Who Actually Controls Bitcoin?

Please help to support this channel's work:
/ @bitcoin_university
In this video, I discuss Bitcoin consensus, and who actually controls Bitcoin.
As a distributed global system without a leader or active living founder, Bitcoin relies on the messy process of economic nodes, miners, mining pools, exchanges, devs, hodlers, influencers/educators/podcasters working together to try to arrive at a consensus as to how Bitcoin should work and which features it should have.
The fact that Bitcoin is so difficult to change is a feature, not a bug, since if Bitcoin were easy to change, it would be an easy attack vector.
Not investment advice! Consult a financial advisor.
Analyzing Bitcoin Consensus: Risks in Protocol Upgrades:
github.com/bit...
Bitcoin Scaling Agreement at Consensus 2017:
/ bitcoin-scaling-agreem...
Segwit 2X fails:
bravenewcoin.c...
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos. My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.
#Bitcoin
#crypto
#consensus
Disclaimer
Neither Matthew Kratter's Bitcoin University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video, on this KZbin channel, or at www.Trader.University or www.BitcoinUniversity.com (henceforth, “the Sites”) should be construed as such by you. This video, channel, and the Sites should be used as educational tools only and are not replacements for professional investment advice. Trading or investing in new and volatile assets like Bitcoin can be risky.

[@Bitcoin_University]

Please help to support this channel's work: www.youtube.com/@Bitcoin_University/join

[@kirkstable]

Very interesting content thank you

[@JoeBidensLastFart]

THE SPAM 😩

[@Highside713]

This is fascinating and I'd definitely like to hear more about consensus and how it works on the Bitcoin network. I run a node on my Start9 server but still don't do transactions. Thanks for all your educational videos!

[@joemama69448]

What are you waiting for? Get started

[@Bitcoin_University]

Try downloading Sparrow Wallet and connecting it to your Start9 node. Thanks so much for your support of the channel!

[@JAWSnAZ]

Good morning. I always appreciate your cool, calm, and collected delivery of pertinent information.

[@Bitcoin_University]

Good morning, and thank you

[@sleepergs430]

Agreed. I don’t like all the hype stuff. I can actually watch this in the evening as I wind down, and still learn without all the noise.

[@albadriali]

Love the content, I prefer the previous mic 🎙️!

[@recoveryofthewick4]

"BTC has rules, but no ruler" Who controls BTC? : A fair set of rules no matter how much you hold Who controls Fiat?: Reckless governments Who now has all the information they need to secure their future wealth? : You

[@LolWTF001]

What the hell is this cryptic message 😂

[@whatwouldjesusdrive]

Re the blockstream jade, you said it doesn't have a secure element chip but a virtual one. Does this mean if I wanted to put my seed phrase on one and give it to a friend to keep in a geographically different location this would be a better candidate than say a trezor where the secure element could be attacked by him or someone malicious who got a hold of it? I don't want to risk a copy of my seed phrase but a hw wallet in another country would be a decent idea, what is the security risk with that? Thanks love your vids

[@whatwouldjesusdrive]

I did more research, while this is true the answer is basically use a passphrase, that solves the problem of a malicious actor having physical access to your hw wallet.

[@onlyonerombo]

Very grateful to you Mathew for clearing up these questions and issues with facts. Thank you so much. ❤

[@ie_kp]

Fantastic video! I'm curious about your perspective on the current hashrate situation. There's talk on X where people are drawing parallels between today's mining scenario and the Blocksize War, dubbing it the "Hashrate War." If you could make a video on it, that’d be great.

[@pooroldgreyhaireddaddy]

I really need to build a node.

[@SouthernBitcoiners]

@@pooroldgreyhaireddaddy do it

[@joemama69448]

You make it sound like it's harder than simply downloading Bitcoin core on your computer.

[@captainobvious49]

With your last mic I pretty much only heard your voice. Idk how accurate it is to your actual voice but I never felt it was lacking. If this new mic is higher quality then it's probably because of the way its being processed. There's a good amount of reverb with this new setup. It sounds like you're next to me and in another room at the same time. Using a high pass filter around 60hz will help eliminate some of the low end. I think it's a good rule in general for anything that isn't music. It's weird when people's voices have bass. Most people don't have good enough speakers to play those low frequencies anyway so it sounds fine. But if you do, it is noticeable. Your recording software might have some pre made EQ and sound cancellation settings you can play around with. Or maybe your mic came with some software?

[@ethangroat8333]

Awesome dive into consensus! I didn't know about Segwit 2X. I love how rough consensus and voluntary action thwarts problem after problem.

[@jas-n-dad]

I’d like to hear more about running a node. Is it correct that there are different (newer/older) versions of the software that you can choose to run, kind of like how MacOS has different versions and you don’t necessarily have to run the latest version?

[@joemama69448]

Yes, I haven't updated mine in a year or more. Not that that's a good thing it just doesn't make a difference.

[@Johntron08]

Thanks Matthew!

[@kryptonic010]

As usual Great Information Matthew. Will you do a video on setting up and running a Economic Node Runner?

[@Jck-z1c]

M, thank you much for making & sharing your video. I learn something new each time I watch your videos. (Am not sure I understand it all, but bit by bit I'm getting the picture ;-) Am sharing the link to this video on Gab.

[@Karn-ifact]

Thank you.

[@reflexsgm1666]

But the block size was increased to 2mb right? , so the segwit was done or how is it 2mb now?

[@joshuanecklen1617]

I run a full node with both inbound and outbound connections. What else can I do to help the network. I only HODL. So I do know why I need to “use my node”. I also have a Lightning Node too. Just want to be a good community member. I am considering a small “lottery miner” to get into the mining side. Anything else?

[@GG-mr9iz]

You are doing good work for Bitcoin community. We need more people like you in the Bitcoin community. 😊

[@mrsmith913]

If u live in a northern climate, u can heat your home with miners. I am trying to do this.

[@SCD-jy2xs]

I would love to do this but I have realized it would be better to buy a heat pump and then use the savings to HODL more bitcoin. Resistance heating is way way way less efficient than a heat pump.

[@zblus]

New microphones sound quieter, could you increase the gain?

[@melcryarfineart]

Thanks. Would love more about this topic. If they tried in the past, they will try again and want to understand better. Sound quality seems less audible to me.

[@hugomiller1025]

That was a very interesting snap-shot of the 'Block-size wars'. You mentioned the possibility of a more in-depth video on this topic, which I for one would welcome, as I know very little about it, not having been involved with Bitcoin at that time. I think you asked yesterday about your sound quality - it is rather echo-y but perfectly audible.

[@kallteknik]

Question: i run a node for the sake of supporting the network. But i dont use it for anything, it just sits there. Is this a waste of energy?

[@7eamGhast]

How much energy does it consume?

[@Mikanoshi]

Then use it for something :) Broadcast your signed Bitcoin transactions through it, achieving max security.

[@Darameekha]

Yes. Nodes are 99% useless and unhelpful if you don't broadcast from them.

[@joemama69448]

​@7eamGhast it's a computer. So as much as a computer uses.

[@7eamGhast]

@@joemama69448 oh ok!

[@BitcoinDegree]

Great video 👏

[@raptorhandz]

Hey Matthew, you may have covered this in a prior video, but I'm curious about how the OTC market works and why large purchases or sales in the OTC market doesn't seem to affect the retail market price of Bitcoin. Thanks

[@HHH78709]

Brilliant content

[@anthonymurphy7875]

Thank you Matthew 😊

[@CARLDUNGUS]

The Blocksize War is a great book.

[@rightpa]

All nodes verify the block chain. Are you saying that some nodes have more say on what blocks get approved based on the amount of economic activity they process? Wouldn't that actually make BTC proof of stake since nodes with more economic power would have more vote on the consensus?

[@lazylonewolf]

Some nodes have more say: No Nodes with economic power: Bitcoin network doesn't care how much BTC you own. It's not used to verify transactions unlike proof of stake.

[@ronatola]

So is there an official voting mechanism/platform where the stakeholders form a consensus by voting on proposed changes in the protocol?

[@prasun6084]

There is none. You can do any change you want to the code. But you have to convince everyone to run that changed node.

[@rjmcgowan]

Is there anything you can do about the bots?

[@lazylonewolf]

He's deleting them as fast as he can. His comments section is already oflne of the cleanest I've seen. It annoys me that some other good channels don't even do that effort or hire someone to do it. And of course, blame KZbin for this mess.

[@blakeblanco1042]

What do you think about the government moving its btc to Coinbase? Are we near the top ahead of schedule?

[@buzz3720]

So if you're running a bitcoin node, but don't use it for your transactions, your vote (software you're running) doesn't count?

[@Darameekha]

You have the up to date blockahain downloaded and you are sharing it with your peers. The enforcement happens when you are broadcasting. Having your node run 24/7 is for convenience. It does not help enforcing the protocol.

[@buzz3720]

@@Darameekha Thanks for the info. Wish I had known that during the block wars. I had three nodes running thinking that I was supporting the UASF.

[@Darameekha]

@@buzz3720 Hey, that might've sent a strong signal, But ultimately it all played out on the markets.

[@bricklawson9745]

Very interesting info. Thank you.

[@kirkstable]

Very interesting content thank you

[@pedrodeakin1]

Hi Matthew, I am a huge fan of your channel and I don’t miss any of your content. Would you do a video discussing using a BTC backed loan from LEDN or their B2X product allowing to duplicate a portion of your stack? Many thanks, P

[@laughpadhodl]

Good reminder that we control the network. Thanks Matthew!

[@JustSaying_2023]

Like you said Matt, a true Bitcoiner feels more anxiety when the dollar price goes up as opposed to down. I'm really hopeful it goes down to 85k so I can buy more. I want a few more million SATs to reach my savings goal before it explodes after Trumps inauguration. . . .Thanks again for your content!

[@FF-em5jk]

A good and much needed episode, since as I noticed the big blocker nonesense with Roger Ver is kind of living a "renaissance" now

[@SteakNZ]

Why doesn't running a bitcoin node without using it for your own transactions not make any difference? I thought that more nodes existing outside of corporate and government structures, the safer the system becomes. Could you please expand as it is the first time I heard about that. Thank you

[@Tom______________]

IMO previous Mic gave a higher quality audio

[@Bitcoin_University]

Thanks for the feedback

[@JohnSmith-zl8rz]

agree but in some way, this sounds like if he's beside me.

[@enzoschillaci2386]

@@JohnSmith-zl8rz this one sounds closer and louder. the previous one sounded further but higher quality

[@Dorfjunge]

agreed the other mic was clearer. This mic sounds it's wrapped in a towel (not that bad but as a general tendency).

[@katydidnt3906]

Then how are they controlling price action? Because, they are.

[@caulfieldmj]

Is there a team of Core developers ? And who manages them?

[@Youtubepsyops]

Matt - what’s your move (if any) if the satoshi wallet coins suddenly move or are sold?

[@lazylonewolf]

It will drive BTC priced in fiat down because of the "threat" and more supply of BTC, but it's moot in the end.

[@Fudmottin]

Bitcoin seems to be the most democratic money on earth. What's more, it seems to require more than a simple majority to make any serious consensus change.

[@Bitcoin_University]

It's money for the people, but it's not governed by democracy or majority rule

[@LarryRuane]

@@Bitcoin_University - That's right, it's opt-in and voluntary, unlike democracy, which has famously been likened to two wolves and a sheep voting on what to have for dinner.

[@elchico1857]

Democracy is not a good thing. We are lucky bitcoin concencus rules are not democratic.

[@beyondalpha1072]

Why is Roger Ver facing life in prison, and why did Tucker have him on?

[@byron9630]

Is it possible to lose the block size wars or something similar to that in the future ?

[@lazylonewolf]

BCH and the like have to catch up in market cap first. 🤣

[@phillipechavda3654]

Can we go deep into this topic Matt? I find it one of the most complicated parts of the system to properly understand.

[@okaynow9030]

how much of your net worth is in BTC?

[@okaynow9030]

@ I have 0 notifications 😫 but in terms of %? I think you mentioned everything in some previous video

[@lazylonewolf]

Bro, that's one question you should never ask. As for percentage, IIRC he has some stocks or something that he's waiting to clear. He has sold all his rental properties. He's 100% Bitcoin.

[@bebop1984]

How would we, as Bitcoin node operators, refuse to add blocks mined in excess of 21 M BTC?

[@joemama69448]

By doing nothing

[@lazylonewolf]

​@@joemama69448 Haha, that's the neat part, and why I think it affects the HODL mindset

[@mc-kz8zn]

Great pod Matt. And too bad a lot of comments here are bots / shilling s*coins. So annoying. Looking forward to the next one.

Audio level is too low. It is hard to listen to what you say.

[@rjones7352]

It has to be a backdoor...???

[@suspiciouston]

Love your work Matthew! You’ve talked about never selling your Bitcoin but how would this work in retirement when you have 100% of your portfolio in it and don’t have an income anymore? I’m young and on board with going all in on BTC but just looking ahead to the far future to figure out the logistics once I’m no longer working

[@Robert-tw6sr]

Could GAI figure away to make a better BTC?

[@westra4]

Thx Matthew

[@computerman-p6i]

You don't run the modified bitcoin node, I don't run the modified bitcoind but black run can run 10's , 100's ,1000's, 10,000's of new modified nodes and run all across the world, How we as a retail investor / node runner going to fight against giant corps ?

[@Bitcoin_University]

Running more nodes doesn't give you any additional power. If BlackRock ran 1 million nodes, and real Bitcoiners ran 20,000, things would still be fine. Fortunately, Bitcoin is not a democracy

[@Bearcase_pltr_maximalist]

Thank u😮😮

[@Raven28Pisces]

We're Satoshi 🧡

[@garrethecker4427]

I have a question, when BTC hard forked and BCH was created, would it have been possible for exchanges to decide to make the "new" fork's ticker BTC, and have called the OG BTC by the original rules "BTC classic" or "shit coin" or whatever? From my understanding that is what happened with ETH and ETH classic? It would seem that if another block size war occurred and the exchanges got on board with the changes and labelled the new BTC as BTC, it could potentially gain more transactions from people who don't know any better. Don't want any of that to happen, just playing devil's advocate and trying to understand potential centralization of BTC risks.

[@jack-d2e6i]

I expect any exchange that does that to be boycott like other unscrupulous companies. Reputation seems to matter a lot in the Bitcoin space.

[@GeertPypers]

Thank you for in part at least addressing my question. However, what does it make 100 percent certain that the avorable outcome will prevail? What if the large market participants bribe all the other participants? Some, maybe like yourselve, probably won't, but others will probably? What if the original Network becomes the network not chosen by consensus?

[@jack-d2e6i]

It’s economically infeasible to bribe “everyone”. The economics of bribes relies on having chokepoints, eg a small number of highly influential people in a given context. The weight of the plebs is huge.

[@GeertPypers]

@jack-d2e6i the weight of trillions of usd is as well,...

[@jack-d2e6i]

@@GeertPypers The plebs in Bitcoin aren’t willing to trade Bitcoin for a weaker money like USD. They can’t be bribed because printing the USD to bribe them just devalues the USD against Bitcoin, it doesn’t make the bitcoin more valuable.

[@brettavelin]

We are Bitcoin!

[@KYFHOme]

Unfortunately we're in the habit of just installing "the latest version." It sounds like each new Bitcoin core version should boldly detail any consensus changes and force an explicit yes / no choice during install.

[@joemama69448]

I haven't updated my node in a year or more. No issues.

[@lazylonewolf]

If one is already running a node, they should be savvy enough to read the changelog before updating, especially if they already own significant amounts of Bitcoin.

[@freedomfight1933]

I find that the concept of decentralization is hard to explain to the average person. Without even getting into how it actually works on a technical level. Often they almost act as if you're being fooled in some way, and that's not even possible. This speaks to what a technological breakthrough bitcoin is.

[@rag98709]

Excellent analysis. I HODL'd through the blocksize war. No regrets selling my air-dropped BCash for the real thing. Plebs and HODLers matter. Consensus rules! (pun intended)

[@SouthernBitcoiners]

Do other countries have their version of blackrock with a blank checkbook to buy btc for clients?

[@wannaBtraceur]

I wasn’t around during the block wars, unfortunately, so there’s something I never understood. How would someone go about receiving their forked btc if it’s in self-custody and off the exchanges? Not sure how that process would look. I would sell that fork in a heartbeat.

[@Vsioul]

If you are a bitcoin hasher, what kind of rig do you run at home?

[@Bitcoin_University]

BitAxe

[@Vsioul]

@@Bitcoin_University Just bought one. I was looking at ant miner couples weeks ago and maybe running a btc full node myself. I think this bitaxe looks like a good introduction.

[@marketrookie101]

What still wonders me, why are there so few reachable nodes. Do really most of the nodes run on TOR? Is there any data on how many nodes are out there? For such an important asset I would like to see 1 milion reachable nodes, lol :))

[@marketrookie101]

Currently there are 21209 reachable nodes, I would guess there are nowadays at least 20k businesses (maybe much more) related to BTC (including educational channels, blogs, exchanges..etc..) If every public business would run a bitcoin node, I guess we would see more nodes.

[@thomasneal7126]

Yes ... the majority of node operators use TOR

[@SCD-jy2xs]

I believe that running an electrum server on your private node does help the network though. I don’t believe Matthew has a video on this but there is documentation online about it.

[@prasun6084]

I run node without tor. But but still can't find my node on public node databases. I think there is data discrepancy on reachable node counting.

[@alessandropizzocaro7506]

This mic is better Matt

[@PURPLE_SHADE_SMOOTHIE]

❤ Bitcoin BTC is Consensus. Too bad other aspects of human society doesn’t incorporate some kind of consensus mechanism for political and economic decisions. If only there was a way…hmmm…

[@Profanity42069]

Funny to keep hear you constantly recounting the block size war even though you weren’t there. Cold storage for me but not for thee.

[@cuba8591]

It sure was scary times during the early days of bitcoin. I really don't blame ppl for not having diamond hands back then lol but to be honest, I believe majority of the worst days of btc are behind us

[@joemama69448]

Famous last words lmao. I tend to agree but don't jinx us

[@greythorne]

Wow didn’t know all that despite being a bitcoin holder. So running a node without using it for any transactions is in vain? Asking as I am running a node.

[@3848sdgriwb]

You rock

[@Paul-jp8zz]

oof even worse mic! keep up the great content!

[@Sucsribe]

Michael Saylor is an inside man to destroy BTC. I’ll come back to this in the future.

[@Bitcoin_University]

You just keep holding US pedophile dollars instead

[@Sucsribe]

​@@Bitcoin_University I'm not a fan of every figure in the space, but that doesn’t change my investment or belief in bitcoin itself.

[@hhattonaom9729]

@@Sucsribe then do your due diligence by buying as much as you can and running a node

[@Gr8Incarnate]

It sounds like you're speaking from behind a glass window.

[@HereThereBackAgain]

Put up your KZbin video that's better.

[@Gr8Incarnate]

@@HereThereBackAgain Go touch grass

[@Bitcoin_University]

Thanks for the sound feedback. Still experimenting with portable solutions

[@MoneylessWorld]

​​@@Bitcoin_UniversityI have Zoom H5 and am happy with it. The closer to the mic, the more bass from voice is recorded. That said, I think your audio is fine.

[@specialk22tt]

Matthew, you can’t record episodes on your toilet in a tiled bathroom. 🙃

[@johnnymidas5879]

GOOD MORNING 🌄 AND THANK YOU MATTHEW

[@Bitcoin_University]

Good morning

[@BillDark0]

👀👀👀

[@jack-d2e6i]

I love how black rock can’t lobby Bitcoin to get what it wants like it can with the government.

[@simbiotik8480]

I am guessing Michael Taylor, Black rock, the US government, the twins. All the major exchanges and corporations etc. Or is this a trick question and the answer is nobody?

[@senorbufoalvarius9202]

Video nr 2 on this topic please!

[@arthur-ej9jl]

whos holding the keys to elsalvadors wallet

[@defi-minnow]

Great work. Can you offer a presentation on the running your own node options, pro/cons and different types. You mentioned that if not transacting through your own node it doesn't help the network. Thanks.

[@agrxdrowflow958]

Talk about the ASS-load of bitcoin that just got lost in these fires. HW wallets and seed phrases burned up with no backup. Chisel your words in steel, friends!

[@zerphase]

If I had received the $200k I needed to accumulate 500k Bitcoin in 2011 I'd probably control the price today. I was laughed at. Had they listened to me everyone would be worth $20 billion from tax loopholes involving Second Life's Linden dollar.

[@CRAIGBYRNE-kl8hi]

Good Morning

[@Bitcoin_University]

Good morning

[@fignewtoneater]

The bitcoin CEO aka the devs control it.

[@Bitcoin_University]

Bitcoin doesn't have a CEO or leader, and Bitcoin nodes get to choose what software they run. Devs don't

[@DataLog]

Aliens

[@Raven28Pisces]

They lost the blocksize war, square and fair 😭 it's so square and fair, can you imagine 😭

[@zajec11]

Uploaded 20 seconds ago. Cool 😎

[@ericmed]

I don’t understand why you think uploading 12TB per month of blocks/chainstate/mempool for my 2 nodes is not making a difference to the network… Adds over 500 connection capacity and 90th percentile tx propagation times for various leechers like breadwallet that still connect directly. *edit* And doesn’t having a larger network have some impact on the underlying value of a network (?)

[@Bitcoin_University]

12 TB? Are you talking about Ethereum instead of Bitcoin?

[@ericmed]

@@Bitcoin_University No - new nodes download blocks from 10 outgoing connections totaling about 720GB collectively across all 10. My nodes in particular upload to a lot of new clients totaling TBs per month

[@ericmed]

@@Bitcoin_UniversityYou would know this better than me but wouldn’t a larger network inherently be a more valuable network? KZbin keeps removing my comment but basically new clients connect to 10 nodes and download 720GB across all 10. A reachable node with 250 connections can easily upload 6TB per month in block propagation + new blocks to clients

[@Bitcoin_University]

@@ericmed Free market decides which network if more valuable. Bitcoin network has been the most valuable crypto network since 2009 and nothing else has come close

[@olheghtt]

Attention everybody, I would like to offer my services as the grand exalted ruler of Bitcoin. Let the voting commence.

[@adambui7935]

I control bitcoin

[@ChipNov1998]

It sounds like the 2017 affair was the last chance anyone could hope to change the Bitcoin protocol since the ability to get consensus has greatly diminished since then with the massive expansion of the network

[@Bitcoin_University]

Yes, the bigger the network becomes and the more constituents, the more difficult it becomes to change Bitcoin in any way

[@jae8960]

do you think that it can have a great positive impact in the price when Donald Trump becomes president in January 20th or the price is expected to be still or even keep falling down?? #dodl

[@JesusWins]

I just thought about the idea that black rock could possibly rug pull the ETF holders by forking Bitcoin and deciding that the ETFs would be backed by the forked Bitcoin. They already said something about it in the small print.

[@joemama69448]

Yeah that only applies to the ETF holders. Regular bitcoiners will get free fork coins and be able to sell them to buy more bitcoin!

[@J-YouTube324]

You should watch this video.

[@lucasmarley3237]

God Bless the Plebs

[@Bomt407]

I don’t disagree with your point of view on bitcoin and consensus but it is definitely nuanced and hard to know for sure if the small blockers really did win fair and square. Most of the content I consume pushes the same narrative as you and I’m inclined to believe it but this debate between guy swann and Steve Patterson reveals that there is indeed a lot of nuance. m.kzbin.info/www/bejne/pp-rn5Z7irGJisk