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Greetings Bitcoiner,
Welcome to Issue #622 of Bitcoin Breakdown, where it’s OPSEC Wednesday special, followed by the latest Quick Bits snippets. But first, today’s Top Stories:
Critics say Luke Dashjr's proposed proof of work selection method can be manipulated through cheap targeted mining, the CLARITY Act could ease funding uncertainty for Bitcoin builders, and South Korea's removal of the last travel rule threshold for smaller transfers.
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⚙️ Luke Dashjr's New PoW Method Can Be Gamed
Bitcoin Core developers like Peter Todd says Luke Dashjr's proposed method for choosing a replacement proof of work algorithm can be steered through cheap targeted mining. A miner can search for the last hash byte that maps to a preferred algorithm, turning the supposed random input into a control point.
Why it matters: Bitcoin's rules earn trust through independent verification. An algorithm-selection process that can be steered cheaply gives incentives, not neutral computation, control over the result. Read more→
⚖️ Pro-Crypto Regulators Rally Behind CLARITY Act
A pro-crypto regulatory push is building behind the CLARITY Act, which could give Bitcoin infrastructure companies clearer rules for raising capital. Bitcoin is not a security, but businesses building Lightning, multisignature custody, ecash, and mining software still face an uncertain legal perimeter.
Why it matters: Clear boundaries would not improve Bitcoin's monetary guarantees. They could let investors judge infrastructure companies on products and execution instead of pricing an undefined enforcement threat. Read more→
👁️ South Korea Approves Wider Travel Rule Checks
South Korea approved removal of the 1M won threshold for covered registered domestic VASP transfers. The new identity checks are reported to start around 20 February 2027, while personal-wallet and overseas transfers follow separate rules.
Why it matters: Self-custody protects the keys, not records already held by an intermediary. Careful coin control and CoinJoin can improve on-chain privacy, but neither deletes historical KYC records. Read more→
Poll #622: Korea widens VASP checks. Your privacy plan?
Unit 42 researchers found that malware already running on a Windows computer could abuse Google Password Manager's synced-passkey recovery paths to take over passkey-protected accounts without a visible prompt.
This week's OPSEC Feature Article shows you how to separate routine synced passkeys from hardware-bound credentials before one compromised laptop opens your exchange, email, and financial perimeter.
Get instant access to this special feature by becoming a premium supporter here.
Bitcoin developers remove longtime Core contributor Luke Dashjr as Bitcoin Improvement Proposal editor after his failed BIP110 fork splits the network and stalls after two blocks.
Bitcoin Mechanic & Luke Dashjr, two of the most prominent advocates for the BIP-110 fork, announce sabbaticals from OCEAN mining to focus on development work.
Matt Odell, host of Citadel Dispatch and co-host of Rabbit Hole Recap, announces a sabbatical from podcasting and socials to reflect and figure out his priorities.
Bitcoin Core plans version 32.0 for October, adding faster sync, higher peer limits, Silent Payments support, and PSBTv2 (Partially Signed Bitcoin Transaction) as default.
Bitcoin Paraguay, a non-profit promoting Bitcoin adoption, hosts its second Accelerating Bitcoin conference in Asunción, drawing 70+ speakers to discuss mining, regulation and residency.
Nick Neuman, CEO of bitcoin multisig custody firm Casa, says 233k BTC moved to safer wallets after hackers exploited a Coldcard hardware wallet flaw.
Block, the company behind Cash App, holds 9,117 BTC worth $534M despite a $260M H1 paper loss, while joining the S&P 500 on July 23.
H100 Group, an Adam Back-backed Swedish bitcoin treasury firm, triples its holdings to 3,506 BTC by acquiring Norwegian firms Moonshot and PDI via stock.
Kazakhstan's President Kassym-Jomart Tokayev signs a decree granting individuals a three year tax exemption on Bitcoin and crypto gains to lure offshore holdings onto licensed local exchanges.
Russia's Central Bank proposes rules letting investors trade bitcoin, ether and USDT on regulated exchanges starting September 1.
UK lawmakers Gurinder Singh Josan and Lord Vaizey, co-chairs of the Crypto and Digital Assets All-Party Parliamentary Group, press bank CEOs on industry account access ahead of new Financial Conduct Authority rules.
BlackRock cuts its IBIT Bitcoin ETF in-kind conversion minimum from $25M to $1M, easing tax-free bitcoin-to-share swaps for mid-sized institutions.
Bitcoin's BVIV volatility index, a gauge of implied 30 day volatility, drops to 35.59%, its lowest since September, as options demand collapses and overwriting surges.
Strategy sells 1,690 BTC for $108.6M, cutting holdings to 840,447 BTC while boosting its USD reserve to $4.65B.
Santiment, an on-chain analytics firm, reports that Bitcoin wallets holding 10,000+ coins hit 90, a six-month high.
Twenty One Capital, a bitcoin treasury firm backed by Tether and SoftBank, reports a $414M Q2 loss while holding 43,514 BTC worth $2.78B as its new CEO plans expansion beyond bitcoin holdings.
Bitwise Asset Management cuts 14% of staff to 155 employees as market downturn and fund outflows pressure firms industry wide.
