February Week 1 - 2024

BITCOIN RESET
Are Trump’s Tariffs a Temporary Shakeup or the Start of a Trade War?

Here we go again. Another week, another reason for the markets to panic. This time, it is Trump’s fresh round of tariffs aimed at China, Mexico, Canada, and BRICS nations. The announcement has already sent Bitcoin sliding from $102K to $96K in just a few days, and futures markets are flashing red. Wall Street seems to be bracing for impact as we head into Monday morning, but the real question is: Will this panic stick, or is this just another overreaction that will be forgotten by next week?

If history tells us anything, it is that markets love to freak out before quickly snapping back to normal. We have seen this pattern time and time again. Trade wars, inflation scares, rate hikes—Wall Street throws a fit, retail investors panic, and then within a week, it is business as usual. But is this time different?

Trump’s proposed tariffs are no joke. A 10% tax on all Chinese imports, 25% on Canadian and Mexican goods, and a warning shot to BRICS nations with the threat of a 100% tariff if they move away from the U.S. dollar. The implications could be massive. Supply chains will feel the heat, inflation could flare up, and companies like Nvidia, Apple, and Tesla are already taking hits.

But here is where it gets interesting. If these tariffs spiral into an all-out trade war, it could accelerate global de-dollarization and push even more people toward Bitcoin. We have already seen countries stockpiling gold and diversifying reserves. If the U.S. keeps using tariffs as an economic weapon, alternatives like Bitcoin become even more attractive.

So, what happens this week? Will markets bleed out, or will this all be forgotten by Friday? Either way, Bitcoin has been through worse and always finds a way to bounce back. Markets open at 9:30 AM - Grab your popcorn.

AI RESET
The Deep Seek Fallout: The Artificial Super Irony

Deep Seek delivered a whopping blow to the AI world. What started as a Chinese hedge fund’s bold foray into artificial intelligence has quickly spiraled into one of the most controversial and disruptive moments in AI history. Deep Seek dropped a state of the art reasoning model, seemingly out of nowhere, trained for a one tenth of what OpenAI have spent on GPT-4, and then released it to the world for free…goodness! In essence calling BS on Open AI’s demands for billions of investment for their models. The move sent shockwaves through Big Tech and the Markets. Nvidia lost about 17% or close to $593 billion in market value, a record one-day loss for any company, while shares of companies in semiconductor, power and infrastructure companies exposed to AI collectively shed more than $1 trillion in one day….

And now OpenAI is crying foul, accusing Deep Seek of IP theft. OpenAI and Microsoft claim that Deep Seek engaged in "distillation," essentially feeding OpenAI’s API outputs into its own model to boost performance. If true, this would mean Deep Seek effectively piggybacked on OpenAI’s work, a tactic OpenAI strictly forbids. Considering OpenAI itself trained its models on massive swaths of internet data without permission from anyone, make me wonder if Open AI just discovered Artificial Super Irony! This has led many to wonder, are they really upset about ethics, or are they simply crapping their pants?

As if things were not chaotic enough, Alibaba just dropped a rival AI model that reportedly outperforms Deep Seek. Meanwhile, another Chinese model, Kim 1.5, has entered the race, further complicating what is quickly becoming an arms race between Chinese AI firms. While the United States is still wrestling with AI regulation and chip export bans, China is pushing forward at breakneck speed, seemingly unfazed by the geopolitical headwinds.

The fallout from Deep Seek is not just about this one company, it is a signal that AI innovation has shifting in ways no one saw coming, especially OpenAI. With open source AI models gaining momentum, this last week marks the beginning of a new era where the barriers to entry in AI are shattered.

And just like that, U.S. BIG Tech is no longer calling the shots! Welcome to the new pace of AI innovation! 😎

TECH RESET
Quantum Computing: The Silent Revolution That Could Rewrite Reality

While everyone is fixated on AI, cryptocurrency, and financial markets, quantum computing is quietly pushing forward, inching closer to a future that could shatter our understanding of reality. For decades, Einstein’s theories of relativity have been the gold standard of physics, defining space, time, and gravity. But now, new quantum discoveries are putting those ideas to the test in ways that were once unthinkable.

At the heart of this seismic shift is quantum entanglement, the bizarre phenomenon where two particles become so deeply connected that changing one instantaneously affects the other, no matter how far apart they are. Einstein himself dismissed it as “spooky action at a distance.” Yet, quantum computing is proving that not only is this phenomenon real, but it may be the key to understanding how the very fabric of space and time operates.

Recent experiments using quantum computers have demonstrated something truly astonishing. It appears that entanglement might not just be influencing particles, it could be reshaping space time itself. If true, this discovery challenges the foundational principles of relativity and suggests that space and time might not be the fixed entities we once thought they were. Instead, they could be emergent properties of deeper quantum processes.

This isn’t just an academic exercise. Quantum computing has already begun to unlock solutions to problems once deemed impossible, from revolutionizing artificial intelligence to rendering current encryption methods obsolete. But the real bombshell is what it implies about reality itself. If space and time are products of quantum interactions, then our entire perception of the universe may be incomplete, or even an illusion.

Quantum computing is not just another technological advancement. It is a paradigm shift, one that might force us to reconsider the very nature of our existence. 🤯😳

DISCLAIMER:
This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions or investments. Please be careful and do your own research.