What the Cold Card Hack Really Means for Bitcoin | Tillman Holloway & Andrew Parish

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The Pomp Podcast 48 min 3 speakers 8 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Andrew Parish 0:00
A positive to this is that Bitcoin didn't move more than about 1% on this whole thing. That's really what we should be talking about. The custody stuff, that'll work itself out, but the fact that Bitcoin is taking these punches. Saylor keeps announcing stuff every week, and it's just another version of selling Bitcoin, right? Bitcoin doesn't move. Same thing with $100 million cold storage hack. Bitcoin's like, eh, I don't care.
Anthony Pompliano 0:23
What's going on, guys? Today, we got a great conversation with Tilman Holloway and Andrew Parrish of ArchPublic. We go through the cold card of what this means for the hardcore Bitcoiners who now are questioning whether self-custody is actually something that the average Bitcoiner can do. We also get into what's going on with all of the Chinese open source models, what's going on with American closed source models.

What is the Cold Card hack and why does it matter for Bitcoin self‑custody?

Anthony Pompliano 0:42
We talk about volatility. We talk about Leopold and situational awareness and the big hedge fund that blew up. And then they're giving away a Rolex watch. Yes, these guys come every single time. They've got gifts. And so make sure you pay attention to that part. It's a pretty cool gift that they brought this time. And so here's my latest conversation with Tillman and Andrew of Archpublic. All right, guys, I think we got to start with cold card. Obviously, that's the big story in Bitcoin right now. Tillman, what's your take on this? Is this something people should be worried about? Or is this kind of a one-off event and something that people won't be talking about, let's say, in two or three months?
Tillman Holloway 1:13
I think the changing of the old guard has already taken place. Wall Street drives this market now, whether we want to admit it or not. I think what you saw is a public example of that old guard dying, if you will. the smartest people in the room the people who were bitcoin maxis that touted no use case beyond bitcoin on the blockchain and all these other things that didn't make sense to the the rest of us i think that are you know a lot of the that arrogance is coming home to to roost and unfortunate for the victims i mean it's a it's a catastrophe for a lot of folks but it's i don't see it as being widespread across the community i actually see it pretty concentrated within the Maxi community.
Tillman Holloway 2:01
And if you look at the price of Bitcoin, it obviously doesn't care.

Why did Bitcoin barely move despite the $100 million cold‑storage loss?

Tillman Holloway 2:05
And so $100 million is still a lot of money, but in the grand scheme of things, it's not. And I think it shines a light to the need for addressing risk beyond just kind of the what we think risk looks like. But I think self-custody, from a hardware perspective, you're trusting a hardware provider at the end of the day. You're trusting the firmware updates that they're giving you. You're trusting its ability to interact with the chain. I don't think people recognized that risk or recognized that they were trusting somebody else in that equation. It is unfortunate because there were a lot of victims that did everything right, that didn't do anything outside of really what was prudent and what was taught to them as being the safest way to self-custody.
Tillman Holloway 2:57
So it's a tragedy, but it really is unimportant as it pertains to where Bitcoin's going and really who has the reins right now.
Andrew Parish 3:05
The Bitcoin community mocked a lot of quote unquote boomers that moved Bitcoin from cold storage to ETFs. And that doesn't look so great right now. They were forward thinking. They trusted the reality associated with institutional-grade custody. We just had a conversation, Tillman and I did, with Matt Haugen at Bitwise. And when we asked him to kind of break down, because we haven't talked about what spot Bitcoin ETF or institutional custody looks like these days. We talked about it a year and a half ago, two years ago, when spot Bitcoin ETFs were approved, but nobody's talked about it since then. It's like 19 to 20 layers deep of security, risk measures, custody at just huge levels that is materially different than how many dice rolls can you do to make sure that you're good to go on your cold storage wallet?

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