On The Brink with Castle Island

Galaxy Digital Mining Associate Brandon Bailey and Research Associate Karim Helmy join the show to cover a new accounting methodology for Bitcoin miners. In this episode:  Galaxy's new miner margins accounting methodology Brandon and Karim origin stories in mining How the randomness-based miner fingerprinting works How Karim thinks about miner depreciation schedules Why the Bitcoin e-waste paper understates the expected lifetime of Bitcoin ASICs S9s are still a quarter of the Bitcoin network Why Karim and Brandon created the new accounting framework The differences between marginal, direct, and total cost of production for BTC miners Does the sell side capably cover Bitcoin miners? What you would expect to see for marginal and total cost of production for established Bitcoin miners Why miners focus on marginal cost rather than total in their storytelling Major bottlenecks preventing the addition of new hardware Why hashrate may not converge to price in the near term Why the chip shortage advantages incumbent

Matt and Nic return for another week of news and deals. In this episode:  Coinbase acquires Breadwallet El Salvador's Bitcoin City Is El Salvador's Bitcoin Bond worth buying? New merch on the website Midwest tungsten releases a new shape Is India banning crypto again? Miners coming back online in China The OCC, FDIC, and Fed will release cryptoasset guidance in 2022 Saule Omarova's nomination to run the OCC has fallen through Jerome Powell will keep helming the Fed Elizabeth Warren blames inflation on Big Poultry ConstitutionDAO crashes and burns Insider trading doesn't just apply to securities Who we are thankful for Merch: onthebrink.shop Sponsor notes:  This show supported by Coinbase Prime, an integrated solution that provides advanced multi-venue trading, custody, and prime services for institutions. For more information see coinbase.com/prime Corporations and institutions can allocate cash into Circle Yield to gain crypto lending exposure and earn superior returns compared to traditional markets

We sit down with James McGinniss, CEO and Cofounder of David Energy to talk about Bitcoin's role in the energy transition and how Bitcoin mining is a useful source of flexible load for increasingly renewable grids. In this episode:  The fundamental change happening in the US grid today What distributed energy resources are and why they are important Why DERs are catching on in California Why bitcoin allows load to move to supply Why better metering improves the prospects for demand response How demand response works nationwide Why there's a fundamental tradeoff between uptime and power prices Why Bitcoin is the best demand response resource The prospects for other location agnostic load resources Do better batteries obsolete Bitcoin mining as a grid balancer? How David Energy is working with Bitcoin miners Why Bitcoin miners should trade mining uptime for cheaper power Are grid operators designing programs for bitcoin miners? Why there's a longer tail of energy assets that miners should take advantage of Sp

Nic and Matt return for more news and deals of the week. In this episode:  ConstitutionDAO Why you can't smelt tungsten Breaking down the Keep Innovation in America Act The SEC denies the Vaneck Bitcoin Trust Crypto.com buys the naming rights to the Lakers arena The US Marshalls are auctioning BTC seized from Bitconnect Is Gerald Cotten deceased? Load ze quantum FUD Is David Chaum right about Bitcoin's quantum FUD? What fraction of Bitcoins are quantum vulnerable? Can stablecoins be rendered run-proof? Sweden and Norway agitate against PoW Why banning Bitcoin mining can be counter productive What does the DAO do if they win the Constitution? Content mentioned in this episode:  David Andolfatto, Run Proof Stablecoins Derek Hsue and Larry Sukernik, I Pledge Allegiance Sponsor notes:  This show supported by Coinbase Prime, an integrated solution that provides advanced multi-venue trading, custody, and prime services for institutions. For more information see coinbase.com/prime Corporations and instit

Nic and Sean sit down with Kevin Anetsberger, General Manager at Midwest Tungsten, to cover their journey as a business and their entry into the crypto industry In this episode:  The history of Midwest Tungsten How Midwest got its start making metal steam Industrial applications of tungsten Tungsten's physical properties and how that makes it suitable for industrial applications Military applications of tungsten Where Midwest Tungsten sits in the supply chain How Tungsten is actually refined and formed, given that it's impossible to smelt The upper limits to tungsten formed objects, and where the constraints derive from Why a 14 inch cube is actually the largest size Midwest can actually make How Kevin came to work in the tungsten industry Where is tungsten mined? Have the supply chain disruptions affected Midwest Tungsten How Midwest Tungsten resisted offshoring Why Midwest Tungsten began selling collectibles Who has bought the cubes historically Was this the largest spike in demand for the tungsten cubes e

Matt and Nic return for news and deals of the week. In this episode:  Circle launches an early stage venture fund SEC targets American CryptoFed DAO LLC The SEC references Nic's paper on DeFi risks Should DeFi teams be more aggressive in disclosing admin key risks? What would a DeFi disclosure regime look like? BlockFi files for a spot Bitcoin ETF Bitwise withdraws its futures-based ETF NYC mayor Eric Adams says NYC schools should teach about cryptocurrency Miami will airdrop BTC to residents Inflation prints at 6.2% annualized Why the 'supply chain' explanation for inflation obscures the underlying dynamics Is inflation really a supply chain issue? Real interest rates are as low as they were in the 1970s Why we have entered monetary repression Discord dithers on Web3 BrinkDAO Could tungsten rods in space improve on nuclear weapons? Content mentioned in this episode:  SEC, Statement on DeFi Risks, Regulations, and Opportunities Michael Greenwald, The Digital Asset Olympics 21Shares, Q3 Report  Nic Carter a

Core Weave cofounder and CSO Brannin McBee joins the show to talk GPU mining and high performance computation. In this episode:  Details on the Core Weave's latest fundraise Core Weave's hybrid data center model which combines Ethereum mining and generalized computation Transitioning from just crypto mining to the specialized compute market Why the hyperscale cloud providers aren't always suitable for firms with specialized computation needs The nature and size of Core Weave's GPU and CPU fleet How Core Weave services clients in VFX and rendering, machine learning, and blockchain Why Core Weave was able to build a generalizable computational fleet Why the demand for VFX/rendering-based compute is accelerating How film studios are going from capital intensive on-prem computation to outsourcing it to cloud providers How Core Weave is able to achieve a high utilization rate for their GPUs How Core Weave is working on open sourcing GPT-3 Why you can't access scale compute at conventional providers How Core Weave

Nic and Matt return for deals and news of the week. In this episode:  The President's Working Group report on Stablecoins comes out Should stablecoins really require a bank charter? Would a red wave in the midterms be good for the crypto industry Two congressmen ask the SEC to approve a spot Bitcoin ETF The TungstenDAO buys the Midwest Tungsten 14 inch cube Where was the Neeraj kitchen photo taken Tarantino is auctioning off uncut scenes from Pulp Fiction as NFTs Miami Mayor Francis Suarez will take his salary in Bitcoin Tungsten's industrial uses Should you count native tokens as an asset on your balance sheet? Sponsor notes: This show supported by Coinbase Prime, an integrated solution that provides advanced multi-venue trading, custody, and prime services for institutions. For more information see coinbase.com/prime Corporations and institutions can allocate cash into Circle Yield to gain crypto lending exposure and earn superior returns compared to traditional markets. It’s secured, overcollateral

Nikos Andrikogiannopoulos. the founder of Metrika joins the show. In this episode we discuss: Nikos’ journey to the blockchain industry and how we came to see the opportunity to found Metrika How Metrika thinks about monitoring public blockchains for reliability and downtime Perspectives on the common reasons that blockchains go down Nikos’s perspective on the use cases that are driving blockchain adoption How Metrika prioritizes the blockchain networks that it covers To learn more about Metrika visit their website.   Sponsor content:  This episode is brought to you by Withum, a top 25 accounting firm with a cutting-edge Digital Currency and Blockchain Technology practice. To learn more, visit  withum.com/crypto. This show is supported by OurCrowd. Join the fastest growing venture capital investment community at OurCrowd.com/OTB

Matt and Nic return for another week of deals and news. In this episode:  The SEC wants to regulate stablecoins El Salvador buys 420 BTC River launches a mining product Direxion wants to launch a short BTC ETF The FATF guidance isn't as bad as we thought it might be Facebook is now Meta Is 'the metaverse' going to stick around? We unretire China FUD Content mentioned:  The NFT Tax Guide Coin Center, The long-awaited FATF crypto guidance is not as bad as it could have been, but still flawed Nic in Bitcoin Magazine with Shaun Connell, Miners Are the Optimal Buyers Sponsor notes   This show supported by Coinbase Prime, an integrated solution that provides advanced multi-venue trading, custody, and prime services for institutions. For more information see coinbase.com/prime Corporations and institutions can allocate cash into Circle Yield to gain crypto lending exposure and earn superior returns compared to traditional markets. It’s secured, overcollateralized and built on the leading dollar digital c

Ray Cline, Lancium CTO, and Shaun Connell, EVP Power at Lancium, join the show. We cover the changing Texas grid, several models for renewable based mining, and how miners can serve as a controllable load. In this episode: Personal backgrounds and crossing the threshold from energy to Bitcoin Origins of Lancium Features of Texas grid Why Texas is so suitable for renewables How Texas is the ‘Saudi Arabia’ of renewable generation Why renewables grew so fast in Texas Two reasons why prices reach negative prices Three models for mining Grid connected with new gen miners Renewable colocation with new gen miners Off grid renewable colocation with old gen miners How different ASIC vintages affect the power price you can tolerate for the units and what interruptibility they can deal with ERCOT’s surplus renewable power How the Texas grid is splitting in half How Bitcoin is a ‘premium customer’ for energy assets Why miners depreciate their miners over 4-5 years, and not 1-2 years as Digiconomist claims Are energ

Matt and Nic are back for a monster week of deals and news. In this episode:  CBOE acquires ErisX FTX raises a monster round Worldcoin launches with their eyeball scanner The Proshares futures-based ETF goes live and sets a record Why are futures-based ETFs expensive? the Proshares ETF starts to max out its futures exposure What will be the fate of GBTC? Grayscale announces a $1b buyback of GBTC Hester Peirce delivers another great talk Tether settles with the CFTC The academia-press complex Diem launches a Novi stablecoin based on USDP Why stablecoins are a frontier in the battle over financial privacy Facebook leans hard into the metaverse Tungsten takes over Square makes ASICs Why you shouldn't eat your tungsten cube Will CMS intern be able to lift the 7 inch cube? Content mentioned in this episode Bloomberg, First Bitcoin ETF Is Already in Danger of Breaching a Limit on Futures Contracts Hester Peirce speech at the Texas Blockchain Summit, Lawless in Austin Sponsor notes This show supported by Coinb

Tom Chippas, the CEO of ErisX and Chris Isaacson, Executive Vice President and Chief Operating Officer at Cboe Global Markets join the show. In this episode we discuss: CBOE’s acquisition of ErisX Details of the acquisition and the rationale for the deal CBOE’s current and future plans in the digital assets industry The market structure implications for the broader digital assets ecosystem and why this combination provides for a catalyst for broader institutional adoption Views on the regulatory landscape and how CBOE and ErisX are approaching the market Future products that may be on the horizon Broader views on the spot market, and discussion of Matt Trudeau’s, “The Next Leg of The Crypto Trade” The landscape for exchange traded digital asset products    

We had the pleasure of hosting NFT collector, Gmoney, on the show. He is a former equities trader turned NFT collector, educator, and expert. In this episode, we unpack the community, stories, and experiences Gmoney has amassed during his time in the NFT space and discuss the following: Gmoney's "aha" moment about the massive supercycle taking place in digital goods The shift in ownership and value accrual from the hands of a few investors to everyone interacting with crypto networks Gmoney's first NFT experience that allowed him to use NFTs as collateral for, what was at the time, the largest on-chain loan The factors that Gmoney considers in evaluating and investing in NFTs (above all, community) and more This was an enlightening discussion that really opened our eyes to the impact NFTs will have on the industry.   Sponsor notes  This episode is brought to you by Withum, a top 25 accounting firm with a cutting-edge Digital Currency and Blockchain Technology practice. To learn more, visit  withum.com/cr

Nic and Matt are back for our 250th episode! We discuss:  ETF chatter heats up Where the Tungsten memes come from Why tungsten is good Coinbase launches an NFT platform Ribbon airdrop controversy How DeFi airdrops are like the McDonalds monopoly game Does the token industry need a disclosure framework? Miami plans to pay employees in Bitcoin Stripe is getting back into crypto Jamie Dimon wants to know how it ends at 21 million China's hashrate goes to virtually 0 The USA is the center of hash We retire an old FUD Content mentioned:  Jump Capital, Stablecoins: The Impending Rise of a Multi-Trillion Dollar Market Sponsor notes:  This show supported by Coinbase Prime, an integrated solution that provides advanced multi-venue trading, custody, and prime services for institutions. For more information see coinbase.com/prime

Mark Coe, the founder and CIO of Intrinsic Edge Capital Management joins the show. In this episode we discuss: Mark’s professional career and path to founding Intrinsic How he came to see blockchain/crypto as an investable category His personal journey on understanding the various blockchain thesis areas How he thinks about the taxonomy of publicly traded companies in the blockchain space How Intrinsic thinks about their research and investment process for long/short equity investing The comparisons of blockchain technology to the early days of the internet Sponsor notes  This episode is brought to you by Withum, a top 25 accounting firm with a cutting-edge Digital Currency and Blockchain Technology practice. To learn more, visit  withum.com/crypto.

Nic and Matt are back for more deals and news. In this episode: Our podcast SNAFU Can you wear a suit with sneakers How to offset your Bitcoin emissions (without buying offsets) Soc Gen asks Maker for a loan Bloomberg's Tether bombshell Are stablecoins like money market funds? Sponsor notes:  This show supported by Coinbase Prime, an integrated solution that provides advanced multi-venue trading, custody, and prime services for institutions. For more information see coinbase.com/prime This show also supported by OurCrowd. Join the fastest growing venture capital investment community at OurCrowd.com/OTB

Esteban Castaño, the cofounder and CEO of TRM Labs, joins the show. In this episode we discuss: The founding story of TRM Labs and the methodical approach the team took to finding product market fit Esteban’s perspectives on the NFT landscape and the growth potential in this category How regulators and public sector clients are approaching blockchain forensics How TRM is engaging with crypto native businesses and traditional financial services firms Perspectives on building a remote first organization while maintaining a strong culture To learn more about TRM Labs visit www.trmlabs.com Sponsor notes  This episode is brought to you by Withum, a top 25 accounting firm with a cutting-edge Digital Currency and Blockchain Technology practice. To learn more, visit  withum.com/crypto.

Matt and Nic return for another week. In this episode:  Is fasting lindy? Ripple's 250m NFT fund Kraken reaches a $1.25m settlement with the CFTC Could Ripple win their case against the SEC? Wyoming gives a tax break to flare gas miners Coinbase adds direct deposits to their platform Should stablecoins be issued by banks? China is tapped out of their Bitcoin FUD Compound suffers an exploit Bitcoin miners look at nuclear Sponsor notes:  This show supported by Coinbase Prime, an integrated solution that provides advanced multi-venue trading, custody, and prime services for institutions. For more information see coinbase.com/prime

In this episode, Chris Maurice, co-founder and CEO of pan-African crypto platform Yellow Card, joined us to talk about his background, the business, and the state of crypto adoption in Africa. The company's goal is to provide a seamless on and off ramp to anyone in Africa. We also discuss: Yellow Card's recently announced fundraise The diversity in culture, language, history, and economy across the 54 countries in the region and why Yellow Card is on a pan-African journey The popular use cases for crypto in the region, including as a savings and transaction tool for individuals and businesses The challenges Yellow Card faces in driving crypto adoption in the region and what the firm can do to address them The details about Yellow Card's recent raise and the future of the company Based on this conversation with Chris, it's clear that crypto provides fundamental utility beyond speculation in the region that rings true to the ethos on which this industry was built. Sponsor notes  This episode is bro