is getting a lot of positive traction. And on the surface, it sounds like a good idea, oh, we can use this to stop hacks.
So in this week’s news, we’re going to unfortunately be discussing another large hack. I will leave that for the news section, but suffice it to say that it was a major chain and it was a large amount of funds and the fallout of that is still happening. We will see what happens there.
But when we hear about stories like that, our reaction is, well, man, I just wish there was a way to keep that from happening.
The way to keep it from happening is to have a secure blockchain and products that aren’t prone to be broken into or hijacked or whatever.
Now I would say that, I know probably a lot of times you guys think that I talk about Bitcoin too much, but I would say with the Bitcoin network, which has been around the longest at this point, that you just don’t hear about hacks on Bitcoin. I haven’t heard about one in years.
Now Mt. Gox, as an example, was hacked years ago, but that wasn’t Bitcoin only. That was an example of a centralized exchange, just like Coinbase, just like Kraken. But that was not a hack of the Bitcoin blockchain. Now in what we will be discussing in the news here in a few minutes, from what I can tell, it was a hack of the blockchain and a bridge.
So it was a bridge between that blockchain and other blockchains.
So we’ll get to that in the news, but there is certainly a difference.
So the idea is our assets should be secure because of where we put them, not because of some ability to reverse transactions. The problem is to let the cat out of the bag, so to speak, is that when we reverse transactions, that can certainly have unintended effects. So as I was doing research for this article, I came across some very interesting stories.
For example, even aside from these reversible tokens, there’s already issues when a centralized entity is trying to handle things.
So even before we get into all of this about reversible tokens, there are many of the platforms that are out there don’t do a very good job of dealing with this. And OpenSea, for example, I came across this story about this wildlife, this landscape photographer, Marco Grassi, who has some really beautiful work, by the way, you can look him up on Twitter and he’s probably on Instagram. But anyways, he takes photos, he sells some of them or all of them, I’m not clear on that, but as NFTs and has done really well for himself. But apparently back in early January, he got in the middle of what amounted to a stolen NFT that he attempted to legally purchase on OpenSea.
So OpenSea was the centralized platform that was in the middle of this.
He bought this NFT for one and a half Ethereum and then before he could sell it for about an ETH or so of profit, they said, oh, this is stolen and took it away from him and he got nothing. I think he got some money back, but he lost all his gain and the person who initially put it on there didn’t get anything.
The thief probably didn’t get punished at all. So they have a very arbitrary set of rules that they’re using and really people are getting
hurt and the reality is OpenSea makes a lot of money and they are responsible for that in my opinion, it’s their platform. So before we get into these, realize that the system that we’ve got in many cases doesn’t work properly and you’ve already got people who are getting hurt as part of this process who they’re completely innocent bystanders, so to speak.
Now let’s talk about these reversible transactions themselves.
So they’re being proposed as this fix it for crypto hacks, for things that happened like this compromise that happened on Thursday night.
I was thinking about this from a privacy aspect and maybe that wasn’t really, after actually thinking about this for quite a while, not really the angle that maybe matters in this case.
Maybe a privacy issue, but I came across a essay on Substack by a guy who I actually follow already on Twitter and he talked about why finality matters. So in other words, when a transaction is done, it’s done, you don’t roll it back and there’s actually a long history of debate about this and crypto. Well, Ethereum famously had a hacking incident and I don’t remember the details, it’s been a long time ago, but they forked the network. They did a hard fork and they did that to roll back the transaction. That’s what they did.
So they forked the network, they rolled back the transaction and that actually is where one of the other coins came from. Now I will tell you at this point, in my opinion, that was probably the wrong thing to do. It’s old history at this point, but blockchains are built to be final. When a transaction is committed to a blockchain, there’s a reason for that. It is a record that is immutable and you can see that all the way back to Satoshi’s Bitcoin paper, the white paper that created, that was the kickoff for Bitcoin.
So anyways, so this guy here, he’s talking about why finality matters, which of course
is the exact opposite of what we’re talking about with reversible transactions.
Now he talks at the start of this, what I thought was a very interesting angle about
how traditional finance is safe because you’ve got intermediaries that can reverse mistaken
For example, a credit card can be charged back.
If somebody steals my credit card and uses it to buy gas, go on a spending spree, whatever,
those charges can be reversed.
I don’t have to pay for them.
So that’s a pretty standard operating procedure these days.
A lot of you are probably familiar with that.
Maybe you’ve experienced it.
If a bank messes up, drops a bunch of extra money into my bank account, I don’t get to
They take it back out.
So these are all, all these type systems, these reversible transactions, so to speak,
they’re built into traditional finance and atomic finance or this finality finance, if
you want to call it that, whatever.
It can only exist or only works in a digital realm, a realm like cryptocurrency.
I’m not going to go into a lot of this.
I’ll make a link in the show notes to this article.
It’s a great article.
You should take the time to read it.
But suffice it to say, we’ve built this entire system around, really around this idea of
being able to roll things back.
We built KYC where you have to know the people in the system and everybody has to prove themselves.
And yet really that has no impact on criminal finances, something I always bring up.
So again, back to this research, they’re going to create these reversible standards.
You’ve got a period of time after a token is stolen or whatever, that it can be frozen.
It’s taken before this group, this so-called group, which they don’t really detail.
It freezes token and they hold a trial.
There’s an algorithm that they can track these tokens.
Now, this writer brings up three reasons why he doesn’t like this.
One, the reversibility harms innocent bystanders rather than attackers.
Two, reversibility is flat out incompatible with most DeFi.
And three, unnecessary governance is an attack vector that can be abused or will be abused,
Reversibility is broken.
I’ve already given you the example of OpenSea with that photographer.
Full reversibility is going to even have stronger implications.
He gave an example when a board ape is yanked out of your wallet by a decentralized quorum
of judges, you don’t own anything.
You have no recourse.
And why should a random OpenSea or Uniswap user suffer the full brunt of consequences
while the victim who engaged in reckless behavior bears no burden?
What he’s talking about here, typically these hacks happen because of mistakes by the end
Now, not always, but certainly many times.
And yet those people are, they’re basically not punished in many cases.
And yet the end user or the person in between, they end up suffering because of it.
All right, so, and then he’s talking about Uniswap.
Uniswap is a decentralized exchange.
You can swap one token for another.
If the attacker gets reversible tokens, they’re simply going to swap those for censorship
Why wouldn’t they though?
See, this intervention process is going to take time, hours to days.
And yet the attacker can grab a bunch of money, he can turn around and run it through Uniswap
and swap out those tokens for something else.
I don’t know, Monero.
So when they do get around to freezing the assets, what’s going to happen is that Uniswap
pool in this case is going to stop functioning.
When they reverse those transactions, those liquidity pools are going to get wrecked.
And so it’s going, this is why for DeFi and really for NFT trading, these tokens are not
going to work.
They sidestep all of this simply by saying reversibility is viral because reversible
tokens can’t be used with irreversible tokens.
They believe that this is going to spawn an entire ecosystem composed entirely of reversible
I think they will find that most people will not be using these.
Once some key tokens become reversible, other tokens are incentivized to do the same to
eliminate this delay.
In other words, reversibility is viral.
That is a quote out of the paper, the research paper.
Yeah, I don’t think that’s going to happen.
Just like this author of this paper doesn’t think it’s going to happen.
Problem is that many times people don’t even realize that what they’re dealing with might
have been involved in some hack because the hacker is going to take the token and they’re
going to turn around and they’re going to disperse it.
They don’t just feed it all into a wallet and let it sit there.
Because if you think about it, all of this is available on the blockchain.
That’s one of the points of it.
And people can tell, oh, it moved from here to here.
So they don’t do that.
They take it and they disperse it among a number of wallets.
They move it through Uniswap, for example.
They may swap it out for Monero or something like that.
In other words, they’re covering their tracks and the people who end up with those stolen
tokens are the ones who are going to end up losing their money.
I hope that makes sense.
Now he goes on from there to talk about the actual physical world, adopting atomic payments
to handle things like buying physical goods online or closing on a house, that kind of
Counter-party risk is real in a number of transactions and a lot of transactions.
And we don’t have a chain link oracle to prove that Amazon did or didn’t deliver our package,
So he discusses a very simple solution here called custodial escrow.
I will leave it to you, the listener, to read that, if you wish, about how he talks about
That’s not really the scope of what we were going to discuss here.
So we hear these proposals that sound good and the problem, as with most anything, is
the unintended side effects.
And in this case, I just don’t see how this is going to work at all, frankly.
I think it’s actually going to be a bit of a disaster.
Interestingly, I said this had been mentioned a number of years ago.
I saw some evidence this had been talked about in Bitcoin circles.
And I think it was 2018, Vitalik, who’s creator of Ethereum, actually was talking about this
in a tweet, which I have in the show notes.
So he certainly has thought about this.
I believe he’s behind this current proposal.
And I hope that they honestly don’t do this.
I think this would be a big mistake that could set Ethereum back for quite a while if they
choose to go forward with this.
Look, I know things sometimes are scary, especially when we talk about these big hacks and this
kind of thing.
I have made the statement on here a number of times that crypto is like the Wild West
in the 1800s in the United States.
It was rough, right?
Banks got robbed.
I mean, we’ve mythologized it to an extent in Westerns, but there was a lot of stuff going
People didn’t operate by the rules necessarily.
There was just a lot of bad stuff going on.
And you can do things to protect yourself.
Now we’ll discuss in the news this situation about this hack, but these are preventable
If the end user of the crypto takes responsibility for their assets, understand prior to this,
you had your money in a bank, your stocks in a mutual fund, whatever.
Those institutions were responsible, at least on paper, for your assets.
That is not the case anymore.
I promise you if Coinbase gets hacked, well, it’s iffy if you get your money back or not.
You might, you might not.
We’ve certainly seen in many cases where platforms got hacked and it either was an extremely
delayed event or they didn’t get their money back at all.
I know I had money on Mt. Gox when it got hacked.
I have a login.
That was the earliest platform I used.
I do not remember exactly what I had on there, but there was money on there and I’ll never
get it back.
I don’t have any recourse.
So that was an early lesson for me.
But we can self-custody our assets.
We don’t need the bank and we can be responsible for that.
And as long as you can keep up with a password, then you’re okay.
You don’t have to worry about it.
You can sleep soundly at night.
If you can keep up with one single password for your hardware wallet, or if you just have
Bitcoin, you can keep up your seed phrase, right?
And that’s it.
So take control.
Don’t worry about this stuff.
These companies will either cut, they will either fix this stuff or they will fail.
I think we’re going to see many of them fail.
We are in the process certainly of seeing that with some of them.
I think Celsius is in bankruptcy.
I doubt that they’re going to make a sudden comeback from this as an example.
Some of them will learn and they will do the proper auditing and testing and preparations
so that they can manage this stuff.
And one day we will wake up and it will no longer be the Wild West.
And some of it will be regulation and we may grumble about that, but some of it will be
Some of it will simply be time.
It will be development of these platforms and they will become stronger.
I’m not, there’s not a good word for it, maybe Luddite.
I’m not a Luddite and I don’t think that DeFi in any sense is ever going to happen.
It’s a multi-billion dollar market already in its infancy and yes, it’s having growing
pains certainly, but that doesn’t mean that there are not applications who will not make
it in the long term.
I do believe 10 years from now you will still have decentralized exchanges.
I do believe that you will still have places where you can go and invest your money and
make reasonable returns, not 20, 30, 50% and reasonable assurances that those assets that
are under control are safe.
So anyways, enough about that.
We will move on now to other things.
So let’s talk about support.
We’ve had a great week.
I want to go through our supporters.
I do want to, I certainly want to thank the people who’ve been supporting the podcast
and we’ve had a fair amount of that.
We of course been running this promotion where the podcast is getting promoted on Fountain
and because of that, we’re getting a lot of new users who they’ve not seen or heard of
podcast before and they’re trying it out and some of those people are actually boosting
I do not know if they will stay around, time will tell, but we’ll go through these.
We got a boost from user 386-8806-921965146 of 10SATS.
Thank you very much.
Our next one is from Captain Egghead.
What an awesome name.
Did not actually come from Fountain.
This is one of the few.
So that’s cool.
I’m not sure what app he used to promote this.
Would actually be interested in knowing Captain Egghead if you’re out there.
329SATS was listening to, is this the deep breath before the storm?
So that was last week’s episode.
I believe the other one was as well.
Let me do a quick check.
There it is.
No, actually they were listening to the Security Speed and Decentralization podcast.
So next we have a 10SAT boost.
We’ve got a lot of users tonight, probably these new people listening on Fountain.
If you’ve got a username for your handle, it makes it a lot easier for me to be honest
if you would change your handle to something meaningful rather than a string of digits.
If you want to keep it that way, that’s fine.
People may choose to do that for anonymity and I understand that.
User 7519er81008328730 I believe and then the next one is another 10SAT boost.
User 263560462499732 both of those were the It’s a Dilemma podcast on speed security and
Thank you very much.
And we had some streaming.
We had a good amount of streaming this week.
I always appreciate that even though at this point we’re not taking the time to acknowledge
We do not have time unfortunately.
Val Hall, this is the Deep Breath Before the Storm last week’s episode 10SAT boost.
Thank you very much.
South Korea LN, I don’t know what the LN stands for, 10SAT boost or no, excuse me, a 50SAT
boost for the last week’s episode.
And he did include, he or she did include a comment and I wanted to talk about this
for just a second.
And I’m ready to comment first of all, I guess you could say this was my first negative comment
and that’s cool.
You lost me in the moment you started talking about chart astrology, goodbye.
And South Korea LN, I do hope you find what you’re looking for out there.
I’m not kidding about that.
Clearly what I’m doing is not what you’re looking for and that’s fine.
I wish you the best of luck.
But I would say this and it actually took me by surprise, it took me a minute, I’m like
chart astrology, oh.
So this person’s talking about the technical analysis that I’ve skimmed in this podcast.
Certainly this podcast is not about technical analysis really.
I do talk about it like I just did about the Bollinger Bands.
Some of our users certainly appreciate that and have expressed that.
So it’s kind of part of the fabric of the show.
But I would say this, not to be disrespectful, but South Korea LN, with all respect, I would
disagree with what you’re saying.
It’s not astrology.
There’s actually, believe it or not, technical analysis, they call it technical analysis,
that is based on astrology, which is what I thought they initially were talking about.
Which I don’t do because I don’t believe it.
But the type of analysis that I do, it’s very fundamental, it’s very kind of old school.
And any technical analysis, now you can break it down to numbers and percentages and this,
that, and the other, but really it’s about understanding psychology, human psychology.
So it’s not chart astrology, it’s actually human psychology.
So if you want to talk about that, that’s cool, because that’s what it’s actually based on.
The reason why we hit resistance levels at certain points is because the majority of
the people are either buying or selling at those points, and that creates the resistance
or the acceleration.
That’s all it is.
Now, we quantify it, we put it in numbers, and we manipulate it in various ways, some
of them more correct than others, by the way.
And I’m not casting aspersions on anything, I’m just saying as a fact of the matter, some
things are more reliable than others.
But you can combine all these and then hopefully at least get a good overview.
I mean, look, statistically speaking, for example, like 70% of the time, you get a break
a certain way from a certain formation.
Now, I’ve not really covered all of that simply because, as I’ve said, I don’t have video
at this point, probably looking at setting that up later this year, hopefully before
the end of this year.
Just because it would help with some of these things, if some of the people would like to
listen to that, it probably won’t be the same group of people, and that’s okay.
But I would say that you can simply go back in charts, because Bitcoin goes back, I don’t know,
it’s like 10 years of charts at this point.
There are stocks that have been around for decades.
You can go out and mark, here’s this formation, here’s this formation, here’s this formation
over and over, hundreds of times, and then you can simply calculate, oh, it went down
this time, it went up this time, it went down, it went down, it went down, it went down,
it went up, it went down, it went down.
Because statistically, it’s going to break one way for some formations, not every formation,
but it’s going to break one way more than the other.
There’s some that, if that formation shows up statistically, it simply breaks 50% up
and 50% down, so that’s not really helpful.
It’s just kind of a guess.
There actually is more to this than so-called chart astrology.
Anyways, I really do hope you find what you’re looking for, and thank you very much for the
I really appreciate that.
All right, user Isaac, 20-sat boost, again, last week’s episode, thank you very much.
Stream, stream, there’s the next boost.
Last week’s episode as well, 10-sats by user 441332, sorry, 6225942084, 10-sats, thank
you very much, appreciate that.
Last week’s episode, 10-sats, G, I do not know how they want this pronounced, G-S-O-L-A-R-T-E-25,
10-sats, appreciate that very much.
And let’s see here, we’ve also got the macro, environment, and the effect on crypto prices.
I do not know offhand what episode number this was, 20-sat boost by John Wick, wow,
the John Wick, no, I’m just kidding.
Thank you very much, John Wick, appreciate that.
All right, below that, we’ve got a 10-sat boost for the It’s a Dilemma episode, security
speed and decentralization from C-D-H-O, thank you very much.
Our next boost was 33-sats, it must be a no agenda listener, from last week’s episode,
from Christo Sinis, oh, Crypto Sinis, sorry, C-R-I-P-T-O-C-E-N-A-S, thank you very much,
I appreciate that, and all that, very much, let’s see, that might be it, no, here’s a
The It’s a Dilemma podcast, 10-sat boost from Valhalla, thank you very much.
Eddie Rubenstein, there we go, Eddie Rubenstein, 10-sats for the It’s a Dilemma podcast, Ear
BTC, 20-sats for the last week’s episode, it’s Deep Breath Before the Storm, thank you
very much, and 10-sats for last week from user 893618001661180, another 10-sats, last
week’s episode, user 3888062921965146, thank you very much, appreciate that, 21-sats for
last week’s episode from Ziggy Pat, thank you very much, Ziggy Pat, 10-sats from the
It’s a Dilemma episode, user 86751489, sorry, I’m trying to read this, again, I got to learn,
I got to start making these fonts bigger, 892409360, with a little message, a great
day for everyone, thank you, appreciate that.
When you get to be my age, user 86751, so on, any day you wake up and you can move around
and your family’s doing okay, it’s a great day, so thank you very much, 10-sats is Deep
Breath Before the Storm, last week’s episode from Bow Link, thank you very much, stream,
there’s the next boost, the It’s a Dilemma, Security, Speed and Decentralization, 10-sats
from Hodlnata, one of our, getting to be one of our regulars, I think, 10-sats from HPGuy1PT,
thank you very much, thank you very much, both of you, I don’t think I thanked Hodlnata,
thank you very much, that was from last week’s episode, let’s see, stream, thank you, stream,
Deep Breath Before the Storm, 10-sats from irocatapillar, irocatapillar, do believe I
got that right, and then we’ve got three boosts in a row for the It’s a Dilemma episode,
10-sats for each one from Angels from Rodney88, and again from Rodney88, thank you very much,
and then we’ve got, from last week’s episode, a 25-sat boost from Merlino77, a second 25-sat
boost from Merlino77, a 15-sat boost from user 385505192338648, and that was for last
week’s episode, and then a 13-sat boost from Ntranilla, and that covers it up through today,
thank you very much, I do appreciate that, I will be honest, I’m always going to try
and be transparent on this podcast, I do immensely appreciate the people who are supporting this
podcast, and one thing that this podcast does, this format I should say does, is it provides
very immediate feedback, if I am not doing a quality job, if I’m not putting out good
value, then let’s be honest, I don’t get as much value back, and even though we had more
people this week, the amount of value was not as much, that’s just being honest, I read
through these every week, you can hear the numbers, I don’t have the figures off top
of my, at the tip of my fingers, but on average these boosts were down, now again, I absolutely
appreciate everybody who did support the show, and I don’t want to, this is more of a self
analysis than me being upset, I mean honestly, I’m not upset, I’m actually just really doing
self analysis right here on this podcast, so apparently I’m not providing enough value
over the last few weeks, and I’ve tried some different things over the last few weeks,
and to be honest, maybe they just haven’t done as good, so I know that I talk a lot
about world economics, and I’m going to have to, because frankly, I do not, it’s inescapable
that the macro world economic situation is affecting Bitcoin, it’s affecting crypto,
and I would be remiss if I did not discuss that, however, I think we’re going to try
and hopefully keep that down some, I wish I could go back to two episodes a week where
we could split up the news a bit, and maybe one way we could do this is just literally
have an episode of just news later in the week or something, I don’t know, I’ll have
to think about that, but I want to provide quality content for y’all as well, for tonight
for example, where we’re talking about reversible transactions, this is an important topic that’s
come up in the crypto ecosphere, whatever you want to call it, and you need to understand
it’s not just as simple as what they say when they come out and say, hey, transactional,
our reversible transactions are good because they protect us from hacks, we just had a
big one this week, we’re fixing to talk about it in the news, it’s just not that clear cut,
it’s just not, it’s very important to understand the ramifications of that when we’re having
these discussions, so I will try and do more of that type of content and try and maybe
hold down the news a little bit, I don’t know, maybe I’ll skip some of the stuff that’s maybe
not super relevant, I’ve kind of stopped talking about some of these chains because it just
gets old talking about the same things, but I don’t know, but I will promise you, this
is my promise to you, I will promise that I will try as hard as I can to make this a
quality podcast because I want you guys to get the information that you need in order
to succeed and I’m always here to cheer you on and always here to tell you what, you need
to be DCAing, don’t worry about what’s going on, don’t worry about whatever, just DCA into
quality assets of course, and of course we talk about how there’s times when you may
want to put as much as you can in, I’ve discussed these levels, for example, if Bitcoin does
get down to $14,000 or roughly $14,000 or less, so maybe $14,500 or so, I’m going to
start pushing in some, any kind of capital that I can get a hold of because I just don’t
think it’s going to go any lower than that, now that’s me, I’m not saying that you should
do that, but you should be DCAing, all right, let’s move on to the news, we did have a lot
of news this week, some of it I’m going to cover very quickly, haven’t talked about Solana
in a while, there was a Solana shutdown of their network, it was actually the 8th time
this year and it’s so old, this actually happened on roughly a week ago, I could have picked
it up last weekend, I did not, but I’ll have an article in show notes, look, I’ve already
told you, you got stuff in Solana, it’s high time to bail, just another example, and you
know what, I’m going to actually point this out twice tonight, that episode, the one about
speed decentralization and security, is very relevant when we’re talking about why these
blockchains break, so there was another blockchain that broke down late this week, I’m just going
to go ahead and jump the gun, I try and do this kind of in order, but it ties into this
Solana thing, so Friday, Thursday night, I think it may be Thursday night, the Binance
blockchain was hacked, now the numbers that I see are kind of all over the place, I’ve
seen 70 million, I’ve seen almost 600 million or around 600 million, I have a link to, for
example, a tweet from the New York Post or the New York, I think it’s the New York Post,
which to me would be a very legitimate organization that’s not just going to smear some blockchain,
they’re saying it’s 600 million or whatever, now, I think to save face that Binance will
step in and basically foot the bill on this, so no matter what ends up happening in terms
of recovery, they, of course, have come out and assured their users saying, no user funds
are at risk, blah, blah, blah, so I’ve never really talked about the Binance blockchain,
if I have, it’s only been in passing, it’s only been around for a few years since 2017 or so,
they made very conscientious decisions about building that blockchain, which I believe
are the reasons they’re having issues, so again, it goes back to the three-legged stool,
speed, security, and decentralization, and the trade-offs that you have to make in between
those, they have chosen for speed, they have not chosen for decentralization, and frankly,
they haven’t chosen for security, so there you go, and Solana has made some of those
same trade-offs, and now, we’re seeing the end results of that, so all you got to do
is just stand back and say, well, there it is, I don’t, well, I actually do technically
own some Binance, I own a tiny, tiny fraction of a BNB, which is their token, and I would
certainly never recommend that anyone buy it, all right, next item, I thought this was
very interesting, so Kim Kardashian is not somebody I ever talk about, but she is paying
$1.2 million to settle a crypto Instagram ad, basically, the SEC is charging her with,
it’s not fraud, but they are charging her saying that she bought, she was paid to promote
some ridiculous cryptocurrency, which I’m not even going to talk about on here, and
she did not disclose that, now, a lot of people are jumping on this because they’re saying
that the chairman of the SEC, Gary Gensler, I think is his name, that he’s doing this
as a way to look good because he hasn’t been doing so well against like the XRP lawsuit
that’s going on, there’s probably frankly a lot of validity to that, I’m sure he is
trying to get a win, but the reality is, is that what this woman did should not be allowed
to happen, and it happens all the time, there are people who shill coins constantly, who
are getting paid to do so and otherwise would never do it, and they don’t disclose that,
if you disclose, if I get on here and say, hey guys, man, y’all should buy some Bitcoin,
you should buy all the Bitcoin you can because Bitcoin’s going to the moon, and somebody
in Bitcoin, well, there isn’t anybody, but let’s say Swan Bitcoin, they’re a Bitcoin
holding company, let’s say they paid me $250,000 to do that, and I didn’t tell you that, would
that be right?
No, it wouldn’t be.
So I’m perfectly okay with what’s going on here because I think a message does need to
be sent, this is part of the regulation, so to speak, because these people, people like
Kim Kardashian have millions of followers on these different social media platforms,
and many of these people soak up every word these people say, and they somehow think that
Kim Kardashian has any idea about crypto, and they just go out and lap it up, and then
they end up losing money, and that’s not a good thing.
All right, so, you know, I want to include a show note about that, a couple of show notes,
I’m going to include kind of a one that’s more of a news article, and then actually
one that’s kind of, they’re talking about how this is a bad thing that this happened,
and again, why?
Because it could chill the influencer economy, well, maybe the influencer economy needs to
I’m fine with people promoting something, even if they’re getting paid, as long as they
disclose that and say, hey, I have to be upfront about this, you can go to this webpage and
find out, or whatever.
All right, moving on.
The UN, oh, this is fun stuff, well, no, let’s just go ahead and do this.
These are, I believe in alphabetical order, not in alphabetical order, I believe these
are in chronological order or so from early in the week, I may have mixed these up at
The United Nations calls on the Fed, the Federal Reserve, and other central banks to halt interest
I thought this was pretty funny, and then right after that, the IMF came out, or maybe
it was before that, one or the other, within a day of each other, I do not remember which
The IMF is saying that the Fed has high responsibility to not raise interest rates, because when
they raise the interest rates, it’s hurting all of these countries that are dependent
on the dollar.
This is why we don’t tie one country’s assets, currency to another country’s currency.
This is literally one of the main reasons why El Salvador legalized Bitcoin.
And you can ask the president of the country and he will tell you that, because see, he
actually figured that out.
So now, the UN and the IMF are begging the United States to not raise interest rates,
but we have to, to combat inflation.
So we have inflation, but they have it worse, and some of it’s for different reasons.
But they’re getting the amplified version of all this, and this is not surprising.
I don’t know how this is all going to end.
Kind of crazy.
All right, HAK, which I don’t know how they say that, that is literally what I have in
front of me.
HAK, all in letters.
I don’t know if it’s an abbreviation or what, but they’re one of the largest vegetable
brands in Northern Europe.
They’re going to shut down production for six weeks due to high energy costs, so they’re
going to stop producing vegetables for six weeks because they can’t afford to.
The dominoes continue to fall.
Inflation hit 83% in Turkey, a new two-year high, a 24-year high.
So Turkey’s been wrestling with inflation for a long time.
I think their currency is called the lira, but it’s getting worse.
So now they’re at 83%.
The U.S. national debt surpasses $31 trillion for the first time ever.
We keep ratcheting up debt.
It boggles my mind.
I know you all are probably thinking, oh, here he goes again.
I just don’t understand it.
They do not put together debt inflation.
They’re directly related.
But hey, we keep printing money.
The European Union bans all crypto assets, accounts, and custody services belonging to
Not Russia, not the oligarchy that’s running Russia, no, just Russians, period.
Now, this is kind of like the reversible transactions that we’re talking about tonight.
Maybe the idea is semi-good, but it’s the unintended side effects.
There’s many people in Russia who don’t agree with what their country is doing.
Just like in whatever country you live in, there’s probably people who don’t agree with
your country’s policies.
And when we start putting these blanket bans on a country, especially in regards to something
as fundamental as money, as currency, then that hurts people in ways that the people
making these laws don’t understand or don’t care.
So the average person out there trying to get out of Russia, maybe, or just potentially
in the future, right now the ruble’s doing okay, but maybe in the future the ruble goes
down and they’re just trying to save their life savings.
But we can’t interact with the EU.
So I saw this very interesting tweet.
I don’t know if you’ve ever thought about it in this way, but the EU Commission, there
was an article I came across.
I didn’t clip it for the show notes, but there was a commission in the EU saying that Russia
is weaponizing energy.
So they’ve shut off natural gas and probably oil flowing to the EU.
You’ve got spiking energy prices in Europe because of that.
You’ve got potentially, and I would certainly say potentially, Russia bombing, blowing up
that pipeline out in the North Sea.
Somebody blew it up.
And so it’s fair to say that they’re weaponizing energy.
There’s no doubt about that.
I’m not sure what people would expect them to do since energy, these natural resources,
are one of their major resources.
I’m not sure why people would not think that that’s what they would do.
I would rather, frankly, they do that than drop big bombs all over the place.
Now, I’m not discussing what’s going on in Ukraine.
That is a different situation.
I’m just talking about with the rest of Europe, okay?
The U.S. has weaponized the dollar.
That’s probably true.
There’s got some truth to that.
It’s very easy for us to do that because the U.S. dollar is the global currency reserve.
And until that changes, it will continue to be that way.
China has weaponized supply chains.
Now, maybe that’s a little bit of a stretch.
That might even fall under conspiracy theory.
I don’t know.
But I would certainly say since COVID hit, the supply chain situation has gotten extremely
And we’re past COVID, in my opinion.
Yes, it’s still around, but it’s nothing like it was two years ago.
And yet, I ordered a part the other day, well, I ordered it back in March, it didn’t get
here until September.
I don’t know.
You tell me.
Europe has weaponized regulations, ergo, what I just talked about with, we’re just going
to ban people from Russia using our crypto platforms.
Really this person, and I don’t have the tweet here, but they said this, this is what they
I’ll give them credit.
I didn’t actually say this.
In case you haven’t noticed it yet, the world has been at war since 2020.
And as usual, the average folks are the primary victims.
I believe that that is an absolutely true statement.
I would argue that at least some countries have been in economic war for far longer than
since 2020, but it’s becoming more and more apparent and it’s hurting more and more people.
For the first time in weeks, the tea tonight is Earl Grey and I am loving it.
Much better than that last stuff I had.
Oh, well, a couple more.
California, California, which is our largest state by population, will be sending out $1,050
stimulus checks to qualifying residents to combat, wait for it, inflation.
Oh, it’s so sad.
Tunisia raises rates to highest level in 30 years to combat inflation.
I thought this was interesting.
We don’t hear about a lot of these smaller countries.
They’re having the same kind of inflation that we’re experiencing and in fact, oftentimes
Let me bring this up real quick.
I read this article and to be honest, it was actually surprising.
They really weren’t raising their rates that high, if I remember correctly, even though
it’s their highest rates in 30 years.
A 25 basis point increase, taking them up to 7.25% and 6.25%, so I guess actually that’s
It’s higher than ours.
So yeah, they’re definitely paying the piper.
Finally, and maybe the most funny or sad, maybe, I guess it depends on how you look
The president of Belarus, so Belarus is one of the old Russian USSR, I should say, countries
in Eastern Europe, says that he’s banning inflation from October the 6th, three days
ago, four days ago when this is released.
All price increases are forbidden, forbidden.
He repeats it, but it’s an exclamation.
I’m sure he didn’t say that in English and that’s a translation, but you get the point.
Yeah, that’s not going to work either.
But this is the type stuff that we would expect.
There is one last thing, unfortunately, that I need to talk about.
So of course, we’ve talked on here about Celsius.
As part of this bankruptcy, they published something like a 14,000 page document and
in that it detailed every user’s full name linked to timestamps and amounts of each deposit
withdrawal and liquidation.
So in other words, anyone with a brain cell could then go in there and figure out if they
wanted to how much somebody had on that platform.
And if they had a lot, oh, this person has 100 ETH.
You don’t think that’s going to lead to some issues?
It’s a terrible, terrible breach of privacy.
And given that this is what amounts to a centralized platform, it’s not surprising.
It’s very unfortunate.
And this is yet another reason that you probably shouldn’t be using centralized platforms.
All right, that’s it.
So the Generation Wealth Cryptocurrency podcast supports podcasting 2.0.
It’s a value for value podcast with no sponsors and no advertising and we never will.
You can support the podcast in three ways by time, talent, and treasure.
If you want to support the podcast and it has some time or talent, there’s lots of things
we could do.
I could use some help with chapters.
I’m starting to move on that actually.
Posts, transcriptions, different things, treasure, just what it sounds like.
If you find the content valuable, you can support the podcast by streaming sats from
a podcasting 2.0 app or you can boost like the people that we read earlier.
You can get those podcasting 2.0 apps at newpodcastapps.com.
There’s a complete list of all the podcasting 2.0 apps there.
There’s ones for Android, there’s ones for iOS, there’s ones that just run on the web.
There’s a wide variety.
I use Fountain a lot these days.
I’m helping with our beta program and of course we’re promoting the podcast on that platform.
I am not getting any money from Fountain.
I believe in full disclosure, when we get done with the beta testing that they’re going
to send us a, they’re going to send us a small amount of sats, okay?
But I’m not getting anything of substantial benefit from them and I’m paying to have the
podcast promoted just to be crystal clear about that.
If you like the content, I would love it if you would tell your friends about the Generational
Wealth of Cryptocurrency podcast.
That is the best way to help this podcast.
Thanks for being here.
I hope this has been helpful.
I would love to hear from you.
I’m on Twitter at Macintosh Fintech and by the way, I will be posting that chart that
I was talking about.
I’m just going to go ahead and clip that little bit out and I’ll post it on Twitter so that
you can see those compressing Bollinger Bands and we’ll see where they go.
You can reach me by email macintosh at genwealthcrypto.com and of course the Generational Wealth website
is at genwealthcrypto.com.
Stay humble friends, stack sats, go out and make it a great week.
I will talk to you soon.