In this week's episode, Peter is joined by Bitcoin Magazine staff writer Vlad Costea to discuss the latest cover story. The pair went over some Bitcoin privacy best practices, considered the honeypot risks of government-based transaction monitoring and examined the intersection of identity protection and user friendliness.


Maintaining Transaction Privacy in the Age of Government Blockchain Analysis
by Vlad Costea

On January 17, 2020, British tax collection department Her Majesty’s Revenue and Customs (HMRC) published an open contract seeking bid applications for tools that can track, identify and associate bitcoin transactions with real identities. Correspondingly, developers of such “intelligence gathering methods to identify and cluster Cryptoasset transactions” can apply for the £100,000 ($130,000) contract until January 31, 2020.

The initiative is effectively a government-sponsored attempt to deanonymize bitcoin transactions — though the expectations for the tool extend toward targeting privacy coins like monero and zcash. 

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Bitcoin Fundamentals
The price of bitcoin is making great strides as it continues to march on in the new bull market. Bitcoin is up over 26 percent in the month of January. 
The Bitcoin hash rate continues to break all-time highs as the energy consumption of Bitcoin miners follows the price appreciation. 

Tweet of the Week
This tweet by @glassnode emphasizes the amount of bitcoin that is not changing hands or being transferred anywhere. In other words, more bitcoin are being HODLed. 

Rabbit Hole Read Of The Week

This week's Rabbit Hole Read is Hasu's research paper on the newly-imposed miners tax in Bitcoin Cash and how it affects Bitcoin miners. The main reason why this is important for Bitcoin is because like Bitcoin, Bitcoin Cash uses the SHA-256 algorithm. Therefore, miners have the freedom to switch between coins that use the same algorithm, depending on which one is most profitable. Read the paper to learn more about the economics behind this change and what options miners and users now have. 
 
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