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- 💲 Is Amazon Going All in On Bitcoin?
Happy Monday dear subscribers! In today’s Newsletter, Amazon is Going all in?
In today's bulletin, we are covering:
Surfing the Market, with analysis about Mid Caps index and AI Index
VIRTUALS is under the spotlight.
A short article about Abandoning Nominality
The Mid Caps Index continued pushing amazingly during the previous week, getting closer to the yearly ATH. Struggling at bit on this level, we will be tracking the consolidation, after a whole month of growth I think some consolidation is due before the next move:
Same for the AI Index, which I think it's the most primed industry, yet, also needs to cool down for a month before the next bullish leg:
Amazon shareholders are urging the company to diversify 5% of its reserves into Bitcoin (BTC) to combat inflation and boost long-term shareholder value, following the example of companies like MicroStrategy (MSTR).
Bitcoin’s 134% surge in 2023 and MSTR’s 500% stock gains highlight the potential benefits despite its volatility.
Shareholders, led by the National Center for Public Policy Research (NCPPR), recommend Amazon evaluate Bitcoin for its superior long-term appreciation over bonds and to mitigate inflation risks.
Even a small allocation (5%) is proposed to diversify its $88 billion in cash, securities, and marketable assets.
BTC’s value surged 134% in 2023, surpassing gold and the S&P 500, while MicroStrategy saw a 500% stock gain compared to Amazon's 49%.
MSTR, Tesla, and Block have adopted Bitcoin in their treasuries, underscoring the asset's growing institutional acceptance.
Last month, NCPPR made a similar pitch to Microsoft shareholders, with a vote on Bitcoin diversification scheduled for Dec. 10.
Amazon’s adoption of Bitcoin could signal a significant shift in corporate treasury management strategies, aligning with a trend toward leveraging cryptocurrency for inflation protection and asset appreciation.
AI Bots in Crypto Trading: A 24/7 Market Assistant
AI trading bots revolutionize crypto trading by offering 24/7 activity, unmatched speed, and emotion-free decision-making. They analyze data, execute strategies, and adapt to market trends, making them indispensable tools for traders.
However, risks such as security vulnerabilities and inability to adapt to sudden market shifts require careful monitoring and strategy refinement.
AI bots replicate human trading behaviors using algorithms and customizable rules.
They analyze market activity and refine strategies continuously.
Bots operate around the clock, handling the nonstop crypto market, processing millions of calculations per second, and rely on logic, avoiding emotional trading mistakes.
Require programming knowledge (Python, C), API integration, and backtesting for strategies like scalping arbitrage, or technical trading, but user-friendly options like Coinrule or Pionex let users implement strategies with minimal setup, often at a fee.
AI agents, unlike bots, learn and adapt to new trends, functioning as financial advisers or assistants.
AI bots provide speed, consistency, and logic for crypto trading but must be carefully managed to mitigate risks and optimize performance. Whether built from scratch or accessed through pre-built platforms, they represent a significant step forward in trading efficiency.
VIRTUALS
The Origins:
Virtuals Protocol is a decentralized platform that enables the creation and monetization of AI personas for virtual environments, such as games and metaverses. Can be described as an infrastructure layer that powers games with democratic AI, allowing developers to access AI gaming NPCs (non-player characters) like Pikachu through software development kits (SDKs) provided by Virtual Protocol.
The project was initially known as PathDAO (PATH) and was rebranded and migrated to the Base blockchain. Since then it has been developing AI Agents such as AI Waifu; a free-to-play fantasy AI character chat-app companion.
The Operative:
The project has its foundation in the following 4 key features:
AI-driven gaming: Virtual Protocol focuses on creating a library of gaming AIs and a marketplace that connects AI contributors (supply) with game developers (demand).
Decentralized and democratic: The platform is designed to be decentralized, with a treasury currently holding $16 million, and aims to empower game developers to create more engaging and realistic game experiences with AI NPCs.
Plug-and-play: Game developers can access AI gaming NPCs through SDKs provided by Virtuals Protocol,** enabling seamless integration into their games.**
Human-curation: The AIs are curated by humans, ensuring that they are tailored to specific game genres and styles, rather than relying solely on machine learning algorithms.
The Virtuals Protocol already has** its own ecosystem that consists of various AI agent tokens**, including AIXBT, Luna, and VaderAI, each with its unique features and use cases. The ecosystem is governed by a decentralized governance system, allowing holders to participate in decision-making processes.
Summary & Economics:
The native token of the Virtuals Protocol ecosystem** is $VIRTUAL**, used for transactions, governance, and incentivizing contributions to the AI library. It has been one of the best AI performers of the year 2024 so far, escalating beyond the top100 in market capitalization, and currently in 83 position with $1.56 billion with the 100% supply already in circulation.
The project managed to raise $16.6 millions in different fundraising rounds in 2021 with DeFiance Capital and Merit Circle as lead investors.
Artificial intelligence is transforming the gaming industry by making games more engaging and responsive. One of it's impacts is to make Non-player characters (NPCs) behave intelligently and creatively, simulating human-like actions and decisions.
Abandoning Nominality
With BTC reaching 100K, we enter a new era where, despite already dealing with large price levels, breaking the 100K barrier forces us to shift our mindset when analyzing price movements. It's time to move away from a nominal approach and focus on percentages. Let’s dive into why this matters.
Why?
This principle applies to both very low-priced assets, such as many altcoins trading below 1 USDT, and assets with increasingly high prices, like BTC 🔥
There are two main ways to analyze price changes for any asset:
Nominal: reflects the linear change in value. For example, if BTC rises from 50K to 100K, the increase is 50K
Relative: expresses the change in percentage terms. In the same example, BTC increased by 100%.
Both approaches are valid when describing how much an asset’s price has moved. However, in certain situations, one method is more representative of reality than the other🤝
Explanation
In my opinion, the relative (percentage) method is generally better, as it provides a clearer picture of the pure percentage change in price, enabling better decision-making. For instance:
A 5K increase in BTC, when priced at 20K, represents a 25% gain 💰
The same 5K increase, with BTC priced at 100K, represents only a 5% gain 😒
Both interpretations are correct, but the percentage-based view often offers a more realistic perspective on the significance of a price movement 🥂
This mindset also helps when setting goals. For example, when BTC was trading at 40K, aiming for 100K may have sounded ambitious, but it represented a relatively modest 150% increase, completely reasonable during a bull cycle 🚀
Today, targeting 130K/140K for BTC may seem extreme when viewed nominally. However, in percentage terms, this is just a 30%–40% increase ✅
History
This concept applies to other markets as well, such as Wall Street indices like the Dow Jones. Historically, headlines would report movements in points (e.g., “The Dow is up 500 points”), which made sense in the early 2000s. However, with the Dow now trading at over 44,600, referencing point changes feels outdated, aside from nostalgic purposes 👴
Conclusion
Always look at percentages rather than nominal values, even in your trades. This approach can prevent premature exits driven by emotional reactions to nominal gains 💸 For instance, if you perceive a trade as "worth a car" nominally, you might close it too soon. However, viewing it in percentage terms might reveal that there’s still room for growth, giving you the confidence to stick with your strategy
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