Finney21

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Finney21
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#Bitcoin Consulting Firm [est.801408]
Terminology microdose: Bitcoin (capital B) refers to the network through which the asset is created and moved around bitcoin (lowercase b) refers to the asset which is the unit of currency of the #Bitcoin network
Been a while. Time for some updates Finney21 is a 21 person team of hardcore Wealth Consultants Wealth = Health & #Bitcoin Each team member has a unique specialty Each team member is a guardian in our Fedimint We gather every week on a 60 minute call to discuss a topic We each contribute to and curate a world class resource library We honour the legacy of Satoshi Nakamoto and Hal Finney by working together to accelerate the transition to scarce money
P01 - shopify opportunity: raw notes2_unsorted [11.7.23 - block 815,736] Insights from conversation with Santosh — Intuitive merchant experience is essential. 1 click merchant wallet activation with 10,000 sats Opportunity for Shopify: become the LSP that routes all merchant bitcoin payments Brand image boost by helping merchants protect themselves from the monetary debasement The first interaction is what matters. Goal is to get a second interaction Success = continuing to have interactions with Shopify Approach Shopify through fiat lens, not through Bitcoin lens Emphasize benefit to Shopify shareholders Consideration: how will the market perceive this decision? What could be the consequences on Shopify share price Visa’s pitch: data, data, data Bitcoin’s pitch: convenience, global acceptance, reduction of barriers Customers no longer need a bank account to purchase from Shopify merchants (this is huge) Someone from rural Africa without a bank account that has an internet connection can make a purchase from a shopify merchant in Argentina Merchant in Argentina can protect themselves from inflation and trade with customer in Africa who doesn’t have a bank account This is the power of Bitcoin - the digitally native money built for the global internet economy Consider consequences on current payment methods First interaction: think big, tone down the Bitcoin and turn up the benefits to shareholders and merchants Next step: big brain consultant call. Collaborate on drafting an open letter One page open letter to Shopify. Handwrite the letter? Print on nice paper? From Satoshi? Orange envelope with a ₿ stamped/painted on it Stakeholders: Shareholders, company (brand image), customers (merchants) Define stakeholders, explain how Bitcoin benefits each stakeholder #Bitcoin integration with Strike: How was it perceived? What’s the internal company impression of Bitcoin? There could already be a Shopify team already researching or implementing a bitcoin payments project Understand Shopify’s pain points Bitcoin unlocks payments without barriers (1.4 billion unbanked people) Keep the letter simple, playful, to the point Paint a picture of what Shopify could look like in 2033 with bitcoin payments enabled Someone with an internet connection in rural Africa buys something from a merchant in Argentina Merchant subscriptions could be paid in bitcoin Project objective: Educate and train a Shopify Bitcoin team Challenge: selling Shopify on a solution to a problem they may not even know they have Step 1: bring awareness to the problem
P01 - shopify opportunity: raw notes_unsorted [11.6.23 - block 815,615] Building on #Bitcoin 21st century ecommerce on top of a digitally native, global, decentralized, open monetary protocol called #Bitcoin — Write an open letter to Toby and Shopify board of directors Also send letter to VPs of engineering Encourage everyone to study the Bitcoin Whitepaper. It’s a miraculous innovation in computer science The 21st century digital economy is built on a global, decentralized monetary protocol called Bitcoin Shopify can supercharge their e-commerce platform by integrating lightning payments and merchant wallets 7 person team: wallet software engineer, lightning software engineer, Ux designer for merchant wallet and payments, lightning architect, educator, comms/fixer, leader to nurture key relationships 1 month of planning, 6 month execution to ship merchant wallet (60 days) and turnkey lightning implementation for merchants Do everything open source and in alignment with Bitcoin Educate Shopify staff. Empower them with Bitcoin. Pay them their first 21,000 sats to learn about Bitcoin Educate Shopify merchants. Empower them with Bitcoin so they can protect themselves from currency debasement that is threatening their business Merchant benefit: a new cohort of customers who want to spend Bitcoin, lower transaction fees (0.5% routing fees to shopify) Bitcoin protects merchants from central banks who are debasing currencies and devastating their businesses Building on Bitcoin is good for the world, good for Shopify’s merchants, and good for Shopify’s shareholders Shopify has an opportunity to pioneer the 21st century digital economy built on a digitally native monetary protocol called Bitcoin Big events to announce the integrations when they are ready. Pilot and beta test everything in house within shopify To cover in open letter (unpacked for presentation): 1. Why does Bitcoin (not crypto) matter? 2. How can Shopify benefit from integrating Bitcoin? 3. How can Shopify merchants benefit from Bitcoin? 4. What business opportunities are available to shopify? 5. What does the execution look like for integrating Bitcoin? 6. Read the whitepaper Revenue generator: Shopify becomes the LSP for 1.75 million merchants Merchant Ux: Bitcoin dashboard, merchant wallet, non custodial mobile companion wallet Customer Ux: Bitcoin payment checkout (lightning) Bitcoin is a superior payment network for the global digital economy. The protocol is open, global, decentralized, and digitally native 21st century digital money for 21st century digital merchants Merchant benefits: lower transaction fees, instant settlement, no chargebacks, new customer base of people who want to spend bitcoin Activate your shopify merchant wallet. We send you your first 21 satoshis when you do that. Education video, 1 click activation Companion mobile wallet for merchants to track their store wallet balance and take self custody of satoshis
P01 presentation notes [11.1.23 - block 814,886] #Bitcoin is not a hedge by Parker Lewis [34min] — Bitcoin isn’t a hedge to inflation, it’s the solution to inflation Bitcoin only. Not crypto There will only ever be 21 million bitcoin Bitcoin is a form of money that cannot be printed Economic systems converge on a single form of money. We only need a single form of money People cannot flee to the safety of something they do not understand Less than 1% of people currently understand and have material exposure to bitcoin Adoption occurs as knowledge distributes Why is Bitcoin valuable? 21 million fixed supply, censorship resistant, trustless What problem does Bitcoin solve? Money printing (which creates inflation) World events demonstrate the reason Bitcoin exists. Canadian freedom convoy, 2023 bank failures Knowledge distributes as a function of time People move from trading bitcoin to get more dollars to accumulating bitcoin because it is replacing the dollar “If you understand bitcoin, there’s no way you only own 1%” - Michael Saylor Every fundamental of Bitcoin is currently very strong Nearly 70% of bitcoin has not moved in over a year The Halving is the most important market event in Bitcoin Bitcoin becomes more scarce every year especially during halving years 92.9% of all bitcoin that will ever be created has already been issued as of today Injection of new dollars induces the expansion of credit Without printing more money, the debt system collapses “bitcoin is the only large tradeable asset in the world that has a known fixed maximum supply” - Paul Tudor Jones (May 2020) Only a better form of money can fix a broken money The fiat system becomes more fragile when exposed to stress. Bitcoin gains strength when exposed to stress Bitcoin functions best in a world without bailouts Bitcoin is the greatest asymmetry to ever exist Most asymmetrical events are low probability. Adoption of Bitcoin is an asymmetrical event that is highly probable If they printed $5 trillion last time, they will need to print much more the next time (which seems to be getting very close) There is no top to global adoption of bitcoin as money Bitcoin’s scarcity is not valuable without education and security
2023 Whitepaper Event Hosted by @Cari₿ou with @Student of Bitcoin @Luke Broyles and Dan Ostermayer sharing their wisdom and insights on the #Bitcoin Whitepaper and Self Custody Listen to the podcast:
Fountain
Canadian Orange Podcast • Bitcoin Whitepaper Event [10.31.23] • Listen on Fountain
This event is sponsored by Finney21 (www.finney21.com) to commemorate, honour and celebrate the 15th anniversary of Satoshi unveiling the Bitcoin W...
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P01 study notes [10.30.23 - block 814,552] Topic: Bitcoin collateralized loans [subtopic: bitcoin as pristine collateral] — Anything can act as collateral but several objective properties can be used to evaluate the quality of collateral Poor collateral: currency deposits, machinery, inventory Good collateral: real estate, stocks, treasuries Pristine collateral: bitcoin Properties that determine quality of collateral: Market liquidity: How quickly and easily an asset can be sold Settlement: The ease and speed of achieving final transfer of ownership Security: Ability to secure an asset bitcoin is pristine collateral because it trades 24/7 365 days a year on a global market (highly liquid), can be settled globally within 60 minutes in any amount for a relatively low fee, and can easily be secured with digital encryption instead of being physically secured Compared to bitcoin, real estate an inferior form of collateral because it is relatively illiquid, has rigorous and costly settlement (verification of title, transfer of ownership), and is limited to a local market because the asset cannot be moved globally Implications: With treasuries and currencies collapsing, the quality of any collateral denominated in currency is eroding bitcoin is quickly becoming the apex form of collateral globally and eventually become the preferred form of collateral for banks to hold on their balance sheets #bitcoin is the reserve asset of the internet economy and the most pristine form of collateral humanity has ever seen!!
P01 proof of study Notes session 10.27.23 [814084] Topic: Bitcoin collateralized loans [subtopic: rehypothecation] — Hypothecation is a process where a lender receives an asset offered as collateral security Rehypothecation is the process where a lender reuses collateral provided by their clients (the borrower) to earn income or secure further borrowing When a lender rehypothecates borrower collateral, it significantly increase exposure to counterparty risk While lenders who rehypothecate often offer lower interest rates on collateralized loans, the tradeoffs is borrower collateral being put at increased risk Before sending bitcoin to a lender, a borrower should first make an assessment of the credit risk of the lender With rehypothecation, the credit risk of borrowers to which the lender is lending the rehypothecated collateral to must also be assessed We recommend clients only initiate bitcoin collateralized loans with lenders who do not rehypothecate collateral in order to eliminate the added risk created by rehypothecation How your collateral is stored should also be considered. Multiparty collaborative custody and the ability to monitor funds on chain by holding 1 of n keys is the gold standard This enables borrowers to cryptographically verify that their bitcoin collateral remains in a dedicated address and has not been rehypothecated Rates on bitcoin collateralized loans must be adjusted for risk. Lenders who employ transparent custody practices and do not rehypothecate will charge a higher interest rate With bitcoin poised to become the future reserve currency of the world, we feel it makes little sense to accept higher risk of loss for a slightly lower interest rate on loans Unchained capital currently offers what we consider to be the gold standard product when it comes to bitcoin backed loans Unchained does not rehypothecate client collateral and use a transparent multiparty multisig custody strategy whereby lenders hold 1 of 3 keys and verify their bitcoin on chain -- 21min