November Week 4 - 2024

CRYPTO RESET
Trump’s Plan to Scrap Capital Gains Taxes for Crypto Could Trigger a Market Explosion

There’s a storm brewing in the crypto world, and it’s not just the price of Bitcoin flirting with 100k. Rumor has it that President-elect Donald Trump is floating a plan to eliminate capital gains taxes on U.S. based cryptos. While the crypto space has been buzzing with all kinds of policy chatter, this particular proposal feels massively under-appreciated. Let me break it down.

If this policy becomes a reality, it would make American based crypto projects the ultimate investment haven. the implications: any profits made from these U.S. issued tokens would be tax-free. That’s right, no Uncle Sam taking a cut of your moon bags. The ripple effect would be crazy, turning the U.S. into a global crypto hub overnight.

This would create a stampede of capital into U.S. based tokens. Projects like Cardano (ADA), Solana (SOL), and Ripple Labs (XRP), all deeply rooted in the U.S. ecosystem, could see their valuations skyrocket. ADA, with its robust technology and American connections, could emerge as a blue chip crypto asset in this new tax free environment. Solana’s dominance in speed and scalability, coupled with its Silicon Valley pedigree, would make it irresistible. And then there’s XRP, which is headquartered in San Francisco. Focused on global payments and institutional adoption, is positioned to capitalize on this policy as well.

But this isn’t just about short term price pumps. A policy like this would fundamentally alter the investment landscape. Crypto could overshadow stocks and real estate as the go to asset class, attracting institutions and retail investors alike.

In the end, this policy isn’t just a game changer, it’s a potential revolution. The question now is whether the crypto community truly understands how seismic this shift could be. If this plan moves forward, we may be looking at the dawn of a U.S. led crypto renaissance. Let’s be ready to buckle up, because the rocket fuel may be on its way! 🚀

BITCOIN RESET
How Bitcoin Could Help the U.S. Claw Its Way Out of Colossal Debt

Let’s face it $35 trillion in debt is way out of control, and it’s a problem that’s only getting worse…. a lot worse. While some discussions around stable coins possibly absorbing U.S. treasuries, to me Bitcoin might hold the key to a truly transformative solution. Yes, Bitcoin and here's how it could play a major role in helping the U.S. dig itself out of this financial hole.

First, Bitcoin’s scarcity, this is its superpower. With only 21 million coins ever to exist, Bitcoin is inherently deflationary. Which is the exact opposite of the endless printing of dollars, which fuels inflation and erodes confidence in the U.S. dollar. By integrating Bitcoin into a strategic reserve or even as collateral for U.S. debt, the government could signal a shift toward fiscal responsibility, for once in this century, and that could bolster trust in both in Bitcoin and the dollar.

Second, Bitcoin adoption could drive foreign capital back into the U.S. Imagine if the government incentivized Bitcoin mining within its borders or allowed tax benefits for Bitcoin related investments. This could attract billions of dollars in private and institutional capital, strengthening the domestic economy. Companies like MicroStrategy and Tesla have already shown how Bitcoin can serve as a high performing reserve asset, so why shouldn’t the U.S. join the party?

Third, Bitcoin could provide an exit ramp from the debt spiral. A global move toward Bitcoin as a store of value especially if major players like the U.S. lead the charge would elevate its price dramatically. Some analysts project six figure Bitcoin prices in the next cycle. If the U.S. held significant reserves, the value appreciation alone could chip away at its debt.

While Bitcoin isn’t a silver bullet, its potential to realign economic incentives and attract new capital makes it a serious contender in the fight against America’s mounting debt crisis. Maybe it’s time to stop viewing Bitcoin as a speculative asset and start seeing it as a national opportunity.

Finally, let’s get real here…… the U.S. could literally print the U.S. dollar at will and buy Bitcoin. It’s a simple move really, sell the loser and buy the winner!
Personally, I’m grabbing the popcorn to see if the U.S. takes this leap into the future.🍿🥤😎

AI RESET
Could AI be Reaching Its Limits? A Look at the Potential Plateau in Progress

The idea of artificial intelligence hitting a plateau may seem almost absurd after years of breathtaking advancements. But let’s entertain the possibility for a moment. Could it be that the rapid progress of large language models (LLMs) like OpenAI’s GPT series are beginning to slow down? Recent reports suggest we might be facing a turning point.

Behind the scenes, OpenAI and other AI giants have been hinting at diminishing returns from the “bigger is better” approach of scaling models with more data and computing power. With nearly all human generated data already consumed by these models, the well of fresh training material is starting to run dry. So, enter synthetic data, created by the models themselves, I don’t know about you, but something about this seems off, in fact some experts have warned that this could lead to a troubling “model collapse” where systems begin feeding on their own errors.

Even OpenAI’s much anticipated “Orion” model, which is touted as the next big leap, has produced underwhelming results in its early stage. Some industry insiders argue that the idea that more compute automatically equals better AI, are running up against some pretty hard limits. On the other hand, there are smarter training techniques like “test time compute,” which enhances a model’s reasoning during use, but they are far from becoming a replacement for the current models.

If this plateau holds, it may signal the end of AI’s exponential growth phase. BUT, let’s not get carried away here, no one is declaring an AI winter just yet. History has shown us that innovation often thrives in moments like this. Some researches have stated the ultimate irony, AI itself could helps us to think beyond the current brute force solutions and help us discover a creative pathway forward.

For now, it’s an open question, are we witnessing a temporary stall before the next big breakthrough, or is this the beginning of a more gradual climb? Either way, AI is not fading into the background anytime soon. This technology is definitely evolving, even if that evolution feels slower at times.

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.