Finney21

www.Finney21.com

#Bitcoin Consulting Firm [est.801408]

Public Key

npub1ks2lwal5ewlzpsgvtsc82kteszpyvnjcnfypmzepw5kd3pvaxtaq9fpkex

NIP-57 Address

finney21@walletofsatoshi.com

Profile Code

nprofile1qqstg90hwl6vh03qcyx9cvr4t9ucpqjxfevf5jqa3vsh2txcskwn97s3yauu2

Author Public Key

npub1ks2lwal5ewlzpsgvtsc82kteszpyvnjcnfypmzepw5kd3pvaxtaq9fpkex

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Last Notes

2024-02-24 15:52:11

Terminology microdose:
Bitcoin (capital B) refers to the network through which the asset is created and moved around
bitcoin (lowercase b) refers to the asset which is the unit of currency of the #Bitcoin network

2024-01-11 13:37:52

Scarce things:
#bitcoin
Block space
Time with a #Bitcoin consultant

2024-01-11 13:36:31

Been a while. Time for some updates
Finney21 is a 21 person team of hardcore Wealth Consultants
Wealth = Health & #Bitcoin
Each team member has a unique specialty
Each team member is a guardian in our Fedimint
We gather every week on a 60 minute call to discuss a topic
We each contribute to and curate a world class resource library
We honour the legacy of Satoshi Nakamoto and Hal Finney by working together to accelerate the transition to scarce money

2023-11-07 22:54:41

P01 - shopify opportunity: raw notes2_unsorted [11.7.23 - block 815,736]
Insights from conversation with Santosh
—
Intuitive merchant experience is essential. 1 click merchant wallet activation with 10,000 sats
Opportunity for Shopify: become the LSP that routes all merchant bitcoin payments
Brand image boost by helping merchants protect themselves from the monetary debasement
The first interaction is what matters. Goal is to get a second interaction
Success = continuing to have interactions with Shopify
Approach Shopify through fiat lens, not through Bitcoin lens
Emphasize benefit to Shopify shareholders
Consideration: how will the market perceive this decision? What could be the consequences on Shopify share price
Visa’s pitch: data, data, data
Bitcoin’s pitch: convenience, global acceptance, reduction of barriers
Customers no longer need a bank account to purchase from Shopify merchants (this is huge)
Someone from rural Africa without a bank account that has an internet connection can make a purchase from a shopify merchant in Argentina
Merchant in Argentina can protect themselves from inflation and trade with customer in Africa who doesn’t have a bank account
This is the power of Bitcoin - the digitally native money built for the global internet economy
Consider consequences on current payment methods
First interaction: think big, tone down the Bitcoin and turn up the benefits to shareholders and merchants
Next step: big brain consultant call. Collaborate on drafting an open letter
One page open letter to Shopify. Handwrite the letter? Print on nice paper? From Satoshi? Orange envelope with a ₿ stamped/painted on it
Stakeholders: Shareholders, company (brand image), customers (merchants)
Define stakeholders, explain how Bitcoin benefits each stakeholder
#Bitcoin integration with Strike: How was it perceived? What’s the internal company impression of Bitcoin?
There could already be a Shopify team already researching or implementing a bitcoin payments project
Understand Shopify’s pain points
Bitcoin unlocks payments without barriers (1.4 billion unbanked people)
Keep the letter simple, playful, to the point
Paint a picture of what Shopify could look like in 2033 with bitcoin payments enabled
Someone with an internet connection in rural Africa buys something from a merchant in Argentina
Merchant subscriptions could be paid in bitcoin
Project objective: Educate and train a Shopify Bitcoin team
Challenge: selling Shopify on a solution to a problem they may not even know they have
Step 1: bring awareness to the problem

2023-11-06 20:48:01

P01 - shopify opportunity: raw notes_unsorted [11.6.23 - block 815,615]
Building on #Bitcoin
21st century ecommerce on top of a digitally native, global, decentralized, open monetary protocol called #Bitcoin
—
Write an open letter to Toby and Shopify board of directors
Also send letter to VPs of engineering
Encourage everyone to study the Bitcoin Whitepaper. It’s a miraculous innovation in computer science
The 21st century digital economy is built on a global, decentralized monetary protocol called Bitcoin
Shopify can supercharge their e-commerce platform by integrating lightning payments and merchant wallets
7 person team: wallet software engineer, lightning software engineer, Ux designer for merchant wallet and payments, lightning architect, educator, comms/fixer, leader to nurture key relationships
1 month of planning, 6 month execution to ship merchant wallet (60 days) and turnkey lightning implementation for merchants
Do everything open source and in alignment with Bitcoin
Educate Shopify staff. Empower them with Bitcoin. Pay them their first 21,000 sats to learn about Bitcoin
Educate Shopify merchants. Empower them with Bitcoin so they can protect themselves from currency debasement that is threatening their business
Merchant benefit: a new cohort of customers who want to spend Bitcoin, lower transaction fees (0.5% routing fees to shopify)
Bitcoin protects merchants from central banks who are debasing currencies and devastating their businesses
Building on Bitcoin is good for the world, good for Shopify’s merchants, and good for Shopify’s shareholders
Shopify has an opportunity to pioneer the 21st century digital economy built on a digitally native monetary protocol called Bitcoin
Big events to announce the integrations when they are ready. Pilot and beta test everything in house within shopify
To cover in open letter (unpacked for presentation):
1. Why does Bitcoin (not crypto) matter?
2. How can Shopify benefit from integrating Bitcoin?
3. How can Shopify merchants benefit from Bitcoin?
4. What business opportunities are available to shopify?
5. What does the execution look like for integrating Bitcoin?
6. Read the whitepaper
Revenue generator: Shopify becomes the LSP for 1.75 million merchants
Merchant Ux: Bitcoin dashboard, merchant wallet, non custodial mobile companion wallet
Customer Ux: Bitcoin payment checkout (lightning)
Bitcoin is a superior payment network for the global digital economy. The protocol is open, global, decentralized, and digitally native
21st century digital money for 21st century digital merchants
Merchant benefits: lower transaction fees, instant settlement, no chargebacks, new customer base of people who want to spend bitcoin
Activate your shopify merchant wallet. We send you your first 21 satoshis when you do that. Education video, 1 click activation
Companion mobile wallet for merchants to track their store wallet balance and take self custody of satoshis

2023-11-06 19:56:04

#note1j0u…sw46
Halving & difficulty adjustment

2023-11-01 22:01:36

P01 presentation notes [11.1.23 - block 814,886]
#Bitcoin is not a hedge by Parker Lewis [34min]
—
Bitcoin isn’t a hedge to inflation, it’s the solution to inflation
Bitcoin only. Not crypto
There will only ever be 21 million bitcoin
Bitcoin is a form of money that cannot be printed
Economic systems converge on a single form of money. We only need a single form of money
People cannot flee to the safety of something they do not understand
Less than 1% of people currently understand and have material exposure to bitcoin
Adoption occurs as knowledge distributes
Why is Bitcoin valuable? 21 million fixed supply, censorship resistant, trustless
What problem does Bitcoin solve? Money printing (which creates inflation)
World events demonstrate the reason Bitcoin exists. Canadian freedom convoy, 2023 bank failures
Knowledge distributes as a function of time
People move from trading bitcoin to get more dollars to accumulating bitcoin because it is replacing the dollar
“If you understand bitcoin, there’s no way you only own 1%” - Michael Saylor
Every fundamental of Bitcoin is currently very strong
Nearly 70% of bitcoin has not moved in over a year
The Halving is the most important market event in Bitcoin
Bitcoin becomes more scarce every year especially during halving years
92.9% of all bitcoin that will ever be created has already been issued as of today
Injection of new dollars induces the expansion of credit
Without printing more money, the debt system collapses
“bitcoin is the only large tradeable asset in the world that has a known fixed maximum supply” - Paul Tudor Jones (May 2020)
Only a better form of money can fix a broken money
The fiat system becomes more fragile when exposed to stress. Bitcoin gains strength when exposed to stress
Bitcoin functions best in a world without bailouts
Bitcoin is the greatest asymmetry to ever exist
Most asymmetrical events are low probability. Adoption of Bitcoin is an asymmetrical event that is highly probable
If they printed $5 trillion last time, they will need to print much more the next time (which seems to be getting very close)
There is no top to global adoption of bitcoin as money
Bitcoin’s scarcity is not valuable without education and security

2023-11-01 16:48:20

2023 Whitepaper Event
Hosted by @npub1y6f…3u6x with @npub1f7p…nerm @npub1pwz…tdyp and Dan Ostermayer sharing their wisdom and insights on the #Bitcoin Whitepaper and Self Custody
Listen to the podcast:
https://fountain.fm/episode/TVPSIKBIPtQdodtd5B4u
Or watch on Youtube:
https://youtu.be/eT-qP2_QGFw?si=hou9E5Bf635Ng21x

2023-10-30 17:40:52

P01 study notes [10.30.23 - block 814,552]
Topic: Bitcoin collateralized loans [subtopic: bitcoin as pristine collateral]
—
Anything can act as collateral but several objective properties can be used to evaluate the quality of collateral
Poor collateral: currency deposits, machinery, inventory
Good collateral: real estate, stocks, treasuries
Pristine collateral: bitcoin
Properties that determine quality of collateral:
Market liquidity: How quickly and easily an asset can be sold
Settlement: The ease and speed of achieving final transfer of ownership
Security: Ability to secure an asset
bitcoin is pristine collateral because it trades 24/7 365 days a year on a global market (highly liquid), can be settled globally within 60 minutes in any amount for a relatively low fee, and can easily be secured with digital encryption instead of being physically secured
Compared to bitcoin, real estate an inferior form of collateral because it is relatively illiquid, has rigorous and costly settlement (verification of title, transfer of ownership), and is limited to a local market because the asset cannot be moved globally
Implications: With treasuries and currencies collapsing, the quality of any collateral denominated in currency is eroding
bitcoin is quickly becoming the apex form of collateral globally and eventually become the preferred form of collateral for banks to hold on their balance sheets
#bitcoin is the reserve asset of the internet economy and the most pristine form of collateral humanity has ever seen!!

2023-10-27 17:00:16

P01 proof of study
Notes session 10.27.23 [814084]
Topic: Bitcoin collateralized loans [subtopic: rehypothecation]
—
Hypothecation is a process where a lender receives an asset offered as collateral security
Rehypothecation is the process where a lender reuses collateral provided by their clients (the borrower) to earn income or secure further borrowing
When a lender rehypothecates borrower collateral, it significantly increase exposure to counterparty risk
While lenders who rehypothecate often offer lower interest rates on collateralized loans, the tradeoffs is borrower collateral being put at increased risk
Before sending bitcoin to a lender, a borrower should first make an assessment of the credit risk of the lender
With rehypothecation, the credit risk of borrowers to which the lender is lending the rehypothecated collateral to must also be assessed
We recommend clients only initiate bitcoin collateralized loans with lenders who do not rehypothecate collateral in order to eliminate the added risk created by rehypothecation
How your collateral is stored should also be considered. Multiparty collaborative custody and the ability to monitor funds on chain by holding 1 of n keys is the gold standard
This enables borrowers to cryptographically verify that their bitcoin collateral remains in a dedicated address and has not been rehypothecated
Rates on bitcoin collateralized loans must be adjusted for risk. Lenders who employ transparent custody practices and do not rehypothecate will charge a higher interest rate
With bitcoin poised to become the future reserve currency of the world, we feel it makes little sense to accept higher risk of loss for a slightly lower interest rate on loans
Unchained capital currently offers what we consider to be the gold standard product when it comes to bitcoin backed loans
Unchained does not rehypothecate client collateral and use a transparent multiparty multisig custody strategy whereby lenders hold 1 of 3 keys and verify their bitcoin on chain
--
21min

2023-10-21 19:02:07

#Bitcoin Consulting Network
Call #1: October 2023
https://fountain.fm/episode/4Mv1ZOQVqX1ZZs9j4XnP

2023-10-21 16:14:23

Just wrapped up an awesome call with 17 badass #Bitcoin consultants from around the world
Thanks to everyone who participated
Audio of the call will be posted within 24 hours to the Bitcoin Stoa podcast 🧡
Next call: November 21,2023
Topics:
- The art of asking good questions
- The business of Bitcoin consulting

2023-10-19 14:21:37

GM nostr ☀️
Freedom tech is winning
Freedom money is winning
#Bitcoin is reshaping the world
Love to you all 🧡

2023-10-16 15:00:29

We are a team of 21 hardcore professional #Bitcoin consultants
We share our study notes
We gather monthly to share knowledge and learn together
We each bring a unique speciality to the team
We collaborate to serve our clients
We can handle jobs of any scale
We live in alignment with Bitcoin
We honour the legend of Hal Finney

2023-10-16 14:56:24

P01 - proof of study
Notes session 10.16.23 [812460]
Research topic: #Bitcoin collateralized loans
—
Bitcoin is the reserve asset of the internet economy
The internet economy is an aggregate economy of the entire world and is larger than any single nation economy
Bitcoin is pristine digital collateral for lending
Pristine meaning: Not spoiled, corrupted or polluted
Collateral: something pledged as security for repayment of a loan, to be forfeited in the event of a default
Collateral is something provided to a lender as a guarantee of repayment. It is used to secure a loan
Collateral reduces risk for lenders because if a borrower defaults on the loan, the lender can seize and liquidate the collateral
People who own Bitcoin will have access to the best interest rates
Bitcoin is the apex collateral in a digital world (largely because to it’s unmatched liquidity)
Bitcoin is replacing treasuries as the apex reserve collateral
Why is a Bitcoin collateralized loan a useful product? It is a tool to help individuals or companies avoid ever selling their Bitcoin
By borrowing against your Bitcoin instead of selling it, you:
- Eliminate capital gains taxes (Bitcoin is considered property, therefore a taxable event is created everytime you sell or exchange it)
- Continue to benefit from the price appreciation of bitcoin
- Can write off the interest expense of the loan
Areas to research:
- Dynamically refinanced loans (monthly)
- Counterparty risk of different bitcoin backed loan products
- Rehypothecation considerations
Loan-to-value ratio (LTV): The maximum amount of a secured loan based on the market value of the asset pledged as collateral
A low LTV (conservative) provides protection from liquidation in case the underlying asset has a significant drawdown in price
Bitcoin backed loan products to review: LEDN, SALT lending, Unchained capital, Coinbase
Factors to consider: custody risk, rehypothecation, insurance, origination fees, interest rate, Loan to value (LTV), collateral to principal (CTP), prepayment penalties, tax implications, loan maturity options
-
21 min

2023-10-13 19:45:58

Why do we do this work?
Because we believe every human has a right to save the fruits of their labour in incorruptible money backed by energy, governed by the laws of the universe and immune to the foolishness and greed of man
Team mission: accelerate the transition to scarce money
#Bitcoin

2023-10-13 18:28:06

P01 - proof of study
notes session 10.13.23 [812036]
Report: #Bitcoin First Revisited by Fidelity Digital
--
The primary value driver of bitcoin tokens is scarcity and a reliable supply cap of 21 million units
Based on this scarcity, bitcoin is uniquely positioned to be the primary monetary good and another digital asset is not likely to supersede bitcoin in this role
While Bitcoin is not the most scalable, it is currently the most secure and decentralized network at the base layer
A centralized blockchain is simply a database and these have existed for decades
The decentralized blockchain employed by Bitcoin is the radical innovation and offers the important qualities of immutability, seizure resistance, censorship resistance and trustless design
Bitcoin is a global open-source protocol for value transmission
In contrast to TCP/IP, ownership of the base layer is possible via purchasing bitcoin tokens
Each bitcoin token is divisible into 100 million smaller fractions called Satoshis
Every application built on Bitcoin increases the value of the network and therefore also increases the value of ownership tokens for the network which are called bitcoins (lowercase b for the asset, capital B for the network)
Lightning is a layer two application built on top of the Bitcoin base layer
Lightning is a decentralized network that allows off-chain transactions between persons with the ability to make final settlement on the base layer
Lightning increases Bitcoin’s scalability while maintaining Bitcoin’s security with the option to settle any time on the base layer
It is beneficial for investors seeking to better understand digital assets to separate Bitcoin and all other digital assets into separate categories
bitcoin is the scarcest monetary asset in human history and deserves to be considered separately from all other experimental tokens in the digital asset space that are separate from Bitcoin
While nation state attacks and protocol bugs remain risks to Bitcoin, those risks continue to diminish each day as the network grows stronger with more users, miners and infrastructure being built
—
21min
pgs 15-19

2023-10-13 00:02:54

Finney fact:
In January 2009, Hal Finney was the Bitcoin network's first transaction recipient

2023-10-12 20:57:35

"The computer can be used as a tool to liberate and protect people, rather than to control them"
- Hal Finney [November 1992]

2023-10-12 15:23:01

P01 - proof of study
notes session 10.12.23 [811869]
Report: #Bitcoin First Revisited by Fidelity Digital
--
Lindy Effect: the longer a non-perishable thing survives, the more likely it is to survive in future
Antifragility: when something becomes stronger with each attack or stressor it faces
Bitcoin is antifragile and every second, minute, day, month it survives increases the likelihood it will continue to survive
Most people underestimate the volume and intensity of negative events Bitcoin has already endured
Due to network effects, it is likely that one digital monetary good will dominate the global market
It is unlikely that another digital asset will supersede Bitcoin as a monetary good
Blockchain trilemma: a decentralized database can only deliver on two of three guarantees at one time: decentralization, security, or scalability
Security: likelihood of the network being attacked or compromised
As the Bitcoin network grows with more nodes and miners distributed across the world, it becomes harder and more expensive to attack Bitcoin
Bitcoin is by far the most secure digital asset when measured by hash rate securing the network
Decentralization: how much control any one person, entity or group has on a system or network
The opposite of a decentralized network is a conpletely centralized network where a signle intermediary controls all aspects of the network
Decentralization = lower network throughput (lower scalability) but higher security
Bitcoin is the most decentralized digital asset and continues to show increasing decentralization over time
Scalability: how well a network can handle growth of number of users and volume of transactions
Bitcoin optimizes for decentralization and security and as a result has a slower transaction throughput capability
Bitcoin scales in layers built on top of the base layer, not on the base layer itself
Bitcoin is currently the most secure and decentralized monetary network
The transaction throughput of Bitcoin is limited by the time between each block (approx 10min) and the block size (just over 1mb) which limits the number of txs that can fit into each block
Blocksize war: a battle to increase block size which would decrease decentralization over time (because running a node would be more expensive over time with bigger blocks creating more data to store)
This war resulted in a hard fork which created a code change that was not backward compatible
All hard forks from Bitcoin to date have either failed completely or struggled to gain any kind of market dominance
This signals that the market values a highly secure and decentralized store of value more than another payment network
Bitcoin's revolutionary invention was solving the problem of digital scarcity and creating a digital store of value, not making an incremental improvement to a payment system
-
21min
pgs 8-14

2023-10-11 21:15:32

P01 notes session 10.11.23
Hardware wallet review: Jade by Blockstream
--
- Fully open source hardware and software. Gold standard that is rarely met in the HWW industry
- Affordable compared to alternative products. Uses commodity hardware
- Simple to use, great support, compatible with Blockstream Green, Sparrow, Nunchuk, Specter
- QR scan, BIP85, duress pin
- Fully air gapped. Enables sending bitcoin without connecting to the internet
- Immune to physical key extraction from device alone (virtual secure element with 3 secrets - Jade secret on device, pin, remote blind oracle)
- DIY-able (firmware can be installed on inexpensive, off the shelf hardware
- Can be used as a 2FA device
- Can mine bitcoin (cool but not profitable)

2023-10-11 14:49:36

We chose to name our team after this Legend. Never forgotten, eternally grateful
https://nostrcheck.me/media/public/nostrcheck.me_8848547103865611881697035760.webp

2023-10-10 17:01:18

P01 notes session 10.10.23
Report: The Lightning Network grew by 1212% in 2 years by @npub1xke…d0en
--
The number of users, transactions and volume on lightning have been accelerating significantly over the past years
6.6 million routed Lightning txs in August 2023 (lower bound estimate)
1212% growth since the 503k tx estimate for August 2021
This growth was despite a 44% bitcoin price drop and 45% decrease in search interest
Avg Lightning tx size of 45k sats ($11.84) in Aug 2023
Lightning is extending Bitcoins utility by enabling low value payments over the internet
Est. ratio of 1:8 non-custodial to custodial Lightning users
173 companies in the Lightning industry across 28 categories
Lightning enables millions of people to trustlessly and instantly move money back and forth without having to settle each tx on the Bitcoin blockchain
It has been 7 years since the Lightning Network Whitepaper was published
There is no way to identify all private nodes on the Lightning network
An estimated 70-80% of Bitcoin users have their funds on exchanges today
21min
Pgs 1-10

2023-10-09 21:21:52

#note19r5…2vxc
Bring back personal responsibility

2023-10-09 21:19:49

- reply

We have some A+ seasoned sat slingers that would love to try out when you eventually expand the team 🤙🏼

2023-10-09 21:11:22

P01 notes session 10.9
Report: #Bitcoin First Revisited by Fidelity Digital
Bitcoin is the only digotal asset that matters. It is fundamentally different than all other digital tokens in its security and decentralization
It is not vulnerable to innovative destruction from competitors
bitcoin the asset vs Bitcoin the network
Bitcoin is best understood as a monetary good
A monetary good is a good that is valued for its tradeability for other goods, not its consumption or use
Bitcoin is superior money to gold and fiat currency based on properties of durability, divisibility, fungibility, portability, verifiability, and scarcity
Bitcoin's value is driven by its enforceable scarcity of 21 million bitcoin
Unlike gold which is relatively scarce, bitcoin is provably finite
There will only ever be 21 million bitcoin
Two key characteristics underpin the scarcity of bitcoin: decentralization & censorship resistance
Bitcoin has promising potential to be the primary monetary good for humanity
The value of a network increases exponentially as the number of its users grow
Monetary network effects are extremely powerful
Bitcoin is the first and only truly scarce digital asset ever created
Any subsequent monetary good will be reinventing the wheel. The wheel can only be invented/discovered once
21 min
Pg 1-7
#finney21 #bitcoin

2023-10-09 20:20:05

Gradually then SUDDENLY
#Bitcoin is portfolio insurance for suddenly moments
Our spidey senses smell suddenly
Brace for impact
Suffer well
It's gonna be way better in the new world

2023-10-09 20:15:32

- reply

Any interest in sponsoring a team that hunts down unused hydro power in Quebec and monetizes it with hash?

2023-10-09 20:10:12

The halving is programmed but not priced in
Act accordingly
Study & Buy #Bitcoin

2023-10-09 19:18:30

Client 001, project 001
Draft letters for clients and contractors to communicate #bitcoin as new payment option and why it is preferred over digital fiat and cash
Price for work: 840,000 sats
Block: 811267

2023-10-08 22:12:53

True or False?
https://nostrcheck.me/media/public/nostrcheck.me_5583208067921838341696803129.webp

2023-10-07 23:02:56

v1.0 website is now officially live
www.Finney21.com

2023-10-07 19:32:03

A firm of 21 professional consultants
v1.0 of our specialty roster:
Health:
1. Musculoskeletal
2. Internal systems
3. Mental & emotional
Bitcoin:
4. Institutional
5. Small business
6. Personal self custody
7. Exchange
8. Software (wallets)
9. Software (coding)
10. Mining
11. Energy
12. Key management
13. Node
14. Lightning
15. Legal
16. Accounting
17. Admin
18. Relationships
19. Collateralized loans
20. Collaborative custody
21. Research

2023-10-07 14:05:12

SATurdays are for studying #Bitcoin

2023-10-07 12:55:41

WHY does Finney21 exist?
To accelerate the transition to scarce money (aka #Bitcoin)

2023-10-07 12:33:05

Hello nostr
Running #Bitcoin