🤖 Vitalik Sees the Future With AI

Happy Monday dear subscribers! In today’s Newsletter, Vitalik is very confident on AI’s innovation around Ethereum.

In today's bulletin, we are covering:

• Surfing the Market, with analysis about the Bitcoin and XRP

• Don't miss the News about AI in Ethereum and South Korean’s plan

• Worldcoin is under the spotlight.

• Short article about The greater fool theory

• Our selection of the best Gems on X

Amazing weekend of consolidation for Bitcoin which translated on a huge push for the rest of Altcoins. Impressive how well Bitcoin is handling every major shakeout.

As you can see on the daily chart, we are on the 5th day of consolidation after the main push. Continues looking really strong, no signs of weakness:

Really tempted to add XRP here after the breakout of the main downtrend resistance...consolidating nicely:

Vitalik Buterin: AI Could Revolutionize Ethereum Development

Vitalik Buterin, Ethereum co-founder, believes artificial intelligence (AI) holds potential in identifying bugs and verifying code for Ethereum developers.

Buterin highlights the significance of AI-assisted formal verification to address Ethereum's biggest technical risk - bugs in code.

• Vitalik Buterin advocates for using artificial intelligence (AI) to identify bugs and verify code in Ethereum development.

• AI-assisted formal verification could address Ethereum's biggest technical risk - bugs in code.

• Buterin explores the overlap between cryptocurrency and AI, particularly in scenarios where individual players become AIs.

• Analysts predict AI and web3 integration could lead to a flourishing cryptocurrency subsector in 2024.

• AI agents are highlighted as a potential primary category of users on the blockchain, facilitating verification management applications using zero-knowledge learning technologies.

He also explores the overlap between cryptocurrency and AI, emphasizing the role of AI agents in the web3 space. Analysts predict the integration of AI and web3 could lead to a flourishing cryptocurrency subsector in 2024.

South Korea's People Power Party Pushes for Crypto Tax Delay

South Korea's People Power Party seeks to delay cryptocurrency taxation by two years, aiming to prioritize establishing regulatory frameworks before implementing taxes.

The proposed delay, potentially part of the party's election campaign, aligns with plans to introduce new crypto regulations in the upcoming term.

• People Power Party in South Korea proposes a two-year delay in cryptocurrency taxation to prioritize establishing regulatory frameworks.

• The party aims to introduce new crypto regulations focusing on crypto custody providers and token listing in the upcoming term.

• Crypto gains tax in South Korea, initially scheduled for January 2023, was delayed to January 2025 and may face another delay to 2027.

• The party considers aligning crypto tax thresholds with stocks, where gains exceeding 50 million won are taxed compared to 2.5 million won for crypto gains.

• South Korea's Ministry of Economy and Finance has discussed the possibility of abolishing income tax on crypto assets, though the party does not advocate for complete abolition.

The party's focus includes setting requirements for crypto custody providers and token listing, intending to complement South Korea's existing crypto regulations.

Additionally, the party aims to adjust the crypto tax threshold to match that of stocks.

Worldcoin

This week we have Worldcoin under the spotlight, bringing global proof of personhood (PoP) to the internet.

The Worldcoin protocol has an ambitious vision aiming to solve some critical socio-economic issues that  blockchain technology and digital identity have by default.

• World ID 2.0: A global network of digital identities that transcend geographical, gender, belief, and economic boundaries. The PoP system ensures that real individuals are uniquely identified in a world increasingly influenced by AI and automation.

• Universal Basic Income (UBI): The project envisions a UBI distribution system using the WLD token to address the potential job disruptions caused by AI. UBI is a hot topic in discussions about economic fairness and automation’s impact on the workforce.

• Economic Inclusion: Worldcoin advocates for a digital, on-chain cash system to make social welfare programs more efficient and address issues like fake identities and geopolitical obstacles that hinder government-funded initiatives.

As potential use cases if this really gets adopted they even propose using World ID for voting!

As you can see this project has big words there, but is there something to back them out? Let’s have a look.

The tools they have to try and achieve their goals are in this case not just digital, but there are something more tangible in the real world too.

• Iris scanning Orb: There is a physical orb that scans a human iris to create a unique identifier for each human. It uses hardware security to ensure that malicious code doesn’t run inside it and that the iris images aren’t stored.

• Zero-knowledge proofs: For proving unique identifiers for each a certain person. 

• Mobile App: To store the iris codes and private cryptographic material, it uses a mobile app (the World App). Moreover, each person will get a World ID which will also be stored in this app.

You might have seen the physical stands that the project has distributed across the globe, with people holding the orbs. They have clever referral campaigns to incentivize adoption offering some coins for onboarding users and friends.

As any other crypto project Tokenomics should be another tool to work towards their goals, so let’s have a look.

$WLD is an ERC-20 token on Ethereum Mainnet. It has a max. supply of 10 billion tokens and currently just 1.31% is in circulation (131 million)  and the emission curve places 100% supply in circulation in 15 years.

This is where I left it and where you can keep digging if this looks interesting enough for you. As a pick up line I would say  to you “open the chart on this one.”

Use their official Twitter and site.

See you next Monday!!

The greater fool theory

This is a theory about a fact that everyone, yes everyone, has committed at some point, even without knowing about its existence and consequences. Let's see what it's about.

Basically, this theory states that in a bubble, those who haven't entered in time and see the rise from the outside, feel tempted to buy due to FOMO, as everyone else is making money except you. So, they buy highly overvalued assets, with very extended swings, far from the usual Moving Averages (for example, 20, 50), and with indicators in overbought territory, hoping that it will continue to rise so they can sell it at higher profits. 

Now, the theory talks about a greater fool, and this is because the person who does it considers themselves to be a fool for buying a stock or crypto after a big rally but hopes to find a greater fool to whom they can sell at a higher price, making a profit. 

So far, everything seems normal, except for the fact that many times the person who practices this ends up being the greater fool themselves, meaning the one who is sold to at the top just before the price begins to drop. 

The best way to represent it is with the children's game called "musical chairs", where for example there are 8 chairs together and 9 children running around while the music plays. Once it stops, they must sit on each chair, leaving one child standing and unable to sit. In the market, the one left without a chair is the one who fails to find a bigger fool to sell their position to.

So, if you're gonna play with fire, try not to be the greater fool when the music stops.

Protect Yourself from the Evil AI Bubble

Stay Safe in the Bull Run

Touch It Like It’s Hot

Don’t sleep on this market, lots of opportunities to come, see you next week!