Matthew Kratter: Bitcoin Core is Compromised - Here's Why

Matthew Kratter of Bitcoin University joins Michael Jordan on The Bitcoin Way podcast for a hard-hitting breakdown of the Bitcoin Core controversy: why Core developers are compromised, the network's migration to Bitcoin Knots, and what self-custody Bitcoiners must do now.

Matthew covers UTXO bloat from ordinals and inscriptions, the uncapping of OP_RETURN, and how Core devs prioritized theoretical bloat over real attack surface. With 20% of nodes already on Bitcoin Knots, he explains BIP-110 - the temporary soft fork to reverse Core's changes.

Plus: Michael Saylor's Ethereum DeFi pivot, the risks of Bitcoin-backed loans, and why Bitcoin plebs are the network's true immune system. Essential listening for anyone running a node, practicing self custody, or defending Bitcoin's decentralization.

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⏱️ Timestamps:

0:00 - Intro & Core controversy

1:36 - How to spot a compromised dev

2:11 - The Fauci analogy

4:53 - History of Bitcoin spam wars

8:30 - Dev turnover & culture shift

12:22 - Bitcoin spam recurrence

20:25 - Greg Maxwell then vs now

23:58 - Bitcoin Knots vs Core

28:41 - BIP-110 explained

31:39 - OP_RETURN uncapped

38:28 - Luke Dashjr & Bitcoin Knots

50:07 - Bitcoin plebs immune system

55:58 - BIP-110 activation timeline

1:11:35 - Clarity Act

1:13:40 - Michael Saylor critique

1:21:51 - Price action

1:22:45 - Matt's unpopular Bitcoin opinion

Follow Matthew Kratter on YouTube: https://www.youtube.com/@Bitcoin_University

Follow him on X: https://x.com/mattkratter