• Change outputs in Bitcoin are bad for privacy as they can be tracked by anyone.
• CoinJoins are a type of collaborative bitcoin transaction that enables users to gain privacy without losing custody of their coins.
• However, CoinJoins still produce a change output which can be used to track payments and undo UTXO management.

What Are Bitcoin Change Outputs?

When making a Bitcoin transaction, instead of only sending the exact amount needed like traditional payment systems, you send all the sats from the original address into new ones. This creates a change output, which is the amount you get back when making a payment. Outsiders don’t know which output was the payment and which one went back to the sender as change, but receivers can track this change output to see where payments come from. As pointed out by many Bitcoin privacy researchers, this is a privacy nightmare that can undo years of diligent UTXO management.

Why Are Change Outputs “Toxic”?

Change outputs are referred to as “toxic” because they make it easy for anyone to track related payments and compromise user privacy on pseudonymous networks like Bitcoin. This means that even if users have been managing their UTXOs diligently for years, one single change output could be enough for someone to trace all related payments.

CoinJoins To The Rescue?

CoinJoins are a type of collaborative bitcoin transaction that allows users to group up their UTXOs with other people’s coins in order to gain privacy without losing custody over them. Hundreds of participants might join together and make it hard to trace flows of funds including change outputs sometimes. This creates an obscure environment where nobody knows who owns what after the CoinJoin is done. Most implementations have minimum-amount requirements though, so participants must meet these before joining in order to ensure anonymity is preserved.

Are CoinJoins 100% Safe?

Although CoinJoins offer higher levels of obscurity than regular transactions, they still produce some form of change output which could be used (in theory) by outsiders to track payments and undo UTXO management efforts even after taking part in a CoinJoin transaction. It’s important for users looking for absolute anonymity when using Bitcoin not just rely on CoinJoin alone but also use other measures such as masking their IP address or using multiple addresses when sending/receiving funds in order minimize privacy issues associated with using cryptocurrency networks like Bitcoin..

Conclusion

Bitcoin offers great potential for financial freedom and autonomy due its decentralised nature; however, it also has its limitations when it comes down user-privacy due its pseudonymous network model where all users are identified by addresses they use when transacting funds between each other on-chain or off-chain (via sidechains). Change outputs and coinjoins are two concepts often mentioned whenever discussing how best protect user data according personal information safe from unwanted third parties; however both still generate certain levels risk depending how much security measures taken by users themselves beyond these tools available at disposal within cryptocurrency space today .

• Bitcoin mining is becoming increasingly centralized, with two pools accounting for over 50% of the global hash rate.
• Mining pools emerged as a way to combine smaller miners’ resources to increase their chances of winning the proof-of-work competition and receiving rewards more frequently.
• Solutions such as ASICBoost, if implemented correctly, could help decentralize mining and make it more accessible to all.

The Problem of Centralizing Mining

Bitcoin mining is increasingly becoming centralized with two pools coordinating 34% and 18.2% respectively of the global hash rate. This means that they have a disproportionate share of control over what happens in the network, leading experts like Peter Todd to warn that this could lead to censorship or regulation in Bitcoin’s future.

What are Mining Pools?

Mining pools are server run by companies which unite miners located in different areas, pooling their computing resources together into one team which can then compete in the proof-of-work competition more frequently than an individual miner would be able to do alone. Originally created as a way for smaller miners to get rewarded more frequently from their efforts, today these pools are responsible for a majority of Bitcoin’s global hash rate – indicating just how much power they have over mining operations.

ASICBoost: A Possible Solution

One possible solution which has been suggested by many experts is ASICBoost — a specialized hardware acceleration technique which allows miners to use less electricity when performing proof-of-work calculations. If correctly implemented, this could help decentralize mining and make it accessible to all – regardless of whether or not they have access to expensive equipment or large amounts of capital investment needed for modern day bitcoin mining farms.

What Does the Future Hold?

Today we are still at the genesis chapter with regards to Bitcoin and its potential uses, so predicting what will happen is impossible right now – but what we do know is that centralization needs to be addressed properly if we want a secure future for cryptocurrency networks such as Bitcoin. Solutions such as ASICBoost could help achieve this goal but only time will tell if they will become widely adopted or not within the industry.

Conclusion

Mining centralization poses several risks for both present day bitcoin users and those who might join us down the line; however solutions such as ASICBoost offer an interesting way forward towards a decentralized future where everyone can benefit from participating in cryptocurrency networks without needing access to expensive equipment or large amounts of capital investment needed for modern day bitcoin mining farms..

• Bitcoin multisig wallets provide a secure and private way to store digital funds by protecting against online threats like malware, hacks, and phishing attacks.
• There are two types of multisig wallets: collaborative custody wallets and self-custody wallets.
• Popular collaborative multisig wallets include Casa, which is free and has no KYC policy.

What is a Multisig Wallet?

A multisig wallet is a type of Bitcoin wallet that requires multiple signatures in order to authorize a transaction. This type of wallet provides an extra layer of security as it requires multiple parties to sign off on any transactions before they are processed. It also provides better protection against hackers, malware programs, and other malicious actors who may be trying to steal or manipulate your digital funds.

Benefits of Using a Multisig Wallet

Multisig wallets offer several advantages over traditional forms of Bitcoin storage such as hot (online) wallets and cold (offline) wallets. They provide an extra layer of security since multiple signatures are needed in order to authorize transactions; this means that if one private key is compromised, the funds can still be protected by the other keys held by the different parties involved. Additionally, multisig wallets can help users avoid custodial risk by allowing for more control over their own private keys without relying on third-party services or exchanges.

Types of Multisig Wallets

There are two main types of multisig wallets: collaborative custody wallets and self-custody wallets. Collaborative custody wallets involve using a third party to manage one or more private keys while self-custody refers to managing all private keys yourself through DIY devices or physical hardware like USB sticks and paper backups. Both approaches have their benefits depending on your particular situation; however, self-custody offers greater privacy since you do not need to rely on any third parties for verification or authorization purposes.

Popular Multisig Wallets

The most popular collaborative multisig wallet is Casa, which is free and does not require customers to undergo KYC procedures in order to use its services. Other popular options include BitGo, Armory Multsigs, Electrum Multsigs and Blockstream Green for those looking for self-custody solutions with DIY devices available such as Ledger Nano S or Trezor One/Trezor Model T hardware wallet models among others.

Conclusion

Multisig wallets provide an extra layer of security when compared with other methods used for storing Bitcoin such as hot (online) or cold (offline) storage solutions due to their ability to require multiple signatures from different parties before authorizing any transactions involving your digital funds – thus providing better protection against malicious actors who may be trying to steal your money or manipulate the market prices with large orders placed at once using stolen coins from hacked accounts etc.. Additionally you have the choice between collaborative custody solutions where you rely on third party companies for part of the key management process versus self-custody solutions where you take full responsibility over your own key distribution without relying on outside help – giving you greater privacy but also greater risk should something happen due to human error or natural disasters etc..

What Is Financial Sovereignty?

Financial sovereignty is the ability to hold and manage one’s own wealth without relying on third-party custodians. It is the key to financial independence and autonomy.

The Resistance To Change A Habit

People who are used to custodial services often don’t see a need to change this habit. There is a big resistance to change habits, as it requires effort and education about self custody and its benefits.

Lightning Wallet Test in Zimbabwe

To find out if it was possible for people in Zimbabwe to use non-custodial Lightning wallets, even with low and erratic internet connection, I did a test there.

Educate People On Self Custody

As a Bitcoin educator, my first priority is teaching people about self custody and why it is important. They need to understand the difference between custodial and non-custodial services so they can make an informed decision when deciding which route they want to go down.

Conclusion

It is essential that people understand the importance of self custody before using Bitcoin tools such as Lightning wallets, as this will help them become financially sovereign and protect their funds from getting rug pulled at any time by third parties. Educating newbies on how to properly use Bitcoin tools securely will ensure that everyone can benefit from its potential for financial freedom.

• The article discusses the new ways of tracking sats (fractions of Bitcoin) across transactions, known as Ordinals and Inscriptions.
• It explains how they work, the potential benefits of using them and the concerns that have been raised regarding their usage.
• Lastly, it provides an opinion on the matter from the author’s perspective.

What Are Ordinals and Inscriptions?

Ordinals are a made up way of tracking sats (a fraction of a Bitcoin) across transactions. They are numbered in order to represent when sats were mined into existence, and tracked through a first in, first out (FIFO) method. An inscription is another made-up convention where sats can be inscribed with arbitrary content, a kind of Bitcoin-native digital artifact or NFT. They are written into transaction witnesses so they never enter the UTXO set.

The Bull Case for Ordinals and Inscriptions

The pro case for Ordinals and inscriptions is that it could be argued as “Come for the fun, rich art, stay for the decentralized digital money.” Additionally, it could be seen as a way to argue that “Bitcoin does it better” in comparison to shitcoin NFTs because Bitcoin inscriptions are immutable, always on chain, simpler and more secure than shitcoin NFTs.

Concerns Raised With Inscriptions

The main concerns raised about using these conventions include reduced accessibility to transact on Bitcoin due to degens creating transaction backlogs; reduced ability to run full nodes because of increased storage requirements; and the possibility of illegal material being recorded onto Bitcoin’s blockchain which may discourage some users from using it.

Author’s Perspective

From this author’s perspective while there may be fun aspects associated with using ordinals or inscriptions one must consider all factors before engaging with them due to potential impacts on fees per real byte as well as other risks outlined above.

Conclusion

In conclusion, while there may be some benefits associated with using ordinals or inscriptions one must carefully weigh all pros and cons before deciding whether or not to use them given their impact on fees per real byte as well as other risks associated with their usage such as recording of illegal material onto bitcoin’s blockchain which may discourage some users from utilizing Bitcoin itself .

• Multisig security offers a set of security guarantees that single-signature solutions cannot.
• Multisig wallets are referred to as “vaults” and require multiple signing devices for transactions.
• A multisig setup reduces single points of failure and minimizes trust in any one entity.

What is Multisig Security?

Multisignature security, or “multisig,” offers a different set of security guarantees than single-signature (singlesig) solutions cannot. A multisig wallet is referred to as a “vault” in apps like Bitcoin Keeper and Blue Wallet, while some also refer to it as the “coordinator” or “coordinating software.” It is basically a wallet that can talk to multiple signing devices and coordinate between them for signing transactions (generally using the PSBT format). In comparison, a singlesig wallet talks to one signer only. The singlesig wallet is also often the signer, meaning the keys are hot. So, the attack surface exposed due to a singlesig wallet and vault is similar as they both have similar roles. Having a signing device in both cases adds to the security and introduces new attack surfaces. A multisig is often referred to as an “m-of-n,” where you need “m keys out of n” to sign a transaction. An output descriptor or bitcoin secure multisig setup (BSMS) is a format that is used to define the configuration of a multisig. This can be used to recreate your setup on other coordinators or to register the multisig with the signing devices.

Benefits of Multisigs

Minimizing Trust – One of the obvious advantages of having multiple signers are to reduce single points of failure and increase redundancy in your setup With multi sig you can minimize trust in any one entityas multiple entities are involved
Operational Effort – Setting up and using multsigs can be operationally more time consuming and include more pitfalls if not done correctly which means users should only consider it for long term HODLing when regular transactions aren’t expected
Setup Costs – A robust multi vendor multi sig requires additional hardware costs but this cost may be worth it depending on how much Bitcoin you’re managing

Drawbacks Of Multsigs

Time And Complexity – Setting up MultiSigs requires technical expertise so if you’re not technically minded then this might be too complicated for you Additionally, due to their complexity setting them up takes longer than setting up traditional wallets
Hardware Costs – As mentioned above investing in additional hardware needed for MultiSigs will incur extra costs which may outweigh its benefits depending on how much bitcoin you manage

Conclusion

In conclusion I believe that while Singlesigs are great for small amounts or when just starting out with Bitcoin anyone holding non trivial amount should consider MultiSigs due its added layer of protection But due its complexity setting it up must be carefully considered before taking action especially given its associated costs

• According to a Financial Times report, Elon Musk is open to adding BTC and crypto to Twitter payments.
• Twitter has reportedly begun applying for regulatory licenses across the U.S. in preparation to begin facilitating payments through the app.
• Musk has previously accepted bitcoin for his Tesla electric vehicles and previously tested “tipping” through the Bitcoin Lightning Network via Jack Mallers’ Strike.

Twitter Prepping For Payments

Twitter is reportedly preparing for payments, and cryptocurrency may be included in the mix. A Financial Times report stated that Elon Musk is open to adding Bitcoin (BTC) and other cryptocurrencies into its plans for a new payment system on the platform.

Regulatory Licenses Applied For

In order to enable this functionality, Twitter has allegedly begun applying for regulatory licenses across the United States in an effort to facilitate payments through its app. People close to the company have said that it is currently mapping out an architecture that could support both fiat currencies as well as cryptocurrency payments.

Musk’s Prior Involvement With Crypto

It would not be unprecedented for Elon Musk’s businesses to accept bitcoin transactions; he previously allowed customers of Tesla Motors to purchase their cars with BTC before retracting the option due to environmental concerns about mining cryptocurrency like Bitcoin using renewable energy sources such as solar power or wind turbines.

A Super App In The Works?

Since taking over at Twitter, Musk has expressed his desire for it become more of a generalized “super app” with multifunctionality capabilities that could benefit from cheap, instantaneous payments using platforms like the Bitcoin Lightning Network. To test this idea out, Twitter added a feature allowing users of Jack Mallers’ Strike service to tip one another with Bitcoins over Lightning Network connections before later adding a feature allowing them directly receive tips by providing their own wallet addresses.

Conclusion

Overall, while there are no firm plans in place yet on integrating cryptocurrency into Twitter’s payment system vision, there is potential that this could be explored further down the line given Elon Musk’s prior involvement with Bitcoin and other cryptocurrencies along with his vision of turning Twitter into a “super app.”

• Bitcoiners should focus on constructive criticism and well-researched information in order to promote the success of Bitcoin.
• Noise is amplified and signal is de-amplified when illogical or nonsensical criticism, appeals to authority or intuition, or refusal to understand different use cases are given.
• Messengers are often shot regardless of market conditions due to human emotions getting in the way.

Constructive Criticism is Necessary for Bitcoin’s Success

I love Bitcoin and all that it stands for as much as anyone else who believes in its potential. However, sometimes what does not feel productive is actually beneficial for Bitcoin – namely constructive criticism and pointing out incorrect assumptions. It’s important to discuss dangers associated with using bitcoin, as well as call out hypocrisy between stated goals and actual actions taken by those involved in the industry.

Noise vs Signal

Unfortunately, illogical criticism and appeals to authority without any backing evidence can muddy the waters and cause more harm than good. This leads to noise being amplified while signal gets lost in the shuffle. As a result, even wise advice from true experts can be dismissed or ignored by others, leading some messengers to face backlash regardless of market conditions due to emotions getting in the way.

Advice Worth Repeating

Despite this challenge faced by messengers, there are still several messages worth repeating which could help protect users from physical security risks associated with using Bitcoin:

• Don’t post public photos without people’s consent.
• Avoid sharing information with third-party marketing firms that don’t meet security requirements.
• Don’t push for excessive mining within certain geographical areas.
• Be aware that something may not offer complete privacy when advertised.

Overcoming Emotional Reactions

We must take extra caution when giving criticism so that we aren’t contributing to further noise instead of signal — this means understanding our own emotions before engaging in discourse about Bitcoin’s progress so that our responses are rational rather than reactionary. In doing so we can ensure that truly helpful advice isn’t overlooked due to bias or emotion clouding judgment.

< h2 >Conclusion Ultimately, it is essential for us all — regardless of how passionate we may be about cryptocurrency —to remain mindful of our emotional reactions so that constructive dialogue remains prominent amongst conversations about Bitcoin’s successes and failures alike .

• Samsung Asset Management is launching a Bitcoin exchange-traded fund (ETF) in Hong Kong.
• The ETF seeks to obtain a performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME).
• The launch of the ETF marks a significant milestone in mainstream adoption of Bitcoin, allowing investors to gain exposure to the asset through a regulated avenue.

Samsung Asset Management has announced the launch of a Bitcoin exchange-traded fund (ETF) in Hong Kong on Thursday. The ETF, dubbed the Samsung Bitcoin Futures Active ETF (3135:HK), seeks to obtain a performance similar to spot BTC by investing in bitcoin futures products listed on the Chicago Mercantile Exchange (CME).

The ETF was developed by the Hong Kong branch of Samsung Asset Management and is being touted as a “competitive product” that reflects the company’s “long-term futures-based ETF know-how and risk management experience”. According to Park Seong-jin, the head of the Hong Kong branch, the ETF is a “new option for investors who are highly interested in Bitcoin”.

The launch of the ETF marks a significant milestone for the mainstream adoption of Bitcoin, allowing investors to gain exposure to the asset through a regulated avenue. The ETF offers investors a way to invest in Bitcoin without having to worry about the complexities of the asset itself.

However, the ETF also has some drawbacks. Investors who invest in an ETF do not actually possess the underlying asset, such as gold or Bitcoin. This is an important difference, as investors will only be able to take advantage of the fiat price fluctuations of the underlying asset and not the asset itself.

Despite this, the launch of the ETF is still a major step forward for the industry as it allows investors to gain access to Bitcoin in a more accessible and secure way. The news comes as Hong Kong’s Financial Secretary Paul Chan has reiterated the city’s commitment to becoming a major hub for the industry, with the launch of the city’s first BTC-linked ETF, the CSOP Bitcoin Futures ETF, taking place last month.

• Sam Bankman-Fried, FTX, SOL, CEL, XRP, ETH, etc., are a few high-profile crypto scams and scammers.
• Houston Attorney Andrew J. Cobos of the Cobos Law Firm is currently representing an elderly woman in a case involving a young pastor who promised to buy and safely store bitcoin for her.
• The pastor allegedly recreated the wallet after giving her the Trezor and transferred all of the bitcoin to a separate wallet that he controlled.

A case currently being handled by Houston Attorney Andrew J. Cobos of the Cobos Law Firm highlights the risk of investing in cryptocurrencies like Bitcoin. The case involves an elderly woman who, in 2017, was approached by a young pastor at her church who encouraged her to invest in Bitcoin with his help. The woman and the man entered into an oral agreement that she would transfer $80,000 to him and he would use her money to purchase Bitcoin and safely store it for her.

The elderly woman alleges that the pastor maintained a copy of the seed phrase card and recreated the wallet after giving her the Trezor, and thereafter transferred all of the bitcoin to a separate wallet that he controlled. The woman contacted the police and filed a lawsuit against the pastor, who is now facing trial in Harris County, Texas in Spring 2023. The plaintiff in the case accuses the pastor of stealing her Bitcoin through the knowledge and use of her private keys.

The elderly woman’s case serves as a warning to those considering investing in Bitcoin or other cryptocurrencies. It is important to be aware of the potential for scams and scammers, both high-profile and low-profile. It is also important to do your own research and take the necessary precautions to keep your information and investment secure. As Cobos says, “Investors should conduct their own due diligence and research before investing in any cryptocurrency, and should consult an attorney if they have any questions about a transaction or any other legal matter.”