Join me today for Episode 1119 of Bitcoin And . . .
Topics for today:
Circle P:
Peony Lane
Wine
nostr: https://primal.net/BenJustman
Twitter: https://x.com/BenJustman
Website: https://www.peonylanewine.com/bitcoin
https://www.coindesk.com/markets/2025/06/19/return-of-zero-interest-rate-policy-as-swiss-central-bank-cuts-rates
https://decrypt.co/325643/bitcoin-shrugs-off-fed-decision-to-keep-rates-unchanged
https://decrypt.co/325986/ohio-house-approves-bill-exempting-bitcoin-minor-tax-burden
https://www.theblock.co/post/358849/pro-israel-hacker-group-leaks-nobitex-source-code
https://cointelegraph.com/news/project-eleven-raises-6m-to-defend-bitcoin-from-quantum-attacks
https://www.theblock.co/post/358886/elon-musks-x-to-roll-out-in-app-trading-and-investing-features-in-line-with-super-app-ambitions-ft
Find the Bitcoin And Podcast on every podcast app here
https://episodes.fm/1438789088
Topics for today:
- Bitcoin Outpaces the Mint
- Switzerland Goes to Zero
- Bessent’s Stablecoin Cannon
- Ohio Gets It Right
- Code, Burn, Repeat in Tehran
Circle P:
Peony Lane
Wine
nostr: https://primal.net/BenJustman
Twitter: https://x.com/BenJustman
Website: https://www.peonylanewine.com/bitcoin
Articles:
https://bitcoinmagazine.com/news/ancient-bitcoin-supply-now-outpacing-newly-mined-btc-fidelity-reporthttps://www.coindesk.com/markets/2025/06/19/return-of-zero-interest-rate-policy-as-swiss-central-bank-cuts-rates
https://decrypt.co/325643/bitcoin-shrugs-off-fed-decision-to-keep-rates-unchanged
https://decrypt.co/325986/ohio-house-approves-bill-exempting-bitcoin-minor-tax-burden
- https://www.cnbc.com/futures-and-commodities/
- https://dashboard.clarkmoody.com/
- https://mempool.space/
- https://www.bitcoinandshow.com/
- https://fountain.fm/show/eK5XaSb3UaLRavU3lYrI
https://www.theblock.co/post/358849/pro-israel-hacker-group-leaks-nobitex-source-code
https://cointelegraph.com/news/project-eleven-raises-6m-to-defend-bitcoin-from-quantum-attacks
https://www.theblock.co/post/358886/elon-musks-x-to-roll-out-in-app-trading-and-investing-features-in-line-with-super-app-ambitions-ft
Find the Bitcoin And Podcast on every podcast app here
https://episodes.fm/1438789088
Find the Bitcoin And Podcast on every podcast app here:
https://episodes.fm/1438789088
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Licensed under Creative Commons: By Attribution 3.0 License
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[00:00:02]
David Bennett:
It is 09:34AM Pacific Daylight Time. It is the June 2025. This is episode 1,119 of Bitcoin and is really did we match the day again? Hold on here. Yep, we sure did. We matched the day again. So clearly there is numerology at work. Strange things are afoot at the circle b. No. We're gonna do that one later. But first, we're gonna talk about a little bit of rundown here of what's coming up in the news today for Bitcoin. It appears that the ancient Bitcoin supply, that's the Bitcoin that has not moved in, like, over ten years is increasing.
Like, more and more Bitcoin are crossing that ten year hold mark. We'll talk about that one more. And it appears that the, Swiss central bank has cut its rates all the way down to the baseline. It's gonna be great, man. The money printer go brrr. Bitcoin has shrugged off the Fed's decision to not lower rates unlike our Swiss counterparts, Jerome Powell decided to keep the rates the same. There's news out of Ohio and exempting Bitcoin users from minor transactions as far as, you know, tax burdens. We'll just call it that, tax burdens. And treasury secretary, Besant, has some further words on the US dollar as it pertains to stablecoins.
That is a critical the the whole stablecoin US dollar thing, it doesn't matter if you don't like stablecoins. It just doesn't. We have to talk about it because it is going to be a major centerpiece of United States economic policy as we go forward. There's no escaping it. We have to be aware of what the hell's going on, and this entire podcast is about making you aware of things like defending Bitcoin from quantum attacks. We'll have that one out of Cointelegraph. And Elon Musk might well, actually is going to start in app trading and investing. What could possibly go wrong aside from the fact that his SpaceX spaceship decided to just blow up today, at least that's according to news. I'm not really gonna talk about that one. But let's let's go back and let's talk about this ancient Bitcoin supply and how it's now outpacing newly mined BTC according to a Fidelity report.
Oscar Perez has it for Bitcoin magazine. Fidelity digital assets released a new report that reveals for the for the first time in history. Oh my god. How how many high school essays began with since the beginning of time? I just don't like shit like that. But for the first time in history, more Bitcoin is entering what's known as ancient supply, and that refers to coins that have remained unmoved for ten years or more. That's outpacing the new supply of Bitcoin that's being mined. And as of June, an average of $5.66 Bitcoin per day is crossing the 10 threshold while only $4.50 BTC is being issued daily following the 2024 halving.
Quote, the share of ancient supply also tends to increase every day with daily decreases observed less than 3% of the time, the report says, quote, in contrast, the number increases to 13% when the threshold is lowered to Bitcoin holders of five years or more. Bitcoin's ancient supply has grown since January 2019 when Satoshi Nakamoto became the first ten year holder and over well, today, over 3,400,000.0 BTC fall into this category. It's worth more than $360,000,000,000 Around one third is believed to belong to Nakamoto. Despite their rising value, long term holders are not cashing out.
Ancient supply makes up over 17% of all Bitcoin and that share continues to grow and grow and grow. Since the 2024 halving, the number of coins entering ancient supply has consistently outpaced the number of new coins being mined according to the report. And this shift highlights a growing long term conviction among holders and reflects a broader tightening of Bitcoin's liquid supply. Following the twenty twenty four US election, ancient supply declined on 10% of days, which is nearly four times higher than the historical average. Movement among the holders was even more pronounced, with daily declines occurring 39% of the time.
To better track this trend, Fidelity uses a metric called the ancient supply HODL rate. It measures how many coins are entering the ten year category every day adjusted for new issuance. This rate turned positive in April 2024 and has remained that way, reinforcing the long term supply shift. Looking ahead, Fidelity Digital Asset Projections or projects that ancient supply could reach 20% of total Bitcoin by 2028 and twenty five percent by 02/1934. If public companies holding at least 1,000 BTC are included, it could reach 30% by 2025.
As of June '27 public companies hold more than 800,000 BTC combined, according to this report. This growing institutional presence may further tighten supply and increase the influence of long term holders over time. So what are we really saying here? The amount of Bitcoin that's being held for longer than ten years on like, the amount of Bitcoin entering and passing that ten year hold mark. Like, let's say let's say that I had one Bitcoin, and I held it for nine years and three hundred and sixty four days. And today is the day that that one Bitcoin of mine crosses over into that ten year hold mark.
Okay. That's what we're that's what we're talking about, is that every single day, there's more Bitcoin crossing over that ten year hold mark than there is being mined. I really think that we should look at that. And, of course, the very first thing, which and and nobody well, actually, there will be people that fault you for saying it, but I'm not going to be one of those people. I'm not going to fault you for saying, then why is the price not going up? Honestly, guys, I think at this point, we're looking at some paper Bitcoin. And and it doesn't necessarily need to be rehypothecated because there is so much Bitcoin that's being held by people like strategy and the exchange traded funds and things like that that there may be a perception a perception of paper Bitcoin, that it doesn't actually have to exist in order for the same effect to occur as if there were paper Bitcoin being sold directly by one company who knew they were basically rehypothecating Bitcoin and selling it to some rube who's not checking because they're not holding their own coin under their own keys.
This is the only way that you can tell whether or not you have actual Bitcoin or something else. And if you have something else, that's not Bitcoin. So just be aware. But I actually take this report as relatively good news, at least to the point that there are quite a bit of people out there who are like, uh-uh. No. This is worth more. I'm going to wait. And as long as we get more and more of those people to come on board and stay on board, at one point or another, something is absolutely going to break. Right? So let's get into this next one. Let's go over to Switzerland where there's great skiing, blonde women, good beer, and zero interest rate.
That's right. Has come back to the Swiss central bank as they cut rates. Omicron, Godbel, CoinDesk, a COVID era feature. Oh, it wasn't a bug. It was a feature that characterized the bull run-in all corners of financial markets, including Bitcoin, has made a comeback in Switzerland, one of the most financial powerhouses of the world. The Swiss National Bank cut its interest rate to zero. To zero. It's going to zero, and now it's at zero. The Swiss Swiss National Bank cut its interest rate to zero Thursday. That was today. This just happened.
To counter falling inflation, appreciating Swiss franc and economic uncertainty caused by president Donald Trump's trade war, and I'm sure that Israel and Iran fits in there somewhere, the return of the return to zero. That sounds like a great book, man. The return to zero comes as tariffs threaten to deflate nations with trade surplus such as Switzerland and China. The latest rate cut is the bank's sixth straight move since it started reducing borrowing cost in March of twenty twenty four. The SNBs return to zero may be a sign of things to come across the European Union and other advanced nations.
A broad based return to zero interest rate policy or ZIRP, z I r p, may bode well for Bitcoin. Yes. Because we'll be able to get cheap ass money to put into quote unquote risky trades. But what about the arbitrage that's going to happen? Because Japan, we you know, Japan had really low interest rates for a long, long time. And, it was good, you know, Japan Japanese yen was clearly a good enough currency that people would borrow it at these insanely low rates from the national, Japan Central Bank and, therefore, the the rest of the the banks in Japan because they were following that policy, and then go out and buy stuff with it, like houses and property and art and risky stuff like Bitcoin. And for the idiots out there, they bought Ethereum with it. They did all kinds of shit. And then the Central Bank of Japan raised their rates, and then boom.
And that was, what, last August? Like, right at the July, the Bank of Japan raised the rates, and then all of a sudden, the carry trade was gone. And everybody started having to sell their, quote, unquote, risky assets that they bought with this borrowed money, and it caused prices to decrease all over the place, including Bitcoin. And the reason they did that was so they'd have the money to pay back the loan so they could get out of these newly high interest rates loan that they found themselves in. What's to stop the same thing happen with borrowing Swiss franc at zero interest rates and going out and buying all kinds of shit because the Swiss franc is not exactly a terrible currency.
So do we see a return to that kind of attitude? I probably. Will it be as effective or affective as the yen carry trade? I don't know. We'll have to see. But meanwhile, the Fed, our Fed, has said no to any kind of drop of the federal funds rate. Bitcoin shrugged off that decision, however, when they kept rates unchanged, and this is James Rubin out of Decrypt. So yesterday, we had Jerome Powell come up to the podium and he said words and and reached for things and put on his glasses and cleared his throat and said, no. We're not dropping interest rates, and I told you that shit was gonna happen. So again, I was right. However, there was a surprise.
There really was. He hinted that there's two rate cuts coming this year. So I I still don't think we're gonna get if we get one, I think we'll be lucky. But let's get into this one. Bitcoin was trading roughly flat in the hour after the US central bank, huge to its recent policy of keeping interest rates unchanged until it sees convincing evidence that inflation is unlikely to tick up again. The largest cryptocurrency by market value was changing hands at just about a $104,002.50 according to crypto data provider, CoinGecko, although it was slightly up over the past twenty four hours. And then they talk about shitcoin number one, which I don't care. Crypto and other risk on markets had overwhelmingly expected the Federal Reserve's decision with the widely watched CME FedWatch tool forecasting a more than 99% probability that the bank would leave rates at their current 4.25 to 4.5% range.
The bank last trimmed the rate back in December, four meetings ago. On Wednesday, it projected just two rate cuts consistent with its stance at March meeting or its March meeting when it last issued a so called dot plot projection. Quote, uncertainty about the economic outlook has diminished but remains elevated, the bank said in the release, adding, quote, I'm considering the extent and timing timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks.
The Fed's caution comes despite a series of surprisingly encouraging inflation readings. Last week, the consumer price index rose an unexpectedly small 0.1% compared to April, sending the annual rate to 2.4% not far off of the bank's 2% target. And April's personal consumer expenditures climbed just 0.1%, buoying investors looking for a rate reduction. But central bankers have been watchful of the trade or rather the impact caused by president Donald Trump's global trade war and other macroeconomic uncertainties that could send prices higher while casting the economy back into recession.
In remarks following the decision, federal reserve chair Jerome Powell said that the size of the tariff effects and their duration and time it will take are all highly uncertain. We know that the time will come. It could come quickly. It could not come quickly. As long as the economy is solid, though, as long as we're seeing the kind of labor market that we have and reasonably decent growth and inflation moving down, we feel like the right thing to do is to be where we are, end quote. Trump has repeatedly pressured the bank to cut its rates and insulted Powell for inaction. On Tuesday, he called Powell stupid, arguing that the US central bank, quote, probably won't cut interest rates today despite no inflation from tariffs.
Interest rate cuts would likely bolster crypto markets by introducing additional liquidity. Bitcoin is among the most reactive assets to liquidity. Last week's eruption of long simmering antagonisms between Iran and Israel and the increasing likelihood of US involvement may further cloud economic forecast and dampen hopes for a more dovish monetary policy. And then we come to oil. Brent crude, a widely watched measure of energy market trends, rose 4% on Tuesday to more than $75 a barrel, the first time it's topped that mark since mid February according to trading economics data. In an email to Decrypt on Wednesday, coin market cap research lead Alice Liu said that investors would be looking for Jerome Powell to signal whether the Fed's monetary policy would remain more hawkish and less restrictive. Quote, if Powell emphasizes inflation risks or downplays September cuts, Bitcoin could test support at 91,500 with altcoins likely underperforming amid tighter liquidity expectations. She said, quote, a dovish surprise future cuts hinted means that we can expect a relief rally across the crypto landscape, and Bitcoin could quickly rebound towards a 110,000 with high beta names like Ethereum and, god, no, Solana potentially seeing amplified gains.
In an email on Tuesday, Nigel Green, CEO of financial advisory giant, Devere Group, wrote that the Fed isn't seeing the kind of clean, convincing disinflation trend that it needs to justify an immediate cut. The data is pointing in the right direction, but we're not there yet. But why would they drop rates? That's the end of the article. Why would they why would they drop rates? If if things are going swimmingly, then why would we put ourselves in a situation or at least we all know that the economy as it is is just is is just smoke and mirrors, but let's look at it from from the way that Jerome Powell is looking at it. Because I gather that he actually thinks that this shit is real, so he's going to act accordingly.
If he's looking at policies of the Federal Reserve that are actually working, then why would he change them until he is dead down to, like, 2.1% inflation rate, if not getting in on the target of 2% inflation, and we're not quite there yet. Right? So, what would be his why would he do it? What would be his incentive to toy with printing more money? Because that that's what'll happen. That's what'll happen if they if they lower rates. I'm not saying that I don't want late rates lowered. I'm just I'm just calling the weather here. We're we we we live in an economic environment of nothing but uncertainty.
Right? And every single thing every single thing is a shock. It doesn't matter what the hell it is. It could be a riot in LA, and it's gonna shock the markets because everything is on a nice edge. I honestly don't think that Jerome Powell is going to lower rates even at the next Fed meeting or possibly even the one after that. Most likely, not even the one after that. If we get two rate cuts this year, I will actually be surprised. I think there's going to be some some events that occur over the next few months that's going to tell Jerome Powell, do not lower rates.
If nothing else, keep them keep them the same. But if something really bad happens, it's not outside the purview of Jerome Powell to raise those rates. So we're we're nowhere close to out of the woods. Yes. Eventually, the money printer is gonna go BRRRR. And it's going BRRRR in other places, but will it go BRRRR in The United States? Not just yet, even though we are seeing an m two money supply that is shocking. It's just shocking. And yet and yet we've got a flat Bitcoin price. When you screw up the world's economy this bad with so many different actors playing their part in screwing up the economy this bad, then everything's a question mark.
Nothing is certain. Hell, at this point, even going to cash isn't certain, except people will still do that because it's like they don't understand they don't understand Bitcoin, so therefore, they're not going to rush into Bitcoin. So we've really gotta keep our heads about us. And one of the best ways to do that is to enjoy some red wine from Peony Lane Vineyards. That's peonylanewine.com. Peonylanewine.com. Go there and buy your wine in Bitcoin. This guy makes his own wine. The guy's name is Ben Jessman, if you did not know. He's the dude behind Peony Lane Vineyards, and he's got a 2,022 Cabernet Sauvignon.
Check this out. This mid bodied Cabernet Sauvignon brings together bright red cherry and black currant flavors layered with smooth tannins and a refined finish. Its effortless charm makes it just as enjoyable on a summer evening as it is next to a cozy fire. It's mid bodied. It's got, again, smooth tannins. It has fresh fruit aromas with a touch of oak, and this is what I love. It's not in French oak. It's not in American oak. Oh, hell no. Ben Justman from peonylainewine.com sourced Hungarian oak. I've never even heard of Hungarian oak. French oak, I get. White oak, French white oak, I get.
American oak, which is more used for bourbon, I get that shit too. I've never heard of Hungarian oak. But he's also got a 2021 Cabernet Franc. Now that is aged in French oak for one year. You can get all of his wines for Bitcoin. It that's what it means to be in the circle p. Now he's not giving you a discount, but use the code Bitcoin and so that Ben knows that if you buy wine, because you heard it here on the circle p in the Bitcoin and podcast, he'll know. And if he and then he gets to make a determination. It was that sale worth something to me? And if it was, how much was it worth? And then he sends me those Satoshis if he determines that I made him a sale. And the only way to let him know that you did that he did that or that I did that for him or is for you to use Bitcoin and as the coupon code either in the comment section or if he's got a coupon code.
He's got spaces on his invoices when you buy his wine that you can drop Bitcoin and all one word, and he'll know, oh, yeah. Yeah. Yeah. He he he made the sale for me. So if you wanna support plebs who are trying to do the things that they want to do with their life that they find meaning in instead of forcing them to go work in some cubicle in some bullshit job somewhere that they don't ever wanna be wasting their life, then support peonylanewine.com. Go to peonylanewine.com, use Bitcoin, and to let Ben know that I sold some wine for him. Now when you do that, when you go and buy wines, if you're in Ohio, you may not even have a tax burden on that one because the Ohio house has approved a bill exempting Bitcoin users from minor tax burdens.
Jason Nelson's got it from Decrypt. Ohio's house of representatives voted on Wednesday to move forward with a new crypto bill that seeks several protections for industry participants advancing it up the legislative chain and inching closer to becoming law. If signed into law by governor Mike DeWine, wine. Get it? See how that works? The Ohio Blockchain Basics Act would prohibit state and local governments from restricting the use of digital assets as payment or interfering with individuals' use of hardware wallets or self hosted wallets. It would also permit digital asset mining by individuals in residential areas. Holy shit. That's actually kinda huge.
They'll be subject to low local ordinances, however, but allow mining business businesses to operate in industrial zones if they meet existing requirements. It goes even further. By prohibiting local governments from rezoning areas with mining businesses without providing proper notice and an opportunity for comment and granting those businesses the right to appeal discriminatory zoning actions. Individuals involved in mining, staking, asset exchange, or blockchain node operations would be excluded from money transmitter, security, and investment laws. This is a pretty sweeping bill, guys.
Exemptions from capital gains from yes. Exemptions from capital gains will also apply to every single crypto transaction with a value below $200 following a 68 to 26 vote. House bill one one six now moves to the state senate for consideration. This was sponsored by representative Steve Demetriou. H b one one six was first introduced in February and advanced from the House Technology and Innovation Committee before winning full blown house approval on Tuesday. Wednesday's legislation comes just one day after the United States Senate passed major stablecoin reform under the Genius Act in Washington, DC as crypto regulation across the nation this year continues to firm up. It also marks the latest in state laws enacted to codify rights for crypto users and providers following Kentucky's passage of a Bitcoin and Shitcoin number one self custody law back in March. Quote, we're getting ready to show the country that Ohio, the Buckeye State, is ready to embrace the future of our economy and blockchain technology and digital assets, Dimitriou said before the vote.
Quote, once we pass the bill, we'll become one of the first states in the country to create a common sense regulatory framework for these cutting edge technologies and industries, Dimitriou added. And then they talk about some of the other states and their histories of either them passing the bill or loading up the Glock nine and shooting themselves in the head, which as we've seen quite a bit of. Let's run the numbers. West Texas Intermediate is shooting high, up 2.77% to $77.22. That's high. Brent Norsey is up 2.39 to $78.53.
Natural gas is also in the green today, two and a quarter to the upside, passing $4 to land at $4.07. Gasoline is up two and a quarter to $2.36 a gallon, although that's more that's more about summer driving season. It just is. I've been I I look at at the oil and gasoline prices every day on this show, and I I know the trend. Gasoline isn't really rising because of oil price right now. It's really rising because of summer driving season. Gold, however, is down as well as all the shiny metal rocks. They're all sad. Gold is down two thirds of a point, landing at $33.86 and 9 dimes. Silver is down one and a half. Platinum is down just over two. Copper is down one and a quarter. Palladium is down just under a full point. Weird shit going on in agricultural, land today.
Wheat, soybean, corn, and rough rice are all unchanged, and they have been since I've been looking at this thing today, and everything else is in the red. So I don't know if there's, like, some kind of funny business going on with some of these commodities, but the biggest loser so far is, as usual, chocolate. 4.15% to the downside. Next up is coffee, 3.84% to the downside. Everything is in the red other than those which are unchanged until we come to livestock. I got live cattle, and it's up a half a point. Lean hogs are up point 18%. Feeder cattle up a quarter. The Dow is down point 86%.
That is a 369 loss. S and P is down the same. Nasdaq is down just over one full point, and the S and P Mini is down one and a half. Why? Because of Iran and Israel. And we're getting hit a little bit today on Bitcoin too. We are under a 104,000, crossing to a 103,960. That is a $2,070,000,000,000 market cap. You can get 30.7 ounces of shiny metal rocks with your one Bitcoin of which there are 19,880,791 and a half of. Average fees per block are fairly low, 0.04 BTC taken in fees on a per block basis. There seem to be 10 blocks carrying 13,000 unconfirmed transactions waiting to clear. High priority rates get you in at six.
Low priorities get you in at four. Hash rate is dropping precipitously again today. We're down to 872.6 exahashes per second. A little bit of minor capitulation, I guess, maybe? Either way, it's a Spain in the ass, which was yesterday's episode of Bitcoin and I got progressively worse with a thousand says thank you, no thank you. Jay with five hundred and fifty five says, I think the appeal becoming a Bitcoin Treasury company is to look attractive as a cash equivalent or savings vehicle. For example, exactly what most stocks on the planet are nowadays. I would say the huge premium the stock price has over a company's real earnings is driven by that use case.
But in a world where those investors can buy Bitcoin or spot paper Bitcoin, those companies have to grow their stock price faster than Bitcoin. Talk to Jack Mallers and you'll find out that that's incredibly difficult to do. So in my opinion, the Saylor strategy leverages a debt parentheses, Ponzi scheme to keep the MNAV growing so investors think they're beating Bitcoin. I think it has a finite lifetime overall, but considering the longevity of the Federal Reserve System, it may well be longer than I think. Yes. Correct. The, markets can stay irrational longer than you can stay liquid. Yodle with 511 says, hackers should have split the burn address into two or three vanity ones with partial messages on each and kept the money.
Turkey with 500 says nothing. Again, gobble gobble. Richard Whitman with 300 says Coinbase sucks. Yeah. I know. You don't have to tell me about it. Buys with a 100 says thank you, sir. No. Thank you. And that's the weather report. Welcome to part two of the news that you can use. Treasury secretary, Besent, has got words to say, and here they are from Vismaya v Decrypt. Treasury Secretary Scott Bessent said on Wednesday, Stablecoins can reinforce dollar supremacy, pushing back against critics who view crypto as a threat to America's currency dominance as President Trump urged Congress to fast track landmark legislation. Crypto is not a threat to the dollar, Besint tweeted on Wednesday, calling digital assets, quote, one of the most important phenomena in the world right now that have been, quote, ignored by national governments for far too long, end quote.
The comments came as Trump pressed house lawmakers to quickly pass the Genius Act after the senate approved the stablecoin framework on Tuesday. Tuesday's senate passage marked a reversal from last month when the Genius act failed a procedural vote. Yes. We know. We talked about that part yesterday. I'm more interested in the body of Besant's comments. So Besant condemned that earlier defeat warning that, quote, the world is watching while American lawmakers twiddle their thumbs. Either step up and lead or watch digital asset innovation move offshore, end quote.
The legislation would establish federal rules for issuing stablecoins, digital tokens typically pegged to the US dollar, quote, stablecoins this is one of the important ones. Stablecoins could end up being one of the largest buyers of US treasuries or t bills, the treasury secretary said in a New York Post interview explaining how someone using a dollar backed stablecoin in Nigeria could transact without actually holding physical dollars. Quote, I think there's a very good chance that crypto is actually one of the things that locks in dollar supremacy, Pacint said, noting the Biden administration tried to, quote, make it extinct.
Industry leaders welcomed the senate passage while acknowledging ongoing political tensions. Ira Auerbach Auerbach Auerbach Auerbach whatever. Ira, head of Tandem at Offchain Labs, told the crypt that, quote, the continued political divide on crypto is creating a market operating under a best guesses framework, and that's becoming untenable for an industry growing at breakneck breakneck speed. Auerbach pointed out that stablecoins, quote, require a different legislative approach than digital assets like meme coins or trading tokens, saying that these are separate issues where speculative concerns should not be allowed to impede payment infrastructure development.
However, concerns persist about conflicts of interest. While speaking to decrypt Alexander Uglis, general counsel at ENS Labs, warned that the Genius Acts, quote, perceived entanglement to the Trump family's private interest could erode trust and credibility in the legislative process and fuel peer the political theatrics over crypto's supposed risks. And then he talks about deep fakes, which I don't know why. But it's these bescent comments. He's all in. He's all in on this shit, dude. And it has the stablecoin has one purpose for The United States, and that's the ability to issue debt and have it almost instantaneously monetized and exported. We've never seen anything like this before. There's never been a vehicle that has been able to do that.
So just be aware, everything Basint is saying is echoing what I've been telling you guys for months. It really isn't. Oh, we're going to bank the unbanked, and We're going to give people in Nigeria the ability to use US dollars because the poor Nigerians, it they don't give a shit. They don't care if a Nigerian goat herder is able to use Tether to buy fucking milk for their child. They don't care. They don't care. They don't care, and they never will. This is all about giving us a vehicle to print money and not have it directly affect The United States citizen for five to ten years from now. So they can this is the this they found a new way to not only kick the can down the road, stablecoins allow them to put the can into a fucking trebuchet and launch that son of a bitch four or five miles away all in one shot.
But the can's always going to exist, and at one point or another, you're going to each reach the edge of a canyon, but not today, ladies and gentlemen. Meanwhile, the hacker group that I was telling you about, you know, the the Novatex hack in Iran yesterday, or at least that's when I brought you the news. Well, they may have they may have done what they said they were gonna do because the hacker group claims that the leak of Novatex source code as Iranian exchanges stolen funds top $100,000,000. It appears that they've leaked the source code for Novatech's exchange in Iran online.
And by the way, this is written by Danny Park out of the block. Gonjektterrande, the pro Israel hacker group that claims to be behind the attack on Iran's Novatex crypto exchange yesterday claims to have exposed what appears to be the platform's key source code information on the social media platform X. Assets left in Novatex are now entirely out in the open, the group wrote. The social media post included apparent screenshots of various essential codes of the platform for exchange deployment, privacy, user interface, and others that could pose further security risks for the exchange.
Novatex was hacked earlier yesterday with on chain sleuth, ZAC XBT, reporting suspicious outflows from its wallets on Tron and EVM networks. Novatex stated in its latest announcement that over $100,000,000 in cryptocurrency was stolen, which was subsequently moved and then destroyed by the attackers. Quote, it is clear that the intention behind this attack was to harm the peace of mind and assets of our fellow citizens under false pretenses, Norbitex said. Shortly after the exploit became public, the group claimed responsibility for the attack saying that Norbitex is a key regime tool for financing terrorism. They also alleged motive for the attack is connected to the broader conflict between Iran and Israel, which has escalated in recent months, including missile strikes targeting cities and strategic locations.
Quote, Novatex isn't just a local exchange. It serves as a critical hub within Iran's heavily sanctioned crypto ecosystem, enabling access to global markets for users cut off from traditional finance. That's according to Chainalysis, and they added that past on chain investigations have linked Novatex to illicit actors, including the Iranian Republic Guard affiliated ransomware operators and sanctioned Russian crypto exchanges. In response to the attack on Novatex, Iran authorities have imposed limits on local exchanges allowing them to operate, wow, they gave them a curfew only between the hours of 10AM and 8PM local time according to Chainalysis.
Quote, the exploit underscores the inherent tension between the borderless nature of cryptocurrency and the geopolitical realities of nation state restrictions, Chainalysis wrote. Meanwhile, Nicholas Smart, VP of Blockchain Intelligence at Crystal Intelligence, said the hacker group's attack on Novatex is reckless and ignorant. Quote, crypto is massive in Iran, and Novatex is among the largest besides Bitpen and Aban Tether, Smart said in a statement shared with The Block. There is no way of knowing if the funds actually belong to the Iranian Republic Guard or IRGC.
The bloc has reached out to Novatex for further comments. Okay. So they they curfewed the largest exchanges in Iran. Actually, they they curfewed all of them, but I really was not under the impression that Iran was that the regime part of Iran was that deep into cryptocurrency. But I've been proven wrong yet once again, but still a curfew. If if you have your money on an exchange, whether you're in Iran or not, it doesn't matter, this is the kind of crap that happens to you. All of a sudden, your shit gets stolen, then it gets burned. And if you're lucky enough to be one of the people that didn't get your shit stolen, all of a sudden, where your shit is, the the the source code gets leaked into the Internet.
Do not keep your coins on exchanges, please, for the love of God, because quantum computing, we're all gonna die. Project eleven has raised $6,000,000 to defend Bitcoin from quantum attacks. Adrian Zmunsky, Cointelegraph, tell me more. Project eleven, a development firm focused on post quantum cryptography, has raised $6,000,000 to help secure Bitcoin from future quantum computing threats according to a Thursday announcement shared with Cointelegraph. The funding round was co led by leading web three investor variant fund and quantum tech investor, Quantonation.
Quantonation. Wow. That's a that's a terrible name. It marks Quantonation's first investment in the crypto space, and Project eleven CEO Alex Pruden said that the funding will allow the company to build, quote, the tools, standards, and ecosystem required to ensure digital assets remain secure in a post quantum world. According to eleven Labs and YCharts data cited by project eleven, quote, there are currently 10,000,000 Bitcoin addresses with a nonzero balance and an exposed public key, putting a total of 6,262,905 BTC worth about $684,000,000,000 at risk of a potential quantum attack.
The company's first release, a cryptographic registry called Yellow Pages, is designed to let users create a quantum resistant proof linking their current Bitcoin addresses to new secure ones without relying on on chain activity. Prudin said that the registry will act as a fallback in the event that quantum computers compromise existing Bitcoin keys. Prudence said that Yellow Pages was audited by something called Cure fifty three and that that company will post the audit results shortly. Project 11 has also opened discussion with Bitcoin core developers about potential future upgrades. Uh-oh. That's probably going to fall on deaf ears. Adam Back, cited by Satoshi Nakamoto in the Bitcoin white paper, previously suggested that quantum computing pressure may force Bitcoin's creator to reveal whether or not they're alive.
The quantum threat to the Bitcoin or rather, the quantum threat to Bitcoin is a controversial topic, some arguing that it is a theoretical threat that does not warrant dedicated resources. Still, the risk is taken seriously by many. The United States National Security Agency, quote, intends that all national security systems will be quantum resistant by 2035 according to a late twenty twenty four document. And under those plans, new acquisitions will require quantum resistant encryption by 2027, and legacy gear will be phased out in 2030 through 02/1931. The National Institute of Standards and Technology also stated in late twenty twenty four that its goal is achieving widespread post quantum cryptography adoption by the year 02/1935.
It's not a question of whether or not it's theoretical. It's at what point does it become practical, prudent told Coin Telegraph. US nonprofit and global policy think tank research institute and public sector consulting firm Rand Corporation conducted an expert survey on the subject in 2020. The report estimated that the average time until a cryptography breaking quantum computer emerges is 02/1933, but noted that, quote, earlier and much later developments are possible with the range starting from 2027. Rand's research preceded a study released by Google in May, which managed to reduce the requirement to break RSA 2,048 from 20,000,000 to about 1,000,000 noisy qubits running for one week, still well beyond today's capabilities, which hover around a few 100 stable qubits.
Prudent told Cointelegraph that, quote, quantum computers can already factor small ECDSA public keys. Still, the same can be said about classical computers. In a 2022 paper, researchers shared the achievement of factoring a 48 bit semi prime number on a 10 cubic computer. And last year, D Wave used a quantum annealing computer to factor a 50 bit semi prime number using a hybrid classical and quantum search. For context, the record on classical computers was set in 2020 on a supercomputer with about 2,700 CPU core years, which was able to factor an 829 bit RSA key and involved a 415 bit prime, this is equivalent to about three months on a medium high performance compute cluster.
What they're saying here is that classical computers can already break a lot of encryption. So just just be aware. Just be aware. On to Elon Musk. His new x company is to roll out in apps trading and investing features in line with super app ambitions according to Financial Times, but this is Naga Avan Namoyo from the block. Elon Musk's x plans to let users trade and invest directly inside the social media app. God, what could possibly go wrong? Broadening a payments push that already includes a Visa backed digital wallet. Again, what could possibly go wrong? CEO Linda Yaccarino said that the new features will cover investments and trading and could include a branded debit or credit card according to the Financial Times. The in app services will roll out first in The United States under the x money banner, a wallet the company announced in January when it partnered with Visa to enable real time transfers between bank accounts and in app digital wallets.
While Iacarino did not specific or specify asset classes, nor did she mention cryptocurrency, the platform already supports tipping with Bitcoin's lightning network and displays real time crypto prices via cash tags. Via has also partnered with several crypto service providers to power payments suggesting that x's latest rollout may include blockchain based currencies. Musk has pursued an everything app vision since he he bought the then Twitter for 44,000,000,000 in 2022. The company has secured money transmitter licenses in several United States states and aims to win approval in all 50 for a broader push into financial services. So wait a minute. Hold on. Hold on here. That's the end of the article. So let me I just wanna get back to this. The platform already supports tipping with Bitcoin's Lightning Network.
Really? So I can tip people with Bitcoin's Lightning Network on x today. I I I'm unaware of this. If anybody knows that this is actually live, you know, I'd I'd like to know. But I think that she's full of shit because I have seen no evidence whatsoever that anybody on x is being tipped via the lightning network. Again, I don't spend that much time on x. So if I'm wrong about this, please show point me in the direction where I should should be reading that they've actually enabled lightning network payments on x because I just if I covered it, I sure as shit don't remember it, but that seems rather huge.
And if it's true, then it seems very, very much buried. But let's get back to the problem at hand. Trading, it trading on x, all I can think of is the troll room on BitMex back in the days of a 100 x leverage, where people will would literally read the troll room comments and try to suss out what was trending upwards and what was trending downwards and base their trades on top of that. Now we've got GROC in the mix. And if you don't think there's not going to be some kind of automated, quote, unquote, noise to drive markets, then you are freaking fooling yourself.
It's going to be a bloodbath. Some people are going to get hot ass rich, but most people are going to lose houses and cars or become in debt for the rest of their natural born lives. It's there is no x has no business allowing financial instrumentation trading on that platform. Given the nature of the platform, it's nothing but a troll box. It's nothing but a troll box, And it's going to get more people than you can possibly imagine in more trouble than they would ever, ever, ever knowingly bring on themselves. They're gonna think it's gonna be fine. They're gonna trade it like everything's fine.
It's not fine. Everything about this is bad, and Elon Musk honestly should be absolutely ashamed of himself for doing it. But like many things in the world, there's absolutely nothing that I can do about it. So I will see you on the other side. This has been Bitcoin and and I'm your host, David Bennett. I hope you enjoyed today's episode and hope to see you again real soon. Have a great day.
It is 09:34AM Pacific Daylight Time. It is the June 2025. This is episode 1,119 of Bitcoin and is really did we match the day again? Hold on here. Yep, we sure did. We matched the day again. So clearly there is numerology at work. Strange things are afoot at the circle b. No. We're gonna do that one later. But first, we're gonna talk about a little bit of rundown here of what's coming up in the news today for Bitcoin. It appears that the ancient Bitcoin supply, that's the Bitcoin that has not moved in, like, over ten years is increasing.
Like, more and more Bitcoin are crossing that ten year hold mark. We'll talk about that one more. And it appears that the, Swiss central bank has cut its rates all the way down to the baseline. It's gonna be great, man. The money printer go brrr. Bitcoin has shrugged off the Fed's decision to not lower rates unlike our Swiss counterparts, Jerome Powell decided to keep the rates the same. There's news out of Ohio and exempting Bitcoin users from minor transactions as far as, you know, tax burdens. We'll just call it that, tax burdens. And treasury secretary, Besant, has some further words on the US dollar as it pertains to stablecoins.
That is a critical the the whole stablecoin US dollar thing, it doesn't matter if you don't like stablecoins. It just doesn't. We have to talk about it because it is going to be a major centerpiece of United States economic policy as we go forward. There's no escaping it. We have to be aware of what the hell's going on, and this entire podcast is about making you aware of things like defending Bitcoin from quantum attacks. We'll have that one out of Cointelegraph. And Elon Musk might well, actually is going to start in app trading and investing. What could possibly go wrong aside from the fact that his SpaceX spaceship decided to just blow up today, at least that's according to news. I'm not really gonna talk about that one. But let's let's go back and let's talk about this ancient Bitcoin supply and how it's now outpacing newly mined BTC according to a Fidelity report.
Oscar Perez has it for Bitcoin magazine. Fidelity digital assets released a new report that reveals for the for the first time in history. Oh my god. How how many high school essays began with since the beginning of time? I just don't like shit like that. But for the first time in history, more Bitcoin is entering what's known as ancient supply, and that refers to coins that have remained unmoved for ten years or more. That's outpacing the new supply of Bitcoin that's being mined. And as of June, an average of $5.66 Bitcoin per day is crossing the 10 threshold while only $4.50 BTC is being issued daily following the 2024 halving.
Quote, the share of ancient supply also tends to increase every day with daily decreases observed less than 3% of the time, the report says, quote, in contrast, the number increases to 13% when the threshold is lowered to Bitcoin holders of five years or more. Bitcoin's ancient supply has grown since January 2019 when Satoshi Nakamoto became the first ten year holder and over well, today, over 3,400,000.0 BTC fall into this category. It's worth more than $360,000,000,000 Around one third is believed to belong to Nakamoto. Despite their rising value, long term holders are not cashing out.
Ancient supply makes up over 17% of all Bitcoin and that share continues to grow and grow and grow. Since the 2024 halving, the number of coins entering ancient supply has consistently outpaced the number of new coins being mined according to the report. And this shift highlights a growing long term conviction among holders and reflects a broader tightening of Bitcoin's liquid supply. Following the twenty twenty four US election, ancient supply declined on 10% of days, which is nearly four times higher than the historical average. Movement among the holders was even more pronounced, with daily declines occurring 39% of the time.
To better track this trend, Fidelity uses a metric called the ancient supply HODL rate. It measures how many coins are entering the ten year category every day adjusted for new issuance. This rate turned positive in April 2024 and has remained that way, reinforcing the long term supply shift. Looking ahead, Fidelity Digital Asset Projections or projects that ancient supply could reach 20% of total Bitcoin by 2028 and twenty five percent by 02/1934. If public companies holding at least 1,000 BTC are included, it could reach 30% by 2025.
As of June '27 public companies hold more than 800,000 BTC combined, according to this report. This growing institutional presence may further tighten supply and increase the influence of long term holders over time. So what are we really saying here? The amount of Bitcoin that's being held for longer than ten years on like, the amount of Bitcoin entering and passing that ten year hold mark. Like, let's say let's say that I had one Bitcoin, and I held it for nine years and three hundred and sixty four days. And today is the day that that one Bitcoin of mine crosses over into that ten year hold mark.
Okay. That's what we're that's what we're talking about, is that every single day, there's more Bitcoin crossing over that ten year hold mark than there is being mined. I really think that we should look at that. And, of course, the very first thing, which and and nobody well, actually, there will be people that fault you for saying it, but I'm not going to be one of those people. I'm not going to fault you for saying, then why is the price not going up? Honestly, guys, I think at this point, we're looking at some paper Bitcoin. And and it doesn't necessarily need to be rehypothecated because there is so much Bitcoin that's being held by people like strategy and the exchange traded funds and things like that that there may be a perception a perception of paper Bitcoin, that it doesn't actually have to exist in order for the same effect to occur as if there were paper Bitcoin being sold directly by one company who knew they were basically rehypothecating Bitcoin and selling it to some rube who's not checking because they're not holding their own coin under their own keys.
This is the only way that you can tell whether or not you have actual Bitcoin or something else. And if you have something else, that's not Bitcoin. So just be aware. But I actually take this report as relatively good news, at least to the point that there are quite a bit of people out there who are like, uh-uh. No. This is worth more. I'm going to wait. And as long as we get more and more of those people to come on board and stay on board, at one point or another, something is absolutely going to break. Right? So let's get into this next one. Let's go over to Switzerland where there's great skiing, blonde women, good beer, and zero interest rate.
That's right. Has come back to the Swiss central bank as they cut rates. Omicron, Godbel, CoinDesk, a COVID era feature. Oh, it wasn't a bug. It was a feature that characterized the bull run-in all corners of financial markets, including Bitcoin, has made a comeback in Switzerland, one of the most financial powerhouses of the world. The Swiss National Bank cut its interest rate to zero. To zero. It's going to zero, and now it's at zero. The Swiss Swiss National Bank cut its interest rate to zero Thursday. That was today. This just happened.
To counter falling inflation, appreciating Swiss franc and economic uncertainty caused by president Donald Trump's trade war, and I'm sure that Israel and Iran fits in there somewhere, the return of the return to zero. That sounds like a great book, man. The return to zero comes as tariffs threaten to deflate nations with trade surplus such as Switzerland and China. The latest rate cut is the bank's sixth straight move since it started reducing borrowing cost in March of twenty twenty four. The SNBs return to zero may be a sign of things to come across the European Union and other advanced nations.
A broad based return to zero interest rate policy or ZIRP, z I r p, may bode well for Bitcoin. Yes. Because we'll be able to get cheap ass money to put into quote unquote risky trades. But what about the arbitrage that's going to happen? Because Japan, we you know, Japan had really low interest rates for a long, long time. And, it was good, you know, Japan Japanese yen was clearly a good enough currency that people would borrow it at these insanely low rates from the national, Japan Central Bank and, therefore, the the rest of the the banks in Japan because they were following that policy, and then go out and buy stuff with it, like houses and property and art and risky stuff like Bitcoin. And for the idiots out there, they bought Ethereum with it. They did all kinds of shit. And then the Central Bank of Japan raised their rates, and then boom.
And that was, what, last August? Like, right at the July, the Bank of Japan raised the rates, and then all of a sudden, the carry trade was gone. And everybody started having to sell their, quote, unquote, risky assets that they bought with this borrowed money, and it caused prices to decrease all over the place, including Bitcoin. And the reason they did that was so they'd have the money to pay back the loan so they could get out of these newly high interest rates loan that they found themselves in. What's to stop the same thing happen with borrowing Swiss franc at zero interest rates and going out and buying all kinds of shit because the Swiss franc is not exactly a terrible currency.
So do we see a return to that kind of attitude? I probably. Will it be as effective or affective as the yen carry trade? I don't know. We'll have to see. But meanwhile, the Fed, our Fed, has said no to any kind of drop of the federal funds rate. Bitcoin shrugged off that decision, however, when they kept rates unchanged, and this is James Rubin out of Decrypt. So yesterday, we had Jerome Powell come up to the podium and he said words and and reached for things and put on his glasses and cleared his throat and said, no. We're not dropping interest rates, and I told you that shit was gonna happen. So again, I was right. However, there was a surprise.
There really was. He hinted that there's two rate cuts coming this year. So I I still don't think we're gonna get if we get one, I think we'll be lucky. But let's get into this one. Bitcoin was trading roughly flat in the hour after the US central bank, huge to its recent policy of keeping interest rates unchanged until it sees convincing evidence that inflation is unlikely to tick up again. The largest cryptocurrency by market value was changing hands at just about a $104,002.50 according to crypto data provider, CoinGecko, although it was slightly up over the past twenty four hours. And then they talk about shitcoin number one, which I don't care. Crypto and other risk on markets had overwhelmingly expected the Federal Reserve's decision with the widely watched CME FedWatch tool forecasting a more than 99% probability that the bank would leave rates at their current 4.25 to 4.5% range.
The bank last trimmed the rate back in December, four meetings ago. On Wednesday, it projected just two rate cuts consistent with its stance at March meeting or its March meeting when it last issued a so called dot plot projection. Quote, uncertainty about the economic outlook has diminished but remains elevated, the bank said in the release, adding, quote, I'm considering the extent and timing timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks.
The Fed's caution comes despite a series of surprisingly encouraging inflation readings. Last week, the consumer price index rose an unexpectedly small 0.1% compared to April, sending the annual rate to 2.4% not far off of the bank's 2% target. And April's personal consumer expenditures climbed just 0.1%, buoying investors looking for a rate reduction. But central bankers have been watchful of the trade or rather the impact caused by president Donald Trump's global trade war and other macroeconomic uncertainties that could send prices higher while casting the economy back into recession.
In remarks following the decision, federal reserve chair Jerome Powell said that the size of the tariff effects and their duration and time it will take are all highly uncertain. We know that the time will come. It could come quickly. It could not come quickly. As long as the economy is solid, though, as long as we're seeing the kind of labor market that we have and reasonably decent growth and inflation moving down, we feel like the right thing to do is to be where we are, end quote. Trump has repeatedly pressured the bank to cut its rates and insulted Powell for inaction. On Tuesday, he called Powell stupid, arguing that the US central bank, quote, probably won't cut interest rates today despite no inflation from tariffs.
Interest rate cuts would likely bolster crypto markets by introducing additional liquidity. Bitcoin is among the most reactive assets to liquidity. Last week's eruption of long simmering antagonisms between Iran and Israel and the increasing likelihood of US involvement may further cloud economic forecast and dampen hopes for a more dovish monetary policy. And then we come to oil. Brent crude, a widely watched measure of energy market trends, rose 4% on Tuesday to more than $75 a barrel, the first time it's topped that mark since mid February according to trading economics data. In an email to Decrypt on Wednesday, coin market cap research lead Alice Liu said that investors would be looking for Jerome Powell to signal whether the Fed's monetary policy would remain more hawkish and less restrictive. Quote, if Powell emphasizes inflation risks or downplays September cuts, Bitcoin could test support at 91,500 with altcoins likely underperforming amid tighter liquidity expectations. She said, quote, a dovish surprise future cuts hinted means that we can expect a relief rally across the crypto landscape, and Bitcoin could quickly rebound towards a 110,000 with high beta names like Ethereum and, god, no, Solana potentially seeing amplified gains.
In an email on Tuesday, Nigel Green, CEO of financial advisory giant, Devere Group, wrote that the Fed isn't seeing the kind of clean, convincing disinflation trend that it needs to justify an immediate cut. The data is pointing in the right direction, but we're not there yet. But why would they drop rates? That's the end of the article. Why would they why would they drop rates? If if things are going swimmingly, then why would we put ourselves in a situation or at least we all know that the economy as it is is just is is just smoke and mirrors, but let's look at it from from the way that Jerome Powell is looking at it. Because I gather that he actually thinks that this shit is real, so he's going to act accordingly.
If he's looking at policies of the Federal Reserve that are actually working, then why would he change them until he is dead down to, like, 2.1% inflation rate, if not getting in on the target of 2% inflation, and we're not quite there yet. Right? So, what would be his why would he do it? What would be his incentive to toy with printing more money? Because that that's what'll happen. That's what'll happen if they if they lower rates. I'm not saying that I don't want late rates lowered. I'm just I'm just calling the weather here. We're we we we live in an economic environment of nothing but uncertainty.
Right? And every single thing every single thing is a shock. It doesn't matter what the hell it is. It could be a riot in LA, and it's gonna shock the markets because everything is on a nice edge. I honestly don't think that Jerome Powell is going to lower rates even at the next Fed meeting or possibly even the one after that. Most likely, not even the one after that. If we get two rate cuts this year, I will actually be surprised. I think there's going to be some some events that occur over the next few months that's going to tell Jerome Powell, do not lower rates.
If nothing else, keep them keep them the same. But if something really bad happens, it's not outside the purview of Jerome Powell to raise those rates. So we're we're nowhere close to out of the woods. Yes. Eventually, the money printer is gonna go BRRRR. And it's going BRRRR in other places, but will it go BRRRR in The United States? Not just yet, even though we are seeing an m two money supply that is shocking. It's just shocking. And yet and yet we've got a flat Bitcoin price. When you screw up the world's economy this bad with so many different actors playing their part in screwing up the economy this bad, then everything's a question mark.
Nothing is certain. Hell, at this point, even going to cash isn't certain, except people will still do that because it's like they don't understand they don't understand Bitcoin, so therefore, they're not going to rush into Bitcoin. So we've really gotta keep our heads about us. And one of the best ways to do that is to enjoy some red wine from Peony Lane Vineyards. That's peonylanewine.com. Peonylanewine.com. Go there and buy your wine in Bitcoin. This guy makes his own wine. The guy's name is Ben Jessman, if you did not know. He's the dude behind Peony Lane Vineyards, and he's got a 2,022 Cabernet Sauvignon.
Check this out. This mid bodied Cabernet Sauvignon brings together bright red cherry and black currant flavors layered with smooth tannins and a refined finish. Its effortless charm makes it just as enjoyable on a summer evening as it is next to a cozy fire. It's mid bodied. It's got, again, smooth tannins. It has fresh fruit aromas with a touch of oak, and this is what I love. It's not in French oak. It's not in American oak. Oh, hell no. Ben Justman from peonylainewine.com sourced Hungarian oak. I've never even heard of Hungarian oak. French oak, I get. White oak, French white oak, I get.
American oak, which is more used for bourbon, I get that shit too. I've never heard of Hungarian oak. But he's also got a 2021 Cabernet Franc. Now that is aged in French oak for one year. You can get all of his wines for Bitcoin. It that's what it means to be in the circle p. Now he's not giving you a discount, but use the code Bitcoin and so that Ben knows that if you buy wine, because you heard it here on the circle p in the Bitcoin and podcast, he'll know. And if he and then he gets to make a determination. It was that sale worth something to me? And if it was, how much was it worth? And then he sends me those Satoshis if he determines that I made him a sale. And the only way to let him know that you did that he did that or that I did that for him or is for you to use Bitcoin and as the coupon code either in the comment section or if he's got a coupon code.
He's got spaces on his invoices when you buy his wine that you can drop Bitcoin and all one word, and he'll know, oh, yeah. Yeah. Yeah. He he he made the sale for me. So if you wanna support plebs who are trying to do the things that they want to do with their life that they find meaning in instead of forcing them to go work in some cubicle in some bullshit job somewhere that they don't ever wanna be wasting their life, then support peonylanewine.com. Go to peonylanewine.com, use Bitcoin, and to let Ben know that I sold some wine for him. Now when you do that, when you go and buy wines, if you're in Ohio, you may not even have a tax burden on that one because the Ohio house has approved a bill exempting Bitcoin users from minor tax burdens.
Jason Nelson's got it from Decrypt. Ohio's house of representatives voted on Wednesday to move forward with a new crypto bill that seeks several protections for industry participants advancing it up the legislative chain and inching closer to becoming law. If signed into law by governor Mike DeWine, wine. Get it? See how that works? The Ohio Blockchain Basics Act would prohibit state and local governments from restricting the use of digital assets as payment or interfering with individuals' use of hardware wallets or self hosted wallets. It would also permit digital asset mining by individuals in residential areas. Holy shit. That's actually kinda huge.
They'll be subject to low local ordinances, however, but allow mining business businesses to operate in industrial zones if they meet existing requirements. It goes even further. By prohibiting local governments from rezoning areas with mining businesses without providing proper notice and an opportunity for comment and granting those businesses the right to appeal discriminatory zoning actions. Individuals involved in mining, staking, asset exchange, or blockchain node operations would be excluded from money transmitter, security, and investment laws. This is a pretty sweeping bill, guys.
Exemptions from capital gains from yes. Exemptions from capital gains will also apply to every single crypto transaction with a value below $200 following a 68 to 26 vote. House bill one one six now moves to the state senate for consideration. This was sponsored by representative Steve Demetriou. H b one one six was first introduced in February and advanced from the House Technology and Innovation Committee before winning full blown house approval on Tuesday. Wednesday's legislation comes just one day after the United States Senate passed major stablecoin reform under the Genius Act in Washington, DC as crypto regulation across the nation this year continues to firm up. It also marks the latest in state laws enacted to codify rights for crypto users and providers following Kentucky's passage of a Bitcoin and Shitcoin number one self custody law back in March. Quote, we're getting ready to show the country that Ohio, the Buckeye State, is ready to embrace the future of our economy and blockchain technology and digital assets, Dimitriou said before the vote.
Quote, once we pass the bill, we'll become one of the first states in the country to create a common sense regulatory framework for these cutting edge technologies and industries, Dimitriou added. And then they talk about some of the other states and their histories of either them passing the bill or loading up the Glock nine and shooting themselves in the head, which as we've seen quite a bit of. Let's run the numbers. West Texas Intermediate is shooting high, up 2.77% to $77.22. That's high. Brent Norsey is up 2.39 to $78.53.
Natural gas is also in the green today, two and a quarter to the upside, passing $4 to land at $4.07. Gasoline is up two and a quarter to $2.36 a gallon, although that's more that's more about summer driving season. It just is. I've been I I look at at the oil and gasoline prices every day on this show, and I I know the trend. Gasoline isn't really rising because of oil price right now. It's really rising because of summer driving season. Gold, however, is down as well as all the shiny metal rocks. They're all sad. Gold is down two thirds of a point, landing at $33.86 and 9 dimes. Silver is down one and a half. Platinum is down just over two. Copper is down one and a quarter. Palladium is down just under a full point. Weird shit going on in agricultural, land today.
Wheat, soybean, corn, and rough rice are all unchanged, and they have been since I've been looking at this thing today, and everything else is in the red. So I don't know if there's, like, some kind of funny business going on with some of these commodities, but the biggest loser so far is, as usual, chocolate. 4.15% to the downside. Next up is coffee, 3.84% to the downside. Everything is in the red other than those which are unchanged until we come to livestock. I got live cattle, and it's up a half a point. Lean hogs are up point 18%. Feeder cattle up a quarter. The Dow is down point 86%.
That is a 369 loss. S and P is down the same. Nasdaq is down just over one full point, and the S and P Mini is down one and a half. Why? Because of Iran and Israel. And we're getting hit a little bit today on Bitcoin too. We are under a 104,000, crossing to a 103,960. That is a $2,070,000,000,000 market cap. You can get 30.7 ounces of shiny metal rocks with your one Bitcoin of which there are 19,880,791 and a half of. Average fees per block are fairly low, 0.04 BTC taken in fees on a per block basis. There seem to be 10 blocks carrying 13,000 unconfirmed transactions waiting to clear. High priority rates get you in at six.
Low priorities get you in at four. Hash rate is dropping precipitously again today. We're down to 872.6 exahashes per second. A little bit of minor capitulation, I guess, maybe? Either way, it's a Spain in the ass, which was yesterday's episode of Bitcoin and I got progressively worse with a thousand says thank you, no thank you. Jay with five hundred and fifty five says, I think the appeal becoming a Bitcoin Treasury company is to look attractive as a cash equivalent or savings vehicle. For example, exactly what most stocks on the planet are nowadays. I would say the huge premium the stock price has over a company's real earnings is driven by that use case.
But in a world where those investors can buy Bitcoin or spot paper Bitcoin, those companies have to grow their stock price faster than Bitcoin. Talk to Jack Mallers and you'll find out that that's incredibly difficult to do. So in my opinion, the Saylor strategy leverages a debt parentheses, Ponzi scheme to keep the MNAV growing so investors think they're beating Bitcoin. I think it has a finite lifetime overall, but considering the longevity of the Federal Reserve System, it may well be longer than I think. Yes. Correct. The, markets can stay irrational longer than you can stay liquid. Yodle with 511 says, hackers should have split the burn address into two or three vanity ones with partial messages on each and kept the money.
Turkey with 500 says nothing. Again, gobble gobble. Richard Whitman with 300 says Coinbase sucks. Yeah. I know. You don't have to tell me about it. Buys with a 100 says thank you, sir. No. Thank you. And that's the weather report. Welcome to part two of the news that you can use. Treasury secretary, Besent, has got words to say, and here they are from Vismaya v Decrypt. Treasury Secretary Scott Bessent said on Wednesday, Stablecoins can reinforce dollar supremacy, pushing back against critics who view crypto as a threat to America's currency dominance as President Trump urged Congress to fast track landmark legislation. Crypto is not a threat to the dollar, Besint tweeted on Wednesday, calling digital assets, quote, one of the most important phenomena in the world right now that have been, quote, ignored by national governments for far too long, end quote.
The comments came as Trump pressed house lawmakers to quickly pass the Genius Act after the senate approved the stablecoin framework on Tuesday. Tuesday's senate passage marked a reversal from last month when the Genius act failed a procedural vote. Yes. We know. We talked about that part yesterday. I'm more interested in the body of Besant's comments. So Besant condemned that earlier defeat warning that, quote, the world is watching while American lawmakers twiddle their thumbs. Either step up and lead or watch digital asset innovation move offshore, end quote.
The legislation would establish federal rules for issuing stablecoins, digital tokens typically pegged to the US dollar, quote, stablecoins this is one of the important ones. Stablecoins could end up being one of the largest buyers of US treasuries or t bills, the treasury secretary said in a New York Post interview explaining how someone using a dollar backed stablecoin in Nigeria could transact without actually holding physical dollars. Quote, I think there's a very good chance that crypto is actually one of the things that locks in dollar supremacy, Pacint said, noting the Biden administration tried to, quote, make it extinct.
Industry leaders welcomed the senate passage while acknowledging ongoing political tensions. Ira Auerbach Auerbach Auerbach Auerbach whatever. Ira, head of Tandem at Offchain Labs, told the crypt that, quote, the continued political divide on crypto is creating a market operating under a best guesses framework, and that's becoming untenable for an industry growing at breakneck breakneck speed. Auerbach pointed out that stablecoins, quote, require a different legislative approach than digital assets like meme coins or trading tokens, saying that these are separate issues where speculative concerns should not be allowed to impede payment infrastructure development.
However, concerns persist about conflicts of interest. While speaking to decrypt Alexander Uglis, general counsel at ENS Labs, warned that the Genius Acts, quote, perceived entanglement to the Trump family's private interest could erode trust and credibility in the legislative process and fuel peer the political theatrics over crypto's supposed risks. And then he talks about deep fakes, which I don't know why. But it's these bescent comments. He's all in. He's all in on this shit, dude. And it has the stablecoin has one purpose for The United States, and that's the ability to issue debt and have it almost instantaneously monetized and exported. We've never seen anything like this before. There's never been a vehicle that has been able to do that.
So just be aware, everything Basint is saying is echoing what I've been telling you guys for months. It really isn't. Oh, we're going to bank the unbanked, and We're going to give people in Nigeria the ability to use US dollars because the poor Nigerians, it they don't give a shit. They don't care if a Nigerian goat herder is able to use Tether to buy fucking milk for their child. They don't care. They don't care. They don't care, and they never will. This is all about giving us a vehicle to print money and not have it directly affect The United States citizen for five to ten years from now. So they can this is the this they found a new way to not only kick the can down the road, stablecoins allow them to put the can into a fucking trebuchet and launch that son of a bitch four or five miles away all in one shot.
But the can's always going to exist, and at one point or another, you're going to each reach the edge of a canyon, but not today, ladies and gentlemen. Meanwhile, the hacker group that I was telling you about, you know, the the Novatex hack in Iran yesterday, or at least that's when I brought you the news. Well, they may have they may have done what they said they were gonna do because the hacker group claims that the leak of Novatex source code as Iranian exchanges stolen funds top $100,000,000. It appears that they've leaked the source code for Novatech's exchange in Iran online.
And by the way, this is written by Danny Park out of the block. Gonjektterrande, the pro Israel hacker group that claims to be behind the attack on Iran's Novatex crypto exchange yesterday claims to have exposed what appears to be the platform's key source code information on the social media platform X. Assets left in Novatex are now entirely out in the open, the group wrote. The social media post included apparent screenshots of various essential codes of the platform for exchange deployment, privacy, user interface, and others that could pose further security risks for the exchange.
Novatex was hacked earlier yesterday with on chain sleuth, ZAC XBT, reporting suspicious outflows from its wallets on Tron and EVM networks. Novatex stated in its latest announcement that over $100,000,000 in cryptocurrency was stolen, which was subsequently moved and then destroyed by the attackers. Quote, it is clear that the intention behind this attack was to harm the peace of mind and assets of our fellow citizens under false pretenses, Norbitex said. Shortly after the exploit became public, the group claimed responsibility for the attack saying that Norbitex is a key regime tool for financing terrorism. They also alleged motive for the attack is connected to the broader conflict between Iran and Israel, which has escalated in recent months, including missile strikes targeting cities and strategic locations.
Quote, Novatex isn't just a local exchange. It serves as a critical hub within Iran's heavily sanctioned crypto ecosystem, enabling access to global markets for users cut off from traditional finance. That's according to Chainalysis, and they added that past on chain investigations have linked Novatex to illicit actors, including the Iranian Republic Guard affiliated ransomware operators and sanctioned Russian crypto exchanges. In response to the attack on Novatex, Iran authorities have imposed limits on local exchanges allowing them to operate, wow, they gave them a curfew only between the hours of 10AM and 8PM local time according to Chainalysis.
Quote, the exploit underscores the inherent tension between the borderless nature of cryptocurrency and the geopolitical realities of nation state restrictions, Chainalysis wrote. Meanwhile, Nicholas Smart, VP of Blockchain Intelligence at Crystal Intelligence, said the hacker group's attack on Novatex is reckless and ignorant. Quote, crypto is massive in Iran, and Novatex is among the largest besides Bitpen and Aban Tether, Smart said in a statement shared with The Block. There is no way of knowing if the funds actually belong to the Iranian Republic Guard or IRGC.
The bloc has reached out to Novatex for further comments. Okay. So they they curfewed the largest exchanges in Iran. Actually, they they curfewed all of them, but I really was not under the impression that Iran was that the regime part of Iran was that deep into cryptocurrency. But I've been proven wrong yet once again, but still a curfew. If if you have your money on an exchange, whether you're in Iran or not, it doesn't matter, this is the kind of crap that happens to you. All of a sudden, your shit gets stolen, then it gets burned. And if you're lucky enough to be one of the people that didn't get your shit stolen, all of a sudden, where your shit is, the the the source code gets leaked into the Internet.
Do not keep your coins on exchanges, please, for the love of God, because quantum computing, we're all gonna die. Project eleven has raised $6,000,000 to defend Bitcoin from quantum attacks. Adrian Zmunsky, Cointelegraph, tell me more. Project eleven, a development firm focused on post quantum cryptography, has raised $6,000,000 to help secure Bitcoin from future quantum computing threats according to a Thursday announcement shared with Cointelegraph. The funding round was co led by leading web three investor variant fund and quantum tech investor, Quantonation.
Quantonation. Wow. That's a that's a terrible name. It marks Quantonation's first investment in the crypto space, and Project eleven CEO Alex Pruden said that the funding will allow the company to build, quote, the tools, standards, and ecosystem required to ensure digital assets remain secure in a post quantum world. According to eleven Labs and YCharts data cited by project eleven, quote, there are currently 10,000,000 Bitcoin addresses with a nonzero balance and an exposed public key, putting a total of 6,262,905 BTC worth about $684,000,000,000 at risk of a potential quantum attack.
The company's first release, a cryptographic registry called Yellow Pages, is designed to let users create a quantum resistant proof linking their current Bitcoin addresses to new secure ones without relying on on chain activity. Prudin said that the registry will act as a fallback in the event that quantum computers compromise existing Bitcoin keys. Prudence said that Yellow Pages was audited by something called Cure fifty three and that that company will post the audit results shortly. Project 11 has also opened discussion with Bitcoin core developers about potential future upgrades. Uh-oh. That's probably going to fall on deaf ears. Adam Back, cited by Satoshi Nakamoto in the Bitcoin white paper, previously suggested that quantum computing pressure may force Bitcoin's creator to reveal whether or not they're alive.
The quantum threat to the Bitcoin or rather, the quantum threat to Bitcoin is a controversial topic, some arguing that it is a theoretical threat that does not warrant dedicated resources. Still, the risk is taken seriously by many. The United States National Security Agency, quote, intends that all national security systems will be quantum resistant by 2035 according to a late twenty twenty four document. And under those plans, new acquisitions will require quantum resistant encryption by 2027, and legacy gear will be phased out in 2030 through 02/1931. The National Institute of Standards and Technology also stated in late twenty twenty four that its goal is achieving widespread post quantum cryptography adoption by the year 02/1935.
It's not a question of whether or not it's theoretical. It's at what point does it become practical, prudent told Coin Telegraph. US nonprofit and global policy think tank research institute and public sector consulting firm Rand Corporation conducted an expert survey on the subject in 2020. The report estimated that the average time until a cryptography breaking quantum computer emerges is 02/1933, but noted that, quote, earlier and much later developments are possible with the range starting from 2027. Rand's research preceded a study released by Google in May, which managed to reduce the requirement to break RSA 2,048 from 20,000,000 to about 1,000,000 noisy qubits running for one week, still well beyond today's capabilities, which hover around a few 100 stable qubits.
Prudent told Cointelegraph that, quote, quantum computers can already factor small ECDSA public keys. Still, the same can be said about classical computers. In a 2022 paper, researchers shared the achievement of factoring a 48 bit semi prime number on a 10 cubic computer. And last year, D Wave used a quantum annealing computer to factor a 50 bit semi prime number using a hybrid classical and quantum search. For context, the record on classical computers was set in 2020 on a supercomputer with about 2,700 CPU core years, which was able to factor an 829 bit RSA key and involved a 415 bit prime, this is equivalent to about three months on a medium high performance compute cluster.
What they're saying here is that classical computers can already break a lot of encryption. So just just be aware. Just be aware. On to Elon Musk. His new x company is to roll out in apps trading and investing features in line with super app ambitions according to Financial Times, but this is Naga Avan Namoyo from the block. Elon Musk's x plans to let users trade and invest directly inside the social media app. God, what could possibly go wrong? Broadening a payments push that already includes a Visa backed digital wallet. Again, what could possibly go wrong? CEO Linda Yaccarino said that the new features will cover investments and trading and could include a branded debit or credit card according to the Financial Times. The in app services will roll out first in The United States under the x money banner, a wallet the company announced in January when it partnered with Visa to enable real time transfers between bank accounts and in app digital wallets.
While Iacarino did not specific or specify asset classes, nor did she mention cryptocurrency, the platform already supports tipping with Bitcoin's lightning network and displays real time crypto prices via cash tags. Via has also partnered with several crypto service providers to power payments suggesting that x's latest rollout may include blockchain based currencies. Musk has pursued an everything app vision since he he bought the then Twitter for 44,000,000,000 in 2022. The company has secured money transmitter licenses in several United States states and aims to win approval in all 50 for a broader push into financial services. So wait a minute. Hold on. Hold on here. That's the end of the article. So let me I just wanna get back to this. The platform already supports tipping with Bitcoin's Lightning Network.
Really? So I can tip people with Bitcoin's Lightning Network on x today. I I I'm unaware of this. If anybody knows that this is actually live, you know, I'd I'd like to know. But I think that she's full of shit because I have seen no evidence whatsoever that anybody on x is being tipped via the lightning network. Again, I don't spend that much time on x. So if I'm wrong about this, please show point me in the direction where I should should be reading that they've actually enabled lightning network payments on x because I just if I covered it, I sure as shit don't remember it, but that seems rather huge.
And if it's true, then it seems very, very much buried. But let's get back to the problem at hand. Trading, it trading on x, all I can think of is the troll room on BitMex back in the days of a 100 x leverage, where people will would literally read the troll room comments and try to suss out what was trending upwards and what was trending downwards and base their trades on top of that. Now we've got GROC in the mix. And if you don't think there's not going to be some kind of automated, quote, unquote, noise to drive markets, then you are freaking fooling yourself.
It's going to be a bloodbath. Some people are going to get hot ass rich, but most people are going to lose houses and cars or become in debt for the rest of their natural born lives. It's there is no x has no business allowing financial instrumentation trading on that platform. Given the nature of the platform, it's nothing but a troll box. It's nothing but a troll box, And it's going to get more people than you can possibly imagine in more trouble than they would ever, ever, ever knowingly bring on themselves. They're gonna think it's gonna be fine. They're gonna trade it like everything's fine.
It's not fine. Everything about this is bad, and Elon Musk honestly should be absolutely ashamed of himself for doing it. But like many things in the world, there's absolutely nothing that I can do about it. So I will see you on the other side. This has been Bitcoin and and I'm your host, David Bennett. I hope you enjoyed today's episode and hope to see you again real soon. Have a great day.
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