✊ Trump Embraces Bitcoin

Let's Dive Into It!

Author

Crypto Rand
October 28, 2024

Happy Monday dear subscribers! In today’s Newsletter, Trump Pushes Again!

In today's bulletin, we are covering:

Great consolidation for Bitcoin which despite last week shakeouts managed to print a new higher low and continues consolidating and building up momentum towards a new All Time High:

The Big Caps Index continues defending the local uptrend support while getting closer to the key critical reversal level. Breakout over $840 would trigger the full bullish reversal. Getting closer to the key decision momentum:

 

Trump’s Radical Economic Proposals: Eliminating Income Tax and Embracing Bitcoin

During a Joe Rogan Experience episode, Donald Trump proposed replacing the U.S. federal income tax with tariffs on imports, drawing on historical examples from President McKinley’s era. Trump argued that tariffs could bring in substantial revenue while protecting American jobs.

  • Trump suggests replacing federal income tax with tariffs to fund the government, citing economic prosperity under McKinley.

  • Critics warn tariffs could act as a hidden tax, raising consumer prices.

  • Trump proposes using Bitcoin to alleviate national debt, potentially establishing a U.S. Bitcoin strategic reserve.

  • Establishing a Bitcoin reserve faces bureaucratic challenges, but similar proposals have been raised by Robert F. Kennedy Jr.

He also discussed using Bitcoin to help reduce the $35 trillion national debt, suggesting that a U.S. Bitcoin reserve could be an asset for the government, though logistical challenges remain.

Vitalik Buterin's "The Purge": Reducing Ethereum's Data Load for a Streamlined Future

Ethereum co-founder Vitalik Buterin introduced "The Purge," the latest phase in Ethereum’s roadmap aimed at reducing data bloat and simplifying node operation.

Although it won't directly lower gas fees, The Purge seeks to make Ethereum more efficient by removing outdated features and implementing partial state expiry to control data growth, thus improving node accessibility.

  • The Purge: Focuses on data reduction and protocol simplification to streamline Ethereum’s operations.

  • Node Storage Reduction: Aims to lower storage requirements, making it easier to run a node by removing the need to store historical data permanently.

  • Partial State Expiry: Proposes expiring infrequently accessed data, with the option to revive it through cryptographic proofs.

  • Stateless Verification: Aligns with The Verge to reduce hardware demands for node verification, enabling lighter devices to participate.

This update aligns with the previously launched Verge phase to facilitate stateless verification on the network.

OpenGradient

The Origins

OpenGradient is a decentralized platform that provides scalable AI compute on-chain.

The project allows developers to build secure, intelligent, and optimized decentralized applications. It offers on-chain AI model hosting, permissionless composability, secure inference execution, and access to open-source AI applications.

The Operative

That’s possible using a Hybrid AI Compute Architecture (HACA) that leverages node specialization to provide efficient and scalable inference capabilities while remaining verifiable and decentralized.

OpenGradient has different products:

  • Network: EVM-compatible, enables developers to host or run inference AI models, deploy applications, or run AI agents.

  • Model Hosting: Decentralized filestore infrastructure allows anyone to access, upload, or download any models and use them on the OpenGradient Network or SDK.

  • Model Hub: The Web platform is an interface to Decentralized Model Hosting. Users can upload, browse, and experiment with various models powered by OpenGradient's infrastructure.

  • Research: In-house research team that builds models, customized AI oracles, or AI applications for clients. Also open-sources a lot of this research to help create universal AI modeling primitives and public goods for Web3.

Summary & Competitors

OpenGradient raised $8.5M in funding to fuel their AI platform backed by investors like a16z crypto, Coinbase Ventures, among others.

The intersection of artificial intelligence and blockchain technology presents a frontier ripe with innovation and challenges. The successful decentralization of AI inference within the Web3.0 framework hinges on three critical themes: composability, interoperability, and verifiability.

Quarterly Earnings Reports

Every three months, we hear about "earnings season" on Wall Street, but what does it really mean, what does it imply, and how should we interpret what happens after each company presentation? Let's dive into this often controversial topic.

Why?

By regulation from each country's supervisory body (in Wall Street's case, the SEC), publicly traded companies are required to present their financial results quarterly. These reports are essentially financial statements that detail the company's operating performance and how it has performed over the last quarter 🧐 

So far, nothing too complex, but the interesting part is how these presentations affect the company's stock specifically and the market in general.

How it affects?

It’s common to see a company’s stock price drop by 10% or rise by 10% in after-hours trading after reporting results.

However, many times this rise or fall does not necessarily reflect the company's performance itself, so what's going on?

The key here is the comparison between the actual results and market expectations. These estimates are gathered by analysts who cover these companies for investment banks or funds, generating reports and forecasts.

Often, even if the result is good, if it falls short of analysts' expectations, the stock may drop because the price had already factored in a result close to what the analysts had predicted ⬇️ Sometimes this has a very short-term impact, and the market later adjusts to the company’s actual performance.

Another important aspect to consider is the guidance, which indicates the company's near-term future in terms of potential results, business development, and projections. This can often be as important, if not more so, than the numbers in the earnings report itself ⬆️

After all, the earnings report is a snapshot of the past, while the guidance focuses on the future.

We also have earnings calls, where the company’s CEO discusses the results and provides insights into how the company performed and what they expect for the upcoming quarter. Every word or phrase from the CEO is critical in assessing the company's future prospects 👀 

What about numbers?

The most relevant data points typically include:

  • Revenue: Money generated from the sale of goods and services

  • Earnings: Net profit earned by the company

  • EPS (Earnings Per Share): The amount of profit generated per share of stock

Additionally, sector-specific metrics and projections are also crucial. For example, in a streaming company like Netflix ($NFLX), the number of new subscribers is key; for Amazon ($AMZN), it's the number of products sold; and for Apple ($AAPL) or Tesla ($TSLA), it’s the number of product orders.

With this in mind, it's essential to always consider the company's current position when it comes to reporting earnings and to also account for the stock’s price action leading up to the report. For instance, a stock that’s in an overextended and exhausted rally might not react as positively to exceptional results as a stock that’s been beaten down, where a surprise could have a magnified impact.

When trading around these events without insider knowledge (which would be illegal and punishable), the best approach is to use hedging strategies (options or futures) to avoid surprises and headaches 🛡️

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