Just wrapped up an awesome call with 17 badass #Bitcoin consultants from around the world Thanks to everyone who participated Audio of the call will be posted within 24 hours to the Bitcoin Stoa podcast 🧡 Next call: November 21,2023 Topics: - The art of asking good questions - The business of Bitcoin consulting

GM nostr ☀️ Freedom tech is winning Freedom money is winning #Bitcoin is reshaping the world Love to you all 🧡

We are a team of 21 hardcore professional #Bitcoin consultants We share our study notes We gather monthly to share knowledge and learn together We each bring a unique speciality to the team We collaborate to serve our clients We can handle jobs of any scale We live in alignment with Bitcoin We honour the legend of Hal Finney

P01 - proof of study Notes session 10.16.23 [812460] Research topic: #Bitcoin collateralized loans — Bitcoin is the reserve asset of the internet economy The internet economy is an aggregate economy of the entire world and is larger than any single nation economy Bitcoin is pristine digital collateral for lending Pristine meaning: Not spoiled, corrupted or polluted Collateral: something pledged as security for repayment of a loan, to be forfeited in the event of a default Collateral is something provided to a lender as a guarantee of repayment. It is used to secure a loan Collateral reduces risk for lenders because if a borrower defaults on the loan, the lender can seize and liquidate the collateral People who own Bitcoin will have access to the best interest rates Bitcoin is the apex collateral in a digital world (largely because to it’s unmatched liquidity) Bitcoin is replacing treasuries as the apex reserve collateral Why is a Bitcoin collateralized loan a useful product? It is a tool to help individuals or companies avoid ever selling their Bitcoin By borrowing against your Bitcoin instead of selling it, you: - Eliminate capital gains taxes (Bitcoin is considered property, therefore a taxable event is created everytime you sell or exchange it) - Continue to benefit from the price appreciation of bitcoin - Can write off the interest expense of the loan Areas to research: - Dynamically refinanced loans (monthly) - Counterparty risk of different bitcoin backed loan products - Rehypothecation considerations Loan-to-value ratio (LTV): The maximum amount of a secured loan based on the market value of the asset pledged as collateral A low LTV (conservative) provides protection from liquidation in case the underlying asset has a significant drawdown in price Bitcoin backed loan products to review: LEDN, SALT lending, Unchained capital, Coinbase Factors to consider: custody risk, rehypothecation, insurance, origination fees, interest rate, Loan to value (LTV), collateral to principal (CTP), prepayment penalties, tax implications, loan maturity options - 21 min

Why do we do this work? Because we believe every human has a right to save the fruits of their labour in incorruptible money backed by energy, governed by the laws of the universe and immune to the foolishness and greed of man Team mission: accelerate the transition to scarce money #Bitcoin

P01 - proof of study notes session 10.13.23 [812036] Report: #Bitcoin First Revisited by Fidelity Digital -- The primary value driver of bitcoin tokens is scarcity and a reliable supply cap of 21 million units Based on this scarcity, bitcoin is uniquely positioned to be the primary monetary good and another digital asset is not likely to supersede bitcoin in this role While Bitcoin is not the most scalable, it is currently the most secure and decentralized network at the base layer A centralized blockchain is simply a database and these have existed for decades The decentralized blockchain employed by Bitcoin is the radical innovation and offers the important qualities of immutability, seizure resistance, censorship resistance and trustless design Bitcoin is a global open-source protocol for value transmission In contrast to TCP/IP, ownership of the base layer is possible via purchasing bitcoin tokens Each bitcoin token is divisible into 100 million smaller fractions called Satoshis Every application built on Bitcoin increases the value of the network and therefore also increases the value of ownership tokens for the network which are called bitcoins (lowercase b for the asset, capital B for the network) Lightning is a layer two application built on top of the Bitcoin base layer Lightning is a decentralized network that allows off-chain transactions between persons with the ability to make final settlement on the base layer Lightning increases Bitcoin’s scalability while maintaining Bitcoin’s security with the option to settle any time on the base layer It is beneficial for investors seeking to better understand digital assets to separate Bitcoin and all other digital assets into separate categories bitcoin is the scarcest monetary asset in human history and deserves to be considered separately from all other experimental tokens in the digital asset space that are separate from Bitcoin While nation state attacks and protocol bugs remain risks to Bitcoin, those risks continue to diminish each day as the network grows stronger with more users, miners and infrastructure being built — 21min pgs 15-19

Finney fact: In January 2009, Hal Finney was the Bitcoin network's first transaction recipient

"The computer can be used as a tool to liberate and protect people, rather than to control them" - Hal Finney [November 1992]

P01 - proof of study notes session 10.12.23 [811869] Report: #Bitcoin First Revisited by Fidelity Digital -- Lindy Effect: the longer a non-perishable thing survives, the more likely it is to survive in future Antifragility: when something becomes stronger with each attack or stressor it faces Bitcoin is antifragile and every second, minute, day, month it survives increases the likelihood it will continue to survive Most people underestimate the volume and intensity of negative events Bitcoin has already endured Due to network effects, it is likely that one digital monetary good will dominate the global market It is unlikely that another digital asset will supersede Bitcoin as a monetary good Blockchain trilemma: a decentralized database can only deliver on two of three guarantees at one time: decentralization, security, or scalability Security: likelihood of the network being attacked or compromised As the Bitcoin network grows with more nodes and miners distributed across the world, it becomes harder and more expensive to attack Bitcoin Bitcoin is by far the most secure digital asset when measured by hash rate securing the network Decentralization: how much control any one person, entity or group has on a system or network The opposite of a decentralized network is a conpletely centralized network where a signle intermediary controls all aspects of the network Decentralization = lower network throughput (lower scalability) but higher security Bitcoin is the most decentralized digital asset and continues to show increasing decentralization over time Scalability: how well a network can handle growth of number of users and volume of transactions Bitcoin optimizes for decentralization and security and as a result has a slower transaction throughput capability Bitcoin scales in layers built on top of the base layer, not on the base layer itself Bitcoin is currently the most secure and decentralized monetary network The transaction throughput of Bitcoin is limited by the time between each block (approx 10min) and the block size (just over 1mb) which limits the number of txs that can fit into each block Blocksize war: a battle to increase block size which would decrease decentralization over time (because running a node would be more expensive over time with bigger blocks creating more data to store) This war resulted in a hard fork which created a code change that was not backward compatible All hard forks from Bitcoin to date have either failed completely or struggled to gain any kind of market dominance This signals that the market values a highly secure and decentralized store of value more than another payment network Bitcoin's revolutionary invention was solving the problem of digital scarcity and creating a digital store of value, not making an incremental improvement to a payment system - 21min pgs 8-14

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