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Greetings Bitcoiner,
Welcome to Issue #415 of the daily Bitcoin Breakdown, where we have some excellent Opinion & Analysis pieces and Tools & Projects for you today!
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Now for todayβs Top Stories:
π§π΄ Bolivia Flips From Bitcoin Ban to Full Banking Integration
π Nasdaq Wants to Quadruple Bitcoin ETF Options Limits
ποΈ S&P Downgrades Tether To Junk Over Bitcoin and Gold Holdings

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Nov 27, 2025
TODAYβS TOP STORIES
π§π΄ Bolivia Flips From Bitcoin Ban to Full Banking Integration
Bolivia just went from having banned Bitcoin and crypto for a decade to integrating it fully into its banking system, allowing custody, savings accounts, credit cards, and loans. Economy Minister Jose Gabriel Espinoza announced the historic shift as the country battles 22% inflation and severe dollar shortages. Since lifting the ban in 2024, Bolivia processed $14.8B in crypto transactions, with stablecoin volumes surging 630% as citizens embrace digital alternatives. Brave New Coin
π Nasdaq Wants to Quadruple Bitcoin ETF Options Limits
Nasdaq has asked the SEC to quadruple position limits on BlackRock's spot Bitcoin ETF options from 250,000 to 1M contracts, putting IBIT alongside tech giants like Apple and Microsoft. The move responds to surging demand and aims to enable better hedging and trading strategies. The move is indicative of Bitcoin transitioning from an experimental asset to an institutional-grade powerhouse, with deeper liquidity and tighter spreads expected once approved. Atlas21
ποΈ S&P Downgrades Tether To Junk Over Bitcoin and Gold Holdings
S&P Global Ratings downgraded USDT's stability rating to its lowest level, citing increased exposure to βhigher-risk assetsβ such as Bitcoin and gold. Tether has shifted away from cash-equivalent reserves, which dropped from 81% in early 2023 to 77% by September 2025. The company recently acquired 26 tonnes of gold and nearly 10,000 BTC. Tether CEO Paolo Ardoino fired back on π, calling out traditional finance's broken system and arguing that legacy rating models failed investors before, giving high grades to companies that later collapsed. Financial Times

POLL #415
Bolivia's stablecoin volumes surged 630% since lifting ban. Is that good for Bitcoin?
PREVIOUS POLL RESULTS


OPINION & ANALYSIS
Kudzai Kutukwa, author of the 'Exit The Matrix' newsletter, argues that institutional Bitcoin adoption through tokenized money market funds represents a Trojan Horse attack on Bitcoin, as Wall Street domesticates Bitcoin by wrapping US government debt in blockchain technology to preserve centralized control rather than embrace true decentralization (Nov 26 | 4 min read).
Nic Carter, partner at Castle Island Ventures, in part 2 of a three-part series, argues that quantum computing poses an existential threat to Bitcoin, and that Bitcoiners should adopt best-practice hygiene right now, while the community organizes a credible pathway toward post-quantum cryptography to preserve property rights and avoid chaotic, contentious responses if a cryptographically relevant quantum computer were to arrive sooner than expected (Nov 26 | 53 min read).
Lnbitcoin of Bitcoin Learning, explains how 'paper Bitcoin' derivatives artificially suppress prices through massive short positions worth $4-10 for every $1 of real BTC traded, but argues this creates explosive upside potential when shorts must eventually buy back real bitcoin during inevitable short squeezes (Nov 25 | 3 min read).
Gino Matos of CryptoSlate examines how MSCI's proposal to exclude companies holding over 50% of assets in bitcoin from major equity indexes threatens to trigger up to $8.8B in forced outflows from Bitcoin treasury firms like Strategy, potentially reshaping institutional BTC exposure toward regulated ETFs while leaving smaller treasuries vulnerable to liquidation pressure (Nov 25 | 4 min read).
Saifedean Ammous, in an excerpt from his new book 'The Gold Standard', examines how the classical gold standard from 1873 to 1914 emerged through market forces rather than government design, explaining why gold's unique properties and low stockpile growth rate made it the dominant global monetary standard until banking credit expansion undermined its stability (Nov 26 | 23 min read).
Nic Ward of Bitcoin For Corporations argues that MSCI's proposed rule to exclude companies holding over 50% of assets in bitcoin from major equity indexes is shortsighted and undermines benchmark neutrality by discriminating against legitimate treasury strategies while bitcoin remains more liquid and transparent than many traditional corporate assets (Nov 25 | 5 min read).
Alby explores a modular architecture for Alby Hub that uses lightweight, suspendable signers based on Spark and Ark, combined with Nostr Wallet Connect, to deliver scalable, low-cost self-custodial lightning wallets that reduce onboarding barriers for casual users while maintaining user control and strengthening the bitcoin app ecosystem (Nov 25 | 7 min read).
Satoshi Pacioli Accounting argues that Bitcoin remains exempt from wash sale rules under Section 1091 because the statute explicitly covers only stock and securities, court precedent prevents IRS expansion through judicial doctrines, and the post-Chevron legal landscape strengthens this statutory interpretation (Nov 25 | 5 min read).
Super Testnet, a Bitcoin developer, argues that upcoming BitVM sidechain implementations by Citrea and Alpen Labs are unnecessarily expensive because they post all state differences on Bitcoin, proposing instead a more efficient merkle tree approach that keeps data off-chain in the happy path like Lightning Network (Nov 21 | 4 min read).
Cardiff University researchers analyze approximately 11,000 Bitcoin-accepting merchants using BTC Map crowdsourced data, revealing that local adoption is driven more by grassroots community initiatives than national policies, with strong concentration in hospitality sectors and alternative healthcare services (Nov 26 | 52 min read).
Sylvain Saurel, author of 'In Bitcoin We Trust' newsletter, argues that young people avoid Bitcoin not due to lack of interest but because the fiat system systematically robs them of surplus income through debt and inflated housing costs, forcing them toward high-risk meme coins while poor financial education and resulting political radicalization further alienate them from decentralized money (Nov 25 | 8 min read).
Bringin, a European Bitcoin company, argues that Bitcoin is fundamentally money (a superior medium of exchange) rather than merely a 'store of value,' and explains how their instant Bitcoin-to-euro conversion infrastructure enables users to spend BTC while maintaining self-custody, bridging the acceptance gap during Bitcoin's transition to becoming the global monetary standard (Nov 24 | 8 min read).
Bitcoin Park, a grassroots Bitcoin organisation in Nashville, argues that Bitcoin's transformative potential mirrors how history's greatest innovations and figures (from Elon Musk to Napoleon) were initially overlooked, suggesting the 16-year-old project's quiet revolution is accumulating unstoppable momentum beneath mainstream ridicule and indifference (Nov 24 | 2 min read).
Max Musumeci, a Lightning Network researcher, examines how Bitcoin Core v30's dramatic expansion of OP_RETURN limits to 100,000 bytes and allowance of multiple data outputs contrasts with Bitcoin Knots' stricter 42-byte policy, exploring implications for blockchain bloat, spam prevention, and mining services like Mara's Slipstream that bypass standard mempool filters (Nov 22 | 5 min read).
Jackson, author of the 'Sound Money, Sound Life' newsletter, argues that gold surges during recognition of systemic monetary weakness while Bitcoin lags until policymakers respond with liquidity expansion, explaining why gold leads in 2025 as central banks diversify reserves and investors seek safety, while Bitcoin awaits the easing cycle that historically drives its performance (Nov 22 | 7 min read).
Abubakar Nur Khalil, CEO of Recursive Capital and Btrust, argues that Africa's rising Bitcoin mining hashrate faces a 'hashrate exfiltration' problem where foreign entities control mining operations, potentially undermining Bitcoin's permissionless nature while echoing the continent's history of resource extraction (Nov 22 | 4 min read).
Jaran Mellerud of Hashlabs explores why Bitcoin transaction fees have plummeted to 2010 levels, arguing the decline stems from structural changes as investment demand shifts to ETFs, corporate treasuries, and Layer-2 solutions rather than on-chain settlement, creating critical implications for miner profitability (Nov 21 | 4 min read).
Researchers Taki Abedesselam, Fabio Giacomelli, Francesco Pasquale, and Michele Salvi analyze payment-failure dynamics in the Lightning Network, proving that failure time depends on the ratio between squared channel capacity and edge-betweenness centrality in Bitcoin's layer-two solution (Nov 20 | 44 min read).
John Carvalho, CEO of Synonym, in an interview with Atlas21, argues that Bitcoin's scalability challenge requires scaling trust rather than technical complexity, advocating for peer-to-peer trust systems over solutions like Lightning Network while questioning the viability of hyper-bitcoinization through protocol improvements alone (Nov 19 | 5 min read).
Scoresby, a Bitcoin analyst on Stacker News, argues that emerging payment solutions like Ark, Spark, and ecash should be understood as bitcoin-pegged stablecoins rather than true layer 2s, since rising transaction fees make Bitcoin less accessible as adoption grows, creating market demand for permissioned substitutes that lack Bitcoin's core guarantees (Nov 19 | 5 min read).
Jan WΓΌstenfeld and Dr Teo Geldner, Bitcoin researchers, document how Bitcoin mining hashrate response to price transformed over 15 years using a Time-Varying Parameter SVAR model, revealing that early-period price reactions exceeded recent years by 142% as mining evolved from volatile speculation to stable professionalized operations (Nov 22 | 30 min read).

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TOOLS & PROJECTS
New on Geyser: Evento, a social events platform powering thousands of Bitcoin meetups globally, integrates Breez SDK Lightning wallet, enabling users to tip hosts, send/receive sats, convert currencies, and spend bitcoin via Bitrefill without leaving the app.
New on Geyser: SatNotes is a Bitcoin-backed physical banknotes project in El Salvador's Mercado Central that enables fee-free, offline BTC transactions through a satoshi-denominated cash ecosystem with smart ATMs and redemption technology for unbanked communities.
Bitcoin Core merges cluster mempool implementation in PR #33629, introducing transaction clustering with new size limits, feerate diagram-based RBF rules, and optimized mining selection while eliminating ancestor/descendant limits.
Adopting Bitcoin hosts a five-day road trip from Feb 1-5, 2026 exploring South Africa's Garden Route, showcasing real-world Bitcoin adoption through visits to circular economy projects including Bitcoin Ubuntu, Bitcoin Ekasi, and Bitcoin Plett.
Fanfares is a publishing platform built using Bitcoin's Lightning Network that enables authors to upload audiobooks instantly, readers to unlock content with sats, and curators to earn bitcoin for sharing, eliminating platforms, subscriptions, and middlemen.
Rob Woodgate, entrepreneur and software developer, introduces Pay to Blinded Key for Cashu, a privacy-enhancing specification using Elliptic Curve Diffie-Hellman to cryptographically blind public keys in ecash proofs, preventing linkability while maintaining P2PK security.
Javascript-dlc is an open-source JavaScript library that enables developers to build applications with Discreet Log Contracts, Lightning Network integration, and privacy features including Tor and I2P support across Bitcoin networks.
BTC Map, a Bitcoin merchant mapping service, celebrates surpassing 20,000 listings as the platform experiences significant growth in cataloging Bitcoin-accepting businesses worldwide.
Core Lightning introduces BIP-39 12-word phrase support for new nodes, enhanced xpay payment routing with HTLC limits, askrene-bias-node RPC command, and experimental LSPS2 service support, alongside significant performance improvements for large nodes in version 25.12's first release candidate.
SeQura, a commerce-tech company, launches smart shopping app in Spain offering up to 15% Bitcoin cashback at 500+ partner brands, replacing traditional expiring loyalty points with non-expiring BTC rewards sent directly to users' wallets.
Tor Project announces Counter Galois Onion encryption upgrade to defend against tagging attacks, enhance forward secrecy, and modernize relay encryption with research-backed cryptography replacing the 20-year-old tor1 algorithm.
Lightning Network developers approve PR1160 for splicing functionality, enabling dynamic channel capacity adjustments across Lightning implementations after extensive interoperability testing and discussion.
Rob Hamilton, CEO of AnchorWatch, open sources on-chain quantum computing futures contract enabling trustless speculation on whether quantum computers will break Bitcoin's ECDSA cryptography by specified deadlines using P2WSH miniscript.
Penlock, an open-source paper calculator, enables mechanical secret-splitting of 12-word BIP39 seed phrases into 2-of-3 backups using printable materials, featuring on-paper error correction and a streamlined backup strategy for Bitcoin security.
T-bast, CTO of Acinq, announces that two compatible Lightning implementations now support 0-fee channels with finalized specifications, marking a milestone enabled by Bitcoin Core 28's v3 transactions and pay-to-anchor feature.
Bluewallet also announces integration of Taproot and Taproot-based HD Wallets, watch-only mode, hardware wallets and coin control.
Bitcoin Safe, an open-source self-custody Bitcoin wallet, releases version 1.6.0 featuring P2P syncing via Compact Block Filters without electrum servers, offline functionality, wallet chart plugin with GraphML export, and multilingual support across 19 languages.
Club Orange, formerly Orange Pill app, launches web RSVP feature allowing anyone to register for events without the app, with email-linked accounts displaying usernames while unlinked guests appear anonymous.
Nostr-oidc, an open-source OIDC service for Nostr, enables authorization code with PKCE and device authentication, originally designed for Cashu Mints with Web of Trust signup verification through Vertex relay.
ReadToRelay, a Chrome extension and website by Vinney Cavallo, extracts readable content from web pages and posts it to Nostr as Markdown, featuring dark mode, adjustable fonts, and local nsec storage for privacy.
CypherTap, an open-source Svelte component library, integrates Nostr authentication, Lightning payments, and Ecash tokens into a single drop-in solution for developers building decentralized applications with comprehensive wallet management capabilities.
EasyWiz creates AI-generated music album inspired by Gigi's Bitcoin book '21 Lessons,' blending violin melodies with reggae beats and horn sections through Suno prompts, releasing it freely with no rights reserved.

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