Greetings Bitcoiner,

Welcome to Issue #139 of the Bitcoin Breakdown, where, for a limited time, we’re still rewarding readers with 2,000 free sats for your positive reviews of the newsletter on Apollo here.

Happy readings! 👽️

TOGETHER WITH FOUNDATION*

Introducing Foundation’s Passport Prime: The World’s First Personal Security Platform

Bitcoin hardware security company Foundation this week unveiled its third-generation device, Passport Prime, which is the world’s first personal security platform and signing device aimed at both first-time and experienced users.

The device runs on KeysOS and comes with a hardware wallet, a multi-factor authenticator, an encrypted flash drive, and a secure app platform.

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The first 1,000 customers can pre-order the device through Foundation’s Early Access Program.

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OPSEC FEATURE ARTICLE

Is Your Face Now Public Property? The Shocking Truth About Internet Facial Recognition

Research by Privacy International shows that UK MPs are ignorant about facial recognition and have failed to address key concerns about the technology.

In this week’s feature article, we explore how the rise of facial recognition on the internet is changing the way we interact with the digital world, the challenges associated with it, and the steps you should take to protect yourself from potential threats to your privacy.

Get instant access to this special feature by becoming a premium supporter here.

🏆 FEATURE STORIES

• L0la L33tz, freedom tech journalist of The Rage, admonishes the Bitcoin Policy Institute’s draft Executive Order for a Strategic Bitcoin Reserve for President Trump’s consideration, criticizing their wording of Bitcoin as ‘a finite store-of-value asset’ as opposed to also emphasizing its unit of exchange property, fearing incentivizing ossification (Dec 17 | 2 min read).

• Zack Cohen of the Bitcoin Policy Institute, in a new policy brief, argues that the US Department of Justice’s indictment of Samourai Wallet co-founders for allegedly operating an unlicensed money transmission business sets a concerning precedent in redefining non-custodial wallets as money transmitters under the Bank Secrecy Act (Dec 16 | 15 min read).

• Che Kohler of The Bitcoin Manual explores how governments and corporations increasingly amassing BTC are raising concerns about potential centralization and manipulation of the network, concluding that a 51% attack is unlikely and that the network’s open-source nature and active community involvement provide sufficient resilience (Dec 13 | 10 min read).

• Saifedean Ammous, in a response to another recent bad take by Andrew Tate about Bitcoin, argues that Bitcoin is the best investment because its deflationary nature and ability to replace central banks make it uniquely valuable, asserting that deflation drives economic growth and reduces wasteful consumption while encouraging productive investment (Dec 15 | 3 min read).

• Daniel Batten, environmentalist and Bitcoin advocate, writes an open letter to progressive commentator Cenk Uygur correcting his recent ill-informed comments about Bitcoin by clarifying that Bitcoin should be understood separately from ‘crypto’ and highlighting its bipartisan appeal (Dec 12 | 3 min read).

• Tomer Niv, a Tel Aviv-based investor, writes for Forbes that more and more countries are amassing Bitcoin reserves, sparking a new ‘Cold War’ for the digital gold, with the US leading through seizures and nations like Japan also exploring it as a strategic reserve (Dec 16 | 5 min read).  

• Reuters journalists examine President-elect Trump's proposal for a US Bitcoin strategic reserve, covering how it could be established, potential funding sources, and economic benefits—such as reducing the US deficit and strengthening the dollar—concluding by quoting ignorant skeptics on its ‘lack of intrinsic value’ (Dec 17 | 4 min read).

• Charlie Spears of Blockspace Media writes a ‘guide for dummies’ on the impact of quantum computing on Bitcoin security, highlighting potential vulnerabilities in cryptographic keys and presenting strategies to quantum-proof Bitcoin’s infrastructure (Dec 17 | 7 min read).

• Ansel Lindner, an economist writing for Forbes, dispels the fear and uncertainty surrounding Google’s recent quantum computing breakthrough, citing Bitcoin’s adaptability as a reason why it is far from posing a real threat (Dec 12 | 5 min read).

• Greg Cipolaro, Global Head of Research at NYDIG, reassures investors that while risks from quantum computing on Bitcoin’s cryptography exist, they are distant and actively being addressed through developments like post-quantum cryptography (Dec 13 | 5 min read).

• Andrew Kamsky, writer and chart analyst, also discusses the potential risks quantum computing poses to Bitcoin and the possibility of transitioning to quantum-resistant algorithms to safeguard the network’s integrity against future quantum threats (Dec 13 | 6 min read).

• Atlas21, a Bitcoin publication run by Federico Rivi, shares where they stand on the debate over Bitcoin covenant proposals like CheckTemplateVerify (CTV), ANYPREVOUT (APO), and OP_CAT, analyzing their implications for scalability, security, Lightning Network improvements, and potential risks to Bitcoin's fungibility and complexity (Dec 12 | 7 min read).

• Ben The Carman, a developer at Taproot Wizards, lays out his rationale for supporting various covenant proposals, citing the urgency of adopting covenants to address scalability, enable self-custody, and prevent ossification (Dec 12 | 3 min read).

• Paul Sztorc, a Bitcoin developer, critiques the process of Bitcoin's soft fork development, warning against risks of political interference, the inefficiency of current proposals, and the necessity for adopting impactful upgrades for Bitcoin's long-term security and growth (Dec 12 | 10 min read).

• Shinobi, technical editor at Bitcoin Magazine, analyzes Jeremy Rubin's ‘Un’FE’d Covenants’ proposal, which introduces a last-resort approach for implementing covenant functionality in Bitcoin, avoiding soft forks and prohibitive costs by utilizing oracles and BitVM bonds for enforcement, albeit with trade-offs in security and efficiency compared to native solutions (Dec 16 | 5 min read).

• Uncle Rockstar Developer of BTC Pay Server reflects on navigating developer depression, emphasizing the importance of deep coding focus, long-term collaboration with trusted allies, and maintaining technical excellence to achieve lasting success in Bitcoin and other software projects (Dec 15 | 2 min read).

• Pierre Rochard of Riot Platforms explores the next phase of Bitcoin adoption through Bitcoin-backed Collateralized Debt Obligations—financial instruments offering investors tailored risk/return profiles, bridging the gap between traditional fixed-income markets and Bitcoin (Dec 15 | 5 min read).

• Electric Capital releases the 2024 Crypto Developer report, showing 1,200 monthly active Bitcoin developers, with 42% focused on scaling solutions, over 120 new developers each month, and higher numbers in Ethereum and Solana ecosystems (Dec 12 | 218 slides).

• Darthcoin, a passionate Bitcoin educator, warns new Bitcoin users against Coinbase, highlighting its bank-like operations, privacy violations, and surveillance practices, urging users to embrace peer-to-peer solutions for true Bitcoin sovereignty (Dec 13 | 2 min read).

• Nout, a pseudonymous Stacker News user, demonstrates how to set up custodial Nostr zapping using Coinos.io, NWC, and Amethyst, a potential low-cost solution for sending zaps without a home server or expensive services, in light of Alby ending their custodial lightning service (Dec 14 | 2 min read).

• Elena Constantinescu of Proton explains how to protect your inbox from an email extractor while offering practical tips to secure your inbox from spam, phishing, and identity theft while highlighting Proton Mail's protective features (Dec 13 | 3 min read).

• Mark Mason of BTC Inc. argues why it’s not too late to invest in Bitcoin, citing its early stage of adoption and showcasing how consistent cost-averaging strategies can generate substantial returns even with modest investments, outpacing traditional assets like gold, Apple, and the Dow Jones over time (Dec 11 | 4 min read).

• Mark Mason also investigates whether the realized cap HODL waves chart can identify the next Bitcoin price peak and shows that with short-term holders at 55%, there’s still significant growth potential before market overheating (Dec 12 | 4 min read).

• Parth Shah, contributor to Android Police, shares his transition experience from Google to Proton, highlighting the latter’s privacy-focused ecosystem, seamless cross-platform apps, and end-to-end encryption, which offer secure alternatives to Google's data intrusive services while ensuring user data remains protected and private (Dec 13 | 5 min read).

• Chemaclass, an open-source Software Developer, takes a closer look at the Cypherpunks' pioneering role in shaping digital privacy, encryption technologies, and the evolution of decentralized systems, particularly highlighting their lasting influence on Bitcoin's creation (Dec 11 | 7 min read).

• Thibaud of Wasabi Wallet takes a closer look at Bitcoin backups, why they are important, and how to manage them, focusing on durable materials like stainless steel and advises to optimize for simplicity, usability, and redundancy to protect self-custody holdings for generations without third-party reliance (Dec 11 | 9 min read).

• TFTC, a Bitcoin media outlet run by Marty Bent, publishes a guide on the Bitkey hardware wallet and explains how this beginner-friendly self-custody wallet empowers users to secure their BTC with multisig security, a user-friendly app, and recovery tools for true financial independence (Dec 9 | 5 min read).

• Sourav Rudra, writing for It’s Foss News, reviews SimpleX Chat, an open-source, privacy-focused messaging app that offers quantum-resistant encryption, decentralized networking, and Tor routing, with a goal of setting new standards for secure, anonymous communication (Dec 13 | 5 min read).

• Athena Alpha provides a simple guide to Bitcoin Miniscript, explaining how it simplifies Bitcoin Script by creating secure, readable spending conditions optimized for efficiency, wallet interoperability, and automation in Bitcoin transactions (Dec 11 | 6 min read).

• Athena Alpha also evaluates Bitcoin and real estate as investment options and concludes that Bitcoin generally outperforms real estate due to higher returns, lower carrying costs, and superior liquidity, albeit with greater volatility (Dec 18 | 12 min read).

• Brady Noah of What Is Bitcoin discusses how Bitcoin lottery mining with Bitaxe provides an accessible, low-cost entry into mining, allowing users to test their luck at solo mining Bitcoin blocks while learning about the network (Dec 11 | 9 min read).

• Ben Weiss, DL News correspondent, reminds readers what 1,637 employees at Microstrategy actually do, highlighting that it remains primarily a data analytics company while its Bitcoin holdings continue to attract significant attention (Dec 11 | 6 min read).

• Che Kohler of The Bitcoin Manual outlines the hidden costs of buying Bitcoin through exchanges, highlighting deposit fees, trading fees, spread costs, and withdrawal charges, and compares them to cheaper peer-to-peer transactions (Dec 11 | 8 min read).

• Paul Rosenberg, author of ‘A Lodging of Wayfaring Men,’ argues how Bitcoin fixes societal issues like war, welfare, and public corruption and that adopting honest money can, in general, have profound and lasting improvements on society (Dec 10 | 5 min read).

• Joakim Book, writer and researcher focused on Bitcoin, celebrates Bitcoin’s rise above $100,000 as a reflection of people’s ability to discern truth among faulty economic conditions rather than a mere profit-seeking triumph (Dec 9 | 5 min read).

• Yaël Ossowski, in a report for the Bitcoin Policy Institute, argues that the US Bank Secrecy Act’s financial surveillance erodes privacy, impacts Bitcoin’s potential as a tool for financial freedom, and needs to be reformed (Dec 2 | 6 min read).

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🛠️ TOOLS & PROJECTS

• Amboss unveils Magma AI, a tool to enhance channel management on the Lightning Network, optimizing node connections and capital allocation for both altruistic and enterprise users.

• Orange Pill App integrates Nostr Login for a more private, decentralized experience with options to sign up via npub or email.

• CrowdHealth partners with Fold to offer Fold+ in BTC memberships and automatically convert excess funds to Bitcoin, enhancing member savings.

• Bitcoin Dev Project invites new contributors to join Bitcoin Core, offering a challenging opportunity to work with a mature C++ codebase.

• PlebLab, a Bitcoin hackerspace and community accelerator, announces Season 2 of Top Builder 2025, a global competition for teams to create impactful Bitcoin solutions with mentorship and innovation.

• LifPay, a custodial lightning wallet, introduces reusable payment QR codes for fixed amounts, a first in the Lightning Wallet space, allowing users to scan the same code multiple times for fixed-amount payments.

• Rizful, a company that is building lightning node solutions, offers 11,000 sats to testers of their cloud-based Lightning node service, inviting participants to explore disposable Lightning nodes.

• Ledger offers up to $70 in free Bitcoin with select wallet purchases this holiday season, including bonuses with the Ledger Flex, Nano X, and Nano S Plus.

• Core Lightning by Blockstream enables BOLT 12 by default, allowing the creation of reusable static QR codes or payment links that enhance flexibility and privacy in transactions.

• Casa, a company building multi-sig solutions for Bitcoin custody, launches Praetorian, a solution that offers governments military-grade bitcoin vaults for secure, self-custody management of strategic bitcoin reserves.

💥 MEME BREAK

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