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LaurentMT @LaurentMT
, 7 tweets, 2 min read Read on Twitter
Managing the fragmentation of their utxo set will become a critical factor for BTC services.
For example, this entity (oxt.me/entity/tiid/48…) is a wallet controlled by Coinbase. To date, it owns around 203 BTC split in 1,464,545 utxos !
With BTC at $15.8k, it means $3.2M with an average utxo value of 2.2$. #DustInTheChain
This fragmentation is the result of 2 factors: a real business success and a long failure at optimizing their processes (batch transfers, etc).
But there's worse for Coinbase (and their users who pay the tx fees). On several periods during in the last months, this wallet has sent txs with fees >= transfered value.
E.g.:
oxt.me/transaction/c7…

oxt.me/transaction/59…
Note that it's likely that Coinbase isn't the only Bitcoin service having this problem. But of course, none of them will acknowledge that. Better put the blame on protocol developers, trolls, dragons or whatever.
Now here is the thing: Segwit or LN won't help them to solve this issue.
Bigger blocks would.
/end
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More from @LaurentMT see all

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A few random thoughts about the recent announcement of Bitcoin addresses entering the OFAC list of sanctioned parties.
An obvious question here is: What does it mean when we say "nobody is permitted to engage in any transaction with one these addresses" ?
First answer: you shouldn't accept a transaction sending bitcoins to you if some of the utxos spent by this transaction are "related" to one these addresses.
Read 17 tweets
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For some reasons, this announcement is somewhat special for me ("disclosure" included in the thread).
In early 2016, while I was looking for fundings, the team of what would later become CypherTrace, contacted me for the acquisition of OXT.
Since I've always envisioned OXT as a public source of information, I proposed a different model with a license allowing CT to run their own private version of OXT.
Read 10 tweets

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#BTC update - similar to previous cycles, #Bitcoin closed below the logarithmic regression trendline this week reaching towards the lower band. In addition, long-term monthly returns remain in negative territory. 1/
From a historical perspective, #BTC should find intermediate support at these levels. The strength of the upcoming bounce will provide more insight. From a weekly POV, the lower confidence band is steadily rising. Note that so far price has never closed below these bands. 2/
Admittedly, #BTC hit 4800 almost two months faster than previously forecasted and hit the bottom of the current proportional cycle in a hurry. Unfortunately, on a relative basis, on chain transaction volume is weaker than typically witnessed during previous trend changes.
Read 4 tweets
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Just a reminder that last time Nancy Pelosi held the Speaker’s gavel she presided over the one of the most productive Congresses in a century and NEVER LOST A FLOOR VOTE.
If you’re wondering why it’s so hard to dislodge her it is because she is extremely good at her job and to get her job you have to already be good at it (applies to Democrats only).
To be Speaker in a Democratic House you need to be able to whip votes, protect vulnerable Dems, have a loyal crew and understand the value of committee assignments.
Read 6 tweets
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#BTC #Bitcoin + #LightningNetwork + Autopilot + Splicing will cause more earth shattering changes than have happened in the last 500 years.
The invention of the internet and industrial revolution combined are NOTHING compared to whats to come.
Oh ya, completely forgot AMP... that's an extremely important piece of tech as well.
Oops, posted the additional comments in the wrong place:
Read 3 tweets
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1/ What is the difference between monetization and market cornering? I wanted to explain this in more detail because so many people misunderstood what I wrote.
2/ The process of monetization is the increasing distribution of the supply of a monetary good amongst a population. What matters is not the number of people who become owners per se, but how fully the supply itself is distributed.
3/ For example, if a monetary good is owned by a million people, but 99% of the supply is in the hands of a single person, it is less distributed than a monetary good owned by a thousand people where no single person owns more than 1% of the supply.
Read 13 tweets
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#BTC
Wyckoff update
Full detailed description of first and third laws of Wyckoff (supply & demand and effort vs. result)
#BTC
Wyckoff update
...wait...wyckOFF...bognanOFF...smth
Completed Wyckoff structure. Looks scary similar.
p.s. this model was designed almost a century ago, people didn't have calculators and were drawing charts by hand using pencil and ruler.
Read 12 tweets
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1/ Once you've bought and held Bitcoin, will you ever forget about checking what its price is? Ever?
2/ Even if you don't currently own any bitcoins, you've been "mentally captured". You are forever a source of liquidity for Bitcoin.
3/ The pool of people who are captured in this way grows monotonically. The more people who are captured, the greater the liquidity.
Read 7 tweets

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