Jun 10, 2021Tres formas en las que El Salvador ha cambiado Bitcoin para siempreBueno, esto escaló rápidamente. En mayo, hablé con el omnipresente podcaster de Bitcoin, Peter McCormack, quien estaba en El Salvador siendo testigo de primera mano, no solo de la adopción de bitcoin como moneda transaccional dentro de las comunidades salvadoreñas, sino también de una proliferación significativa de Lightning Network, una…Bitcoin5 min readBitcoin5 min read
Dec 9, 2020Worlds Collide: Bond Issuance and Bitcoin BuyingAt last, my worlds have collided. No, not in the way they collided for social miscreant George Costanza, but rather in a beautiful and harmonious way. Software company MicroStrategy will soon issue a $400 million bond in order to purchase Bitcoin only weeks after it converted $250 million of its…Bitcoin6 min readBitcoin6 min read
Apr 18, 2019The Time Value of Bitcoin and LNRR1. The Bitcoin Second Layer Bitcoin’s antifragile protocol and its exponentially increasing network effects make it a behemoth, gradually swallowing up global economic activity. The latest of these network effects is a second layer protocol called Lightning Network, which uses bitcoin’s base layer protocol as its security. The concept of layered money is not new…Bitcoin22 min readBitcoin22 min read
Mar 11, 2019The Lightning Network Reference RateThe Lightning Network Reference Rate, Part 4 of 4 Abstract I present a three part proposal for Lightning Network node operators. The first and most crucial part of the proposal is a node-level calculation standard for the accrual of satoshis. …Bitcoin8 min readBitcoin8 min read
Nov 8, 2018The Business of Bitcoin Cold StorageBitcoin is digital gold, and this continues to be its most appropriate and concise metaphor. I recently discussed some parallels between gold and bitcoin in an article about layered money and Lightning Network. In this writing I’d like to focus on the storage analogy. The capital market of gold relies…Bitcoin6 min readBitcoin6 min read
Aug 22, 2018Bitcoin ETFs, Custodians, and CollateralVerifiable NAVs via public key disclosure are essential for a symbiotic relationship between bitcoin and traditional financial institutions. Financialization Let’s get one thing straight before we dive into the financialization of bitcoin: bitcoin doesn’t need any ETFs or legacy custodians in order to survive. In fact, bitcoin thrives because it…Bitcoin6 min readBitcoin6 min read
Aug 7, 2018The Bitcoin Second LayerThe Lightning Network Reference Rate, Part 1 of 4 Bitcoin’s antifragile protocol and its exponentially increasing network effects make it a behemoth, gradually swallowing up global economic activity. The latest of these network effects is a second layer protocol called Lightning Network, which uses bitcoin’s base layer protocol as its…Bitcoin7 min readBitcoin7 min read
Jul 20, 2018Observations from @alexbosworth’s Tweet on FeesThe most common question I’m asked is if I know what the interest rates of a Lightning node might be. Now I finally have an idea, thanks to Alex Bosworth’s tweet today containing valuable data points: Andreas posted he is making 4204 fees/week on his node, which he put $325,000…Bitcoin3 min readBitcoin3 min read
Jul 10, 2018The Bitcoin Risk SpectrumBitcoin is already a reserve asset. It is the world’s first true example of decentralized digital scarcity, and its elegant, predetermined supply schedule reinvents monetary policy. Its value is recognized by millions of people who own bitcoin as a savings vehicle, speculative investment, or currency hedge. Bitcoin is a reserve…Bitcoin6 min readBitcoin6 min read
Jun 8, 2018The Time Value of Bitcointl;dr The HTLCs in Lightning Network give bitcoin a path to become a global reserve currency. Abstract Lightning Network provides a framework to measure the time-value of bitcoin, a precursor for a capital market and reserve currency status. Observable variables in Hashed Time Locked Contracts can be used to calculate…Bitcoin5 min readBitcoin5 min read
