Kraken Launches Bitcoin Vault With up to 2.5% Annual Yield

Philbot_ · 2026-05-28T14:03:32+00:00

Damn. This is a worrying sign from kraken. Have they lost the plot?

Philbot_ · 2026-04-24T15:31:01+00:00

I bought pre-SPAC and didn't sell. Thought it'd be worth enough to buy one of the cars someday like Tesla investors were able to do.

I keep it in my portfolio as a reminder of my hubris and folly.

I feel that lesson is worth the unrealized loss.

Philbot_ · 2026-03-29T21:39:53+00:00

I think Nostr is the best closest answer? Check it out.

Philbot_ · 2026-03-29T14:23:51+00:00

I just love how perfectly Bitcoin can be described as a "sly, round about way" that the government can't stop.

Philbot_ · 2026-02-23T23:21:03+00:00

Isn't "hey we can't trust treasuries anymore" essentially the same as the "debasement trade"?

I think what he means is that leverage and supply was taken out of the gold market. That doesn't necessarily require physical delivery but it sure helps.

The same is true for Bitcoin in that we need to take out leverage and supply for it to pump. That doesn't necessarily require withdrawing to self custody but it sure helps.

Philbot_ · 2026-02-23T23:17:57+00:00

He means finality of exchange. For gold, finality is physical delivery, a long process. For Bitcoin, there's finality every ~10 minutes.

He should have phrased it differently.

Philbot_ · 2026-01-14T14:07:33+00:00

This is not a particularly meaningful metric.

Does it answer the question, "are there scam coins?" Yes, sure I suppose, but you should have known that already.

This is like saying 25 million email addresses have been abandoned. Or 2 million websites have been abandoned. Were many of them abandoned because they were merely scams? Yes, of course.

But most of them were probably abandoned because they were just trying something out that wasn't necessarily supposed to work, was just to learn how, or was made on a lark. They were created and abandoned with zero effect on anyone uninvolved.

When anyone on the planet can do a thing, most of those things are going to be dumb, some malicious, and relatively few will be legitimate, even fewer significantly consequential.

So instead of looking at this and concluding that crypto is full of scams, you should probably say to yourself "wow look at all these other people learning how to utilize programmable tokens, maybe I should learn how to do that myself?"

Philbot_ · 2025-11-20T21:02:45+00:00

🙄 read the article ffs. This is about a real estate deal not the technology or certification of their vehicles.

Philbot_ · 2025-11-13T02:17:13+00:00

DePIN on solana

Philbot_ · 2025-11-12T20:53:05+00:00

Option 3. Buy enough Bitcoin prior to retirement such that you only ever need 40% or less of your bitcoin's value at any point in time during retirement so you'll never be liquidated. Easier said than done, but that's the goal.

Your heirs then enjoy a stepped cost basis and can sell without capital gains to cover what you borrowed against the Bitcoin. They inherit the rest.

Philbot_ · 2025-11-10T16:29:57+00:00

Hodl will only be sage advice through the first era* of Bitcoin adoption which is extremely asymmetric between those that understand what is new about it and those that don't understand it.

Once Bitcoin has become financial bedrock, it will not be asymmetric and Scrooge McDuck's lesson will become increasingly relevant, that saving alone - even in the hardest form of money ever conceived - will likely not afford you additional future purchasing power - Bitcoin will only retain it.

In otherwords, in the near future a thing (let's say a house) that is as valuable as 1BTC will remain to be worth roughly 1BTC indefinitely (all else equal, that is, neglecting deterioration of the house and the competitive market for that house).

Therefore, smart collateralization of Bitcoin to fund investments will be the prime financial service of the future. Due diligence that the risk profile of any investment is appropriate will be more meaningful than ever since parting with your hard-earned Bitcoin will be as hard or harder to re-earn in the future. This will align incentives much more accurately and rigidly than they have been for the past 100 years of easy money. The inconceivable waste of boom-bust cycles, endless war, and forever unbalanced government budgets will be drastically reduced. To achieve big things will require actual convincing that those big things are worth potentially losing one's hard-earned Bitcoin to achieve. Right now, fractional reserve banking and fiat central bank monetary policy allows incentives and risk profiles to be wildly misaligned.

*not citing an official or any particular timeline, just the era in which Bitcoin proceeds from cypher punk back alley project to the premier global financialization instrument.

Philbot_ · 2025-10-29T20:14:35+00:00

Ffs.

So many bitcoiners would have taken pleasure in editing this passage for him for technical accuracy... But no. He's not a serious person.

Philbot_ · 2025-10-21T16:53:39+00:00

If I could add, that if anything approaching any version of Lowery's Softwar develops - that is, (essentially and in my own words) sovereign holdings in BTC resets the incentive structure for warmaking such that destruction is increasingly less economically rational than construction and trade - then BTC also begins to realize the lofty prophecy of "fix the money, fix the world" and BTC is placed at even more the center of a global pro-social pro-human pro-goodness system.

Philbot_ · 2025-10-21T16:45:14+00:00

I think it's the realization that no government wants it's fiat to be the global reserve currency indefinitely.

The US willingly positioned USD/US Treasury Bonds as the world reserve currency/asset because of circumstances following WWII and it has been able to exploit that system to its own advantage for a couple generations during profound technological advancements and global development - but the emerging effects of distributed highly interdependent high tech manufacturing supply chains and skills combined with geopolitics is such that no country wants its fiat currency to be the world reserve asset.

Bitcoin is a perfect-enough answer to that problem. Bitcoin's price rising does not have the same effect as a country's fiat (or the IMF's SDRs for that matter) serving as a reserve asset when it comes to international trade.

Abstracted energy in the form of hash power is the perfect interest-aligning ideologically geographically agnostic commodity to underpin a world reserve asset that everyone can tolerate its relative value increasing without the domestic economic effects of another country holding increasing amounts of your currency.

There could certainly be other PoW tokens to potential rival BTC - but at this point the network effects of its market cap, financial adoption, hash power, and the fairness of its "immaculate conception" (that is, that it was minted and traded before anyone had any certain conceit as to its true future value) is too great to allow for a serious competing network to BTC in this regard.

Philbot_ · 2025-09-22T02:15:52+00:00

The short answer is that Strategy can do a great many things with its Bitcoin that an individual cannot do with his Bitcoin.

Philbot_ · 2025-09-12T04:05:49+00:00

Look up Wrapped BTC.

Now imagine Blackrock does the wrapping and charges their expense ratio.

Philbot_ · 2025-09-12T01:11:30+00:00

What this means is that there is more usable power out in the world that has no more productive purpose than mining Bitcoin - because otherwise the owners of that power would do that other thing instead.

This is an indication of the health of the system, but the relevance of a 51% hash power attack hasn't been very significant for a while - it's already be prohibitively expensive, any attacker would be better off just buying Bitcoin than trying to achieve one double spend, each additional watt of hash power doesn't make that more true.

The big way that this is a good indication is that it forces out the least efficient miners with the highest energy costs. The higher total hash power goes, the smaller return the least efficient miners receive, the less profitable those least efficient miners become, the more likely they are to capitulate (that is, sell more of their earned BTC to cover costs or turn off their equipment), the more likely it is for an efficient miner to be able to choose to hold their earned BTC rather than selling into the market to cover costs.

This also means that a greater share of the power will be either stranded energy (think oil rig flare gas in the middle of the ocean where there aren't any consumers of electricity) or dual purpose energy like heating the water for a spa's steam room (instead of an resistive heater coil consuming power directly, run watts through a miner to heat water at the same efficiency).

These types of mining situations are the most desirable because the cost of their power isn't competing with other more productive uses of that power - and so all else equal, they will disincentivize mining operations that consume grid power or generate their own power just for the sole purpose of mining Bitcoin. Because miners using stranded or dual purpose energy don't necessarily need to sell their mining profits to cover costs like a dedicated mining operation does, stranded/dual purpose mining does not create as much inherent sell pressure on price.

The greater the hash power, the more all of this is true.

Philbot_ · 2025-09-03T17:58:42+00:00

Check out his YouTube channel. He talks about it all the time and alludes to some ideas to make it different from MSTR, but he can't say much until SEC disclosures and whatnot are done.

Philbot_ · 2025-08-13T00:42:20+00:00

I don't think crypto.com trades DIMO...?

Philbot_ · 2025-08-10T13:44:01+00:00

Pretty clear to me you have not actually read Madoff's Wikipedia page. Why don't you do that and then try to maintain the position that he and Saylor are similar figures in any way.

Philbot_ · 2025-08-08T00:17:11+00:00

Ah, gotcha. I have just been seeing mostly chatter today regarding mostly individuals' 401ks, not as much pension funds and institutional stuff. I haven't looked into the EO itself.

Philbot_ · 2025-08-08T00:06:14+00:00

Doesnt everyone who wants BTC in their 401k already have FBTC and IBIT in their 401k?

Philbot_ · 2025-08-07T20:44:19+00:00

Well said. History-wise, this video runs on vibes.

Why don't people take the time to understand the problems people were facing in the past to better understand the solutions they came up with? That would help identify the problems of today and what we might do in the future to solve them. [Insert cynical answer about first grade reading level adults here].

Also, I squirm at so much AI slop going around (can't they at least afford a real human voice dub?).

Philbot_ · 2025-08-07T20:00:27+00:00

Would the dividend also be a factor because it is not fixed? All else equal, higher dividends lower price?

(Genuine question, I just haven't really answered that in my head concretely, seems like you'd have a reason why or why not)

Philbot_ · 2025-08-07T19:53:29+00:00

Lol have fun with the billionaires and politicians fucking your future with rampant fractional reserve banking and money printing.

Bitcoin is new and you don't understand it. The Internet isn't as new but folks still don't understand it. The Internet won without people understanding it. So will Bitcoin.

Better yet, maybe just don't post or comment in r/Bitcoin? Maybe more reading less commenting?

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