Author: Unchained Capital

Bitcoin Cannot be Banned

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Unchained Capital

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The idea that somehow bitcoin can be banned by governments is the final stage of grief, right before acceptance. The consequence of the statement is an admission that bitcoin “works.” In fact, it posits that bitcoin works so well that it will threaten the incumbent government-run monopolies on money in which case governments will regulate […]

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Bitcoin Fixes This

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Unchained Capital

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This past week marked that time of year when global central bankers, establishment economists and CNBC, et al. descend on Jackson Hole, Wyoming to discuss the systemic issues that plague our economy. Never seeming to find an answer but constantly in search of it; it is the perennial Jackson Hole dilemma. There is always much […]

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Bitcoin is Not Too Slow

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Unchained Capital

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In Peter Thiel’s Zero to One, he outlines the impact new technology has on building a non-zero sum future. While the book is focused on individuals and companies, bitcoin as a monetary system is the ultimate zero to one technology leap. For historical examples, Thiel highlights the advent of the steam engine as well as the […]

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Bitcoin Does Not Waste Energy

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How many times have you heard the safety instructions before a standard commercial flight? You probably know them by heart, but every time, prior to takeoff, flight attendants instruct passengers traveling with children to put their oxygen mask on first and then tend to the children. Instinctively, it’s counterintuitive. Logically, it makes all the sense […]

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Bitcoin Is Not Too Volatile

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Unchained Capital

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Has anyone you respect ever told you that bitcoin doesn’t make any sense? Maybe you’ve seen the price of bitcoin rise exponentially and then seen it crash. You write it off, believe your friend was right, don’t hear about it for a while and think bitcoin must have died. But then you wake up a […]

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Crypto-Backed Loans and Taxes — What You Need to Know

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Unchained Capital

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Unchained Capital does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. 2017 saw significant […]

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Bitcoin Data Science (Pt. 3): Dust & Thermodynamics

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Unchained Capital

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tl;dr: We examine the history and future of dust: containers (UTXOs) of bitcoin that cost more to spend in fees than they hold. The amount of dust in the blockchain is determined by the current UTXO set and transaction fee market. At peak fees (~December 2017), between 25–50% of the UTXOs in the Bitcoin blockchain could have […]

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Bitcoin Data Science (Pt. 2): The Geology of Lost Coins

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Unchained Capital

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There are many stories of people losing BTC in large amounts – especially in the early days – when BTC wasn’t worth much, and was easily forgotten on an old hard-drive, USB memory stick, even a scrap of paper. Is it possible to quantify how much BTC is really lost? Blockchains track their internal data forever, and […]

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Bitcoin Data Science (Pt. 1): HODL Waves

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Unchained Capital

Bitcoin uses a curious accounting structure called a UTXO — an Unspent Transaction Output. All UTXOs are timestamped by the transaction/block in which they were created. Since all bitcoin in existence is contained in some UTXO, this means that all bitcoins have an age: not the age/time when that bitcoin was first mined, but when it was last used in a transaction. Since […]

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