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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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Eurovision members to discuss voting ‘interference’ rule changes – and potential Israel ban

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Eurovision members to discuss voting  'interference' rule changes - and potential Israel ban

Members of the European Broadcasting Union (EBU) will meet today to discuss Israel’s involvement in next year’s Eurovision Song Contest.

The meeting at Eurovision’s organisers’ headquarters in Geneva will address the new rules intended to stop governments and third parties from disproportionately influencing voting.

Should members not be convinced about the new rules, there may be a vote on Israel‘s participation in 2026.

In November, the EBU changed the voting system for the song contest over allegations of “interference” from the Israeli government.

That came after Israeli singer Yuval Raphael received the largest number of votes from the public in this year’s contest, ultimately finishing as runner-up to Austria’s entry after the jury votes were counted.

After the final in May, Irish broadcaster RTE requested a breakdown in voting numbers from the EBU, while Spain’s public broadcaster, Radio Television Espanola, called for a “complete review” of the voting system to avoid “external interference”.

Dutch public broadcaster AVROTROS added in September that there had been “proven interference by the Israeli government during the last edition of the Song Contest, with the event being used as a political instrument”.

Their statement did not elaborate on the means of “interference”.

Israel has not commented on accusations of interference in voting. File pic: AP
Image:
Israel has not commented on accusations of interference in voting. File pic: AP

Israeli broadcaster still preparing entry

Israel has not commented on the accusations regarding voting for the contest, which stresses its political neutrality, but it has frequently claimed that it faces a global smear campaign.

KAN, the Israeli public broadcaster, also said it is preparing for next year’s Eurovision content.

It added it will present its position on possible disqualification at the meeting.

Boycotts threatened over war in Gaza

It comes after Slovenia and broadcasters from Spain, the Netherlands, Ireland and Iceland issued statements earlier this year saying they would consider boycotting the contest next year if Israel was allowed to enter over the war in Gaza.

In September, officials from the EBU announced plans for an emergency vote on Israel’s participation, with president Delphine Ernotte-Cunci saying “given that the union has never faced a divisive situation like this before”. The board agreed it “merited a broader democratic basis for a decision”.

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That was then called off in October after Israel and Hamas agreed to the US-backed peace plan for Gaza.

More than 70,000 Palestinians have been killed during Israel’s war in Gaza, according to the Hamas-run health ministry.

It was sparked by the 7 October 2023 attack by Palestinian militant group Hamas on Israel in which 1,200 people were killed and 251 taken hostage to Gaza.

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Soaring demand for mental health, ADHD and autism services to be reviewed after ‘overdiagnosis’ claim

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Soaring demand for mental health, ADHD and autism services to be reviewed after 'overdiagnosis' claim

A review into the rising demand for mental health, ADHD and autism services has been launched by the health secretary.

The independent review will look at rates of diagnosis, and the support offered to people.

Health Secretary Wes Streeting said the issue needs to be looked at through a “strictly clinical lens” after he claimed in March that there had been an “overdiagnosis” of mental health conditions, with “too many people being written off”.

Politics latest: Reform receives largest ever UK donation from living person

Mental health conditions are being more commonly reported among the working-age population, figures analysed by the Institute for Fiscal Studies found.

More than half of the increase in 16 to 64-year-olds claiming disability benefits since the pandemic is due to more claims relating to mental health or behavioural conditions.

A total of 1.3 million people claim disability benefits – 44% of all claimants – primarily for mental health or behavioural conditions, the analysis shows.

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The review will be led by leading clinical psychologist Professor Peter Fonagy, the national clinical adviser on children and young people’s mental health, who will work with academics, doctors, epidemiological experts, charities and parents.

He will look at what is driving the rising demand for services, and inequalities in accessing support.

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Govt orders review into ADHD rise

The Department of Health said 13 times more people were waiting for an autism assessment in September 2025 compared with April 2019.

There is £688m in extra funding going towards hiring 8,500 more mental health workers so the NHS can expand on talking therapies and increase the number of mental health emergency departments.

Mr Streeting said: “I know from personal experience how devastating it can be for people who face poor mental health, have ADHD or autism, and can’t get a diagnosis or the right support.

“I also know, from speaking to clinicians, how the diagnosis of these conditions is sharply rising.

“We must look at this through a strictly clinical lens to get an evidence-based understanding of what we know, what we don’t know, and what these patterns tell us about our mental health system, autism and ADHD services.

“That’s the only way we can ensure everyone gets timely access to accurate diagnosis and effective support.”

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ADHD is changing the world of work

Prof Fonagy said: “This review will only be worthwhile if it is built on solid ground. We will examine the evidence with care to understand, in a grounded way, what is driving rising demand.

“My aim is to test assumptions rigorously, and listen closely to those most affected, so that our recommendations are both honest and genuinely useful.”

The findings will be published next summer.

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Salisbury novichok poisonings: Putin ‘morally responsible’ for woman’s death after authorising botched spy assassination bid

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Salisbury novichok poisonings: Putin 'morally responsible' for woman's death after authorising botched spy assassination bid

The assassination attempt on a former Russian spy was authorised by Vladimir Putin, who is “morally responsible” for the death of a woman poisoned by the nerve agent used in the attack, a public inquiry has found.

The chairman, Lord Hughes, found there were “failings” in the management of Sergei Skripal, 74, who was a member of Russian military intelligence, the GRU, before coming to the UK in 2010 on a prisoner exchange after being convicted of spying for Britain.

But he found the assessment that he wasn’t at “significant risk” of assassination was not “unreasonable” at the time of the attack in Salisbury on 4 March 2018, which could only have been avoided by hiding him with a completely new identity.

Mr Skripal and his daughter Yulia, 41, who was also poisoned, were left seriously ill, along with then police officer Nick Bailey, who was sent to search their home, but they all survived.

Sergei Skripal and Yulia Skripal.
Pic: Shutterstock
Image:
Sergei Skripal and Yulia Skripal.
Pic: Shutterstock


Dawn Sturgess, 44, died on 8 July, just over a week after unwittingly spraying herself with novichok given to her by her partner, Charlie Rowley, 52, in a perfume bottle in nearby Amesbury on 30 June 2018. Mr Rowley was left seriously ill but survived.

In his 174-page report, following last year’s seven-week inquiry, costing more than £8m, former Supreme Court judge Lord Hughes said she received “entirely appropriate” medical care but her condition was “unsurvivable” from a very early stage.

The inquiry found GRU officers using the aliases Alexander Petrov, 46, and Ruslan Boshirov, 47, had brought the Nina Ricci bottle containing the novichok to Salisbury after arriving in London from Moscow with a third agent known as Sergey Fedotov to kill Mr Skripal on 2 March.

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L-R Suspects who used the names of Sergey Fedotov, Ruslan Boshirov and Alexander Petrov. Pics: UK Counter Terrorism Policing
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L-R Suspects who used the names of Sergey Fedotov, Ruslan Boshirov and Alexander Petrov. Pics: UK Counter Terrorism Policing

The report said it was likely the same bottle Petrov and Boshirov used to apply the military-grade nerve agent to the handle of Mr Skripal’s front door before it was “recklessly discarded”.

“They can have had no regard to the hazard thus created, of the death of, or serious injury to, an uncountable number of innocent people,” it said.

It is “impossible to say” where Mr Rowley found the bottle, but was likely within a few days of it being abandoned on 4 March, meaning there is “clear causative link” with the death of mother-of-three Ms Sturgess.

Novichok was in perfume bottle. Pic: Reuters
Image:
Novichok was in perfume bottle. Pic: Reuters

Lord Hughes said he was sure the three GRU agents “were acting on instructions”, adding: “I have concluded that the operation to assassinate Sergei Skripal must have been authorised at the highest level, by President Putin.

“I therefore conclude that those involved in the assassination attempt (not only Petrov, Boshirov and Fedotov, but also those who sent them, and anyone else giving authorisation or knowing assistance in Russia or elsewhere) were morally responsible for Dawn Sturgess’s death,” he said.

Russian ambassador summonsed

After the publication of the report, the government announced the GRU has been sanctioned in its entirety, and the Russian Ambassador has been summonsed to the Foreign Office to answer for Russia’s ongoing campaign of alleged hostile activity against the UK.

Sir Keir Starmer said the findings “are a grave reminder of the Kremlin’s disregard for innocent lives” and that Ms Sturgess’s “needless” death was a tragedy that “will forever be a reminder of Russia’s reckless aggression”.

“The UK will always stand up to Putin’s brutal regime and call out his murderous machine for what it is,” the prime minister said.

He said deploying the “highly toxic nerve agent in a busy city centre was an astonishingly reckless act” with an “entirely foreseeable” risk that others beyond the intended target would be killed or injured.

The inquiry heard a total of 87 people presented at A&E.

Pic AP
Image:
Pic AP

Lord Hughes said there was a decision taken not to issue advice to the public not to pick anything up which they hadn’t dropped, which was a “reasonable conclusion” at the time, so as not to cause “widespread panic”.

He also said there had been no need for training beyond specialist medics before the “completely unexpected use of a nerve agent in an English city”.

After the initial attack, wider training was “appropriate” and was given but should have been more widely circulated.

In a statement following the publication of his report, Lord Hughes said Ms Sturgess’s death was “needless and arbitrary”, while the circumstances are “clear but quite extraordinary”.

“She was the entirely innocent victim of the cruel and cynical acts of others,” he said.

'We can finally put her to peace' . Pic: Met Police/PA
Image:
‘We can finally put her to peace’ . Pic: Met Police/PA

‘We can have Dawn back now’

Speaking after the report was published, Ms Sturgess’s father, Stanley Sturgess, said: “We can have Dawn back now. She’s been public for seven years. We can finally put her to peace.”

In a statement, her family said they felt “vindicated” by the report, which recognised how Wiltshire police wrongly characterised Ms Sturgess as a drug user.

But they said: “Today’s report has left us with some answers, but also a number of unanswered questions.

“We have always wanted to ensure that what happened to Dawn will not happen to others; that lessons should be learned and that meaningful changes should be made.

“The report contains no recommendations. That is a matter of real concern. There should, there must, be reflection and real change.”

Wiltshire Police Chief Constable Catherine Roper admitted the pain of Ms Sturgess’s family was “compounded by mistakes made” by the force, adding: “For this, I am truly sorry.”

Russia has denied involvement

The Russian Embassy has firmly denied any connection between Russia and the attack on the Skripals.

But the chairman dismissed Russia’s explanation that the Salisbury and Amesbury poisonings were the result of a scheme devised by the UK authorities to blame Russia, and the claims of Petrov and Borisov in a television interview that they were sightseeing.

The inquiry chairman said the evidence of a Russian state attack was “overwhelming” and was designed not only as a revenge attack against Mr Skripal, but amounted to a “public statement” that Russia “will act decisively in its own interests”.

Lord Hughes found “some features of the management” of Mr Skripal “could and should have been improved”, including insufficient regular written risk assessments.

But although there was “inevitably” some risk of harm at Russia’s hands, the analysis that it was not likely was “reasonable”, he said.

“There is no sufficient basis for concluding that there ought to have been assessed to be an enhanced risk to him of lethal attack on British soil, such as to call for security measures,” such as living under a new identity or at a secret address, the chairman said.

He added that CCTV cameras, alarms or hidden bugs inside Mr Skripal’s house might have been possible but wouldn’t have prevented the “professionally mounted attack with a nerve agent”.

Sky News has approached the Russian Embassy for comment on the report.

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