Ep. 28 What Peter Did (with Peter McCormack)

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In this episode of The Unhashed Podcast: Peter “The Pistol” McCormack of What Bitcoin Did joins us to discuss maximalism, dialogue with those you disagree with, and dealing with the pressure of internet mobs. Also, what would happen to the Bitcoin blockchain if fees ever got to $1,000 per tx? Would maximalists change their tune about block sizes or would the experience be minimized by the addition of channel factories? And...the SEC has finally published guidance for crypto companies on the question of whether or not their coin is a security. But can the SEC publish guidance on if the coin is a shitcoin or not?

Topic times:

0:00:00 Intro

0:04:18 Does Bitcoin's Toxic Maximalism Make Sense?

0:35:11 Bitrefill announces Thor and general lightning network discussion

0:56:01 SEC publishes guidance on what is and isn't a security

1:03:39 ICOMG - InsaneCoin

1:18:26 Lightning Round

Weekly News Wrap Up:

  1. Bitcoin Magazine just ran an Op-ed Why Bitcoin’s “Toxic” Maximalism Makes Sense from Kyle Torpey. And at the bottom, he admits that the article is partially a response to Erik Voorhees’ appearance on What Bitcoin Did.

  2. The crypto payment platform Bitrefill has announced “Turbo”, an upgrade to Thor; their on-demand Lightning channel service that launched in January allowing users to receive payments whether they have bitcoin loaded into their Lightning wallets or not. Bitrefill COO John Carvalho said that, since Thor launched, the startup has opened hundreds of Lightning channels with customers and hopes to soon reach thousands. But, with the original version of Thor, it takes roughly “six confirmations before a new Lightning channel is usable” and roughly an hour of waiting time. With Thor Turbo, Bitrefill expects the process to go much faster. The startup claimed that users can "instantly hop onto the network and make purchases from anywhere in the world without delay using Bitrefill’s node.”

  3. The SEC has actually published guidance for crypto companies to determine whether or not their asset is a security or not; a surprising departure from the SEC’s long standing policy of “just create your shitcoin and we will tell you it’s a security with a lawsuit after you’ve raised millions of dollars”. In the guidance, the SEC provides a framework for analyzing whether a digital asset has the characteristics of one particular type of security – an “investment contract.” From the guidance: “The U.S. Supreme Court’s Howey case and subsequent case law have found that an “investment contract” exists when there is the investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others. The so-called “Howey test” applies to any contract, scheme, or transaction, regardless of whether it has any of the characteristics of typical securities….Issuers...engaged in the marketing, offer, sale, resale, or distribution of any digital asset will need to analyze the relevant transactions to determine if the federal securities laws apply.”

  4. In related news, the SEC has just issued a no-action letter to TurnKey Jet, confirming that the TKJ tokens issued during the startup’s initial coin offering (ICO) are not securities. In the letter, the regulator specifies that it considered that the platform will be fully developed and operational at the time the tokens are sold, and the funds won’t be used to develop the platform. It also mentions that the tokens will be immediately usable and have been marketed for their utility, not potential profits. Other reasons cited are that the price of the tokens during the sale will be fixed at one dollar, each token will be granting one dollar worth of service and that the company will only purchase them at a discount unless a court orders it to liquidate them. The SEC also notes that since TKJ transfers will be limited to TKJ wallets only and cut out from wallets external to the platform, it does not consider the tokens to be securities.

ICO My God They’re Serious:


One Final Note:

Make sure you are storing your crypto on something secure like a Ledger and backing it up on something sturdy like a Billfodl. If you buy these items through the links above, we do take a cut of the profits but it also helps support the show - a win/win for all involved.

Colin aulds