@ Felipe

## 🧠Quote(s) of the week: 'DeepSeek increases my conviction that Bitcoin must be the hurdle rate for capital deployment. AI innovation at this speed and scale will substantially disrupt valuation metrics across industries and is not currently priced in. Those who secure a war chest of Bitcoin will be the long-run winners, picking up distressed assets for pennies on the dollar. Focus on three things: AI, Bitcoin, and energy.' -Matt Cole Just to elaborate on the above statement by a tweet by Dylan Leclair in 2021: 'Problems: 1. Infinite liquidity doesn’t fix a solvency issue. 2. Inflationary monetary policy can’t work against technological deflation. Solution: Bitcoin' To me it is crystal clear: AI deflates, central banks print, and Bitcoin absorbs the chaos. BTC was built for this. ## 🧡Bitcoin news🧡 On the 21st of January: ➡️MicroStrategy shareholders approved increasing the total number of shares from 330 million to 10.3 billion, paving the way for future fundraising to acquire more Bitcoin (55.8% approval). ➡️Bitcoin's mining difficulty has seen a 24% quarterly increase since August 2024. Saylor: "Bitcoin mining difficulty has reached a new all-time high. Creating BTC requires proof of work and significant energy, making it increasingly expensive over time. Historically, mining difficulty and price are closely linked—a strong signal for bullish momentum." The Difficulty Regression Model estimates the cost to mine 1 Bitcoin at $33.9K, while Bitcoin trades at ~$104K. This ~3x profitability margin showcases miners' resilience, even as mining difficulty continues to rise in this cycle: [Glassnode ](https://t.co/bSY1SHBS7e) ➡️'Bitcoin ETFs launched a year ago and now hold over 1,100,000 BTC which is ~5.7% of the current supply.' -Jameson Lopp ➡️The governor of the South African central bank scoffs at the idea of a strategic Bitcoin reserve asking, “Why not a strategic beef reserve? Why not an apple reserve? Why Bitcoin?!” And at that same panel discussion at the World Economic Forum, we had Brian Amstrong, CEO of Coinbase, praising Bitcoin as the best money in the world. “It’s clear at this point, bitcoin is a better form of money than gold…For a store-of-value, governments must hold bitcoin over time” ➡️Corporate announcements this morning: - MicroStrategy has bought 11,000 BTC for $1.1 billion, and now holds 461,000 bitcoin. Microstrategy now owns 2.195% of all Bitcoins that will ever exist. - KULR Technology Group has bought 79 BTC for $8 million, and now holds 510 bitcoin. - Genius Group has bought 52 BTC for $5 million, and now holds 420 bitcoin. ➡️ETH holders absolutely deserve what is coming. The following text/tweet by Vitalik Buterin just shows you how decentralized Ethereum is. 'No. This is not how this game works. The person deciding the new EF leadership team is me. One of the goals of the ongoing reform is to give the EF a "proper board", but until that happens it's me. If you "keep the pressure on", then you are creating an environment that is actively toxic to top talent. Some of Ethereum's best devs have been messaging me recently, expressing their disgust with the social media environment that people like you are creating. YOU ARE MAKING MY JOB HARDER. And you are decreasing the chance I have any interest whatsoever in doing "what you want". TLDR: There’s no “me” in Bitcoin. If your "crypto" has a leader, it's not decentralized. Period! ➡️Bitcoin mining in Texas has had a positive impact on the state's power grid and has also potentially saved billions by reducing reliance on expensive and polluting gas-peaking plants, according to the latest report from the Digital Assets Research Institute. ➡️Critical Metals Corp secures up to $500M in convertible note financing to purchase Bitcoin for its Bitcoin treasury strategy. This makes them the first Nasdaq-listed critical minerals company to adopt Bitcoin as a treasury reserve asset. ➡️Legendary investor Ray Dalio says Bitcoin he owns Bitcoin to “reduce the risk of a portfolio”. On the 22nd of January: ➡️ Finally Ross Ulbricht is free. Pardoning Ross is a promise fulfilled by Trump. Revealing that this was an act of the deep state is next level, calling the people who convicted him "scum." Trump: "The scum that worked to convict him were some of the same lunatics who were involved in the modern-day weaponization of government against me. He was given two life sentences, plus 40 years." Politicians stay Politicians, but I am glad Ross is free. Ross didn’t sell drugs—he built an anonymous, free, and open platform on Tor called Silk Road. 'Silk Road sold apparel, art, books, collectibles, computer equipment, electronics, herbs, and yeah—drugs. But according to friends who used it, Silk Road was arguably the safest way drugs were ever sold: no street violence, no shady deals, and zero fentanyl. Everything was tested and peer-reviewed, like an Amazon for substances.' Don’t forget… the DOJ seized 173,991 Bitcoin directly and indirectly from Ross Ulbricht. It was $34 Million when they took it. Today it’s worth ~$18.4 BILLION. Newcomers to Bitcoin may not understand why old-timers care so much about Ross Ulbricht. Great explanation by Vijay Boyapati: https://x.com/real_vijay/status/1881869635915809001 On the 23rd of January: ➡️China sold its entire 194K BTC stash, seized from PlusToken, despite official claims of transferring it to the national treasury, according to CryptoQuant CEO Ki Young Ju. ➡️YouTube rival Rumble to launch digital wallet to make Bitcoin and Tether payments. Tether-backed video-sharing platform Rumble to launch Rumble Wallet, which will allow creators to receive tips and subscription payments directly in Bitcoin or Tether. ➡️Ledger co-founder David Balland was kidnapped and a cryptocurrency ransom was demanded. He was rescued by GIGN and multiple suspects are in custody. https://x.com/0xLouisT/status/1882711063306666287 On the 24th of January: ➡️SAB 121 has been rescinded, allowing banks to custody Bitcoin. Banks can now offer Bitcoin services to hundreds of millions of customers. The Bitcoin Podcast: But what exactly is SAB 121 and what does its repeal mean for Bitcoin? Eric Weiss breaks it down: "I think that's gonna be a massive, massive catalyst down the road for a US dollar price appreciation of Bitcoin." https://x.com/titcoinpodcast/status/1882599727880917490 ➡️Bitcoin is above $100k but retail interest is the lowest it's been in 3 years. ➡️How popular is Bitcoin on Wall Street? 6% of all the money flowing into American ETFs is now Bitcoin. ➡️A user just successfully sent ~$866,430,722 worth of Bitcoin for a 33¢ transaction fee using the blockchain. ➡️President Trump’s new executive order protects American’s right to use public blockchains, develop and deploy software, participate in mining and validation, transact without censorship, and safeguard their own digital assets. The freedom to build, mine, and hodl Bitcoin. ➡️Spot Bitcoin ETFs are now bigger than ESG ETFs. [](https://i.ibb.co/C3LdYZhd/Gi-EISs-EXo-AA94-Sr.jpg) On the 25th of January: ➡️Bitcoin has completely dislocated from its ~70-day global M2 lag. It's been on a run of its own for the last 30 days. ➡️As mentioned above but also in the segment (Macro/Geopolitics) Trump took a bold stand against CBDCs, protecting Americans from the financial tyranny they represent. But now, Ripple is working behind the scenes to undermine his administration and sneak CBDCs in through a backdoor while lobbying heavily. Ripple is public enemy number one this cycle, and it’s time everyone recognized it. You don’t hate XRP enough, plain and simple. If you understood what they’re trying to pull, your outrage would be through the roof. Jameson Lopp: There's Bitcoin, then there's Crypto, then there's Ripple. Ripple has attacked Bitcoin at a level rivaled only by BSV's lawsuits. Ripple explicitly wants to power CBDCs. They have always been focused on servicing banks. Few projects are as antithetical to Bitcoin. Brad Garlinghouse douchebag and CEO of Ripple: "We would not be profitable or cash flow positive without selling our XRP holdings.” All 100 billion XRP tokens were created out of thin air by Ripple Labs in 2012 and reserved for insiders. Ripple's income comes from dumping these coins on the public. On the 26th of January: ➡️Only 1,056,700 Bitcoin is left to be mined, forever. On the 27th of January: ➡️MicroStrategy has acquired 10,107 BTC for ~$1.1 billion at ~$105,596 per Bitcoin and has achieved a Bitcoin Yield of 2.90% YTD 2025. As of 1/26/2025, they hodl 471,107 Bitcoins acquired for ~$30.4 billion at ~$64,511 per Bitcoin. ➡️Russia's largest energy supplier Rosseti to launch Bitcoin mining operations in areas with excess electricity, aiming to optimize energy use, increase tax revenue, and support the development of BTC mining in Russia. ➡️Brazilian oil giant Petrobras to launch Bitcoin mining operations using excess natural gas produced during oil extraction, to reduce energy waste and carbon emissions. ➡️MicroStrategy to offer 2.5 million shares of 'Series A Perpetual Strike Preferred Stock' to buy more Bitcoin. ➡️Arizona is the first state to pass a bill out of committee to create a ‘Strategic Bitcoin Reserve.’ Co-sponsored by Wendy Rogers and Jeff Weninger, the bill now heads to the state Senate floor for a vote. ➡️El Salvador is now the second fastest-growing tourist destination in the world. Bitcoin and Tourism. [](https://i.ibb.co/zt9P3bC/Gi-TYo98-XQAAZfe-C.png) ➡️'Cboe BZX Exchange files amended rules to allow in-kind redemptions and creations for the ARK 21Shares Bitcoin ETF. This follows Nasdaq’s similar filing for BlackRock’s iShares Bitcoin Trust, signaling progress in spot Bitcoin ETF mechanics.' -Bitcoin News What we have learned last week: 'Vitalik doesn’t buy Ethereum, only sells it. Ripple doesn’t buy XRP, only sells it. The US doesn’t buy USD, only prints it. There can only be one Bitcoin— wake up' - Cory Bates ## 💸Traditional Finance / Macro: 👉🏽NVIDIA closes the day down -17%, officially erasing -$590 BILLION of market cap. This marks the largest 1-day loss of market cap in a single stock in history, and it's not even close. ## 🏦Banks:  👉🏽no news ## 🌎Macro/Geopolitics: On the 20th of January: 👉🏽 Trump: "We will end the "Green Deal" with the "liquid gold under our feet". 'The Netherlands has €1.000 billion of "liquid gold" natural gas in Groningen. The Rutte government destroyed our gas wells, and filled them up with concrete because they could not compensate 20.000 homes.' - Henk Otten I am not sure about the fact that we filled them up with concrete. As a matter of fact, I think the Netherlands could start immediately if needed. On the 21st of January: 👉🏽The US Treasury has reached its debt limit and is now using 'extraordinary measures' to continue operating. 👉🏽Sam Callahan: 'A new study reveals that, over the past 20 years, Congress has largely ignored large fiscal deficits, making little effort to reduce them. The authors discuss what's required for "successful deficit reduction," but they don't seem to realize that nothing stops this train.' https://www.brookings.edu/wp-content/uploads/2024/09/4_AuerbachYagan.pdf 👉🏽Interest payments on the US national debt now exceed spending on national defense. [](https://i.ibb.co/cc5wtzDD/Gh0-BB9-HXg-AAVOad.png) 👉🏽Billionaire hedge fund manager Ray Dalio, founder of Bridgewater Associates, just warned that the UK could be heading for a “debt death spiral” his is in which the UK has to borrow more and more money to service its rising interest costs 👉🏽'The rich are getting richer faster than ever before: US household net worth has risen ~$56 TRILLION since Q1 2020 and hit a record $160 trillion in Q3 2024. Currently, the top 10% own $111 trillion of all wealth, accounting for 69% of the total. The top 0.1% alone own a massive $22 trillion, reflecting 14% of household net worth. On the other hand, the bottom 50% holds just $3.9 trillion, or 2.4% of wealth. This comes as the S&P 500 and the Nasdaq 100 have risen 128% and 166% since Q1 2020 while national home prices have surged ~50%. The wealth gap is growing.' -TKL 👉🏽Phillipp Heimberger: 'It is unclear how national governments in the EU are supposed to square the circle: to ramp up military spending and public expenditures on climate and digitization while at the same time achieving primary fiscal surpluses over the medium run to meet new EU fiscal rules.' [](https://i.ibb.co/PsZxXzVW/Gh-KTYn-WAAALh-U4.png) On the 22nd of January: 👉🏽'Gold's global market cap to world GDP ratio reached a RECORD 16.7% in 2024. This ratio has doubled in 10 years and quadrupled since 2001. Nominally, gold’s market value sits near an all-time high of ~$18.5 trillion. This comes as gold has posted an average annual return of +9.5% since 2000, making it one of the best-performing major asset classes this century. Since the start of 2024, gold prices have hit 41 all-time highs and are up +33%.' - TKL On the 24th of January: 👉🏽The Bank of Japan raises interest rates by 25 basis points to their highest level since 2008. 👉🏽'The ECB proposed a holding limit of €3000 for the digital euro. Banks want €500, otherwise, it will cost them too much... This whole digital euro project is such a huge clusterfuck in slow-motion.' - Paul Buitink https://www.ledgerinsights.com/progress-on-digital-euro-holding-limits/ Meanwhile, Trump is going all in against ‘Central Bank Digital Currencies.’ ‘taking measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States’ Daniel Batten: 'When it comes to digital currency: Will the EU pivot and head down the path of democracies such as the US who see Bitcoin as consistent with its democratic values or continue down the path of autocracies like Russia & China who see CBDCs as being consistent with their autocratic values?' On the 27th of January: 👉🏽Volkswagen ready to become Chinese Volkswagen is prepared to let Chinese electric carmakers take over production lines in its struggling factories. 👉🏽'DeepSeek officially announces another open-source AI model, Janus-Pro-7B. This model generates images and beats OpenAI's DALL-E 3 and Stable Diffusion across multiple benchmarks.' -TKL OpenAI: - 10 years old - 4,500 employees - raised $6.6 billion DeepSeek - less than 2 years old - 200 employees - less than $10 million capital used DeepSeek developed and open-sourced an equal or better product and had it out for free, likely killing the business model of OpenAI Anyway, if you want to read more on DeepSeek, and how seems like how they seem to have shifted the paradigm on how AI LLMS work, I highly recommend the following thread by Morgan Brown: https://x.com/morganb/status/1883686162709295541 Open source everything! A quick reminder for all my readers but especially for my nocoin readers: FORMER FINANCE PROFESSOR TAD SMITH: "After 25 years teaching finance, I realized at 58: If the money printer grows 8-10% annually and the S&P 500 returns ~9%, it’s just treading water. True wealth comes from outpacing the printer. That’s the Bitcoin journey." https://x.com/SimplyBitcoinTV/status/1876679181066801425 Study Bitcoin 🎁If you have made it this far I would like to give you a little gift: Fantastic presentation by Preston Pysh on Bitcoin as a store of value referencing Michael saylors presentation to the Microsoft board https://www.youtube.com/watch?v=C-O54CdSNnM I've used his monopoly analogy so many times. If you've never heard it, you should definitely listen and maybe share it with your stubborn uncle or sister, or co-worker in denial. Absolutely brilliant from Preston as always. "Most people arrive at bitcoin without ever understanding the problems it's solving". Credit: I have used multiple sources! My savings account: Bitcoin The tool I recommend for setting up a Bitcoin savings plan: PocketBitcoin especially suited for beginners or people who want to invest in Bitcoin with an automated investment plan once a week or monthly. Use the code BITCOINFRIDAY Get your Bitcoin out of exchanges. Save them on a hardware wallet, run your own node...be your own bank. Not your keys, not your coins. It's that simple.⠀⠀⠀⠀ ⠀ ⠀⠀⠀ Do you think this post is helpful to you? If so, please share it and support my work with a zap. ▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃ ⭐ Many thanks⭐ Felipe - Bitcoin Friday! ▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃▃