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This is an opinion editorial by Max Keidun, the CEO of peer-to-peer bitcoin exchange Hodl Hodl.

The bitcoin lending space has suffered from several major issues in recent months and years, from the fallout of the Terra/Luna crash, impacting Celsius and BlockFi, and now FTX as well, to liquidity crunches given the sustained price drawdown, varying accusations of market manipulation and more.

All of these have led to significant losses, bankruptcies and a complete reshaping of the lending market. Many users have lost faith in bitcoin-based lending products and the market appears to be at its historical bottom, both in terms of volumes and public confidence.

As usual, the mainstream media blamed these crises on Bitcoin itself. But is any of this Bitcoin’s fault? Does it make Bitcoin any less attractive? Does it even mean that we shouldn’t consider bitcoin as lending collateral? No!Bitcoin Is Super Collateral, It’s The Lenders Who Have Failed

While Bitcoin's code is law, custodial lending platforms are trusted third parties, owned and managed by private entities. Trusted third parties are security holes. This was true before Bitcoin, and it is still true today.

Furthermore, most bitcoin lending platforms are poorly conceived, poorly developed and poorly managed. This doesn’t necessarily imply bad code. The code can be well written, properly audited and verifiably secure, but there may still be poor incentives that emerge from the design of the lending platforms. If the focus is to treat bitcoin as if it were a yielding asset, we are likely in for trouble.

The longer the “bitcoin lending” industry goes on, the clearer it becomes that most involved do not really understand how yield is generated. And as the saying goes, if you don’t know where the yield comes from, then you are the yield. What it really means is that your bitcoin is being used as the principal for risky investments, and it is likely only a matter of time before the house of cards starts to collapse.

I believe that the proper focus for integrating bitcoin into intermediated lending is to appreciate how valuable and unique bitcoin is, and to treat it as something to be borrowed against: to understand that bitcoin is super collateral. But what makes it so unique?

We can identify twelve characteristics that make it so:Bitcoin Is Liquid

Bitcoin is an extremely liquid asset. It is traded 24/7, with no weekend breaks and no banking holidays. Massive liquidity pools across a variety of fiat currencies are available globally. For lenders, this means that if you want to convert your collateral into fiat, you can do it instantly — either because the borrower has been liquidated or because the loan was repaid from the collateral.

This also allows for the hedging of risks. Bitcoin may be the only kind of loan collateral which can be instantly and dynamically hedged: a serious competitive advantage.Bitcoin Is Programmable

Bitcoin enables the creation of programmable lending products and ownership mechanisms. Among other benefits, this feature allows us to solve the problem of trusted third parties by building non-custodial lending mechanisms and storage systems. For example, we can distribute collateral claims or create conditional logic for redemption that will be automatically executed by the Bitcoin network, not the whims of a centralized financial institution.Bitcoin Is Scarce

There will only be 21 million bitcoin.Your collateral is getting more valuable over time, which means there is less incentive for you to sell, and likely more lenders who are willing to accept it. Bitcoin Is Flexibly Transparent

Bitcoin allows us to enable selective transparency of your assets when useful, but also allows complete anonymity when desired. In a lending scenario, for example, you can easily prove to a lender that you own and control the collateral under consideration.Bitcoin Is Sovereign

Bitcoin is yours. You have keys to your bitcoin just like you have keys to your house and your car. Bitcoin is your personal property. If you use a house or a car as collateral, you won't own it — your lender would. With bitcoin, you can still conditionally own it during your lending agreement. In fact, with the right tools, you can not only use but continue to use this collateral during the period of the lending agreement.Bitcoin Is Secure

Bitcoin is protected cryptographically, economically and socially. It is sensible to think of Bitcoin's lowest-level network security expanding to the set of tools built on top of it. For example, you can distribute ownership of your collateral between multiple independent parties, use offline wallets and utilize many more security methods.Bitcoin Is Market Driven

Bitcoin is the essence of a market-driven asset. The price of bitcoin reflects the market almost instantly, and it's not determined by one or several individuals. It is extremely difficult to manipulate the price of bitcoin. Bitcoin costs almost the same in fiat in any part of the world and is determined by a global market. Bitcoin Is A Real-Time Asset

Not only can we track the price of bitcoin collateral in real time, but Bitcoin's blockchain allows you to track your collateral address in real time also. Any price fluctuation can be reacted to appropriately. As mentioned, there are no weekends or holidays, and the market is always open to everyone, so nobody will close the market on a Friday and open on a Monday with different prices.Bitcoin Is Objective

Bitcoin is honest. Bitcoin in Miami costs the same amount of fiat as it does in Lugano or Riga. Bitcoin doesn't care whether you like it or not. The price of bitcoin cannot be determined by your personal views or your forecasting capabilities. To borrow against bitcoin, you only need to have bitcoin. Your credit history, social score or anything else is irrelevant to the lender as long as you have the collateral to borrow against.

Take real estate, for example. The same amount of money can buy you different properties in different countries with the same levels of economic and social development. What makes the difference then? Why can you buy a mansion on the coast of the Mediterranean in Spain or Italy and, for the same amount of money, you won’t be able to afford a proper house in the Bay Area in the U.S.?

It’s due to humans' irrational valuation capabilities. Because real estate valuation is primarily based on human factors, banks evaluate your property as either too expensive or too cheap, depending on market conditions and their plans.

Or take stocks, for example. Your stocks in a certain company can have good underlying conditions and great potential growth opportunities, but suddenly the CEO of this company can tweet some stupid thing, and you are losing money or getting liquidated. Meanwhile, Bitcoin is fair.Bitcoin Is Global

Bitcoin is globally accessible and globally distributed. For lending, this means that you can borrow remotely from anyone in the world, and you can lend money using bitcoin as collateral to anyone in the world. Bitcoin is neither limited to, nor exclusively exposed to, specific local markets.Bitcoin Is Digital

In a digital age, with digital commerce, we need digital collateral. Bitcoin is already online. It's here, on your machine, your phone, your cold wallet. Bitcoin allows you to borrow remotely and instantly. There is no need to digitize bitcoin as you need to do with real estate, land, cars or any other assets. It's already digital. Bitcoin Is Decentralized

There is no single point of failure in Bitcoin. Bitcoin has been attacked multiple times, and yet it is growing and expanding globally. No committee or person is responsible for Bitcoin. Having decentralized collateral significantly decreases your dependence on single events and failures of companies or people. You are protected by a distributed network. Will Lending Ever Match Bitcoin’s Potential?

Powerful collateral requires powerful tools. Is it possible to build lending tools that will match bitcoins' value? In order to do so, we all need to take a step back and check Bitcoin's white paper.

After reading Bitcoin’s white paper, you will understand that in order to build a successful lending product (in fact, any type of Bitcoin product!), you need to meet three main criteria. If your product has all three, congrats you have passed the test. Let's call it “The Satoshi Test.”Your service should be non-custodial. Remember: not your keys, not your coins. When using custodial lending platforms, you are exposed to the risk of losing your collateral completely. Because, as soon as bitcoin hit platform wallets, they are no longer yours. This is exactly what happened to customers of the many lending and trading platforms that have failed in 2022.Bitcoin is a peer-to-peer, electronic cash system. Once again: peer to peer. Instead of acting like a middleman, you need to provide technical tools for individuals or businesses to operate with each other. Or you can be a business that will allow customers to directly interact with your platform. A good example is a platform that allows customers to buy bitcoin directly into their own cold storage. Your platform should be Bitcoin only, meaning that the only collateral you should work with should be bitcoin. Shitcoins are risky, and shitcoins' code is a ticking time bomb. By integrating many blockchains into your product, you are exposing the most valuable to the most vulnerable.

There is an extra criteria that could be met: anonymity. If you are building non-custodial, Bitcoin-only, peer-to-peer products, this can and will allow you to offer anonymity and better privacy for your customers because security is not full without anonymity and the data of your customers should be protected, as well as their funds.

A good way to pass The Satoshi Test is to utilize multisig. Multisig is a simple and secure yet powerful tool. It allows you to offer peer-to-peer interactions to users, leverage non-custodial escrows and use only Bitcoin. It also allows you to offer better privacy for your users.

Take, for example, a multisig setup with three keys where the consensus mechanism is reached by entering at least two keys. This is called “two-out-of-three Bitcoin multisig.” In that type of setup, you — as a technical tool provider — can become one of the key holders, but you won’t have full control over customer funds (because you only have one key!), thus ensuring that these funds won’t be moved and rehypothecated. For example, the lender will have one key, the borrower will have another one, and the provider will have the third key. This kind of setup will allow users to verify that funds are only used by them, and that all parties must act according to rules in order to reach consensus, and that no single party can act in a dubious and shady way.

In fact, there are already powerful platforms that use Bitcoin multisig and offer peer-to-peer interactions. These platforms can provide lenders and borrowers from all over the world with easy two-out-of-three multisig setups, where each side (including the platform itself) has one key. The multisig is created on Bitcoin’s public blockchain, meaning that you can check your collateral at any time through any block explorer. And the best part is that no funds can be rehypothecated because the platform itself only has one key that ensures that every involved counterparty is acting in a good and professional way. Proper Lending Platforms Might Be Useful For HODLers

Although the lending market at the moment is experiencing turbulence and contagion effects, it is a good time to educate yourself about proper lending platforms that might be useful for any true HODLer in the future. As soon as we enter the next bull cycle, there will be less incentive to sell bitcoin and more interest in holding it for the long term and borrowing against it. Be prepared, because bear markets don’t last forever. HODL and learn!

This is a guest post by Max Keidun. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Hong Kong high rise fire: 13 arrested for suspected manslaughter as death toll hits 151

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Hong Kong high rise fire: 13 arrested for suspected manslaughter as death toll hits 151

Thirteen people have been arrested for suspected manslaughter after Hong Kong’s deadliest fire in decades, officials have said.

At a press conference about the tragedy at Wang Fuk Court, police said 151 people had now died as a result of the blaze – Hong Kong’s worst since 1948 – and that more than 40 are still missing.

An emotional Tsung Shuk Yin, a police official, told reporters on Monday: “Some of the bodies have turned into ash, therefore, we might not be able to locate all missing individuals.”

The fire last week engulfed multiple high rise blocks of flats. Officials overseeing investigations said that tests on several samples of a green mesh that was wrapped around bamboo scaffolding on the buildings at the time of the blaze did not match fire-retardant standards.

Officers have said mesh around Wang Fuk Court did not meet safety standards. Pic: AP
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Officers have said mesh around Wang Fuk Court did not meet safety standards. Pic: AP

Pic: Kyodo/AP
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Pic: Kyodo/AP

Chief secretary Eric Chan told reporters that contractors working on the renovations used substandard materials in hard-to-reach areas, effectively hiding them from inspectors.

The officials said that foam insulation used by contractors also fanned the flames, and fire alarms at the complex were not working properly.

Sky News had previously learnt that residents raised their fears over fire safety connected to extensive renovations on Wang Fuk Court as early as September 2024.

Read more: Hong Kong mourns those lost to fire

Pic: Reuters
Image:
Pic: Reuters

Labour Department acknowledges reply ‘was unclear’

In a statement to Sky News, Hong Kong’s Labour Department acknowledged that, in reply to these complaints, it told residents the mesh was designed to limit objects falling from the scaffolding and that “current safety regulations applied to construction sites by the Labour Department do not cover flame-retardant standards for scaffolding netting or any materials”.

They now acknowledge this reply to residents “was unclear and caused misunderstanding”.

Pics: Hong Kong Police Public Relations Branch/AP
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Pics: Hong Kong Police Public Relations Branch/AP

The Labour Department also told residents they judged the risk of a fire on the scaffolding was “relatively low”, because the works did not include activities such as welding.

In its statement to Sky News, the Labour Department says this did not mean the risk was negligible, and also noted contractors had been reminded to “implement fire prevention measures.”

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‘It could have been avoided’

The blaze broke out at the Wang Fuk Court housing complex in the city’s Tai Po district on Wednesday.

Records show the site consists of eight blocks, with almost 2,000 apartments housing around 4,800 residents, including many elderly people.

It was built in the 1980s and has recently been undergoing a major renovation.

On Sunday, more than 1,000 people turned out to pay tribute to the victims of the fire, queuing for more than a kilometre to lay flowers, some with sticky notes attached addressed to the victims.

Pics: Reuters
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Pics: Reuters

Man calling for probe detained

Meanwhile, it emerged that police detained Miles Kwan, 24, who was part of a group that launched a petition demanding an independent probe into possible corruption and a review of construction oversight.

An online petition demanding an independent probe into possible corruption and a review of construction oversight drew over 10,000 signatures before it was closed.

Another petition with similar demands attracted more than 2,700 signatures with its plea for “explicit accountability” from the government.

Read more from Sky News:
Dignitas founder dies by assisted suicide aged 92
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Two people familiar with the matter told Reuters that Kwan was detained on Saturday. The news outlet could not establish whether he had been arrested.

He was pictured leaving a police station in a taxi on Monday afternoon.

Miles Kwan leaves a police station following his detention.
Pic: Reuters
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Miles Kwan leaves a police station following his detention.
Pic: Reuters

Police did not comment on the case, and Hong Kong Security Chief Chris Tang also declined to comment on specific operations at a press conference on Monday.

He added: “I’ve noticed that some people with malicious intent, aiming to harm Hong Kong and national security, have taken advantage of this painful moment for society.

“Therefore, we must take appropriate action, including enforcement measures.”

In a statement about the arrest, Luk Chi-man, executive director of Amnesty International Hong Kong Overseas, said: “We urge the Hong Kong authorities to establish the full facts of last week’s tragedy through a thorough, independent, impartial and open investigation, and to publicly clarify the cause of the fire, hold relevant persons accountable and release all findings without delay.

“It is both a right and a duty for people in Hong Kong to demand this kind of accountability; but rather than recognise this, the Hong Kong authorities have instead chosen to silence those who raise their concerns and demands.

“A healthy society should not have only one voice.”

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Dignitas founder dies by assisted suicide aged 92

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Dignitas founder dies by assisted suicide aged 92

The founder of Dignitas, the Switzerland-based assisted suicide clinic, has died aged 92, according to the organisation.

Ludwig Minelli, lawyer and former journalist, died on 29 November shortly before his 93rd birthday.

Mr Minelli lived a life “for freedom of choice, self-determination, and human rights”, said Dignitas in a tribute.

He founded the organisation in 1998 with “a group of like-minded people”.

“At that time, he and his fellow compatriots would never have thought that this association was about to become an internationally active organisation,” said the tribute.

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‘He died like he lived, with dignity’

It described Mr Minelli’s belief that trying to “talk someone out of suicide is not a suitable prevention method”.

“Rather, the approach should be taking a person in a seemingly hopeless situation seriously, meeting them at eye level, and showing them all possible options to alleviate their suffering.”

More on Assisted Dying

Those options should include “the possibility of ending their own life with professional support, safely and in a self-determined way in a setting that he or she personally deems dignified”, it said, adding that a very small number of people who approach Dignitas end up choosing assisted suicide.

“It is up to the individual to decide which option to choose,” said the tribute.

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For and against assisted dying

The Dignitas team said Mr Minelli had “planned succession for a seamless transition” and the organisation would continue its “professional and combative” work.

Read more:
What does assisted dying look like?

Assisted dying poses ‘substantial task’ for NHS

Although Switzerland has allowed assisted dying since 1942 – provided the motive is not “selfish” – Dignitas became well-known as it allows non-Swiss people to use its clinics.

Despite assisted suicide still being illegal in the UK, people from Great Britain make up the second largest group of Dignitas members, according to the group’s statistics.

Last year, 37 people travelled from Great Britain to die at a Swiss Dignitas clinic.

Those who accompany their loved ones to the clinics can be charged with assisted suicide, although earlier this year, police said a widow who accompanied her husband wouldn’t face charges.

“Whilst [the CPS] concluded the evidential test had been met regarding assisted suicide, it was decided not to be in the public interest to prosecute,” said North Yorkshire Police in a statement at the time.

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.

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Family of man who died on Benidorm holiday say they have new evidence of foul play

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Family of man who died on Benidorm holiday say they have new evidence of foul play

The family of a father-of-four who died on holiday in Benidorm say new evidence has further convinced them that foul play was involved in his death.

Nathan Osman, 30, from Pontypridd in South Wales, was on a long weekend break with friends in Benidorm in September 2024.

Less than 24 hours after he arrived, his body was found by an off-duty police officer at the bottom of a remote 650ft (200m) cliff on the outskirts of the resort.

He died from head and abdominal injuries after falling from height, a post-mortem found.

Local police said it was “a tragic accident” that occurred after Nathan left his friends in Benidorm to walk back to his hotel room alone.

But his family believe the investigation into his death has not been adequate, and that the local authorities have never considered the possibility of a homicide.

Their suspicions of foul play were first provoked by the fact that the remote location where Nathan was found was in the opposite direction to the hotel, and some distance away on foot.

They began doing their own investigating, building a timeline of events drawn from sources including CCTV, witness statements and Nathan’s bank records, which they say showed attempts were made to use his bank cards the day after he died.

After presenting their findings to Spanish prosecutors as evidence that others may have been involved, the case was reopened earlier this year.

Now, the family have told Sarah-Jane Mee on The UK Tonight that new phone data they have uncovered suggests he couldn’t have reached the spot he was found on foot.

Nathan's brother Lee, mother Elizabeth and father Jonathan speak to Sarah-Jane Mee
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Nathan’s brother Lee, mother Elizabeth and father Jonathan speak to Sarah-Jane Mee

After getting the phone back a couple of months ago, they say they tracked Nathan’s last movements through a health app.

“There’s a breakdown inside the app of every 10 minutes – the distance, pace, measurement of pace… every detail you can think of,” Nathan’s brother, Lee Evans, tells Mee.

“His pace wasn’t consistent with a fast walk or even a sprint.”

He said it was a faster journey, despite being uphill for 40 minutes, which has convinced the family that he was in a vehicle.

Pic: Family handout
Image:
Pic: Family handout

The family also went to visit the area where Nathan was found.

“We were a bit upset, but we were very pleased we went up there”, his mother, Elizabeth, says. “We could see… there’s no way he would have looked at that area and thought, ‘I’m going up here.’

“You can see straight off, there’s no clubs, there’s no hotels up there, there’s just the odd house dotted around. It was just out in the wild, there was nothing up there.”

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The family says the phone data has helped them determine that he died around half an hour after he was seen on CCTV walking towards his hotel in the early hours of the morning.

“It was really ridiculous to think that my son would’ve walked up there [the remote location where he died] at 4am in the pitch dark.”

After the family were interviewed by Mee in May, South Wales Police opened its own investigation into Nathan’s death.

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Nathan’s family speaking to Mee in May

Lee says the Welsh force has been “appalled” by the lack of evidence turned over from the local police’s investigation.

His and Nathan’s father, Jonathan, says: “No procedures were followed. Nothing was cordoned off, it wasn’t a crime scene. There’s loads of things that could’ve been taken. Tyre tracks, foot tracks, nothing. No DNA taken.”

Lee says: “All that we’ve done over the last year, this could’ve been squashed within the first week, two weeks [by local investigators].

“We’ve had to find out and keep delving into every possible outcome and overturn every stone possible. We started off with… a needle in a haystack, we had no direction or any support on which way to go.”

Nathan Osman. Pic: Family handout
Image:
Nathan Osman. Pic: Family handout

What does Nathan’s family hope for now?

Nathan’s family say they have located 27 CCTV cameras which could have picked Nathan up in the area, after local investigators didn’t find any.

Elizabeth says that after alerting Spanish police to the locations, they were told that the CCTV “wouldn’t be working” or that footage would’ve already been erased.

“They just surmised everything,” she adds.

But the family, who found the last known CCTV footage of Nathan earlier this year, are convinced there is still hope.

Lee says: “There’s a number of CCTV footage in that area. We know there’s a way of finding a vehicle of some sort.”

But the family admit they may never find whoever could be responsible for Nathan’s death because so much time has been lost.

Elizabeth concludes: “Nathan walks with us every day. We all believe that,” adding that “all we want” is to find the ones responsible for his death and for him to “have the respect of a decent investigation”.

Sky News contacted Spanish police, which declined to comment, adding the case is under judicial review and it doesn’t want to hinder the course of the investigation.

South Wales Police told Sky News: “South Wales Police is carrying out enquiries on behalf of HM Coroner and a family liaison officer has been appointed to provide support.”

Watch the full interview with Sarah-Jane Mee on The UK Tonight from 8pm this evening on Sky News.

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