Back on Twitter after a week of disconnecting from it 👋

It looks like @AriDavidPaul is giving $1M in cash to someone who can implement CryptoKitties on Bitcoin.

Here is how to build that👇
1/ The straightforward way to do this would be to use SIP-009 that defines NFTs on Stacks. However, you’d be paying gas fees in Stacks (not Bitcoin).

Apps like boom.money already do this.

Link: github.com/stacksgov/sips…
2/ One can argue that these NFTs “settle on Bitcoin” but are not “on” BTC.

Fair enough.

Stacks recognizes pure Bitcoin transactions for transfers/ownership, i.e., pay a gas fee in BTC.

How to use that in CryptoKitties?
3/ You can have an alternative implementation to SIP-009, where you color one STX to mint one CryptoKitty.

This converts the STX from a fungible token to a non-fungible token (NFT).

Now you can use pure Bitcoin transactions to transfer the ownership of such a CryptoKitty.
4/ You can also write the logic in the Clarity contract where it can understand pure Bitcoin transactions for biddings.

The Clarity contract can give a Bitcoin address for an auction and programmatically select the highest BTC bidder as the winner.
5/ At this point, the CrypoKitty is:

- Owned by a Bitcoin address.
- Transfers ownership through pure Bitcoin transactions.
- You can bid in an auction using direct BTC transactions.

A full Bitcoin CryptoKitty!

P.S: Ari’s offer, I’m told, is no longer valid. Oh well 😄

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More from @muneeb

30 Jun
Coindesk reported that USDC is planning to expand to Stacks.

This is a narrative violation that DeFi is not possible in the Bitcoin ecosystem.

So what are the benefits of USDC on Stacks? Thread👇
1/ USDC transactions would benefit from the security of Bitcoin.

USDC transactions on Stacks automatically settle on Bitcoin. To rewrite the history of these transactions, you’d need to rewrite the history of Bitcoin.
2/ Availability of USDC would open doors for USDC/BTC atomic swaps, i.e., with BTC on the main Bitcoin chain.

(@fmdroid already has a prototype of STX/BTC atomic swaps.)
Read 7 tweets
25 May
On the origin of NFTs.

How and when did NFTs start? How are they evolving? Tweet thread👇
1/ Non-Fungible Tokens (NFTs) are crypto assets that are one of a kind.

The value of one unit of cash or Bitcoin is the same as another. NFTs are the opposite of that and are unique.

It might seem like NFTs are a recent thing--they're not. NFTs have been around for a decade.
2/ Decentralized domains were the original crypto NFTs.

A decentralized domain is unique, i.e., non-fungible. Namecoin pioneered decentralized domains in 2011, launching at Bitcoin block 19,200 with merged mining.

(I registered u/muneeb there in Feb 2014.)
Read 8 tweets
18 May
Bitcoin is often misunderstood within the crypto industry. Here is how:

Tweet thread👇
1/ People don’t think beyond the Bitcoin base layer.

L2s in Ethereum or subnets in Avalanche bring additional features to base layers. 

Similarly, Bitcoin layers, like Lightning for payments or RSK/Stacks for smart contracts, bring additional functionality to Bitcoin.
2/ Bitcoin is for settlements, not payments.

The additional layers, like Lightning or Stacks, is where payments happen. On Lightning, people use sats, and on Stacks, people can use stablecoins like xUSD or Bitcoin-based assets like xBTC.
Read 7 tweets
6 May
How does the recent interest in Ethereum impact the crypto industry?

Tweet thread👇
1/ Bitcoin found product-market fit as digital gold (store of value) with no real competition in that category for years.

Ethereum's upcoming change in token economics with reduced supply has increased interest in the asset.
2/ Ethereum aims to be both (a) gas for smart contracts and (b) "ultra sound" money, i.e., compete with Bitcoin as a store of value.

Challenging Bitcoin's position as a store of value and the #1 crypto asset will undoubtedly result in tribal arguments.
Read 12 tweets
5 Apr
The ultimate Bitcoin lending app will be 100% trustless. Your BTC will never leave the main Bitcoin chain.

How can this work? Tweet thread👇
1/ Bitcoin lending is already a multi-billion dollar market. You can currently divide the market into (a) wrapped assets and (b) custodial lending.

Wrapped assets themselves can be custodial with more decentralized versions like Keep in the works.
2/ For wrapped assets, like WBTC, a synthetic asset is issued by a custodian on a separate tech stack.

Three issues:
a) Potential tax hit on BTC to WBTC conversion and back. 
b) Risk of companies in the middle.
c) Risk of blockchains other than Bitcoin.
Read 10 tweets
24 Mar
A lot of new people are discovering the crypto industry in 2021.

What basic mental models do you need to get right when learning about crypto?

Tweet thread👇
1/ The first thing to realize is that "cryptocurrencies" is the wrong term. Currency implies money. Other than Bitcoin, most assets are not money.

These are crypto-assets (not cryptocurrencies), and the critical question to ask is: what purpose does this new asset serve?
2/ The absolute worst way to enter crypto is to think, "Bitcoin appreciated, let me try to find the next Bitcoin." That's flawed at so many levels.

Bitcoin is a store-of-value, a type of hard money. Other assets are not even trying to be SoV (some are trying but failing).
Read 11 tweets

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