#Bitcoin Update: Market Cap: ~$1.2 Trillion ₿1 = $0.061 Million $1 = 1630丰 ₿1 = ₿1 @Dan

𝗪𝗵𝘆 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗶𝘀 𝗡𝗼𝘁𝗵𝗶𝗻𝗴 𝗟𝗶𝗸𝗲 𝗧𝘂𝗹𝗶𝗽𝘀 In the 17th-century, there was a brief period in the Dutch Republic known as the Tulip Mania, in which tulip bulb prices skyrocketed and then collapsed, resulting in widespread financial losses. An oft-repeated and flawed argument is that #Bitcoin is just another bubble like tulips, or the South Sea company of the following century. 𝘕𝘰𝘵𝘩𝘪𝘯𝘨 could be farther from the truth. Here’s why👇 Bitcoin's evolution showcases 𝘀𝘂𝘀𝘁𝗮𝗶𝗻𝗲𝗱 𝗴𝗿𝗼𝘄𝘁𝗵 in adoption and price, distinct from the short-lived 17th-century tulip mania. Its rise mirrors that of leading tech firms, driven by 𝘢 𝘨𝘳𝘰𝘸𝘪𝘯𝘨 𝘶𝘴𝘦𝘳 𝘣𝘢𝘴𝘦 and 𝘪𝘯𝘤𝘳𝘦𝘢𝘴𝘪𝘯𝘨 𝘢𝘤𝘤𝘦𝘱𝘵𝘢𝘯𝘤𝘦 among merchants and institutions, positioning it as a significant digital currency. Bitcoin's finite supply of 21 million coins, designed to prevent debasement via inflation, alongside its decentralized, secure, and transparent nature, 𝘀𝗼𝗹𝗶𝗱𝗶𝗳𝗶𝗲𝘀 𝗶𝘁𝘀 𝘀𝘁𝗮𝘁𝘂𝘀 𝗮𝘀 𝗮 𝘂𝗻𝗶𝗾𝘂𝗲 𝗮𝗻𝗱 𝗶𝗻𝘃𝗮𝗹𝘂𝗮𝗯𝗹𝗲 𝗮𝘀𝘀𝗲𝘁. Its Proof of Work ensures secure, immutable transaction records, operating on a peer-to-peer network that eliminates intermediaries. Critics often overlook the source of Bitcoin's value: the human desire for their time and labor to be represented in a scarce, divisible, portable, and fungible asset. Bitcoin's digital and decentralized attributes enhance these characteristics, 𝘧𝘶𝘳𝘵𝘩𝘦𝘳 𝘴𝘰𝘭𝘪𝘥𝘪𝘧𝘺𝘪𝘯𝘨 𝘣𝘪𝘵𝘤𝘰𝘪𝘯’𝘴 𝘱𝘭𝘢𝘤𝘦 𝘢𝘴 𝘵𝘩𝘦 𝘮𝘰𝘯𝘦𝘺 𝘰𝘧 𝘵𝘩𝘦 𝘧𝘶𝘵𝘶𝘳𝘦. Bitcoin serves as 𝗮 𝗵𝗲𝗱𝗴𝗲 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝘁𝗵𝗲 𝘃𝘂𝗹𝗻𝗲𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 𝗼𝗳 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝘆𝘀𝘁𝗲𝗺𝘀, offering a diversification tool against inflation, currency devaluation, and geopolitical risks. Its independence from conventional financial mechanisms renders it an appealing choice for safeguarding wealth. In short: Unlike the Tulip Bubble of the 17th century, Bitcoin's ongoing development and inherent qualities firmly establish it as much more than a speculative asset. Its properties and role as a financial system hedge underscore its 𝗶𝗿𝗿𝗲𝗽𝗹𝗮𝗰𝗲𝗮𝗯𝗹𝗲 𝘃𝗮𝗹𝘂𝗲 and 𝗽𝗲𝗿𝗺𝗮𝗻𝗲𝗻𝗰𝗲 in the global economy. @Hack0 Be sure to give this a 𝗟𝗶𝗸𝗲🤙, a 𝗦𝗵𝗮𝗿𝗲🔄, and 𝗕𝗼𝗼𝗸𝗺𝗮𝗿𝗸🔖 it for later. And let me know your thoughts on this in the 𝗖𝗼𝗺𝗺𝗲𝗻𝘁𝘀⬇️ below.

𝗪𝗵𝗮𝘁 𝗖𝗼𝘂𝗹𝗱 𝘁𝗵𝗲 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝗭𝗼𝗱𝗶𝗮𝗰 𝗠𝗲𝗮𝗻 𝗳𝗼𝗿 𝗕𝗶𝘁𝗰𝗼𝗶𝗻? Tomorrow the Chinese New Year begins, and we will exit the year of the 𝗪𝗮𝘁𝗲𝗿 𝗥𝗮𝗯𝗯𝗶𝘁, and enter the year of the 𝗪𝗼𝗼𝗱 𝗗𝗿𝗮𝗴𝗼𝗻. Whether or not you take the Chinese zodiac seriously, it can be fun to learn the different elements and animals of each year, and what they symbolize. Here is a glimpse of #Bitcoin through this lens👇 Bitcoin was both proposed and born in the year of the 𝗘𝗮𝗿𝘁𝗵 𝗥𝗮𝘁, which embodies the Rat's 𝘤𝘭𝘦𝘷𝘦𝘳𝘯𝘦𝘴𝘴 and 𝘢𝘥𝘢𝘱𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺, and the Earth’s 𝘴𝘵𝘢𝘣𝘪𝘭𝘪𝘵𝘺 and 𝘳𝘦𝘭𝘪𝘢𝘣𝘪𝘭𝘪𝘵𝘺. Bitcoin perfectly demonstrates the Earth Rat's characteristics of innovation, practical application, and the foresight to solve the problem of trust in the digital age. Bitcoin's origins in the Earth Rat year emphasizes its quiet strength and potential for growth. 𝗘𝘃𝗲𝗻 𝘁𝗵𝗲 𝗻𝗮𝗺𝗲 𝗼𝗳 𝗕𝗶𝘁𝗰𝗼𝗶𝗻’𝘀 𝗰𝗿𝗲𝗮𝘁𝗼𝗿, 𝗦𝗮𝘁𝗼𝘀𝗵𝗶 𝗡𝗮𝗸𝗮𝗺𝗼𝘁𝗼, 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹𝗹𝘆 𝗿𝗲𝗳𝗲𝗿𝗲𝗻𝗰𝗲𝘀 𝘁𝗵𝗲 𝗘𝗮𝗿𝘁𝗵 𝗥𝗮𝘁 𝗰𝗼𝗻𝗰𝗲𝗽𝘁: “Satoshi” can be translated to mean “𝘸𝘪𝘴𝘥𝘰𝘮” or “𝘬𝘯𝘰𝘸𝘭𝘦𝘥𝘨𝘦”, which are both qualities of the Rat. “Nakamoto” can be translated to mean “𝘧𝘰𝘶𝘯𝘥𝘢𝘵𝘪𝘰𝘯” or "𝘴𝘰𝘶𝘳𝘤𝘦", which both describe the groundedness of the Earth element. 🌎🐀 Truly, Bitcoin is characterized by the qualities that those born in the year of the Earth Rat are said to have! 🤯 Tomorrow, however, begins the year of the 𝗪𝗼𝗼𝗱 𝗗𝗿𝗮𝗴𝗼𝗻. This could signify 𝗮 𝗽𝗲𝗿𝗶𝗼𝗱 𝗼𝗳 𝗲𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 𝗮𝗻𝗱 𝗽𝗿𝗼𝘀𝗽𝗲𝗿𝗶𝘁𝘆 𝗳𝗼𝗿 𝗕𝗶𝘁𝗰𝗼𝗶𝗻. Dragons symbolize 𝘴𝘵𝘳𝘦𝘯𝘨𝘵𝘩 and 𝘭𝘶𝘤𝘬, and wood infuses these qualities with 𝘨𝘳𝘰𝘸𝘵𝘩 and 𝘳𝘦𝘯𝘦𝘸𝘢𝘭. This combination hints at an exciting year for Bitcoin, especially with the anticipated halving event. The halving is a significant event in Bitcoin, as 𝘪𝘵 𝘢𝘭𝘪𝘨𝘯𝘴 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘞𝘰𝘰𝘥 𝘋𝘳𝘢𝘨𝘰𝘯'𝘴 𝘦𝘯𝘦𝘳𝘨𝘺 𝘰𝘧 𝘵𝘳𝘢𝘯𝘴𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘨𝘳𝘰𝘸𝘵𝘩. It increases bitcoin’s scarcity by changing the issuance of new coins from about 𝟵𝟬𝟬 𝗽𝗲𝗿 𝗱𝗮𝘆 to about 𝟰𝟱𝟬 𝗽𝗲𝗿 𝗱𝗮𝘆. This decrease of new supply causes prices to rise, and drives more value and innovation to the Bitcoin network. This beautifully reflects the Wood Dragon's blend of 𝘢𝘮𝘣𝘪𝘵𝘪𝘰𝘯 with 𝘢 𝘤𝘰𝘰𝘱𝘦𝘳𝘢𝘵𝘪𝘷𝘦 𝘴𝘱𝘪𝘳𝘪𝘵. 🪵🐉 As Bitcoin enters the year of the Wood Dragon, its journey showcases the enduring qualities of its birth in the year of the Earth Rat. 𝗧𝗵𝗲 𝗯𝗹𝗲𝗻𝗱 𝗼𝗳 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻, 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆, 𝗮𝗻𝗱 𝗴𝗿𝗼𝘄𝘁𝗵 𝗽𝗿𝗼𝘀𝗽𝗲𝗰𝘁𝘀 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝘀 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗳𝗼𝗿 𝗮 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹𝗹𝘆 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝘃𝗲 𝗽𝗲𝗿𝗶𝗼𝗱, embodying the best traits of these powerful zodiac symbols. Remember to give this a 𝗟𝗶𝗸𝗲🤙, and celebrate the Chinese New Year by 𝗦𝗵𝗮𝗿𝗶𝗻𝗴🔄 this and 𝗕𝗼𝗼𝗸𝗺𝗮𝗿𝗸𝗶𝗻𝗴🔖 it for later (𝘵𝘩𝘦𝘯 𝘺𝘰𝘶’𝘭𝘭 𝘴𝘦𝘦 𝘪𝘧 𝘸𝘩𝘢𝘵 𝘪𝘵 𝘱𝘳𝘦𝘥𝘪𝘤𝘵𝘴 𝘧𝘰𝘳 𝘵𝘩𝘪𝘴 𝘺𝘦𝘢𝘳 𝘤𝘰𝘮𝘦𝘴 𝘵𝘳𝘶𝘦! 😉). What do you think about the Chinese New Year and its zodiac? Tell me in the 𝗖𝗼𝗺𝗺𝗲𝗻𝘁𝘀⬇️

𝗕𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻 𝗼𝗿 𝗧𝗶𝗺𝗲𝗰𝗵𝗮𝗶𝗻? If you’re new to #Bitcoin, you’ve likely heard of “𝘣𝘭𝘰𝘤𝘬𝘤𝘩𝘢𝘪𝘯”, though you may not know what it is or how it works. And if you’ve come across the term “𝘵𝘪𝘮𝘦𝘤𝘩𝘢𝘪𝘯”, then you may be even more confused. Let’s sort this out👇 The prevalent term for Bitcoin’s distributed ledger is “𝘣𝘭𝘰𝘤𝘬𝘤𝘩𝘢𝘪𝘯”, yet the original name that Bitcoin's creator, Satoshi Nakamoto, gave it was “𝘵𝘪𝘮𝘦𝘤𝘩𝘢𝘪𝘯”. 𝗧𝗵𝗶𝘀 𝗳𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝘁𝗲𝗿𝗺 𝘂𝗻𝗱𝗲𝗿𝘀𝗰𝗼𝗿𝗲𝘀 𝘁𝗵𝗲 𝘀𝗲𝗾𝘂𝗲𝗻𝘁𝗶𝗮𝗹 𝗮𝗻𝗱 𝗶𝗺𝗺𝘂𝘁𝗮𝗯𝗹𝗲 𝗻𝗮𝘁𝘂𝗿𝗲 𝗼𝗳 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀 𝘄𝗶𝘁𝗵𝗶𝗻 𝗕𝗶𝘁𝗰𝗼𝗶𝗻, highlighting its progression through time as a one-way, irreversible system. A blockchain/timechain is not an especially disruptive technology or a “secret sauce” that somehow makes a system decentralized. In reality, 𝗶𝘁’𝘀 𝗻𝗼𝘁𝗵𝗶𝗻𝗴 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝗮 𝗹𝗲𝗱𝗴𝗲𝗿 𝗸𝗲𝗽𝘁 𝗯𝘆 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗰𝗼𝗺𝗽𝘂𝘁𝗲𝗿𝘀, which agree on each update whenever it’s time for a new “page”, or block, to be added to the ledger. "Blockchain" has become a generic descriptor for various projects with distributed ledgers, though it's essential to recognize that 𝗻𝗼𝘁 𝗮𝗹𝗹 𝗲𝗺𝗯𝗼𝗱𝘆 𝗕𝗶𝘁𝗰𝗼𝗶𝗻'𝘀 𝗰𝗼𝗿𝗲 𝗽𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲𝘀, such as proof-of-work and decentralization. 𝘛𝘩𝘦 𝘵𝘦𝘳𝘮 "𝘵𝘪𝘮𝘦𝘤𝘩𝘢𝘪𝘯" 𝘪𝘴 𝘥𝘪𝘴𝘵𝘪𝘯𝘤𝘵, 𝘳𝘦𝘧𝘦𝘳𝘳𝘪𝘯𝘨 𝘴𝘱𝘦𝘤𝘪𝘧𝘪𝘤𝘢𝘭𝘭𝘺 𝘵𝘰 𝘉𝘪𝘵𝘤𝘰𝘪𝘯 𝘢𝘯𝘥 𝘪𝘵𝘴 𝘶𝘯𝘪𝘲𝘶𝘦 𝘢𝘵𝘵𝘳𝘪𝘣𝘶𝘵𝘦𝘴 𝘵𝘩𝘢𝘵 𝘦𝘯𝘴𝘶𝘳𝘦 𝘴𝘦𝘤𝘶𝘳𝘪𝘵𝘺 𝘢𝘯𝘥 𝘵𝘳𝘶𝘴𝘵. So while “𝘣𝘭𝘰𝘤𝘬𝘤𝘩𝘢𝘪𝘯” might dominate the discourse today, “𝘵𝘪𝘮𝘦𝘤𝘩𝘢𝘪𝘯” more accurately captures the essence and originality of Bitcoin, stressing the importance of its chronological, 𝘁𝗿𝘂𝗹𝘆 𝗶𝗿𝗿𝗲𝘃𝗲𝗿𝘀𝗶𝗯𝗹𝗲 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀 that distinguish it from all other cryptocurrencies. Was this helpful? Give it a 𝗟𝗶𝗸𝗲🤙 Think this might help someone else? 𝗦𝗵𝗮𝗿𝗲🔄 it with others. 𝗕𝗼𝗼𝗸𝗺𝗮𝗿𝗸🔖 this so you can reference it later. Which term do 𝘺𝘰𝘶 prefer, “blockchain” or “timechain”? Let me know in the 𝗖𝗼𝗺𝗺𝗲𝗻𝘁𝘀⬇️

𝗠𝘂𝗹𝘁𝗶𝘀𝗶𝗴 𝘃𝘀. 𝗦𝗽𝗹𝗶𝘁𝘁𝗶𝗻𝗴 𝗞𝗲𝘆𝘀 To truly own your bitcoin, you must custody your private key. This usually involves writing down a 12 or 24-word seed phrase, and keeping it offline where it’s safe from theft, flood, and fire. But what if it’s discovered? Is it safer to use multiple private keys connected to the same wallet, or to split up a single seed phrase into multiple pieces? Let’s explore this below👇 Multisignature, commonly referred to as 𝘮𝘶𝘭𝘵𝘪𝘴𝘪𝘨, is a method of 𝗱𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗻𝗴 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 𝗼𝘃𝗲𝗿 𝗮 𝗯𝗶𝘁𝗰𝗼𝗶𝗻 𝘄𝗮𝗹𝗹𝗲𝘁 𝘂𝘀𝗶𝗻𝗴 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝘄𝗵𝗼𝗹𝗲 𝗽𝗿𝗶𝘃𝗮𝘁𝗲 𝗸𝗲𝘆𝘀. So instead of one private key being used to control the asset, multiple private keys are required to sign, execute, and validate a transaction. The most common multisig implementation is a 2-of-3 scheme, where any 2 of the 3 private keys are needed to sign a valid transaction. In this setup, 𝘯𝘰𝘯𝘦 𝘰𝘧 𝘵𝘩𝘦 𝘬𝘦𝘺 𝘴𝘪𝘨𝘯𝘦𝘳𝘴 𝘯𝘦𝘦𝘥 𝘵𝘰 𝘱𝘳𝘰𝘷𝘪𝘥𝘦 𝘵𝘩𝘦𝘪𝘳 𝘱𝘳𝘪𝘷𝘢𝘵𝘦 𝘬𝘦𝘺 𝘵𝘰 𝘵𝘩𝘦 𝘰𝘵𝘩𝘦𝘳𝘴, allowing for trustless wallet management, even among a wallet’s co-owners. Contrasting that with splitting your private key into smaller pieces, 𝘢𝘯 𝘢𝘵𝘵𝘢𝘤𝘬𝘦𝘳 𝘤𝘰𝘶𝘭𝘥 𝘱𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭𝘭𝘺 𝘢𝘤𝘤𝘦𝘴𝘴 𝘺𝘰𝘶𝘳 𝘤𝘰𝘪𝘯𝘴 𝘣𝘺 𝘰𝘣𝘵𝘢𝘪𝘯𝘪𝘯𝘨 𝘫𝘶𝘴𝘵 𝘰𝘯𝘦 𝘱𝘪𝘦𝘤𝘦, and then correctly guessing the rest. 𝗘𝘃𝗲𝗿𝘆 𝘄𝗼𝗿𝗱 𝘁𝗵𝗲𝘆 𝗵𝗮𝘃𝗲 𝗼𝗳 𝘆𝗼𝘂𝗿 𝘀𝗲𝗲𝗱 𝗽𝗵𝗿𝗮𝘀𝗲 𝗺𝗮𝗸𝗲𝘀 𝗶𝘁 𝗲𝘅𝗽𝗼𝗻𝗲𝗻𝘁𝗶𝗮𝗹𝗹𝘆 𝗲𝗮𝘀𝗶𝗲𝗿 𝘁𝗼 𝗴𝘂𝗲𝘀𝘀 𝘁𝗵𝗲 𝗿𝗲𝗺𝗮𝗶𝗻𝗶𝗻𝗴 𝘄𝗼𝗿𝗱𝘀, but that is not the case with multisig. It's important to note that multisig can be implemented at different levels, such as at the blockchain or consensus level — which provides the highest level of security — or by a particular application, which is far less secure. If the number of signers or authorization keys can be changed without a publicly-visible transaction on the blockchain, 𝘆𝗼𝘂'𝗿𝗲 𝘂𝘀𝗶𝗻𝗴 𝗮 𝗹𝗲𝘀𝘀 𝘀𝗲𝗰𝘂𝗿𝗲 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻-𝗽𝗼𝗹𝗶𝗰𝘆-𝗯𝗮𝘀𝗲𝗱 𝘀𝗲𝗿𝘃𝗶𝗰𝗲, where the authors of the application ultimately control the asset. Multisig offers several benefits, including increased security, as it requires multiple signatures to create a transaction, making it much more difficult for an attacker to compromise your wallet. Additionally, 𝗲𝗮𝗰𝗵 𝗽𝗲𝗿𝘀𝗼𝗻 𝗶𝗻𝘃𝗼𝗹𝘃𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗺𝘂𝗹𝘁𝗶𝘀𝗶𝗴 𝗰𝗼𝗻𝗳𝗶𝗴𝘂𝗿𝗮𝘁𝗶𝗼𝗻 𝗵𝗮𝘀 𝘁𝗵𝗲𝗶𝗿 𝗼𝘄𝗻 𝗯𝗮𝗰𝗸𝘂𝗽, so if a key is lost or stolen, a new multisignature wallet can be created, and the other key holders can move the funds into the new wallet. Remember to give this a 𝗟𝗶𝗸𝗲🤙, 𝗦𝗵𝗮𝗿𝗲🔄 it with others, and 𝗕𝗼𝗼𝗸𝗺𝗮𝗿𝗸🔖 it for later.

𝗧𝗵𝗲 𝗻𝗲𝘅𝘁 #BitcoinHalving 𝗶𝘀 𝗰𝗼𝗺𝗶𝗻𝗴 𝘁𝗵𝗶𝘀 𝗔𝗽𝗿𝗶𝗹. This means the amount of new #bitcoin issued to the miners with each block will be 𝘩𝘢𝘭𝘷𝘦𝘥 from 6.25 bitcoin to 3.125 bitcoin. What makes this the 𝘮𝘰𝘴𝘵 important halving so far? The answer is found in bitcoin’s 𝘀𝘁𝗼𝗰𝗸-𝘁𝗼-𝗳𝗹𝗼𝘄 𝗿𝗮𝘁𝗶𝗼:

𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝗨𝗧𝗫𝗢𝘀, 𝗮𝗻𝗱 𝗛𝗼𝘄 𝗦𝗵𝗼𝘂𝗹𝗱 𝗬𝗼𝘂 𝗠𝗮𝗻𝗮𝗴𝗲 𝗧𝗵𝗲𝗺? Unspent Transaction Outputs (UTXOs) are the bedrock of Bitcoin's transaction model. 𝘛𝘩𝘦𝘺 𝘳𝘦𝘱𝘳𝘦𝘴𝘦𝘯𝘵 𝘵𝘩𝘦 𝘢𝘮𝘰𝘶𝘯𝘵 𝘰𝘧 𝘣𝘪𝘵𝘤𝘰𝘪𝘯 𝘵𝘩𝘢𝘵 𝘢𝘯 𝘢𝘥𝘥𝘳𝘦𝘴𝘴 𝘩𝘢𝘴 𝘳𝘦𝘤𝘦𝘪𝘷𝘦𝘥 𝘣𝘶𝘵 𝘩𝘢𝘴 𝘯𝘰𝘵 𝘺𝘦𝘵 𝘴𝘱𝘦𝘯𝘵. Each bitcoin transaction consumes UTXOs as inputs and creates new ones as outputs; this is how bitcoin moves between addresses. 𝗠𝗮𝗻𝗮𝗴𝗶𝗻𝗴 𝗨𝗧𝗫𝗢𝘀 𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝘁𝗹𝘆 𝗶𝘀 𝗰𝗿𝘂𝗰𝗶𝗮𝗹 𝗳𝗼𝗿 𝗯𝗼𝘁𝗵 𝗽𝗿𝗶𝘃𝗮𝗰𝘆 𝗮𝗻𝗱 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗳𝗲𝗲𝘀. Large sets of small UTXOs can lead to higher fees when spending, as more UTXOs mean more data, and more data means a larger transaction size. Conversely, fewer and larger UTXOs can reduce fees and improve privacy by minimizing transaction linkability. Consolidation is the process of combining many small UTXOs into fewer larger ones. 𝘛𝘩𝘪𝘴 𝘪𝘴 𝘣𝘦𝘴𝘵 𝘥𝘰𝘯𝘦 𝘥𝘶𝘳𝘪𝘯𝘨 𝘱𝘦𝘳𝘪𝘰𝘥𝘴 𝘰𝘧 𝘭𝘰𝘸 𝘯𝘦𝘵𝘸𝘰𝘳𝘬 𝘤𝘰𝘯𝘨𝘦𝘴𝘵𝘪𝘰𝘯 𝘵𝘰 𝘮𝘪𝘯𝘪𝘮𝘪𝘻𝘦 𝘧𝘦𝘦𝘴. Thoughtful UTXO management can significantly reduce future transaction costs and enhance transactional privacy. The essence of UTXOs and their management is captured clearly in @npub1exce...n72a’s analogy below. Just as it's cumbersome to carry and count quarters for transactions, 𝗶𝘁'𝘀 𝗶𝗻𝗲𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝘁 𝘁𝗼 𝗺𝗮𝗻𝗮𝗴𝗲 𝗮 𝘄𝗮𝗹𝗹𝗲𝘁 𝗳𝘂𝗹𝗹 𝗼𝗳 𝘀𝗺𝗮𝗹𝗹 𝗨𝗧𝗫𝗢𝘀. Consolidating them into larger amounts when transaction fees are low simplifies transactions, reduces future fees, and takes up less of the limited space in each block.

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Samson Mow (@Excellion) on X

UTXO Management for Dummies: If everyone pays you in quarters you’ll have to lug around a big heavy bag. It’ll also cost you more time to spend...

𝗛𝗼𝘄 𝘁𝗼 𝗨𝘀𝗲 𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗣𝗿𝗶𝘃𝗮𝘁𝗲𝗹𝘆 It’s well-known that Bitcoin runs on an open ledger called the timechain, though commonly known as the blockchain. While this ledger is visible to anyone, 𝘪𝘵 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘤𝘰𝘯𝘵𝘢𝘪𝘯 𝘢𝘯𝘺 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘳𝘦𝘨𝘢𝘳𝘥𝘪𝘯𝘨 𝘵𝘩𝘦 𝘪𝘥𝘦𝘯𝘵𝘪𝘵𝘪𝘦𝘴 𝘰𝘧 𝘦𝘪𝘵𝘩𝘦𝘳 𝘴𝘦𝘯𝘥𝘦𝘳𝘴 𝘰𝘳 𝘳𝘦𝘤𝘦𝘪𝘷𝘦𝘳𝘴. It is sometimes possible, however, to deduce who sent bitcoin to whom, based on a few clues that centralized exchanges will know, due to “Know Your Customer” (KYC) laws. 𝗡𝗼 𝗽𝗿𝗶𝘃𝗮𝗰𝘆 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗶𝘀 𝗽𝗲𝗿𝗳𝗲𝗰𝘁, but here are some things you can do to use bitcoin more privately.👇 To enhance your anonymity in the realm of Bitcoin, it's crucial to 𝘂𝘀𝗲 𝗮 𝗻𝗲𝘄 𝗮𝗱𝗱𝗿𝗲𝘀𝘀 𝗲𝗮𝗰𝗵 𝘁𝗶𝗺𝗲 𝘆𝗼𝘂 𝗿𝗲𝗰𝗲𝗶𝘃𝗲 𝗯𝗶𝘁𝗰𝗼𝗶𝗻. 𝘛𝘩𝘪𝘴 𝘱𝘳𝘢𝘤𝘵𝘪𝘤𝘦 𝘱𝘳𝘦𝘷𝘦𝘯𝘵𝘴 𝘵𝘩𝘦 𝘭𝘪𝘯𝘬𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘰𝘧 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯𝘴 𝘵𝘰 𝘢 𝘴𝘪𝘯𝘨𝘭𝘦 𝘰𝘸𝘯𝘦𝘳. By ensuring each address is used only once, users significantly bolster their on-chain privacy. Another effective method is the utilization of 𝗖𝗼𝗶𝗻𝗝𝗼𝗶𝗻𝘀. Protocols like JoinMarket and PayJoins, and platforms like Wasabi and Samourai offer the ability to mix coins (UTXOs) and their histories from multiple users. 𝘛𝘩𝘪𝘴 𝘮𝘪𝘹𝘪𝘯𝘨 𝘱𝘳𝘰𝘤𝘦𝘴𝘴 𝘦𝘧𝘧𝘦𝘤𝘵𝘪𝘷𝘦𝘭𝘺 𝘰𝘣𝘴𝘤𝘶𝘳𝘦𝘴 𝘵𝘩𝘦 𝘵𝘳𝘢𝘪𝘭𝘴 𝘭𝘦𝘢𝘥𝘪𝘯𝘨 𝘣𝘢𝘤𝘬 𝘵𝘰 𝘵𝘩𝘦 𝘰𝘳𝘪𝘨𝘪𝘯𝘢𝘭 𝘰𝘸𝘯𝘦𝘳𝘴, making it difficult to trace transactions to a particular individual. It's also important to 𝗮𝘃𝗼𝗶𝗱 𝗰𝗲𝗻𝘁𝗿𝗮𝗹𝗶𝘇𝗲𝗱 𝗲𝘅𝗰𝗵𝗮𝗻𝗴𝗲𝘀, wherever possible. These platforms often require extensive Know Your Customer (KYC) procedures, creating a significant privacy risk. Decentralized exchanges like Bisq and RoboSats are preferable alternatives, as 𝘵𝘩𝘦𝘺 𝘵𝘺𝘱𝘪𝘤𝘢𝘭𝘭𝘺 𝘳𝘦𝘲𝘶𝘪𝘳𝘦 𝘯𝘰 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯. 𝗥𝘂𝗻𝗻𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗼𝘄𝗻 𝗳𝘂𝗹𝗹 𝗻𝗼𝗱𝗲 is another step towards privacy. By doing so, 𝘺𝘰𝘶 𝘢𝘷𝘰𝘪𝘥 𝘳𝘦𝘭𝘺𝘪𝘯𝘨 𝘰𝘯 𝘵𝘩𝘪𝘳𝘥-𝘱𝘢𝘳𝘵𝘺 𝘴𝘦𝘳𝘷𝘦𝘳𝘴, which can link transactions to your IP address. Operating a full node ensures that your transactions are verified independently, keeping your online activity within your control. Implementing 𝗺𝘂𝗹𝘁𝗶-𝘀𝗶𝗴𝗻𝗮𝘁𝘂𝗿𝗲 𝘄𝗮𝗹𝗹𝗲𝘁𝘀 adds an additional layer of security and privacy. These wallets require multiple keys to authorize a transaction, 𝘮𝘢𝘬𝘪𝘯𝘨 𝘪𝘵 𝘮𝘰𝘳𝘦 𝘤𝘩𝘢𝘭𝘭𝘦𝘯𝘨𝘪𝘯𝘨 𝘵𝘰 𝘵𝘳𝘢𝘤𝘦 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯𝘴 𝘣𝘢𝘤𝘬 𝘵𝘰 𝘢 𝘴𝘪𝘯𝘨𝘭𝘦 𝘶𝘴𝘦𝘳, while also adding another security layer to your holdings. Using tools like 𝗧𝗼𝗿 𝗮𝗻𝗱 𝗩𝗣𝗡𝘀 to mask your IP address while transacting adds an extra layer of privacy. 𝘛𝘩𝘪𝘴 𝘱𝘳𝘢𝘤𝘵𝘪𝘤𝘦 𝘱𝘳𝘦𝘷𝘦𝘯𝘵𝘴 𝘱𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭 𝘰𝘣𝘴𝘦𝘳𝘷𝘦𝘳𝘴 𝘧𝘳𝘰𝘮 𝘢𝘴𝘴𝘰𝘤𝘪𝘢𝘵𝘪𝘯𝘨 𝘺𝘰𝘶𝘳 𝘐𝘗 𝘢𝘥𝘥𝘳𝘦𝘴𝘴 𝘸𝘪𝘵𝘩 𝘺𝘰𝘶𝘳 𝘣𝘪𝘵𝘤𝘰𝘪𝘯 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯𝘴, thereby safeguarding your online identity. Finally, 𝗯𝗲 𝘄𝗮𝗿𝘆 𝗼𝗳 𝗺𝗲𝘁𝗮𝗱𝗮𝘁𝗮. Often overlooked, the information revealed by checking mempool.space or posting transaction info in an online discussion 𝘤𝘢𝘯 𝘪𝘯𝘢𝘥𝘷𝘦𝘳𝘵𝘦𝘯𝘵𝘭𝘺 𝘤𝘰𝘯𝘯𝘦𝘤𝘵 𝘺𝘰𝘶 𝘸𝘪𝘵𝘩 𝘢 𝘴𝘱𝘦𝘤𝘪𝘧𝘪𝘤 𝘵𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯. Caution in this area is essential to maintain complete privacy in your bitcoin transactions. When these practices are diligently followed, 𝘵𝘩𝘦𝘺 𝘰𝘧𝘧𝘦𝘳 𝘢 𝘳𝘰𝘣𝘶𝘴𝘵 𝘧𝘳𝘢𝘮𝘦𝘸𝘰𝘳𝘬 𝘧𝘰𝘳 𝘮𝘢𝘪𝘯𝘵𝘢𝘪𝘯𝘪𝘯𝘨 𝘱𝘳𝘪𝘷𝘢𝘤𝘺 𝘪𝘯 𝘵𝘩𝘦 𝘦𝘷𝘦𝘳-𝘦𝘷𝘰𝘭𝘷𝘪𝘯𝘨 𝘸𝘰𝘳𝘭𝘥 𝘰𝘧 𝘉𝘪𝘵𝘤𝘰𝘪𝘯. Each step plays a crucial role in safeguarding your identity and financial autonomy in the digital age. Give this a 𝗟𝗶𝗸𝗲🤙 and a 𝗦𝗵𝗮𝗿𝗲🔄, and 𝗕𝗼𝗼𝗸𝗺𝗮𝗿𝗸🔖 this for when you need it. What other privacy methods are there? Share them in the 𝗖𝗼𝗺𝗺𝗲𝗻𝘁𝘀⬇️

𝗜𝘀 #Bitcoin 𝗵𝗮𝗿𝗺𝗳𝘂𝗹 𝘁𝗼 𝘁𝗵𝗲 𝗲𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁? No. In fact, it’s very 𝘣𝘦𝘯𝘦𝘧𝘪𝘤𝘪𝘢𝘭 to the environment. Here’s why👇

𝗕𝗶𝘁𝗰𝗼𝗶𝗻’𝘀 𝗣𝗿𝗶𝗰𝗲 𝗖𝗮𝗻 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝙈𝙪𝙘𝙝 𝗙𝗮𝘀𝘁𝗲𝗿 𝗧𝗵𝗮𝗻 𝗬𝗼𝘂 𝗧𝗵𝗶𝗻𝗸 𝘠𝘰𝘶’𝘳𝘦 𝘭𝘪𝘬𝘦𝘭𝘺 𝙛𝙖𝙧 𝘵𝘰𝘰 𝘣𝘦𝘢𝘳𝘪𝘴𝘩. Here’s why.👇 Many analysts and enthusiasts attempt to forecast Bitcoin's future price by dividing Bitcoin’s total potential market capitalization — all the money that will soon flow into Bitcoin — by its maximum supply of 21 million. However, this method overlooks one crucial factor: 𝙏𝙝𝙚 𝙖𝙘𝙩𝙪𝙖𝙡 𝙖𝙢𝙤𝙪𝙣𝙩 𝙤𝙛 𝙗𝙞𝙩𝙘𝙤𝙞𝙣 𝙖𝙫𝙖𝙞𝙡𝙖𝙗𝙡𝙚 𝙤𝙣 𝙚𝙭𝙘𝙝𝙖𝙣𝙜𝙚𝙨 𝙞𝙨 𝙛𝙖𝙧 𝙡𝙚𝙨𝙨 𝙩𝙝𝙖𝙣 𝙩𝙝𝙚 𝙩𝙤𝙩𝙖𝙡 𝙨𝙪𝙥𝙥𝙡𝙮. Estimating the exact number of bitcoin on exchanges is challenging, due to the decentralized and often private nature of transactions. But it's clear that the actual figure is a 𝘴𝘮𝘢𝘭𝘭 𝘧𝘳𝘢𝘤𝘵𝘪𝘰𝘯 of the total supply. This scarcity, coupled with increasing demand, suggests that current estimations of Bitcoin's future price might be extremely conservative. The amount of bitcoin available for sale is important because it represents the supply that can be bought at that time, as long as exchanges are honest and aren’t selling paper bitcoin “IOUs”. 𝗔 𝗹𝗮𝗿𝗴𝗲 𝗽𝗼𝗿𝘁𝗶𝗼𝗻 𝗼𝗳 𝗕𝗶𝘁𝗰𝗼𝗶𝗻'𝘀 𝘁𝗼𝘁𝗮𝗹 𝘀𝘂𝗽𝗽𝗹𝘆 𝗶𝘀 𝗲𝗶𝘁𝗵𝗲𝗿 𝗹𝗼𝘀𝘁, 𝗵𝗲𝗹𝗱 𝗶𝗻 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝘀𝘁𝗼𝗿𝗮𝗴𝗲, 𝗼𝗿 𝗻𝗼𝘁 𝗳𝗼𝗿 𝘀𝗮𝗹𝗲 𝗮𝘁 𝗮𝗻𝘆 𝗽𝗿𝗶𝗰𝗲. This significantly reduces the available supply, and makes any purchase that more effective at moving the price skyward. Bitcoin’s current location on its adoption curve shows that it’s on its way to becoming a predominant store of value and medium of exchange, free from censorship, debasement, and top-down manipulation. If demand for a money with these qualities continues to grow, and if Bitcoin takes even a 𝘧𝘳𝘢𝘤𝘵𝘪𝘰𝘯 of the global monetary base, the valuation could reach astronomical figures. So when considering Bitcoin's future price, 𝘪𝘵'𝘴 𝘦𝘴𝘴𝘦𝘯𝘵𝘪𝘢𝘭 𝘵𝘰 𝘧𝘰𝘤𝘶𝘴 𝘰𝘯 𝘵𝘩𝘦 𝘦𝘧𝘧𝘦𝘤𝘵𝘪𝘷𝘦 𝘴𝘶𝘱𝘱𝘭𝘺 𝘢𝘷𝘢𝘪𝘭𝘢𝘣𝘭𝘦 𝘰𝘯 𝘦𝘹𝘤𝘩𝘢𝘯𝘨𝘦𝘴 𝘳𝘢𝘵𝘩𝘦𝘳 𝘵𝘩𝘢𝘯 𝘵𝘩𝘦 𝘵𝘰𝘵𝘢𝘭 𝘴𝘶𝘱𝘱𝘭𝘺. This approach paints a much more bullish picture of Bitcoin's potential valuation than most people are willing to see, and demonstrates just how early we all are. Bullish enough for you?😏 Give this a 𝗟𝗶𝗸𝗲🤙 and a 𝗦𝗵𝗮𝗿𝗲🔄, and 𝗕𝗼𝗼𝗸𝗺𝗮𝗿𝗸🔖 this to look back on later. Why are 𝘺𝘰𝘶 bullish on Bitcoin? Tell me in the 𝗖𝗼𝗺𝗺𝗲𝗻𝘁𝘀⬇️