Hey there, PoI readers! 🌟

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From the SEC's ETH epiphany and Marathon's Kenyan expedition to Nvidia's Bitcoin battle and Musk's AI apocalypse, we've got a lot to unpack. So, buckle up and get ready for a wild ride through the wonderland of digital assets! 🌐

INTEL BRIEF

🟧 The SEC's approval of spot Ether ETFs is seen as an implicit recognition that ETH is not a security, potentially extending to other tokens as well.

🟧 Marathon Digital and Kenya's Ministry of Energy and Petroleum have partnered to develop the country's renewable energy sector.

🟧 Crypto executives believe it's unlikely for Nvidia to outperform Bitcoin over the next decade, despite its impressive returns in the past.

🟧 Elon Musk believes AI will do everything better than humans, making employment obsolete and leaving humans to find meaning in supporting machines.

SEC's ETH ETF Approval Sparks Debate on Token Classification

In a recent development that has the crypto world buzzing, the U.S. Securities and Exchange Commission (SEC) has approved spot Ether exchange-traded funds (ETFs). This move is being hailed by industry experts as an "implicit recognition" that Ether (ETH) is not a security.

Bloomberg ETF analyst James Seyffart boldly stated, "These are commodities-based trust shares, so the SEC, by approving these, is explicitly saying they're not going to go after Ether as a security." If Ether ETFs receive the final S-1 approval, digital asset lawyer Justin Browder believes the "debate is over: ETH is not a security."

The implications of this decision could extend beyond just ETH. Adam Cochran, partner at Cinneamhain Ventures, argues that "ETH is a commodity, even with its current attributes. That means we can extrapolate to A LOT of other projects what elements matter in security."

However, some experts caution that the SEC could still pursue actors involved with staking Ether. Seyffart and digital asset lawyer Joe Carlasare believe the SEC might attempt to "thread this needle" and classify staked ETH as a security while considering ETH itself a commodity.

The SEC approved 19b-4 applications from eight prominent ETF issuers on May 23, with many removing staking from their final amendments. The ETF issuers now await the SEC's sign-off on their S-1 registration statements before launching their spot Ether ETFs.

As the crypto community eagerly awaits official statements from the SEC and its commissioners, the debate on token classification continues to evolve. One thing is for sure: the SEC's decision has sparked a new chapter in the ongoing discussion surrounding the regulatory landscape of cryptocurrencies.

SEC's approval of spot Ether ETFs seen as implicit recognition that ETH is not a security

Decision could potentially extend to other tokens, sparking debate on token classification

Experts caution SEC might still pursue staking-related actors, classifying staked ETH as a security

Marathon Digital Powers Up Kenya's Renewable Energy Sector

Marathon Digital, a leading Bitcoin mining operation, has joined forces with Kenya's Ministry of Energy and Petroleum (MOEP) to supercharge the country's already thriving renewable energy sector.

This groundbreaking partnership will focus on exchanging technical knowledge, research, policy ideas, investment strategies, and the development of critical energy infrastructure. Fred Thiel, CEO of Marathon Digital, highlighted the significance of this collaboration, stating, "This agreement with the Ministry of Energy and Petroleum is a pivotal moment for our business as it provides us with a clear framework to pursue opportunities across the Republic of Kenya."

Kenya is no stranger to renewable energy, with over 80% of its electricity generated through a mix of wind, solar, hydroelectric, and geothermal sources. The country is also known for being one of the world's lowest-cost geothermal energy producers and boasts ample sunlight, making it a prime candidate for solar energy generation.

However, this partnership marks a surprising shift for Kenya's government, which has been cautious, if not outright hostile, toward the adoption of novel blockchain and cryptocurrency projects. In September 2023, Kenya banned Worldcoin from operating in the country for one year due to privacy concerns, lack of transparency, and security issues related to the collection of biometric data.

Despite these challenges, Marathon Digital's collaboration with MOEP showcases the potential for innovative companies to work hand-in-hand with governments to drive sustainable energy solutions. As the world continues to grapple with the pressing issue of climate change, partnerships like these offer a glimmer of hope for a greener, more energy-efficient future.

Marathon Digital partners with Kenya's MOEP to develop the country's renewable energy sector

Kenya generates over 80% of its electricity through renewable sources

The partnership marks a shift in Kenya's stance on blockchain and cryptocurrency projects

Nvidia's Stellar Decade: Can It Outshine Bitcoin Again?

Nvidia (NVDA) has emerged as a surprising contender against Bitcoin (BTC) over the past decade. The tech giant, known for its chips used in training and deploying artificial intelligence (AI) models, has delivered a staggering 21,558% return between May 23, 2014, and May 23, 2024, surpassing Bitcoin's impressive 13,048% return during the same period.

However, crypto executives are skeptical about Nvidia's ability to maintain this level of outperformance in the coming decade. Swan Bitcoin CEO Cory Klippsten boldly stated, "Near zero chance of Nvidia outperforming Bitcoin over the next 10 years." Investment strategist Lyn Alden echoed this sentiment, saying, "I'd pick Bitcoin over Nvidia for the next ten years, personally."

Interestingly, since the approval of spot Bitcoin ETFs on Jan. 10, Bitcoin has slightly edged out Nvidia in returns over the past three months, with 31.7% and 30.2% respectively. This recent performance has sparked discussions about the potential risks and rewards associated with investing in these assets.

Daniel Sempere Pico raised an intriguing question, pondering whether Nvidia might have been considered an even "riskier" investment back in 2014 when both Bitcoin and AI had less widespread adoption. "If we were to go back to 2014, I wonder which one we'd think is more risky and less obvious to achieve such incredible returns," Pico mused.

Despite the impressive long-term returns of Nvidia, some experts argue that financial assets like Bitcoin have a broader domino effect than AI as more people begin to use them. Sina, co-founder of 21st capital, asserted, "There are no network effects in AI. There are multiple layers of network effects in money."

As investors look to the future, optimistic predictions for Bitcoin's performance in the next 24 months are tempered by warnings of a significant correction. Former physics professor Giovanni Santostasi's "Power Law" model suggests that Bitcoin could reach a peak of $210,000 in January 2026 before potentially falling as low as $60,000 afterward.

While Nvidia's past performance is undeniably impressive, the crypto community remains confident in Bitcoin's long-term potential. As the world continues to navigate the intersection of technology and finance, only the end of decade will decide which asset will reign supreme in the coming decade.

Nvidia outperformed Bitcoin over the past decade, but crypto execs doubt a repeat in the next 10 years

Bitcoin slightly outperformed Nvidia in the past 3 months since spot ETF approval

Experts argue financial assets like Bitcoin have broader network effects than AI

Elon Musk's Dystopian Vision: AI to Render Human Jobs Obsolete!

In a recent speech at the VivaTech 2024 event in Paris, billionaire entrepreneur Elon Musk painted a bleak picture of the future, claiming that artificial intelligence (AI) will eventually "do everything better than you," rendering human employment obsolete. This grim prediction has sparked discussions about the role of humans in an AI-driven world and the potential need for a "universal high income" to support those displaced by the technology.

Musk, who is no stranger to controversial statements, expressed his "biggest fear" of AI and its potential to surpass human capabilities in all areas. He went as far as to suggest that humans may be relegated to finding meaning in life by supporting the machines, stating, "The question will really be one of meaning — if the computer and robots can do everything better than you, does your life have meaning? I do think there's perhaps still a role for humans in this, in that we may give AI meaning."

Interestingly, despite having fathered at least 10 children himself, Musk seems to believe that humans will struggle to find purpose in their lives without employment. He conceded that humans might be able to work "as a hobby" if they choose, but ultimately painted a dystopian future where AI supplants us in all endeavors.

Meanwhile, Musk's own AI company, xAI, has reportedly secured a staggering $6 billion in funding from prominent venture capital firms, valuing the company at $18 billion. Although Musk admits that xAI currently lags behind industry leaders like OpenAI and DeepMind, he optimistically predicts that his company could catch up by the end of 2024.

It's worth noting that Musk's AI-related predictions haven't always panned out. In 2019, he famously promised that Tesla would have 1 million fully autonomous robotaxis on the road by 2020, a goal that remains unmet. More recently, he claimed that Tesla would unveil its first robotaxi in August 2024.

As the world grapples with the rapid advancements in AI technology, Musk's dire predictions serve as a reminder of the potential challenges and societal shifts that may lie ahead. While the future remains uncertain, one thing is clear: the debate surrounding AI's impact on employment and the human experience is far from over.

Elon Musk believes AI will do everything better than humans, making employment obsolete

Musk suggests humans may find meaning in supporting machines in an AI-driven future

xAI, Musk's AI company, has secured $6 billion in funding at an $18 billion valuation

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit more curious about the future of AI and its impact on our lives (and the importance of finding meaning in a world where robots might do everything better than us). Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual high-five 🙌✨

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. Every voice matters in the PoI community! 📣❤️ Share the newsletter and let's keep the conversation going!

🍨📰 Catch you in the next issue! 📰🍨