Trump signed the Bitcoin thing. So we’re talking about Bitcoin Vaults, and why big companies want this functionality added to the Bitcoin base layer (plus some other news).

It’s about a 3 minute read.

NiceHash is the go-to platform for Kaspa and Dogecoin miners looking to maximize their mining profits by up to 40%! Get paid in Bitcoin with payrate surges that beat pool payrates! No need to swap, no conversion fees - just more profit in your BTC wallet. Plus, boost your efficiency even further with NiceHash Firmware for Antminer Kaspa machines, unlocking better performance and higher earnings per watt.

Got Vaults?

“First decide what to build and then how to build it.”

Bitcoin Core lead maintainer Gloria Zhao chimed into the developer discussion earlier this week, asking Bitcoiners what they want Bitcoin to be able to do.

A common reply? Better vaulting. The founders of popular Bitcoin wallet Casa and custodial service Anchorwatch jumped in, as well as several other bitcoin developers.

So we ask this Friday morning: What’s a Bitcoin vault, anyways?

TL;DR: Bitcoin vaults improve Bitcoin custody by allowing users to predefine how bitcoin can be spent and prevent unauthorized withdrawals.

We might call vaults “Reactive Security,” meaning that instead of having to prevent an attack via various signing schemes, you can react to attacks as they occur by creating safety nets.

Example A: Imagine you saw that someone had tried to withdraw Bitcoin from one of your wallets. If you’d set that bitcoin up in a vault, you could have a way to recover that bitcoin for a little while after. E.g. you can set up a vault that has a spending condition where it takes 24 hours to withdraw funds, this would give you 24 hours to “recover” bitcoin that bitcoin to a safe place if someone gained unauthorized access.

Example B: Let’s say your private keys get compromised. For self-custody users today, that’s a total loss. Some custodians protect against this (like Anchorwatch) but they need to rely on multiple partners & signing schemes. With a vault, if your keys were compromised you could trigger an “escape hatch” and sweep all your bitcoin to a safe address that you own before the attackers transaction goes through. The amount of time you have to trigger the escape hatch is up to you—4 hours, 24 hours, 7 days, etc.

So who wants vaults? As we said above, plenty of Bitcoin custodians want them. But there’s also a case to say many Bitcoiners will want them, once their available. Particularly large Bitcoin hodlers like Bitcoin ETFs, exchanges or Bitcoin whales.

For now, however, we have to stick with our multi-sig schemes, it would seem!

February Derivatives Lookback — Live on X Spaces How did Bitcoin derivatives perform last month? What should miners and traders watch next? Join Luxor’s monthly lookback for key insights and expert analysis co-hosted with The Mining Pod.

Live 7 of March (12pm EST). Set your reminder here.

Bitcoin news

Trump establishes Strategic Bitcoin Reserve

White House crypto & AI czar David Sacks broke the news Thursday night that Trump did the thing: he signed the EO preventing the USA from selling it’s existing Bitcoin stack (~200k BTC). It is unclear whether additional language in the bill lays groundwork for additional purchases. But one thing is clear: this was a Bitcoin-only order. Upon the news Bitcoin immediately dumped 3% down to $85.4k - link

Twitch Streamer fends off would-be crypto robbers

After screenshotting a wallet with over 200btc (~$20m USD) streamer Amouranth (NSFW) home was invaded by 3 would-be robbers. In a harrowing confrontation that was caught on video, the streamer managed to shoot & scare off the intruders - link

The SEC drops Kraken, other crypto cases

Recent Blockspace Pods