THE Bitcoin Podcast – "CYPHER TANK" COMPETITION, BITCOIN STARTUPS, M&A, & WHAT HAPPENS NEXT | Mike Jarmuz (Muzz)

• Date: October 6, 2025
• Host: Walker America
• Guest: Mike Jarmuz (Muzz), General Partner at Lightning Ventures
• Theme: Advancing Bitcoin startups, M&A (mergers and acquisitions), the Cypher Tank pitch competition, the future of the Lightning Network, tokenization, market cycles, and the evolution of the Bitcoin media ecosystem.

Episode Overview

This episode dives into the fast-evolving world of Bitcoin startups and investing. Muzz, a prominent Bitcoin VC and operator, returns to discuss:

• The "Cypher Tank" (Bitcoin Shark Tank-style pitch competition)
• The emergence and consolidation of Bitcoin startups
• The trajectory of Bitcoin company mergers, acquisitions, and public markets
• The role and future of media in Bitcoin
• Lightning Network’s usability and the practical tradeoffs between custodial and non-custodial solutions
• Broader themes like tokenization, market cycles, and Bitcoin adoption

Key Topics & Discussion Points

1. Cypher Tank: The New Pitch Competition

Starting at 08:51

• Event Details: The Cypher Tank pitch competition will be held at Lugano Plan B Forum, backed by major Bitcoin players (Plan B Fund, Tether, et al).
• Format: Modeled after Shark Tank, but Bitcoin focused. Open to both for-profit startups and nonprofit projects.
• Prizes: Over $850,000 USD in grant money. Notable judges include Adam Back, Paolo, Odell, and others.
• Inclusivity: No prior incorporation required, all stages welcome. Open to builders, educational initiatives, local organizations, and community leaders.
• Strategic Purpose: Going beyond prize money, participants gain exposure, network with VCs, and might land lead investors/acqui-hires.
• Encouragement for Non-VC-Backable Projects: Many creative efforts (includes games, podcasts, educational programs) can’t access VC funding—Geyser and Cypher Tank offer alternative Bitcoin-native funding models.

Memorable Quote:
"It's kind of a play on Shark Tank... but it's Bitcoin-focused. Submissions are open and some pretty good prizes, all things considered... I'm encouraging everyone to apply because, you know, you never know what can happen."
— Muzz (09:56)

Important Timestamps

• [08:51] — Overview of the Cypher Tank competition
• [13:14] — Project tracks/categories explained
• [16:44] — Application deadline: October 7 (potentially extended to October 10)
• [17:19] — Submission location: planbweek.com

2. Bitcoin Startups: Investing, Acquisitions & the Road Ahead

Starting at 30:32

• Market Flavors/Cycles:

  • Initial focus on private startups, then Ordinals/Bitcoin art, then pure-play treasury companies—all trend in cycles.
  • Current shift: renewed focus on "cold storage" (real bitcoin held privately) and core infrastructure companies—compared to the early Internet/PC revolution.

• Mergers & Acquisitions (M&A):

  • Large players will likely acquire seasoned Bitcoin infra companies instead of building in-house (compare: "Is Blockstream the Cisco of Bitcoin?").
  • Banks and enterprise may buy startups to shortcut Lightning or Bitcoin expertise ("Are they going to hire 3 Lightning devs? I don't think so. They'll make strategic acquisitions." – Muzz, 00:39 & 35:35).

• Investment Thesis:

  • Lightning Ventures invests in companies building "on, around, or with Bitcoin"—from healthcare to energy, payments rails, identity, rewards, advertising tech, and more.
  • Bitcoin-native yields: Muzz predicts we’ll see more treasury companies using the Lightning Network to generate riskless yield (by routing payments), citing the example of Amboss.

Memorable Quote:
"The one thing that we all know is we know that bitcoin is going to do what we know it's going to do. So these companies that are building around it are going to do very well... Is Blockstream the Cisco Systems of bitcoin?"
— Muzz (00:02, recapped at 35:35)

Important Timestamps

• [30:32] — Cyclicality of investment themes in Bitcoin
• [35:35] — Why big corporates will buy, not build
• [38:50] — Publicly traded treasury companies may acquire Bitcoin businesses
• [42:04] — Example: Coincorner and UK’s BE Hodl partnership; startup acquisition trends
• [43:07] — Key "hot" tech/investment areas (Lightning, tokenization)

3. Media, Podcasts, and Funding Models

Starting at 17:50

• Non-VC-Backable Media:

  • Podcasts, films, and grassroots projects struggle to attract classic VC funding. Geyser offers an open, Bitcoin-native crowdfunding alternative.
  • Recent precedent: "True North" podcast acquired by Strive (publicly traded)—a rare example of media M&A.

• Need for Diverse Content & Onboarding:

  • The value of diversity in Bitcoin podcasts to reach mainstream and niche audiences alike.
  • Mainstream-adjacent shows (e.g., by Natalie Brunel) help onboard newcomers differently than more technical shows.

Memorable Quote:
"Let a thousand bitcoin podcasts bloom. We need to eviscerate the tradfi podcast market and completely supplant it with the bitcoin podcast ecosystem. This is my mission."
— Walker (23:43)

4. Lightning Network: Custodial vs. Non-Custodial Realities

Starting at 65:59

• Custodial Service Dominance:

  • Custodial Lightning wallets like Speed or Blink deliver far more reliable payments and cheaper fees than non-custodial wallets.
  • Non-custodial wallets still suffer frequent failed payments and higher fees; technical setup and liquidity management remain a hurdle for most users.

• Pragmatism vs. Purism:

  • Muzz and Walker both lean pragmatic: use on-chain for cold storage/unfuckable money; lean on Layer 2/custodial solutions for payments and smaller, day-to-day use (e.g., zaps, shopping, conferences).
  • Trade-offs are inevitable, and options/competition are beneficial.
  • For broader adoption, "it just has to work"—UX is still early, but improving.

Memorable Quotes:
"Every non custodial [Lightning] wallet had failed payments. Every single one. Nothing wrong, it's just not easy... With custodial wallets, I never have a failed payment. Maybe ever."
— Muzz (66:08)
"Everything has trade-offs...For everything else, I'm willing to accept those trade-offs because I'm not talking—I don't need the same things out of layer two that I need out of layer one Bitcoin."
— Walker (69:22)

Important Timestamps

• [65:59] — Lightning Network usability: custodial vs. non-custodial
• [72:18] — Comparative fee structures
• [78:18] — Bitcoin wallet UX, grandma-friendly adoption

5. Tokenization, Market Structures, and Real-World Assets

Starting at 43:07, revisited 47:02 & 48:07

• Tokenization Buzz:
  • Wall Street and TradFi (Vlad from Robinhood, Larry Fink at BlackRock) are pushing "tokenization" and 24/7 markets.
  • SEC is laying the groundwork for 24/7 tokenized stock trading.
  • Muzz: most "put it on the blockchain" arguments are unnecessary and often amount to improved centralized databases, not true blockchains.
  • Useful cases: certificates of authenticity, private market investments, liquidity in VC/private equity positions. Not appropriate: medical records, property deeds, most "supply chain on blockchain" pitches.

Memorable Quote:
"Most of what you need does not need a token. It doesn't need a blockchain. And a lot of this is actually just misuse of the word blockchain..."
— Muzz (48:07)

6. Market Cycles, Adoption, and Black Swan Events

Starting at 55:56

• Cycle Analysis:

  • Is this a classic 4-year bitcoin cycle, or is the cycle breaking down with new drivers (publicly-traded treasuries, ETF inflows)?
  • Price action: large moves still scare fiat investors, but broader institutional/retail interest likely acts as a "buy the dip" backstop now. "We're hitting escape velocity... there's just too many buyers."
  • Possible catalysts for a future bear market discussed: exchange hacks, custody honeypots, black swan events (e.g., Coinbase custody risks, geopolitical hack, etc).

• Actionable Wisdom:

  • Keep dollar cost averaging, manage risk, enjoy the journey, touch grass, and remember the family/life outside Bitcoin.

Memorable Quote:
"But every asset in the world goes into a bear market except government spending, right? That's the only bull market..."
— Muzz (57:28)

Notable/Entertaining Moments

• Bitcoin Conference Kids’ Hustle ([05:27]):
  Muzz’s story about hiring Daniel Prince’s kids to run the door at a conference—“The kids were ruthless... most profitable rockamoto ever”—a lighthearted glimpse into the next generation of Bitcoiner hustle.

• Bitcoin Podcasting as a Family Affair ([04:21]):
  Walker’s aspiration for his son to eventually co-host and Daniel Prince’s show featuring his daughter—encapsulating the cross-generational spirit in the space.

• Practical Funding Advice ([20:48]):
  “The thing with Geyser ... is you have to really promote them ... your signature page ... you might want to put your Geyser link near the top.” —Muzz, giving real advice to would-be content fundraisers.

Conclusion & Resources

How to Join Cypher Tank:

• Go to planbweek.com, find "Cypher Tank," and apply by October 7th (possible extension to October 10th).

Other Links:

• Lightning Ventures
• Thunderfunder.com — for non-accredited, retail equity crowdfunding in Bitcoin startups

Final Advice:

• Keep building, support diverse and creative Bitcoin projects, and stay curious.
• Manage risk, enjoy the journey, touch grass, and “let a thousand Bitcoin podcasts bloom.”

Further Listening/Sections & Timestamps

| Segment | Timestamp | |-----------------------------------------------|--------------| | Cypher Tank Pitch Competition | 08:51 – 17:50| | Nonprofit Funding / Geyser | 17:50 – 22:44| | Media & Podcast Consolidation, M&A | 22:44 – 29:16| | Investing in Bitcoin Startups | 30:32 – 43:07| | Tokenization & Real-World Asset Hype | 43:07 – 54:22| | Market Cycles & Catalysts | 55:56 – 63:05| | Lightning Network: Custodial Vs. Non-custodial| 65:59 – 78:33| | Wallet UX & Grandma Adoption | 78:18 – 78:33| | Wrap-up & Further Resources | 79:38 – End |

"Bitcoin is scarce, but podcasts are abundant—thanks for spending your scarce time here."
—Walker America

For Podcast Support/Further Questions:

• Walker on Nostr (@primal.net/walker)
• THE Bitcoin Podcast on X & Instagram (@tcoinPodcast)
• bitcoinpodcast.net

This summary captures the key moments, ideas, and practical takeaways for anyone building, investing, or philosophizing in Bitcoin.