451: Deriving the Bitcoin Price from UTXO Data with UTXOracle
Steve and Daniel joined the show to explain how UTXOracle works, what it could potentially enable, and other awe inspiring aspects of the bitcoin network.
Steve Jeffress and Daniel Hinton have been looking at bitcoin chain data for years and have used visualizations in an attempt to better understand what is happening within the network at any given point in time. Over the years they began to notice a trend of equal sized UTXOs creating discernible patterns that allowed them to tease out the USD price of bitcoin on any given day. This led to the creation of UTXOracle, which allows individuals running full nodes to produce a daily price of bitcoin without any data other than the UTXO set on their node. Steve and Daniel joined the show to explain how UTXOracle works, what it could potentially enable, and other awe inspiring aspects of the bitcoin network.
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Follow Daniel on Twitter
Check out UTXOracle
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Timestamps
0:00 - Intro
6:41 - Steve and Daniel’s background
10:59 - Explaining UTXOs
13:34 - Visualizing data
20:46 - Effect of Bitcoin ATMs on patterns
25:24 - How to infer price from UTXO data
35:27 - Usefulness as an oracle
45:28 - Possibility of price per block
46:41 - Human action, opportunities and attack vectors
53:26 - Effect of ordinals
55:49 - UTXO mismanagement
1:02:37 - Spending old coins
1:06:51 - Taproot changes and far future problems
1:18:20 - Fun new concepts
1:27:43 - Run the numbers yourself
1:32:58 - Wrapping up
