The Last Trade E045: A Generational Reckoning with Jackson Mikalic
Apr 5, 2024
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Guest Jackson Mikalic discusses topics such as gold hitting all-time highs, the debt spiral emerging, defending against financial repression, generational divides, the Great Decentralization, impacts of earthquakes on BTC mining, Coinbase's Lightning implementation, institutions getting burned by crypto, focusing on the signal of bitcoin, escaping the fiat mindset, and counterparty risk.
Bitcoin mining industry's resilience to unexpected events like earthquakes showcases its adaptability and anti-fragility.
Coinbase's integration of Lightning Network demonstrates progress towards efficient payment systems in cryptocurrencies.
Institutional concerns over Bitcoin custody highlight the challenges of self-custody and the need for understanding Bitcoin's fundamental value.
Deep dives
Impact of Seismic Activity on Chip Manufacturing for Bitcoin Mining
Seismic activity, like the recent earthquake in Taiwan, can have significant effects on chip manufacturing facilities like TSMC, which produce chips for Bitmain and other Bitcoin mining companies. If production is disrupted, it can delay the delivery of mining machines and add more capital costs. This example highlights how unexpected events can impact the Bitcoin ecosystem's supply chain and hash rate.
Bitcoin's Anti-Fragility in the Face of Adversity
The earthquake in Taiwan serves as a microcosm of Bitcoin's anti-fragility, where an industry adapts to overcome challenges. The profit incentive in Bitcoin mining drives adaptation, leading to decentralization and resilience. This example showcases how the Bitcoin network thrives in the face of unexpected obstacles.
Collaboration Between Coinbase and Lightspark for Lightning Integration
Coinbase's partnership with Lightspark for Lightning integration showcases a step towards implementing Lightning Network on their platform. This move could enhance payment efficiency and scalability, bringing benefits like faster, cheaper transactions. Despite delays in adopting Lightning compared to other exchanges, Coinbase's collaboration with Lightspark signals a positive step towards embracing more advanced Bitcoin technologies.
Economic Implications of Earthquake on Bitcoin Mining Industry
The earthquake's potential impact on TSMC's chip production could lead to increased demands on other foundries like Samsung used by MicroBT, creating market disruptions. The supply chain dynamics in chip manufacturing for Bitcoin mining machines highlight the interconnectedness and vulnerabilities within the industry, emphasizing the need for adaptability to external shocks.
Coinbase's Handling of Bitcoin Upgrades and Lightning Network Adoption
The podcast discusses Coinbase's approach to Bitcoin upgrades like SegWit and Taproot, highlighting a critique of their delay in implementing these upgrades. It also addresses their partnership with external entities for Lightning Network integration, emphasizing their focus on trading revenue from cryptocurrencies other than Bitcoin.
Institutional Investors' Approach to Bitcoin and Counterparty Risks
The episode delves into the behavior of institutional investors towards Bitcoin and counterparty risks, showcasing concerns about custodial entities like Coinbase holding majority ETF assets. It underscores the confusion faced by financial planners in allocating Bitcoin holdings, citing the challenges in self-custody and distrust towards existing custodial services. The discussion emphasizes the importance of understanding Bitcoin's fundamental value and the potential risks associated with traditional market tactics in the crypto space.
The Last Trade: a weekly, bitcoin native, interactive podcast covering where Bitcoin and traditional finance meet on a macro scale. Hosted by Marty Bent, Jesse Myers (Croesus), Michael Tanguma, and a special weekly guest host.
Join us as we dive into what Bitcoin means for how individuals & institutions save, invest, and propagate their purchasing power through time. It's not just another asset - in the digital age, it's the Last Trade that investors will ever need to make.
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