October Week 4 - 2024

BITCOIN RESET
Could Bitcoin Really Replace the U.S. Dollar as the World’s Reserve Currency? 

The idea of Bitcoin replacing the U.S. dollar as the world’s reserve currency has intrigued me for a while. I know it sounds far fetched on the surface, but when you really dig deeper, it starts to feel like less of a wild fantasy and more like a plausible evolution in global finance. With Bitcoin's fixed supply, lightweight nature, and guaranteed scarcity, it offers solutions to problems that fiat currencies like the dollar just can’t solve, especially inflation.

Think about it, the U.S. dollar has lost over 25% of its value in just the last four years. This erosion of purchasing power is unsettling to say the least, and Bitcoin's deflationary design presents for the very first time an alternative. Remember only 21 million bitcoins will ever exist, and it’s immune to the inflationary spiral that has plagued so many fiat currencies. So, a global financial system anchored in Bitcoin could offer an actual stable store of value, one that’s free from central banks' manipulation and political bullshit, I mean agendas.

That said, we’re not just talking about swapping one fiat currency for another. Shifting the reserve currency from the dollar to Bitcoin would represent a seismic change in global power dynamics. Governments and institutions, especially the Federal Reserve, would need to rethink how they operate in a decentralized environment. And in my opinion, this is the real reason we’re seeing so much institutional interest. Firms like BlackRock aren’t just buying in, they’re preparing for a future where Bitcoin might play a critical role in the global economy.

The transition would not be easy, and it would face some massive resistance from those who benefit from the current system. But could Bitcoin one day replace the U.S. dollar? I think it’s more than possible. We may be witnessing the early stages of a profound monetary shift, one that changes the way value flows across the globe. Whether the world is ready to embrace it, is another question entirely. 🤷🏻

CRYPTO RESET
Why Billionaires Are Loading Up on Bitcoin and What It Could Mean for the Price

Ok so it’s no secret that Bitcoin has caught the attention of some of the world’s wealthiest investors. Billionaires like Ken Griffin, David Shaw, and Israel Englander are quietly accumulating shares of BlackRock’s iShares Bitcoin Trust (IBIT), signaling that big money is preparing for a seismic shift. These aren’t the kind of investors who make moves without careful consideration. They see something brewing in the crypto space, and the ripple effects could be MASSIVE.

Experts like Michael Saylor and Cathie Wood are forecasting astronomical gains, with predictions ranging from Bitcoin hitting $500,000 by 2029 to millions of dollars per coin by 2045. The common thread? The inflow of institutional capital, unlocked by spot Bitcoin ETFs. With trillions of dollars under management, even a small allocation of these assets to Bitcoin could send the price soaring. Some analysts predict a 1,390% increase by 2033 😳 and that might just be the start.

The appeal for these billionaires is obvious: Bitcoin offers a hedge against inflation, limited supply, and now, thanks to ETFs, easier access through traditional brokerage accounts. Spot ETFs remove the friction of self-custody and exchange fees, making Bitcoin an even more attractive asset for institutional investors.

Here’s what I think, this isn’t just about buying into the latest trend. This feels like the early stages of a broader monetary shift, one where Bitcoin plays a major role in the global financial system. Institutions like BlackRock aren’t just buying Bitcoin for fun, they’re positioning themselves to lead the next financial revolution.

If this wall of cash continues pouring into Bitcoin, we could be looking at price appreciation unlike anything we’ve seen before. The question now isn’t if Bitcoin will rise, it’s how high and how fast.

The smart money is moving people, and they’re getting into position. Are you?

TECH RESET
No, the Chinese Didn’t Crack Military-Grade Encryption—But Here’s What It Could Mean for Bitcoin

Recently, the internet has been buzzing with claims that Chinese researchers have cracked military grade encryption using quantum computers. So for click bait purposes this is a great story, but the reality is not so dramatic. Yes, a Chinese team used a D-Wave quantum computer to factor a 50-bit RSA key, but that’s about as easy as using a smartphone to solve a simple puzzle from the 90s.

Let me give you some perspective here, modern encryption standards use 2048-bit RSA keys, which are exponentially harder to break. Cracking a 50-bit key today is not a big deal at all. Now, on the other hand, breaking 2048-bit encryption would require an insane amount of computational power and way beyond anything quantum computers are currently capable of.

So, while the panic around this story is overblown, it does raise an interesting question: What happens when quantum computers eventually do become powerful enough? The implications for cryptocurrencies like Bitcoin significant. Bitcoin in a nutshell is basically a cryptography algorithm, specifically, elliptic curve cryptography (ECC) This is how it generates public and private keys. If those keys could be cracked, Bitcoin would suddenly become worthless.

However, it’s important to note that quantum computers capable of such feats are still years, if not decades away. Also the crypto community isn’t just sitting on there hands. Developers are already exploring quantum resistant algorithms to ensure Bitcoin remains secure in the post quantum world.

So for now, Bitcoin and other cryptocurrencies are safe from quantum threats. But this story serves as a reminder that technology is constantly evolving. Just as we’ve adapted to past challenges, the financial world will likely adjust again when quantum computing finally reaches maturity. The real question isn’t whether Bitcoin will survive….. it’s how it will evolve into the future. 😎

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.