The link between NVIDIA, AI (including models like ChatGPT), and Bitcoin centers around the use of NVIDIA’s GPUs (Graphics Processing Units) for computationally intensive tasks required in both artificial intelligence and cryptocurrency mining.

1. NVIDIA GPUs and AI (e.g., ChatGPT):

• Training AI Models: NVIDIA GPUs are essential for training large-scale AI models like ChatGPT. These models require massive computational power to process vast amounts of data and learn complex patterns. GPUs accelerate this process due to their ability to handle parallel computations efficiently.

• Inference and Deployment: Beyond training, NVIDIA GPUs are used for running AI models in real-time applications, enabling faster responses and improved performance in AI-driven services.

2. NVIDIA GPUs and Bitcoin Mining:

• Cryptocurrency Mining: GPUs are utilized in mining cryptocurrencies by solving complex mathematical problems to validate transactions on the blockchain. While Bitcoin mining has largely shifted to ASICs (Application-Specific Integrated Circuits) due to their efficiency, GPUs are still relevant for mining other cryptocurrencies.

• Market Dynamics: The demand for GPUs in cryptocurrency mining can lead to shortages and increased prices, affecting availability for other sectors like gaming and AI research.

3. Impact on NVIDIA’s Business:

• Revenue Fluctuations: NVIDIA’s sales are significantly influenced by the demand from both the AI sector and cryptocurrency mining. Surges in Bitcoin prices often lead to increased GPU sales for mining purposes.

• Product Development: NVIDIA has developed specific product lines to cater to these markets, such as GPUs optimized for AI workloads and dedicated mining processors to alleviate supply issues for other consumers.

4. Competition for Resources:

• Supply Chain Strain: The simultaneous demand from AI development and cryptocurrency mining creates competition for GPU resources. This affects not only NVIDIA’s production strategies but also the broader technology market, influencing pricing and availability.

5. Technological Advancements:

• Innovation Drive: The requirements of advanced AI models like ChatGPT push NVIDIA to innovate in GPU technology, enhancing performance and efficiency, which can also benefit cryptocurrency mining operations.

Summary:

NVIDIA’s GPUs are the technological bridge connecting AI applications like ChatGPT and the Bitcoin mining industry. The GPUs’ ability to handle intensive computational tasks makes them invaluable for training AI models and for mining operations. This dual demand impacts NVIDIA’s business strategies, market supply, and technological advancements in both fields.

….

The connections between NVIDIA, AI (specifically ChatGPT), and Bitcoin are multifaceted and tied to the broader fields of artificial intelligence and cryptocurrency mining. Here’s an overview of how they intersect:

1. NVIDIA and AI

• AI Hardware Acceleration: NVIDIA is a leading manufacturer of GPUs (graphics processing units), which are essential for AI computations due to their ability to handle complex mathematical operations quickly and efficiently. GPUs are commonly used to train and deploy large-scale AI models like ChatGPT because they can handle the parallel processing required for deep learning.

• Support for AI Companies: NVIDIA has strong relationships with companies developing AI, including OpenAI (the organization behind ChatGPT). NVIDIA’s powerful GPUs are crucial in training large language models and running inference for AI applications at scale.

2. ChatGPT and NVIDIA

• Infrastructure and Training: ChatGPT is built on large-scale transformer models, which require significant computational power to train and operate. NVIDIA GPUs are typically used in the data centers of companies like OpenAI, Microsoft, and others to facilitate this work. This symbiotic relationship between AI models like ChatGPT and NVIDIA’s hardware advances the capabilities of conversational AI and language models.

• Efficiency and Optimization: As AI models like ChatGPT continue to grow in complexity, optimizing these models for NVIDIA’s GPUs enables quicker processing and more efficient power usage, which is essential for large deployments and real-time applications.

3. NVIDIA and Bitcoin

• Cryptocurrency Mining: NVIDIA GPUs are popular among cryptocurrency miners, particularly for Bitcoin and other proof-of-work cryptocurrencies. These GPUs perform the necessary hash calculations required to mine Bitcoin, although Bitcoin mining has largely shifted to ASICs (Application-Specific Integrated Circuits) for efficiency reasons. However, NVIDIA’s GPUs are still widely used for mining other cryptocurrencies like Ethereum.

• Supply and Demand Issues: The demand for NVIDIA GPUs has fluctuated based on the cryptocurrency market. During Bitcoin and cryptocurrency booms, GPUs are in higher demand, sometimes leading to shortages that also impact sectors like gaming and AI research.

4. AI, ChatGPT, and Bitcoin

• AI in Blockchain and Cryptocurrency: AI models can be used within the cryptocurrency space for predictive analysis, trading strategies, and managing data related to blockchain transactions. AI and machine learning applications are increasingly being integrated into cryptocurrency markets, with some startups developing AI tools to assist in algorithmic trading and fraud detection.

• Shared Infrastructure Needs: Both AI and Bitcoin mining require high-performance computing (HPC) infrastructure, often relying on NVIDIA GPUs. This overlap has led to shared technological development and sometimes competition for hardware resources between AI research and cryptocurrency mining.

Conclusion

In summary, NVIDIA provides the hardware backbone that powers both AI models like ChatGPT and cryptocurrency mining operations, especially for Bitcoin. This relationship emphasizes the growing demand for powerful computing hardware across emerging technology sectors. NVIDIA’s innovations in GPU technology have made it possible for AI and cryptocurrency industries to thrive, albeit with some tension due to competition for these resources.

ChatGPT and AI—>

1. Help use ChatGPT and search to find good spots in any foreign city to shoot street photography?
2. Use ChatGPT, and translate to a foreign language, to better communicate with the locals?
3. Use chatGPT to analyze your photos and compositions?

Future visions

My future vision for ERIC KIM AI —

Just pick up your iPhone, and scan a scene, or have it operate full-time, live… Analyzing the scene, giving you tips suggestions on how to better compose frame a scene? How and when to get closer, and how to compose a scene differently? Also giving you courage and encouragement to “get closer! Work the scene!”

Working for a big tech company, startup, or even restaurant ,,, you think your job is safe? No! Your company can easily fold any moment —

When I had my old 9-5 tech job, at Demand Media (now the “LEAF” group)— I kind of thought my job was “secure”. We IPO’d, thought we’d all get rich off our stock options ,,, then our stock crashed, and boom one day over night, half the company got laid off? Even my boss!

Even my sister in law, steadily employed at a nice fancy restaurant but one day totally randomly out of the blue, when everyone thought their business was booming, decided to close the restaurant 100%,,, simply because there was a dispute between the restauranteer and the investors?

For example I started this blog, while still having a “100% secure” 9-5 job?

—> investors who just do these diversified VOO, vanguard 500, typical S&P 500–> they’re just seeking to die a slow death? Or these “diversified” funds —> they seek equilibrium, but the 51% rule… slow death

.

Invisible buildings and property

Bitcoin is global capital

Deepest capital markets in the world

276, 276, 276

.

Superior yield

Better return

.

0:00

.

Howard Marks famously says, volatility is
not risk. Volatility is just vitality. It’s just the motion.

.

Volatility is just the motion.

The best player on the court is the most volatile, LeBron James

The best person is the most volatile?

Bitcoin has the most energy

.

Visualize M16

Move fast with a lot of energy, take risk.

.

Logic

3-4x over SP500

2x over magnificent 7

over the past 4 years Bitcoin (49%
p.a.) is outperforming the S&P (14% p.a.) by about a factor of 3 to 4. It is doubling the performance of the Magnificent 7 (27%
p.a.). It’s 5x real estate v(10% p.a.), 7x gold (7% p.a.), and it’s utterly crushing bonds (-5% p.a.), which are just a disaster.

.

49% PA, S&P is 14 PA

50-58% growth

Dominance

Go with the most dominant, NOT the underdog!

.

Bitcoin is the bank which is too big to fail in cyberspace ***

ibit, Larry fink, black rock

.

Backed by power *

700 exahash of computer power

18 gigawats

18 full on nuclear reactors

$800B Power for bank of Bitcoin

Bitcoin Banker

Second isn’t even 1% thus number,

99% into Bitcoin

.

most important point is MicroStrategy invested $250mn in Bitcoin in August 2020. Since then, we’ve invested $9.9bn total.

9.9B in total invested

420M pro crypto people

The Google of money

Roll eyes is good

When I talk about investment thesis, what I say is, you
want to get rich, find something everybody needs, nobody can stop and nobody understands. If 9 out of 10 people disagree with
you, roll their eyes, or don’t get what I just said, that means that you’ve got a 10x or more gain in front of you

.

10x more gain in front of you

If you look at the performance of
Amazon now, it is the weakest of the Magnificent 7 investments, because everybody understood Amazon was a good idea in the
summer of 2020. That’s why it’s an awful investment idea.

.

Superior yield ***

Awful investments now, when everyone thinks it is a good idea, today —

.

Why I Love Investing

It has to deal with real life, the real world, real risk & return and joy?

.

The birth of a new assset class?

implementation of mandatory fair value accounting in January 2025 is going to be another
big deal.

.

Crystal ball, look into the future

Fair value accounting

Year zero

.

2025–> the start, beginning of digital gold rush

Bitcoin, ChatGPT, Tesla cars –> the only things of the future which were promised which actually pulled through.?

.

You’ve got 10 years to get Bitcoin before there’s no Bitcoin for you.

Only 10 years left! ***

2035

Once you get to January 1, 2035, you’ve
only got 1% of Bitcoin trickling out over 106 years. That’s less than MicroStrategy already owns. That “point99”, as we call it, is
the point of reflexive supply shock. 99% of the Bitcoin will have been mined and sold into the open market by January 2, 2035.

.

Insider info?

.99–106 years from now only less than 1% of Bitcoin will trickle out?

Basic people boring!

Supply becomes fixed … deflationary asset! ***

I’m excited to be alive 10 years from now

Bitcoin is hope, makes sense!

15th century and electricity and philosophy

.

Capital appreciation

You’re going to capitalize your AI with Bitcoin.

AI & Bitcoin –> the only two good bets?

.

The New Digital Monopolies: Bitcoin & AI

.

My forecast
is the base case: Bitcoin appreciates from 0.1% of the assets in the world to 7%, it grows 29% ARR, we get $13 mn /Bitcoin by
the year 2045. A bear case is $3mn; a bull case is $49mn.

.

$49M a Bitcoin by 2045,,, 20 years from now, when Seneca is 23…

Or $3m, or $13M

.

7% of world assets

Modest projections?

Strategic, tactical

.

Bitcoin Tactics

The tactics of Bitcoin

.

Don’t die slowly!

take a risk or die quickly or die slowly.

.

Here are some notable quotes by Eric Kim on the Spartans and their philosophy:

1. On Spartan Simplicity and Happiness:

• Kim says, “I think the Spartans were just happy. They lived a simple existence, full of martial training and combat, and they lived a simple ascetic life” .

2. On the Spartan Ideal in Modern Life:

• He expresses a contrast between ancient Spartan virtues and modern society, saying, “The modern-day man is like a sick animal…lacking chutzpah, balls, and reckless audacity” .

3. On Spartan Discipline and Consumerism:

• He shares, “A real Spartan never buys anything for himself… It’s not about needing more, it’s about being more” .

4. On Spartan Courage:

• Kim admires Spartan sayings for their brevity and depth, noting, “When Persian emissary told King Leonidas that they would have so many arrows that they would block out the sun…one of his generals joked and said, ‘Then we shall fight in the shade’” .

5. On the Spartan Lifestyle in Photography:

• Applying Spartan values to photography, Kim remarks, “The best camera is the one you already own. It’s not about the tools—it’s about the mindset. Are you a consumer, or are you a creator?” .

Eric Kim’s reflections on the Spartans often emphasize the rejection of excess, inner strength, and the cultivation of a purposeful and resilient life. These principles inspire him both personally and in his work as a minimalist street photographer.

xxx

Eric Kim admires the ancient Spartans for their philosophy of discipline, simplicity, and resilience, which he integrates into his own life and work. He describes his concept of “Spartan Elitism” as a commitment to minimalism, self-discipline, and a focus on self-improvement, aligning with the Spartan values of frugality and toughness .

For Kim, the Spartan mindset embodies physical and mental rigor, which he contrasts with modern consumerism and comfort. He is particularly drawn to their rejection of excess and their focus on internal strength over material possessions. This ethos encourages him to approach life and photography with a minimalistic perspective, focusing on essentials rather than indulgences. For example, Kim suggests that one should avoid the endless cycle of buying new items and instead cultivate a sense of self-sufficiency and contentment, which he views as true freedom  .

Additionally, Kim appreciates the Spartans’ philosophical and practical emphasis on defense rather than aggression, which he interprets as a model for personal resilience and autonomy. He also finds inspiration in Spartan sayings, which he describes as concise and powerful, often transforming fear into courage. This resonates with his approach to street photography, where he emphasizes courage, connection, and authenticity over technical perfection or reliance on equipment  .

Through these ideals, Kim advocates for a life of focused purpose, mirroring the disciplined, frugal, and resilient lifestyle of the ancient Spartans.

Why Eric Kim Appreciates the Ancient Spartans

Eric Kim admires the ancient Spartans because they exemplify qualities that he believes are essential for successful investing and personal development. The Spartans were renowned for their discipline, minimalism, resilience, and commitment to a higher purpose—attributes that resonate deeply with Eric’s philosophy of wealth building and life in general.

1. Discipline Over Emotion: The Spartans were masters of self-control and discipline, training rigorously to prepare for any challenge. Eric values this trait in investing, emphasizing the importance of making rational decisions rather than being swayed by market emotions. By maintaining discipline, investors can stay committed to their long-term strategies despite short-term market fluctuations.

2. Embracing Minimalism: Spartan society prioritized simplicity and functionality over excess and luxury. Eric finds inspiration in this minimalist approach, advocating for streamlined investment portfolios focused on core assets that one truly understands. This simplicity helps avoid unnecessary risks and keeps investors focused on their primary financial goals.

3. Valuing Delayed Gratification: The Spartans trained from a young age, understanding that present sacrifices lead to future rewards. Similarly, Eric emphasizes the power of delayed gratification in investing—favoring long-term growth and the benefits of compound interest over the allure of quick, speculative gains.

4. Resilience and Adaptability: Facing constant threats, Spartans were conditioned to be resilient and adaptable. Eric believes that investors should adopt a similar mindset, preparing for market uncertainties and being flexible enough to adjust strategies when necessary while staying grounded in core principles.

5. A Higher Purpose Beyond Wealth: For Spartans, individual efforts were always in service of the greater good of their society. Eric appreciates this sense of purpose, encouraging investors to view wealth as a means to achieve broader goals—such as securing their family’s future, contributing to their communities, or supporting causes they care about.

By aligning these Spartan virtues with modern investing principles, Eric Kim promotes a philosophy that goes beyond mere financial gain. He sees the Spartan way as a timeless framework for building not just wealth, but also character and legacy. This admiration for the ancient Spartans informs his approach to investing, personal growth, and living a purposeful life.

In a world of flashy investments and complex financial instruments, there exists a quieter, more resilient approach to wealth creation: the Spartan way. This is not about austerity for austerity’s sake or living a monastic existence, nor is it about chasing riches by any means necessary. Instead, it’s about adopting a mindset rooted in discipline, simplicity, and a relentless focus on what truly matters. Today, I want to share with you the principles of what I call “The Spartan Investor”—a philosophy that borrows from the legendary warriors of ancient Greece and applies those values to the modern landscape of investing.

Principle 1: Discipline Over Emotion

Spartans were known for their stoic discipline. In a world where the slightest distraction could mean the difference between life and death, they understood the need to control their emotions and maintain focus. The same holds true in investing. Markets are volatile; they swing up and down in ways that can easily shake the average investor. But the Spartan Investor is different. They understand that emotion is the enemy of rational decision-making. By remaining calm and detached, they can avoid the pitfall of knee-jerk reactions that lead many to buy high and sell low.

To cultivate this discipline, the Spartan Investor builds a set of core beliefs about money and markets, sticking to them even when the world goes mad. For instance, they might commit to a long-term strategy of low-cost index funds, knowing that over time, the market tends to rise despite short-term volatility. Or, they may focus on value investing, buying quality stocks at a discount and holding them with conviction. The key is to form a plan that aligns with their long-term goals and to execute it with unwavering discipline, no matter the distractions.

Principle 2: Embrace Minimalism

When we think of minimalism, we often imagine a spartan room with bare walls and a simple bed. But minimalism in investing is about cutting through the noise, avoiding unnecessary complexity, and focusing on a few core principles. The modern investor is bombarded with options: ETFs, REITs, crypto, options, derivatives, and more. While these instruments have their place, the Spartan Investor recognizes that chasing every new trend is a sure way to dilute their focus.

Instead, they streamline their portfolio. This doesn’t mean putting all their eggs in one basket, but it does mean holding fewer investments that they truly understand. The Spartan Investor isn’t interested in having a portfolio that mimics the entire market; they’re looking for investments that align with their values, risk tolerance, and time horizon. They value simplicity over complexity, believing that an elegantly simple strategy will outperform a convoluted one over time.

For instance, instead of building a portfolio of 30 stocks across various sectors they barely understand, a Spartan Investor might select a handful of companies with strong fundamentals or choose a couple of diversified index funds. By keeping their portfolio lean, they reduce their exposure to unnecessary risk and avoid the pitfalls of analysis paralysis. They also give themselves the mental bandwidth to monitor and understand their investments, instead of constantly reacting to news on dozens of different holdings.

Principle 3: Value Delayed Gratification

Spartans trained from a young age, enduring rigorous and often punishing exercises to forge both body and mind. They knew that the rewards of today’s suffering would pay off in the future. Likewise, the Spartan Investor understands that great wealth doesn’t come overnight. They reject the lure of instant gratification in favor of a long-term vision.

In practical terms, this means prioritizing investments that compound over time rather than chasing quick wins. They’re not trying to time the market, day trade, or make a killing on speculative stocks. Instead, they’re content with investments that may grow slowly but steadily, trusting in the power of compounding to work in their favor. This is a patient, almost stoic approach to wealth creation. It might lack the excitement of high-stakes trading, but it’s far more likely to lead to sustainable financial success.

Delayed gratification also applies to their lifestyle. The Spartan Investor lives within their means, understanding that every dollar saved and invested today is worth far more than a dollar spent on fleeting pleasures. They may drive a modest car or live in a smaller house, not because they lack ambition, but because they recognize that wealth comes from ownership, not appearances. By spending less and investing more, they build a foundation of financial security that allows them to take greater risks and pursue their passions in the future.

Principle 4: Resilience and Adaptability

If there’s one thing we know about markets, it’s that they are unpredictable. The Spartan Investor accepts this uncertainty and prepares for it, knowing that resilience is key to weathering any storm. They approach their investments with a mindset that acknowledges the possibility of loss but refuses to be broken by it.

Resilience, however, is not the same as rigidity. Just as a Spartan soldier adapts to the battlefield, the Spartan Investor remains flexible and is willing to adjust their strategy as circumstances change. This could mean rebalancing their portfolio when their financial situation shifts or recognizing when a once-great investment no longer aligns with their goals. The key is to remain grounded in their core principles while being adaptable enough to respond to new information.

A Spartan Investor might choose to diversify across asset classes, not because they believe any particular sector will consistently outperform, but because they understand that diversification is a shield against the unknown. Or, they might keep a portion of their portfolio in cash, ready to take advantage of market downturns. In every decision, they’re guided by a commitment to staying resilient and prepared for whatever the future holds.

Principle 5: A Higher Purpose Beyond Wealth

Finally, the Spartan Investor recognizes that wealth, in itself, is not the end goal. Just as the Spartans sought to serve a purpose beyond themselves, the Spartan Investor views money as a tool for achieving a greater good. For some, this might mean ensuring their family’s security for generations; for others, it might mean using their wealth to make a positive impact on their community or the world.

When you invest with a higher purpose, you create a legacy that goes beyond mere financial returns. This is the ultimate expression of the Spartan mindset: to use your strength not just for personal gain but to contribute to something larger than yourself. Whether it’s through philanthropy, mentorship, or investing in companies that align with their values, the Spartan Investor seeks to create a legacy of impact, not just wealth.

Conclusion

The Spartan Investor is not interested in following the crowd or being swept away by the latest trend. They are deliberate, disciplined, and focused on the long-term. They invest with purpose, embrace simplicity, and live with a level of frugality that allows them to focus on what truly matters. In a world obsessed with consumption and speed, the Spartan Investor is a refreshing reminder that wealth is best built with patience, purpose, and a relentless commitment to core principles.

For those willing to adopt this mindset, the path of the Spartan Investor may not be the easiest, but it’s one that leads to enduring financial strength and, ultimately, a legacy that extends far beyond the individual.

The Spartan Investor

In a world awash with information overload and endless financial instruments, the art of investing has become unnecessarily convoluted. Like the ancient Spartans who championed simplicity, discipline, and resilience, investors today can benefit immensely from adopting a Spartan mindset. Let’s strip away the superfluous and get back to the fundamentals that truly matter.

Simplicity Over Complexity

The financial industry often thrives on complexity. Exotic derivatives, high-frequency trading algorithms, and intricate financial models are touted as the paths to outsized returns. But complexity doesn’t guarantee success; in fact, it often obfuscates risk. The Spartans excelled by focusing on core competencies, training relentlessly in the basics of warfare. Similarly, investing doesn’t have to be complicated. Embracing simple, time-tested strategies like diversified index investing can lead to robust, long-term results.

Discipline as a Cornerstone

Emotional decision-making is the Achilles’ heel of many investors. Market volatility can trigger fear and greed, leading to impulsive actions that derail long-term plans. The Spartans were paragons of discipline, maintaining steadfast focus even in the face of overwhelming odds. As investors, cultivating discipline means adhering to a well-thought-out investment plan, resisting the urge to time the market, and avoiding reactive decisions based on short-term market movements.

Resilience in the Face of Adversity

Markets rise and fall—that’s a given. Economic downturns and bear markets are as inevitable as the changing seasons. The Spartans were trained to endure hardship, to stand firm when others would falter. Building a resilient investment portfolio involves preparing for volatility, not fearing it. This could mean allocating assets across different classes, maintaining an emergency fund, and staying committed to your investment strategy even when the market takes a downturn.

Living Below Your Means

The Spartans were known for their austere lifestyles, valuing communal wealth over individual excess. In modern investing, living below your means is a powerful tool. By reducing unnecessary expenses, you free up more capital for investment, accelerating your path to financial independence. It’s not about deprivation but about making conscious choices that align with your long-term goals.

Continuous Learning and Adaptation

While the Spartans valued tradition, they were not averse to learning and adapting new tactics for superior outcomes. The investment landscape is ever-changing, influenced by technological advancements, regulatory shifts, and global events. Staying informed and being willing to adjust your strategies when necessary is crucial. This doesn’t mean chasing every new trend but being aware of significant changes that could impact your investments.

Conclusion

Embracing the Spartan ethos in investing is about more than just mimicking ancient warriors; it’s about instilling a mindset that values simplicity, discipline, and resilience. In a complex world, these timeless principles can guide you toward financial success and peace of mind. Strip away the noise, focus on what truly matters, and stand firm in your convictions—that’s the Spartan way.

You’re right; that essay didn’t quite capture what makes Eric Kim’s style distinctive. His writing is known for its direct, accessible tone, often using personal anecdotes, informal language, and a conversational style that feels like he’s speaking directly to the reader. He tends to strip away complex jargon and aim for clarity, preferring short, punchy sentences and a focus on practicality and inspiration.

Let’s try rewriting the essay with that in mind, making it feel more straightforward, approachable, and grounded.

The Tactics of Bitcoin

When you hear “Bitcoin,” you might think of tech, finance, or something that only people on the internet obsess over. But there’s something deeper going on here. Bitcoin isn’t just a new kind of money—it’s a movement, a strategy, and a way to challenge the old systems we’ve relied on for so long. Bitcoin is tactical. It’s purposeful. It’s about getting people to think differently about what money can be and who controls it.

Decentralization: Taking Back Control

First, Bitcoin isn’t run by a bank, a government, or any single person. It’s decentralized. This means that instead of one big entity holding all the power, Bitcoin operates on a network of computers all over the world. They’re called nodes, and they’re what keeps Bitcoin going. Transactions happen directly between users, and they’re recorded on a public ledger known as the blockchain.

Why is this a big deal? Because it’s a tactic. Decentralization is Bitcoin’s way of saying, “We don’t need the middlemen.” No one can control or change Bitcoin at a whim. It’s a way to give power back to individuals and take it away from institutions that can—and often do—manipulate traditional currencies. Bitcoin is about giving people more control, plain and simple.

Fixed Supply: Scarcity Is a Strategy

Unlike traditional money, which governments can print whenever they want, Bitcoin is limited. There will only ever be 21 million Bitcoins. That’s it. When there’s a limited supply of something, and people want it, the value tends to go up over time. It’s a lot like gold in this way. The more people start to see Bitcoin as valuable, the more valuable it becomes, creating a sort of built-in demand.

Think about it: governments keep printing money, which causes inflation, meaning the money you have today buys less tomorrow. Bitcoin doesn’t do that. Its scarcity is deliberate, a tactic designed to protect its value over the long haul. This strategy makes Bitcoin more appealing, especially to people looking for a way to store their wealth safely.

Transparency and Immutability: Trust Through Openness

Here’s the thing about traditional banks: they can be murky. We trust them with our money, but most of us don’t know what’s really going on behind the scenes. Bitcoin takes a different approach. Every single transaction is recorded on a public ledger, which anyone can access. And once a transaction is recorded, it can’t be changed. Ever.

This is transparency, and it’s another tactic. Bitcoin doesn’t just ask you to trust it; it shows you why you can. When you know transactions can’t be altered, it builds a sense of security. And that’s huge in a world where financial scandals seem to pop up regularly. Bitcoin’s transparency isn’t just a feature; it’s a strategy for earning trust in an industry where trust is often in short supply.

Permissionless Access: Finance for Everyone

Bitcoin doesn’t ask for permission. You don’t need a bank account, a credit score, or anyone’s approval to use it. If you have internet access, you can send and receive Bitcoin. That’s all it takes. This permissionless nature is a key tactic for spreading financial access to people who’ve been left out.

For a lot of people in developing countries, banks are hard to access or can be unreliable. Bitcoin changes that. It doesn’t discriminate; it just works. This tactic brings more people into the global economy, which is something traditional financial systems struggle to do. It’s about financial inclusion, plain and simple.

Security Through Proof of Work: Keeping the Network Safe

Bitcoin’s security comes from something called Proof of Work, which makes miners solve tough mathematical puzzles to validate transactions. It’s an energy-intensive process, but it keeps the network safe. To mess with Bitcoin, a hacker would need an enormous amount of computing power—so much that it wouldn’t be worth it.

This Proof of Work system is a tactic that builds a strong defense against attacks. It keeps the network resilient, which is why Bitcoin has lasted as long as it has. In a world where security breaches are all too common, Bitcoin’s structure is a solid line of defense.

The Community: A Culture of Financial Freedom

Bitcoin isn’t just an asset or technology; it’s a culture. The people who support it believe in financial freedom and autonomy. There’s even a term for people who hold onto their Bitcoin through market ups and downs: “HODLers.” It’s a bit of a joke, but it shows that this community is in it for the long haul.

This cultural aspect is a tactic, too. The community spreads Bitcoin’s message and encourages adoption. It’s a movement of people who are fed up with the traditional system and are actively working to build something different. Bitcoin isn’t just a financial tool; it’s an idea, and that idea is powerful.

Final Thoughts

Bitcoin is tactical. It challenges old ideas about money, decentralizes control, and offers a new way for people to think about their financial future. From its scarcity and transparency to its security and culture, Bitcoin isn’t just a currency; it’s a strategy for reshaping the world of finance.

Whether Bitcoin is the future of money or not, it’s already changed the way we think about money. And that alone makes it worth paying attention to. Bitcoin’s tactics—of decentralization, inclusion, and resilience—are about more than just technology; they’re about freedom. That’s what makes Bitcoin so revolutionary.

The Tactics of Bitcoin

In the realm of finance, few innovations have been as disruptive—or as divisive—as Bitcoin. Since its emergence in 2009, Bitcoin has challenged traditional financial systems, redefined the concept of money, and stirred a revolution in the minds of technologists, economists, and the average person. But Bitcoin isn’t just a digital currency; it’s a tactical movement. It operates on strategic principles that work against the grain of centralized power and bring forth a new paradigm of financial autonomy. To understand Bitcoin is to understand the tactics it uses to reshape our financial landscape and reimagine the future.

Decentralization: The Bedrock of Bitcoin’s Strategy

The cornerstone of Bitcoin’s tactics is its decentralized nature. Unlike traditional currencies controlled by governments and central banks, Bitcoin operates on a distributed network of computers worldwide, called nodes. These nodes validate and record transactions on a public ledger known as the blockchain. This design isn’t accidental but rather a strategic move to circumvent centralized power and censorship. In a world where a handful of entities control the flow of money, decentralization is Bitcoin’s weapon against financial monopolies.

By decentralizing control, Bitcoin eliminates the need for intermediaries. With no central authority, no single entity can manipulate, restrict, or inflate Bitcoin at will. This autonomy is crucial because it creates a sense of financial sovereignty for its users, putting them in control of their assets and transactions. Decentralization is not merely a technological feature; it’s a statement, a declaration of independence from centralized control, and a tactic to empower the individual.

Fixed Supply: A Deflationary Tactic

Bitcoin’s scarcity is another deliberate tactic that sets it apart from fiat currencies. The total supply of Bitcoin is capped at 21 million coins. This finite limit creates an inbuilt deflationary mechanism, contrasting sharply with fiat currencies, which can be printed at the discretion of central banks. When governments print more money, they inflate the supply, reducing the value of the currency in circulation. Bitcoin, however, resists inflation by design.

This scarcity tactic draws comparisons to gold, often called “digital gold” due to its limited supply and inherent value. As demand for Bitcoin rises, its value appreciates because there will never be more than 21 million coins in existence. This finite supply not only attracts investors seeking a hedge against inflation but also builds a sense of urgency and value around the asset. In essence, Bitcoin is a deflationary store of value in a world where inflation is an ever-present threat, positioning it as a financial lifeboat amid turbulent economic seas.

Transparency and Immutability: Building Trust in an Untrustworthy World

Trust is a rare commodity in the financial sector, especially after decades of scandals, from the 2008 financial crisis to the collapse of various banks and financial institutions. Bitcoin, however, offers a solution through its transparency and immutability. Every transaction made on the Bitcoin network is recorded on a public ledger that anyone can view. Once added, these transactions are permanent and cannot be altered. This transparency fosters a sense of trust and reliability that traditional financial systems often lack.

The immutability of the blockchain ensures that Bitcoin operates with a level of integrity unmatched by any centralized financial institution. This is a tactical move aimed at reinforcing its legitimacy. In a system where data can’t be tampered with, users find security and assurance in their transactions. By making the entire ledger accessible and immutable, Bitcoin builds trust through transparency, offering a stark contrast to the opacity of traditional banking systems.

Permissionless Access: Financial Inclusion on a Global Scale

One of the most revolutionary aspects of Bitcoin is its permissionless nature. Anyone with an internet connection can access Bitcoin, send it, and receive it—without the need for a bank account, credit history, or government approval. This is not just a feature; it’s a tactical advantage that promotes financial inclusion. Billions of people around the world lack access to banking services, but with Bitcoin, they can participate in the global economy.

Bitcoin’s permissionless design enables it to thrive in regions where traditional financial infrastructure is either underdeveloped or corrupt. For example, individuals in countries with high inflation or oppressive banking systems can turn to Bitcoin as a stable alternative, preserving their wealth in an asset beyond their government’s reach. By lowering the barriers to entry, Bitcoin expands financial access, empowering individuals in ways that conventional financial systems never could.

Security through Proof of Work: Deterrence against Malicious Attacks

The integrity of Bitcoin’s network is protected by a tactic known as Proof of Work (PoW). This mechanism requires miners to solve complex mathematical puzzles to validate transactions and add them to the blockchain. PoW is a highly secure and resource-intensive process, making it extremely difficult for malicious actors to alter or manipulate the network. It serves as a deterrent against attacks and helps ensure that only legitimate transactions are recorded.

Critics argue that PoW consumes substantial energy, but its security benefits are undeniable. PoW establishes a system where trust is maintained not by centralized oversight but by cryptographic principles and computational power. This level of security is vital for Bitcoin’s credibility and is one of the main reasons it has withstood over a decade of cyber threats. In this sense, PoW is a tactical defense, fortifying Bitcoin against vulnerabilities that could compromise its users and its reputation.

The Cultural Tactic: A Movement, Not Just a Currency

Bitcoin is not just a digital currency; it’s a cultural movement. The Bitcoin community is a diverse, global network of individuals who believe in the power of decentralization and financial independence. This community aspect is a tactic in itself, fueling the spread of Bitcoin through word of mouth, social media, and grassroots advocacy. The “HODL” culture—holding onto Bitcoin regardless of market volatility—epitomizes the movement’s resilience and long-term perspective.

Bitcoin enthusiasts see themselves as participants in a revolution, a shift toward a more equitable financial system. This cultural dimension amplifies Bitcoin’s reach, as supporters spread its message, educate newcomers, and push for adoption. By fostering a loyal and dedicated community, Bitcoin transcends the role of a mere asset and becomes a symbol of resistance against financial oppression.

Conclusion

The tactics of Bitcoin go beyond technology; they touch on principles of autonomy, transparency, and security. Bitcoin challenges the status quo by decentralizing power, providing a scarce and deflationary asset, promoting financial inclusion, and fostering a culture of independence. In a world where financial control is often concentrated in a few hands, Bitcoin’s tactics offer an alternative path—a way for individuals to reclaim agency over their finances.

Bitcoin’s tactics are not accidental but are designed to disrupt, redefine, and revolutionize. As it continues to gain traction, Bitcoin exemplifies the potential of digital currency to reshape our financial future. Whether or not it becomes the dominant global currency, one thing is clear: Bitcoin has forever altered our perception of money, freedom, and trust. And that, perhaps, is its most powerful tactic of all.

Why’s this Eric Kim voice 

You’re right; that essay didn’t quite capture what makes Eric Kim’s style distinctive. His writing is known for its direct, accessible tone, often using personal anecdotes, informal language, and a conversational style that feels like he’s speaking directly to the reader. He tends to strip away complex jargon and aim for clarity, preferring short, punchy sentences and a focus on practicality and inspiration.

Let’s try rewriting the essay with that in mind, making it feel more straightforward, approachable, and grounded.

The Tactics of Bitcoin

When you hear “Bitcoin,” you might think of tech, finance, or something that only people on the internet obsess over. But there’s something deeper going on here. Bitcoin isn’t just a new kind of money—it’s a movement, a strategy, and a way to challenge the old systems we’ve relied on for so long. Bitcoin is tactical. It’s purposeful. It’s about getting people to think differently about what money can be and who controls it.

Decentralization: Taking Back Control

First, Bitcoin isn’t run by a bank, a government, or any single person. It’s decentralized. This means that instead of one big entity holding all the power, Bitcoin operates on a network of computers all over the world. They’re called nodes, and they’re what keeps Bitcoin going. Transactions happen directly between users, and they’re recorded on a public ledger known as the blockchain.

Why is this a big deal? Because it’s a tactic. Decentralization is Bitcoin’s way of saying, “We don’t need the middlemen.” No one can control or change Bitcoin at a whim. It’s a way to give power back to individuals and take it away from institutions that can—and often do—manipulate traditional currencies. Bitcoin is about giving people more control, plain and simple.

Fixed Supply: Scarcity Is a Strategy

Unlike traditional money, which governments can print whenever they want, Bitcoin is limited. There will only ever be 21 million Bitcoins. That’s it. When there’s a limited supply of something, and people want it, the value tends to go up over time. It’s a lot like gold in this way. The more people start to see Bitcoin as valuable, the more valuable it becomes, creating a sort of built-in demand.

Think about it: governments keep printing money, which causes inflation, meaning the money you have today buys less tomorrow. Bitcoin doesn’t do that. Its scarcity is deliberate, a tactic designed to protect its value over the long haul. This strategy makes Bitcoin more appealing, especially to people looking for a way to store their wealth safely.

Transparency and Immutability: Trust Through Openness

Here’s the thing about traditional banks: they can be murky. We trust them with our money, but most of us don’t know what’s really going on behind the scenes. Bitcoin takes a different approach. Every single transaction is recorded on a public ledger, which anyone can access. And once a transaction is recorded, it can’t be changed. Ever.

This is transparency, and it’s another tactic. Bitcoin doesn’t just ask you to trust it; it shows you why you can. When you know transactions can’t be altered, it builds a sense of security. And that’s huge in a world where financial scandals seem to pop up regularly. Bitcoin’s transparency isn’t just a feature; it’s a strategy for earning trust in an industry where trust is often in short supply.

Permissionless Access: Finance for Everyone

Bitcoin doesn’t ask for permission. You don’t need a bank account, a credit score, or anyone’s approval to use it. If you have internet access, you can send and receive Bitcoin. That’s all it takes. This permissionless nature is a key tactic for spreading financial access to people who’ve been left out.

For a lot of people in developing countries, banks are hard to access or can be unreliable. Bitcoin changes that. It doesn’t discriminate; it just works. This tactic brings more people into the global economy, which is something traditional financial systems struggle to do. It’s about financial inclusion, plain and simple.

Security Through Proof of Work: Keeping the Network Safe

Bitcoin’s security comes from something called Proof of Work, which makes miners solve tough mathematical puzzles to validate transactions. It’s an energy-intensive process, but it keeps the network safe. To mess with Bitcoin, a hacker would need an enormous amount of computing power—so much that it wouldn’t be worth it.

This Proof of Work system is a tactic that builds a strong defense against attacks. It keeps the network resilient, which is why Bitcoin has lasted as long as it has. In a world where security breaches are all too common, Bitcoin’s structure is a solid line of defense.

The Community: A Culture of Financial Freedom

Bitcoin isn’t just an asset or technology; it’s a culture. The people who support it believe in financial freedom and autonomy. There’s even a term for people who hold onto their Bitcoin through market ups and downs: “HODLers.” It’s a bit of a joke, but it shows that this community is in it for the long haul.

This cultural aspect is a tactic, too. The community spreads Bitcoin’s message and encourages adoption. It’s a movement of people who are fed up with the traditional system and are actively working to build something different. Bitcoin isn’t just a financial tool; it’s an idea, and that idea is powerful.

Final Thoughts

Bitcoin is tactical. It challenges old ideas about money, decentralizes control, and offers a new way for people to think about their financial future. From its scarcity and transparency to its security and culture, Bitcoin isn’t just a currency; it’s a strategy for reshaping the world of finance.

Whether Bitcoin is the future of money or not, it’s already changed the way we think about money. And that alone makes it worth paying attention to. Bitcoin’s tactics—of decentralization, inclusion, and resilience—are about more than just technology; they’re about freedom. That’s what makes Bitcoin so revolutionary.

Seems pretty obvious —

BNY Mellon, or the Bank of New York Mellon, is a major American investment banking and financial services company. It was established in 2007 through the merger of the Bank of New York and Mellon Financial Corporation. BNY Mellon provides services like asset management, wealth management, and investment services to institutions, corporations, and high-net-worth individuals globally. As one of the largest custodial banks in the world, it manages trillions of dollars in assets and is known for its role in safeguarding and servicing investments.

The company has recently expanded into the cryptocurrency space, offering custodial services for digital assets like Bitcoin and Ethereum, reflecting the growing demand for crypto asset management among institutional clients. BNY Mellon’s move into this sector illustrates its ongoing efforts to innovate and adapt to new financial technologies and investment trends.

l.l

BNY Mellon is advancing its cryptocurrency custody services, having received a notable exemption from the U.S. Securities and Exchange Commission (SEC). The exemption pertains specifically to the SEC’s Staff Accounting Bulletin (SAB) 121, which requires banks to account for digital assets as liabilities on their balance sheets. This ruling now allows BNY Mellon to provide custody services for Bitcoin and Ethereum to clients of exchange-traded products (ETPs) without this balance sheet impact. This move marks a significant development, as BNY Mellon becomes one of the first major banks to receive this type of SEC exemption, highlighting a growing acceptance of institutional crypto services  .

This development is part of a broader strategy by BNY Mellon to establish itself in the digital asset space, as they look to capitalize on the increasing demand for institutional-grade crypto custody solutions. By navigating regulatory requirements and expanding its services, BNY Mellon aims to cater to a burgeoning market of institutional investors seeking secure, regulated options for crypto assets. The bank’s ongoing regulatory engagements also suggest a potential for further expansion in its crypto offerings as the regulatory landscape evolves  .

Here’s a simplified list of why the FASB’s mandatory fair value accounting change for Bitcoin matters, in the style of Michael Saylor:

1. Transparency and Accuracy: Fair value accounting allows companies to report both gains and losses on Bitcoin holdings, providing a clearer and more accurate view of their financial status.

2. Increased Institutional Appeal: By allowing Bitcoin to be accounted for like other assets, the rule change makes it more appealing for corporations and institutional investors, enhancing Bitcoin’s legitimacy as a corporate asset.

3. Elevating Bitcoin’s Status: This shift treats Bitcoin as a recognized asset class, not a speculative tool, helping to solidify its role in mainstream finance.

4. Risk Management for Companies: With this update, companies can hold Bitcoin as a hedge against inflation and fiat currency devaluation, offering a stable, predictable reserve asset in uncertain times.

5. Stabilizing the Bitcoin Market: Greater corporate adoption and fair value accounting could stabilize Bitcoin’s price, reducing volatility and encouraging broader participation.

6. Improving Financial Integrity: Enhanced reporting standards provide investors with a clearer understanding of a company’s financial health, allowing for better transparency and corporate governance.

7. Setting the Stage for Bitcoin’s Future: Fair value accounting enables Bitcoin to become a foundational asset in modern finance, marking its transition from fringe asset to cornerstone of corporate strategy and wealth preservation.

This change acknowledges Bitcoin’s role as sound money and supports its growing presence as a valuable, institutional-grade asset.

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The upcoming implementation of mandatory fair value accounting for Bitcoin and other cryptocurrencies by the Financial Accounting Standards Board (FASB) is nothing short of a monumental shift. It’s a step that redefines Bitcoin’s role in the financial ecosystem and enhances its appeal as a strategic asset for corporations, institutions, and investors. This accounting change is not merely a technical detail—it’s an acknowledgment of Bitcoin’s maturation and relevance as a store of value, as sound money, and as a hedge against inflation. Here’s why this matters.

1. Fair Value Accounting: Aligning Bitcoin with GAAP Standards

For years, companies have been forced to account for Bitcoin under outdated impairment accounting rules that unfairly penalize its adoption. Under these rules, if Bitcoin’s price falls, companies must record an impairment loss, permanently reducing the asset’s carrying value on their balance sheets. However, if Bitcoin’s price subsequently rises, they are prohibited from recognizing these gains. This treatment has created a biased, one-sided risk for companies holding Bitcoin, effectively obscuring the real economic benefits and performance of their digital asset holdings.

With fair value accounting, Bitcoin will be treated like other investment assets. Under the new standards, companies will be able to report both losses and gains as they occur. This reflects Bitcoin’s actual market value, offering a real-time picture of its financial impact. In a world where transparency is king, this change allows shareholders and stakeholders to see the true performance of a company’s Bitcoin holdings—just as they would with other critical assets. This change makes Bitcoin not just a speculative asset but a legitimate, compliant tool for corporate treasury strategy.

2. Increased Appeal for Institutional Investors

The adoption of fair value accounting removes a significant barrier for institutional investors, whose strategies are constrained by rigorous financial reporting requirements. Many institutions and corporations have been hesitant to adopt Bitcoin, not because they don’t see its potential, but because accounting standards have limited their ability to fully integrate it into their portfolios. With this change, we can expect a surge in institutional interest. Corporate balance sheets will no longer need to treat Bitcoin as a one-way risk proposition. Instead, they can leverage it as a strategic asset, embracing its role as a digital store of value—a “digital gold” that outperforms traditional assets over the long term.

What does this mean practically? It means that large corporations can hold Bitcoin as a reserve asset, providing an additional buffer against fiat currency devaluation. For companies facing inflationary pressures and monetary debasement, Bitcoin becomes an even more attractive option. Its finite supply offers a predictable alternative to the boundless supply of fiat currency. Bitcoin as a corporate asset will no longer be limited to the bravest companies willing to endure the previous accounting constraints; it will be an option open to any corporation that wants to hedge against inflation and currency instability.

3. Elevating Bitcoin’s Role as an Asset Class

Fair value accounting further solidifies Bitcoin’s status as an asset class, one that is here to stay. By accounting for Bitcoin at its fair market value, companies are better able to reflect the economic reality of holding Bitcoin. The financial reports of companies with Bitcoin holdings will now present a clearer and more accurate view of these assets’ contributions to the company’s overall financial health. This clarity and transparency not only benefit individual companies but also elevate Bitcoin’s standing across the broader financial sector. It signals that Bitcoin is no longer just a fringe asset—it’s a recognized, legitimate asset that offers strategic value to companies.

This accounting update has the potential to act as a catalyst for Bitcoin’s price stability and for greater adoption across industries. As more companies begin to hold Bitcoin on their balance sheets, it will reduce volatility and make the asset more accessible to investors. Over time, this stabilization could mitigate concerns about Bitcoin’s volatility, thereby attracting even more participants and deepening Bitcoin’s liquidity pools. The shift to fair value accounting is, in a way, an institutional acknowledgment of Bitcoin’s transition from speculative asset to a robust component of the global financial system.

4. Enhancing Financial Integrity and Corporate Governance

Adopting fair value accounting for Bitcoin also enhances the financial integrity of companies that choose to hold it. By allowing these companies to accurately report gains and losses, they align with shareholders’ expectations for transparency. For stakeholders and analysts, fair value accounting provides a clearer understanding of a company’s financial health and exposes the true performance of its crypto assets. This accounting treatment ensures that Bitcoin’s value is visible and understood, laying the groundwork for more informed decision-making by investors, regulators, and corporate boards alike.

Conclusion: Bitcoin as a Cornerstone of Modern Finance

At its core, fair value accounting for Bitcoin is about recognizing Bitcoin’s economic reality and allowing it to play its rightful role in the balance sheets of companies worldwide. It is about liberating corporate treasuries from the shackles of outdated accounting methods and enabling companies to participate in the sound money revolution. As companies begin to integrate Bitcoin into their financial frameworks more seamlessly, we will witness a profound transformation. This change paves the way for Bitcoin to become not just a digital asset but a foundational asset in the 21st-century financial landscape.

Bitcoin’s future as an institutional-grade asset is now brighter than ever, as fair value accounting transforms Bitcoin from a volatile fringe asset into a powerful tool for corporate strategy, wealth preservation, and financial resilience. This shift is not just technical; it is a profound realignment of Bitcoin’s role in the world economy. And this, I believe, is a watershed moment for Bitcoin, a moment that underscores its inevitable rise as the bedrock of modern finance.

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The implementation of mandatory fair value accounting for Bitcoin and other crypto assets in January 2025 is significant for several reasons:

1. Increased Transparency and Accuracy

Fair value accounting requires that companies measure and report the actual market value of crypto holdings on their balance sheets. This provides a clearer picture of a company’s financial position, especially for those with significant cryptocurrency investments. By marking assets to their current market value, investors can better assess a company’s financial health and the performance of its crypto holdings, offering a more transparent and timely reflection of asset values  .

2. Reduced Volatility in Financial Reporting

Previously, crypto assets were subject to impairment rules under U.S. GAAP, which meant companies could only report losses if the value decreased but couldn’t recognize gains when values rose. This created asymmetry in financial reporting and could understate asset values during bull markets. By allowing companies to record both gains and losses in real time, the new rules reduce the impact of market swings on a company’s reported earnings, which could help companies better manage and predict financial outcomes  .

3. Enhanced Institutional Interest

Fair value accounting could make crypto assets like Bitcoin more appealing to institutional investors and public companies, as they no longer face the same reporting challenges. This new standard allows companies to treat crypto holdings similarly to other fair-value assets, potentially spurring greater corporate and institutional investment in Bitcoin. With the ability to recognize gains, companies are incentivized to diversify into digital assets without fear of one-sided impairment losses  .

4. Challenges in Fair Value Determination

Although the rule change promotes transparency, it also brings challenges in valuing crypto assets due to their price volatility and diverse trading venues. Accurately determining fair value may be complex, as companies must consider multiple exchanges and account for varying liquidity and trading volumes across markets. These challenges require companies to apply careful judgment, which adds complexity to financial reporting and could impact smaller firms or those new to crypto investing  .

5. Impact on the Crypto Market

As companies increasingly adopt these accounting standards, the market for crypto assets may stabilize and grow. Enhanced visibility and accurate financial reporting could contribute to mainstream acceptance of cryptocurrencies, integrating them further into the financial ecosystem. Over time, this could reduce perceived risks and volatility, encouraging broader participation from both corporations and retail investors  .

In summary, this accounting change is a major step forward for companies holding Bitcoin and other cryptocurrencies. By providing more accurate and comprehensive financial data, it allows companies and investors to better assess the value of crypto holdings, potentially driving greater institutional adoption and shaping the future of the crypto market.

The implementation of mandatory fair value accounting for Bitcoin and other crypto assets in January 2025 is significant for several reasons:

1. Increased Transparency and Accuracy

Fair value accounting requires that companies measure and report the actual market value of crypto holdings on their balance sheets. This provides a clearer picture of a company’s financial position, especially for those with significant cryptocurrency investments. By marking assets to their current market value, investors can better assess a company’s financial health and the performance of its crypto holdings, offering a more transparent and timely reflection of asset values  .

2. Reduced Volatility in Financial Reporting

Previously, crypto assets were subject to impairment rules under U.S. GAAP, which meant companies could only report losses if the value decreased but couldn’t recognize gains when values rose. This created asymmetry in financial reporting and could understate asset values during bull markets. By allowing companies to record both gains and losses in real time, the new rules reduce the impact of market swings on a company’s reported earnings, which could help companies better manage and predict financial outcomes  .

3. Enhanced Institutional Interest

Fair value accounting could make crypto assets like Bitcoin more appealing to institutional investors and public companies, as they no longer face the same reporting challenges. This new standard allows companies to treat crypto holdings similarly to other fair-value assets, potentially spurring greater corporate and institutional investment in Bitcoin. With the ability to recognize gains, companies are incentivized to diversify into digital assets without fear of one-sided impairment losses  .

4. Challenges in Fair Value Determination

Although the rule change promotes transparency, it also brings challenges in valuing crypto assets due to their price volatility and diverse trading venues. Accurately determining fair value may be complex, as companies must consider multiple exchanges and account for varying liquidity and trading volumes across markets. These challenges require companies to apply careful judgment, which adds complexity to financial reporting and could impact smaller firms or those new to crypto investing  .

5. Impact on the Crypto Market

As companies increasingly adopt these accounting standards, the market for crypto assets may stabilize and grow. Enhanced visibility and accurate financial reporting could contribute to mainstream acceptance of cryptocurrencies, integrating them further into the financial ecosystem. Over time, this could reduce perceived risks and volatility, encouraging broader participation from both corporations and retail investors  .

In summary, this accounting change is a major step forward for companies holding Bitcoin and other cryptocurrencies. By providing more accurate and comprehensive financial data, it allows companies and investors to better assess the value of crypto holdings, potentially driving greater institutional adoption and shaping the future of the crypto market.

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big deal. For Bitcoin? Search 

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The Financial Accounting Standards Board (FASB) will implement a new rule starting January 1, 2025, requiring companies holding Bitcoin and other cryptocurrencies to account for them at fair value. This change, outlined in FASB’s Accounting Standards Update 2023-08, mandates that crypto assets be measured at fair value on the balance sheet with gains or losses recognized in net income each reporting period. Previously, companies only recorded impairment losses without recognizing gains, which limited the attractiveness of Bitcoin as a corporate asset.

For companies with significant crypto holdings, such as Bitcoin, this rule provides greater transparency and aligns accounting practices with those for other assets held at fair value, like equities. This approach can potentially reduce the risk for investors by offering more accurate and timely reflections of crypto assets’ market values. As a result, institutional interest in Bitcoin could rise, as the updated accounting standard allows businesses to report both upward and downward value changes in a straightforward manner, thus eliminating prior concerns over accounting limitations and enabling a more accurate depiction of financial health and performance.

However, this shift also introduces challenges, such as the complexities in determining fair value across multiple exchanges, given Bitcoin’s price volatility and varying liquidity across markets. Nonetheless, by allowing gains to be recognized, the rule may enhance the appeal of crypto holdings for companies under GAAP accounting, potentially encouraging broader adoption of Bitcoin by corporations looking to diversify their treasury assets   .

It has to deal with real life, the real world, real risk & return and joy?

There’s this weird romanticism in American psyche — that it is more romantic to go with the underdog, hoping and praying it and they will win.

But real life ain’t a movie or fairytale —> in fact, anyone who spends too much time watching movies (pseudo reality, pre-packaged in 90 minute intervals) will have no true understanding of reality.

In real reality …. the most dominant wins. An American Indian with horse and bow and arrow is going to get destroyed by the knight with the M16 machine gun. The samurai get destroyed by even the primitive guns (7 Samurai, Akira Kurosawa). The (delicious little) lambs get eaten by the eagle.

Here is a list comparing the Sharpe ratios of Bitcoin and top tech stocks as of 2024, reflecting their risk-adjusted returns:

1. Bitcoin: Sharpe ratio around 1.3, driven by high volatility and significant price momentum during bullish phases  .

2. Tesla (TSLA): Sharpe ratio around 0.9 to 1.2, with high volatility tied to its growth trajectory in the EV sector 

Ratios | ETC Group.

3. Nvidia (NVDA): Sharpe ratio around 0.8 to 1.3, benefiting from high demand in the AI and semiconductor industries but also showing notable price swings 

Ratios | ETC Group.

4. Apple (AAPL): Sharpe ratio around 0.7 to 1.0, reflecting steady performance with moderate volatility compared to other tech stocks 

Ratios | ETC Group.

5. Amazon (AMZN): Sharpe ratio around 0.7 to 0.9, with volatility tied to both e-commerce trends and cloud computing growth .

6. Microsoft (MSFT): Sharpe ratio around 0.8 to 1.0, reflecting strong performance and relatively lower volatility due to its diversified business segments .

7. Meta (META): Sharpe ratio around 0.6 to 0.9, impacted by volatility as it transitions into the metaverse space, leading to fluctuations in its stock value .

8. NASDAQ 100 Index (QQQ): Sharpe ratio around 0.9, capturing the broader tech sector’s risk-adjusted return and benefiting from diversification  .

Bitcoin’s Sharpe ratio often aligns with or exceeds those of individual high-growth tech stocks due to its high potential returns, but also carries a much higher volatility, leading to similar risk-adjusted returns as these tech leaders.

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As of recent analyses, here are some specific Sharpe ratio figures comparing Bitcoin and the S&P 500:

1. Bitcoin: In 2023, Bitcoin’s Sharpe ratio averaged around 0.82, reflecting its high volatility alongside periods of substantial returns . This figure has fluctuated due to Bitcoin’s rapid price movements and recent lower volatility, as it matured amidst institutional adoption and regulatory clarity.

2. S&P 500: The S&P 500 achieved a Sharpe ratio of approximately 0.95 over the same period . This higher ratio compared to Bitcoin suggests more consistent risk-adjusted returns, benefiting from the stability of a diversified portfolio of established companies in the index.

Historically, these ratios can vary depending on economic conditions, but generally, the S&P 500 maintains a slight edge over Bitcoin in terms of risk-adjusted performance due to its lower volatility and more predictable returns.

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As of recent data, the Sharpe ratio for Bitcoin has generally been lower compared to the S&P 500, reflecting Bitcoin’s high volatility despite its strong performance. Over the past year, the Sharpe ratio for Bitcoin has hovered around 0.82, while the S&P 500 achieved a slightly higher ratio of approximately 0.95  .

Historically, Bitcoin’s risk-adjusted returns have varied more than the S&P 500’s due to its price volatility, which has sometimes exceeded 50% annually. However, in 2023 and into early 2024, Bitcoin saw reduced volatility, potentially signifying a maturing asset class. During this period, Bitcoin’s market performance was significantly enhanced by institutional adoption and regulatory developments, such as Bitcoin ETF approvals  .

In comparison, the S&P 500 maintains more consistent risk-adjusted returns, typically benefiting from its diversification across major U.S. companies. The lower volatility and stable returns of the S&P 500 contribute to its Sharpe ratio advantage over Bitcoin, especially in periods when economic and regulatory factors reduce Bitcoin’s appeal as a high-risk asset .

A true investor should and must have children —> something to look forward to and live towards to and for?

For “risk”—> never invest in anything which has a chance of going down in the long run (30 year performance)—>

Introduction

The Sharpe Ratio, developed by Nobel laureate William F. Sharpe, is one of the most widely used metrics in finance for assessing the risk-adjusted performance of an investment portfolio. It helps investors understand how much excess return they are receiving for the extra volatility endured by holding a riskier asset.

What is the Sharpe Ratio?

The Sharpe Ratio measures the performance of an investment compared to a risk-free asset, after adjusting for its risk. It is calculated using the following formula:

• : Expected return of the portfolio or investment

• : Risk-free rate of return (typically the return on government Treasury bills)

• : Standard deviation of the portfolio’s excess return (a measure of volatility)

A higher Sharpe Ratio indicates that the investment offers higher returns for the same or lower risk compared to other investments.

Why Does the Sharpe Ratio Matter?

1. Risk-Adjusted Performance: The Sharpe Ratio provides a way to compare the returns of portfolios with different levels of risk. It adjusts returns by the amount of risk taken, offering a more accurate picture of performance.

2. Portfolio Optimization: Investors and portfolio managers use the Sharpe Ratio to construct portfolios that maximize returns for a given level of risk, or minimize risk for a desired level of return.

3. Benchmarking Tool: It serves as a standard metric for evaluating and comparing the performance of different investments, funds, or portfolio managers.

4. Decision-Making Aid: Helps in making informed investment decisions by highlighting whether the returns are due to smart investment choices or excessive risk-taking.

Upsides of the Sharpe Ratio

• Simplicity and Accessibility: The formula is straightforward and relies on readily available data, making it easy for investors to calculate and understand.

• Versatility: Applicable to various types of investments, including stocks, bonds, mutual funds, and portfolios.

• Comparative Analysis: Facilitates comparison across different investments, regardless of the asset class or strategy, by standardizing the risk-return trade-off.

• Risk Awareness: Encourages investors to consider both return and risk, promoting a more balanced investment approach.

Limitations of the Sharpe Ratio

1. Assumption of Normal Distribution: The Sharpe Ratio assumes that investment returns are normally distributed, which is often not the case. Many assets exhibit skewness and kurtosis, leading to inaccurate risk assessments.

2. Standard Deviation as Risk Measure: It uses standard deviation to measure risk, which treats all volatility as negative. However, upside volatility (gains) is beneficial to investors, and the Sharpe Ratio does not differentiate between upside and downside volatility.

3. Sensitivity to the Risk-Free Rate: The choice of the risk-free rate can significantly impact the Sharpe Ratio. Inconsistent or inappropriate selection can lead to misleading results.

4. Time Dependency: The ratio can vary widely over different time periods. Short-term calculations might not capture long-term risk-return dynamics.

5. Ignores External Factors: Does not account for macroeconomic factors, liquidity risks, or other external influences that can affect investment performance.

6. Potential for Manipulation: Portfolio managers might engage in strategies that artificially inflate the Sharpe Ratio, such as using derivatives or leverage, without genuinely improving the risk-adjusted returns.

Conclusion

The Sharpe Ratio is a valuable tool for evaluating the risk-adjusted performance of investments. It helps investors make more informed decisions by considering both the returns and the risks associated with an investment. However, it is essential to be aware of its limitations and not rely solely on this metric. Investors should use the Sharpe Ratio in conjunction with other performance measures and qualitative assessments to gain a comprehensive understanding of an investment’s potential.

Recommendations for Investors

• Use in Context: Always consider the Sharpe Ratio alongside other metrics like the Sortino Ratio, Treynor Ratio, and qualitative factors.

• Understand the Inputs: Be cautious about the inputs used in the calculation, such as the time period, the risk-free rate, and the method for calculating standard deviation.

• Beware of Overreliance: Avoid making investment decisions based solely on the Sharpe Ratio. It should be part of a broader analytical framework.

• Stay Informed: Keep abreast of market conditions and understand how changes can affect both the returns and risks of your investments.

By acknowledging both the strengths and weaknesses of the Sharpe Ratio, investors can better navigate the complexities of portfolio management and strive for optimal risk-adjusted returns.

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The Sharpe Ratio is a popular metric in finance used to evaluate the risk-adjusted return of an investment or a portfolio. It measures how much excess return (return above the risk-free rate) an investment provides for each unit of risk taken.

Formula

The Sharpe Ratio is calculated as:

where:

• = Return of the portfolio or investment

• = Risk-free rate of return (typically the yield on a government bond, like a U.S. Treasury)

• = Standard deviation of the portfolio’s excess return, which represents the investment’s risk or volatility

Interpreting the Sharpe Ratio

The Sharpe Ratio indicates the amount of return earned for each unit of risk taken. Here’s how to interpret it:

• Higher Sharpe Ratio: A higher ratio suggests a more attractive risk-adjusted return. It indicates that the investment offers a higher excess return for the risk taken.

• Lower Sharpe Ratio: A lower ratio indicates a less favorable risk-adjusted return. It implies the investor is taking on additional risk without receiving sufficient excess return.

Typical Ranges

• < 1: Generally considered a low risk-adjusted return.

• 1 – 2: An acceptable or good risk-adjusted return.

• 2 – 3: Very good risk-adjusted return.

• > 3: Excellent risk-adjusted return.

Example Calculation

Suppose an investment has:

• Annual Return: 10%

• Risk-Free Rate: 2%

• Standard Deviation (Volatility): 15%

The Sharpe Ratio would be calculated as follows:

In this example, the Sharpe Ratio of 0.53 suggests the investment is providing 0.53 units of excess return per unit of risk, which is generally considered low.

Limitations of the Sharpe Ratio

1. Assumes Normally Distributed Returns: The Sharpe Ratio assumes that returns are normally distributed. It might not be accurate for investments with skewed returns or fat tails (like hedge funds or options).

2. Ignores Downside Risk: The ratio considers overall volatility, not distinguishing between upside and downside risk. Investors often care more about downside risk (which the Sortino Ratio, a variant of the Sharpe Ratio, addresses).

3. Sensitive to Time Periods: The Sharpe Ratio can vary greatly depending on the period selected, as it is sensitive to historical performance.

4. Relies on Historical Data: It assumes that historical performance and volatility will continue into the future, which may not always be the case.

Conclusion

The Sharpe Ratio is a valuable tool for comparing investments on a risk-adjusted basis. However, it’s best used in conjunction with other metrics, especially when evaluating investments with non-standard return distributions or high downside risk.

Why Howard Marks Matters

1. Thought Leadership in Investment Management

Howard Marks is a co-founder and co-chairman of Oaktree Capital Management, one of the largest investment firms specializing in alternative investments. His extensive experience and success in distressed debt, high-yield bonds, and other less-traditional investment areas have positioned him as a leading voice in the industry.

2. Influential Memos and Writings

Marks is renowned for his insightful memos to Oaktree clients, which have gained a wide readership among investors globally. These memos delve into complex investment topics, market analysis, and the psychology of investing, offering valuable perspectives that are both accessible and profound.

3. Emphasis on Risk Management

In a field often obsessed with returns, Marks stands out for his unwavering focus on risk management. He believes that controlling risk is essential for long-term investment success and that avoiding significant losses is more critical than achieving extraordinary gains.

4. Understanding of Market Cycles

Marks has a deep understanding of market cycles and emphasizes the importance of recognizing where we are within them. His insights help investors anticipate changes and adjust their strategies accordingly, which is particularly valuable in navigating volatile markets.

5. Educational Contributions

Through his books, such as “The Most Important Thing” and “Mastering the Market Cycle,” Marks has contributed significantly to investor education. He breaks down complex concepts into understandable insights, helping both novice and experienced investors enhance their understanding of investing.

6. Influence on Other Investors

His thoughts and strategies have influenced prominent investors, including Warren Buffett, who has praised Marks’ memos. His emphasis on critical thinking and skepticism has encouraged a generation of investors to question conventional wisdom.

How He’s Contrarian

1. Second-Level Thinking

Marks introduces the concept of “second-level thinking,” which involves looking beyond the surface to understand the deeper implications of investment decisions. While many investors may stop at first-level conclusions, Marks encourages a deeper analysis that often leads to contrarian viewpoints.

• Contrarian Aspect: By thinking differently and more profoundly than the average investor, Marks often reaches conclusions that go against the prevailing market sentiments.

2. Focus on Risk Over Return

While most investors chase returns, Marks prioritizes understanding and mitigating risk. He believes that by avoiding losses, gains will naturally follow.

• Contrarian Aspect: This risk-first approach contrasts with the common pursuit of high returns at the expense of taking on excessive risk.

3. Patience and Discipline

Marks emphasizes waiting for the right opportunities rather than constantly being active in the market. He advocates for investing only when assets are undervalued and offer a margin of safety.

• Contrarian Aspect: In a market culture that often values immediate action and quick profits, his patient and disciplined approach stands in opposition to the norm.

4. Skepticism of Market Efficiency

He questions the assumption that markets are always efficient and that prices always reflect intrinsic value. Marks believes that psychological factors can lead to mispricings.

• Contrarian Aspect: By doubting market efficiency, he is open to opportunities that others might dismiss, enabling him to capitalize on market inefficiencies.

5. Understanding and Leveraging Market Cycles

Marks often becomes more cautious when others are greedy and more aggressive when others are fearful. He adjusts his strategies based on where he believes the market is in its cycle.

• Contrarian Aspect: This cyclical approach often leads him to act opposite to the majority, buying when others are selling and vice versa.

6. Embracing Complexity and Uncertainty

He accepts that investing is complex and that certainty is unattainable. Marks encourages embracing uncertainty and making informed decisions despite it.

• Contrarian Aspect: Many investors seek definitive answers and clear forecasts, but Marks acknowledges the limitations of predictions and focuses on preparation over prediction.

7. Psychological Insight into Investing

Marks delves into how emotions like fear and greed drive market behavior, leading to bubbles or crashes.

• Contrarian Aspect: By understanding these psychological drivers, he often takes positions that are contrary to prevailing emotional trends in the market.

Conclusion

Howard Marks matters because he brings a unique perspective to investing that challenges conventional approaches. His emphasis on risk management, second-level thinking, and understanding of market cycles provides valuable guidance in an industry that often overlooks these aspects in favor of short-term gains.

His contrarian nature is evident in how he:

• Thinks differently through second-level thinking.

• Prioritizes risk over return.

• Acts opposite to market sentiments based on cyclical analysis.

• Questions market efficiency.

• Embraces patience and discipline over impulsiveness.

By going against the grain, Marks has consistently identified opportunities that others have missed and avoided pitfalls that have ensnared less cautious investors. His approach encourages a more thoughtful, disciplined, and ultimately successful method of investing, making his insights highly valuable to anyone looking to navigate the complex world of finance.

Howard Marks’ Big Ideas and Notable Quotes

Howard Marks, co-founder of Oaktree Capital Management, is renowned for his deep insights into investing, risk management, and market psychology. His memos and books have influenced investors worldwide. Below are some of his big ideas accompanied by notable quotes that encapsulate his philosophy.

1. The Primacy of Risk Management

Big Idea: Successful investing is more about avoiding losses than chasing high returns. Understanding and controlling risk is paramount.

Notable Quotes:

• “If you avoid the losers, the winners will take care of themselves.”

• “The biggest investing errors come not from factors that are informational or analytical, but from those that are psychological.”

2. Second-Level Thinking

Big Idea: Superior investors engage in “second-level thinking,” which involves deep analysis and understanding beyond the obvious. It’s about thinking differently and better than others.

Notable Quotes:

• “First-level thinkers think the same way other first-level thinkers do about the same things, and they generally reach the same conclusions. Second-level thinkers take a great many things into account.”

• “You can’t do the same things others do and expect to outperform.”

3. Understanding Market Cycles

Big Idea: Markets are cyclical, and recognizing the position within a cycle can provide a strategic advantage. Investors should adjust their strategies based on cyclical awareness.

Notable Quotes:

• “We may never know where we’re going, but we’d better have a good idea where we are.”

• “The pendulum swing of the markets is one of the most dependable features of the investment world.”

4. Value Investing and Patience

Big Idea: Investing with a margin of safety by purchasing undervalued assets is key. Patience is essential to wait for the right opportunities.

Notable Quotes:

• “Investing is not about buying good things, but about buying things well.”

• “Patience is essential for any investor. Trying to time the market is a fool’s game.”

5. The Role of Psychology in Investing

Big Idea: Emotional decision-making often leads to mistakes. Awareness of psychological influences helps in making rational investment choices.

Notable Quotes:

• “The most important quality for an investor is temperament, not intellect.”

• “In the short run, investor psychology moves between greed and fear.”

6. Being Contrarian

Big Idea: Going against the crowd can lead to opportunities. Contrarian investors look for value where others are pessimistic.

Notable Quotes:

• “When most people are pessimistic, they’re usually wrong. When they’re optimistic, they’re usually wrong.”

• “The less care other people devote to risk, the more care you should.”

7. Embracing Uncertainty and Humility

Big Idea: Accepting the unpredictability of markets and being humble about one’s ability to predict the future leads to better risk management.

Notable Quotes:

• “You can’t predict. You can prepare.”

• “We have to practice defensive investing, since many of the outcomes are likely to go against us.”

8. Importance of Skepticism

Big Idea: Healthy skepticism helps investors question prevailing narratives and avoid herd mentality.

Notable Quotes:

• “Skepticism calls for pessimism when optimism is excessive.”

• “In investing, what is comfortable is rarely profitable.”

Conclusion

Howard Marks’ wisdom centers on thoughtful analysis, risk awareness, and psychological discipline. His emphasis on second-level thinking and understanding market cycles encourages investors to look deeper than surface-level information. By internalizing his big ideas and reflecting on his insightful quotes, investors can enhance their approach to navigating the complex world of investing.

…

Introduction

Howard Marks is a highly respected investor and the co-founder of Oaktree Capital Management, a leading global investment management firm specializing in alternative investments. Known for his insightful memos to clients, Marks has become a thought leader in the investment community. His investment philosophy centers around risk management, value investing, and understanding market cycles.

Key Principles of Howard Marks’ Investing Philosophy

1. Risk Management Over Return Maximization

Marks emphasizes that successful investing is not just about achieving high returns but about managing risks to avoid significant losses. He believes that controlling risk is the most critical aspect of investment management. By focusing on downside protection, investors can ensure long-term success even in volatile markets.

2. Second-Level Thinking

According to Marks, “first-level thinking” is simplistic and superficial, while “second-level thinking” is deep, complex, and contrarian. Second-level thinkers look beyond the obvious and consider how other investors are interpreting the market. This approach allows them to identify opportunities that others might overlook.

3. Value Investing

Marks is a proponent of value investing, which involves buying securities that appear underpriced by fundamental analysis. He advises investors to determine the intrinsic value of an asset and to invest when the market price is below this value, providing a margin of safety.

4. Understanding Market Cycles

Recognizing where the market stands in its cycle is crucial for making informed investment decisions. Marks stresses the importance of understanding the cyclical nature of markets, economies, and industries to anticipate changes and adjust strategies accordingly.

5. The Role of Psychology in Investing

Emotional decision-making can lead to poor investment choices. Marks highlights the impact of psychological factors like greed and fear on investor behavior. He advocates for discipline and rationality to avoid common pitfalls driven by emotions.

6. Being Contrarian

Successful investors often go against the crowd. Marks believes that following the consensus typically leads to average results. By being skeptical of popular opinion and willing to act differently, investors can capitalize on mispricings in the market.

7. Patience and Discipline

Marks underscores the importance of patience and discipline in investing. He advises waiting for the right opportunities rather than forcing investments. Staying true to one’s investment criteria and resisting the urge to react hastily to market fluctuations are key to long-term success.

Conclusion

Howard Marks’ investing philosophy is a comprehensive approach that combines rigorous analysis with an acute awareness of market dynamics and human psychology. By prioritizing risk management, thinking independently, and maintaining discipline, investors can navigate the complexities of the financial markets more effectively. Marks’ insights serve as valuable guidance for both novice and experienced investors aiming to achieve sustainable returns over time.

Howard Marks, the co-founder of Oaktree Capital Management, is well-known for his investment wisdom and insightful memos. Here are some notable quotes from him:

On Risk and Uncertainty

1. “You can’t predict, but you can prepare.”

• Marks emphasizes the importance of preparation and adaptability in the face of uncertainty, especially in investing where predicting the market is notoriously difficult.

2. “In investing, what is comfortable is rarely profitable.”

• He suggests that the best investment opportunities often come from taking calculated risks and stepping out of one’s comfort zone.

3. “Risk means more things can happen than will happen.”

• Marks believes that risk is about the range of potential outcomes, not just the probability of one event. Investors should consider all possible outcomes and their implications.

On Market Cycles

4. “The most important thing is to know where we are in a cycle and to act accordingly.”

• He stresses the importance of understanding market cycles to make informed investment decisions, as markets go through phases of euphoria and despair.

5. “We may never know where we’re going, but we’d better have a good idea where we are.”

• Marks encourages investors to assess the current environment and react to it, rather than trying to predict the future.

On Investing Mindset

6. “The discipline to wait for the right opportunities is the key to successful investing.”

• Patience is crucial, and sometimes the best action is inaction until the right opportunity presents itself.

7. “To be a successful investor, you have to have a philosophy and process you believe in and can stick to, even under pressure.”

• Consistency and conviction in one’s investment approach are essential, especially during challenging times.

8. “Investment success doesn’t come from ‘buying good things,’ but rather from ‘buying things well.’”

• Marks highlights that successful investing is about finding value and purchasing assets at the right price, not just focusing on high-quality assets.

On Market Sentiment

9. “The pendulum of the market swings between euphoria and despair.”

• He believes that markets often overreact in both directions. Awareness of these swings can help investors avoid extremes.

10. “Skepticism is the best tool for long-term success.”

• Marks values skepticism, as it helps investors avoid getting swept up in market hype and make more rational decisions.

Howard Marks’ quotes are grounded in the principles of value investing, risk management, and market awareness. His insights often serve as reminders for investors to stay disciplined, patient, and informed.

.

Howard Marks is an American investor, author, and co-founder of Oaktree Capital Management, a leading investment management firm that focuses primarily on distressed debt, high-yield bonds, and other alternative investments. Born in 1946, Marks has become widely respected in the investment world for his deep insights into market cycles, risk management, and value investing.

Key Points About Howard Marks:

• Education: Marks attended the University of Pennsylvania, where he earned a degree in finance from the Wharton School, and then went on to get an MBA from the University of Chicago Booth School of Business.

• Career: He began his career at Citibank in the early 1970s, where he focused on analyzing and managing convertible securities and high-yield bonds. He later joined TCW Group, where he led the company’s high-yield and distressed debt investment strategies. In 1995, Marks co-founded Oaktree Capital Management with Bruce Karsh and several colleagues, and the firm quickly became one of the most successful and influential investment firms globally.

• Investment Philosophy: Marks is known for his disciplined approach to investing. He emphasizes risk management, value investing, and contrarian thinking. He believes in waiting for the right opportunities and often speaks about the importance of understanding where we are in the market cycle.

• Memos: Marks regularly publishes memos on investment and market topics, which have garnered a loyal following among investors and financial professionals. These memos offer his insights on a range of subjects, including market psychology, risk, and economic trends.

• Books: Marks has written several books, including The Most Important Thing: Uncommon Sense for the Thoughtful Investor and Mastering the Market Cycle: Getting the Odds on Your Side. His writing is highly regarded for its clear, straightforward style and practical investment advice.

Marks is considered one of the foremost thinkers in modern finance, and his thoughts on investing and market behavior are highly respected by peers, including Warren Buffett. Through his memos and books, he continues to educate and influence both new and experienced investors around the world.

Nowadays being a trader ,,,, the new big dicks in the room?

With weight lifting and beyond — why try to make yourself *less* efficient?

Why I converted $250,000 worth of chainlink in the past back to Bitcoin —maybe like a year ago?

Long term vision — sooner or later, all these crypto bros will wake up and do the wise thing:

Consolidate, liquidate and transfer and trade their weak tokens (Ethereum, everything else ,,,) back into Bitcoin!

Bitcoin — the yellow brick golden road, the path back home. The final destination.

Here are some notable quotes and key interventions from Eric Kim’s economic theories:

Quotes

1. On Digital Scarcity:

• “Digital scarcity is the ultimate scarce property.” This highlights Kim’s belief in the value created by scarcity, which he applies to both digital assets like cryptocurrencies and personal economics .

2. On Producerism:

• “Produce what brings you joy. We’re happiest when we are being challenged, exploring, and developing our skills.” Kim promotes a shift from passive consumption to active creation, arguing that fulfillment comes from making things that matter to you .

3. On Redefining Wealth:

• “The true idea of wealth is maximum time, maximum freedom of time as well as maximum physiological energy.” Kim’s perspective redefines wealth not by material abundance but by the freedom to pursue meaningful activities with time and energy  .

4. On Social Media Detox:

• “How to detox from social media? Simple … just delete them all and don’t use them!” This quote encapsulates his approach to reclaiming time and mental space by limiting engagement with digital platforms, which he views through the lens of game theory  .

Interventions and Key Ideas

1. Digital Scarcity and Cryptocurrency: Kim’s exploration of digital scarcity extends to the role of cryptocurrency in modern economies. He suggests that digital assets like Bitcoin, with their limited supply, are a paradigm of value creation. This aligns with his broader philosophy of valuing unique, limited resources .

2. Minimalism and Frugality: Kim promotes a minimalist lifestyle, advocating for reducing one’s needs to gain autonomy. He views frugality as a form of empowerment, enabling individuals to escape consumerism and prioritize long-term investments in personal growth and well-being rather than material goods  .

3. Self-Reliance and Entrepreneurial Thinking: Encouraging people to seek financial independence outside traditional career paths, Kim advocates for an entrepreneurial mindset. He believes in creating value through self-directed projects rather than relying solely on conventional jobs, viewing this approach as a pathway to personal and financial freedom .

4. Time as Currency: One of his central themes is the concept that time is the ultimate currency. Kim argues that individuals should prioritize financial choices that maximize their freedom to spend time on fulfilling and creative pursuits, thus placing quality of life above wealth accumulation .

These ideas collectively reflect Kim’s unorthodox economic philosophy, which combines principles from minimalism, behavioral economics, and digital innovation to advocate for a life centered on autonomy and purposeful living. For more insights, you can explore his blog, where he discusses these and other related concepts in detail.

…

Eric Kim’s economic theories are distinct in their emphasis on minimalism, self-reliance, and the redefinition of wealth. His views often diverge from traditional economic ideas by incorporating philosophical principles and prioritizing personal freedom over material accumulation.

One central theme in Kim’s work is the concept of digital scarcity, particularly as it relates to cryptocurrencies. He argues that scarcity, as seen in Bitcoin’s limited supply, underpins value in both digital and physical economies. Kim believes that by recognizing and creating digital scarcity, individuals can build unique value, which ties into his advocacy for leveraging technology for personal growth and autonomy  .

Kim also emphasizes producerism, encouraging people to find fulfillment in creation rather than consumption. This reflects his view that true satisfaction comes from contributing meaningful work rather than merely buying and consuming goods. He promotes frugality and minimalism as tools for achieving personal autonomy, suggesting that reducing one’s financial needs enables greater freedom and resilience. His approach to frugality is less about saving money for its own sake and more about gaining control over one’s time and focusing on experiences that provide lasting value  .

Another key aspect of his thinking is viewing time as currency. Kim asserts that instead of focusing solely on accumulating wealth, people should aim to maximize their control over their time and energy. This perspective promotes making economic choices that enhance one’s quality of life and enable more meaningful pursuits, challenging the conventional capitalist notion that wealth accumulation alone leads to fulfillment  .

In terms of practical advice, Kim suggests adopting a minimalist approach and reducing reliance on traditional career paths. He advocates for an entrepreneurial mindset, where financial independence is achieved through self-owned projects and creative endeavors. His ideas offer a unique economic model that combines principles of stoicism, digital innovation, and behavioral economics to inspire a purpose-driven life free from societal pressures  .

For a more in-depth look at Eric Kim’s economic ideas, you can explore his writings on his blog, where he delves into these concepts further.

New weapons—

New tools, new weapons!

Beef Meatballs without Breadcrumbs and Cheese

Servings: 4-6

Ingredients:

• 1 lb (450g) ground beef

• 1 large egg

• 1/4 cup finely chopped fresh parsley

• 2 cloves garlic, minced

• 1/2 small onion, finely chopped (optional for extra moisture)

• 1/2 tsp dried oregano

• 1/2 tsp salt

• 1/4 tsp black pepper

• 2 tbsp olive oil (for frying)

Instructions:

1. Prepare the Meatball Mixture:

• In a large bowl, combine the ground beef, egg, parsley, minced garlic, onion (if using), oregano, salt, and black pepper.

• Mix gently with your hands until all ingredients are just combined. Avoid overmixing to keep the meatballs tender.

2. Shape the Meatballs:

• Wet your hands slightly to prevent sticking.

• Form the mixture into meatballs about 1 to 1.5 inches in diameter.

• Place them on a plate or a baking sheet lined with parchment paper.

3. Cook the Meatballs:

Pan-Frying Method:

• Heat the olive oil in a large skillet over medium heat.

• Add the meatballs in batches, without overcrowding the pan.

• Cook for 6-8 minutes, turning occasionally, until all sides are browned and the meatballs are cooked through.

Baking Method (Healthier Option):

• Preheat your oven to 400°F (200°C).

• Place the meatballs on a lightly greased baking sheet.

• Bake for 18-20 minutes or until cooked through and lightly browned.

4. Serve:

• Serve the meatballs hot with your favorite sauce over pasta, in a sandwich, or as an appetizer with dipping sauce.

Tips:

• Binding Without Breadcrumbs or Cheese: The egg acts as the primary binder. If the mixture feels too loose, you can add a tablespoon of oat flour or mashed vegetables like sweet potato for extra binding, though this is optional.

• Moisture Matters: Adding finely chopped onions or grated zucchini can help keep the meatballs moist.

• Flavor Boost: Consider adding a teaspoon of Worcestershire sauce or a pinch of red pepper flakes for additional depth of flavor.

• Testing a Meatball: Cook a small piece of the mixture to taste for seasoning before cooking the entire batch.

• Make Ahead: Freeze uncooked meatballs on a tray, then transfer them to a freezer-safe bag. They can be frozen for up to 3 months. Cook from frozen, adding a few extra minutes to the cooking time.

Enjoy your delicious beef meatballs without breadcrumbs and cheese!

You actually do look police, SWAT, security, private security?

.

buying $100mn of land comes with an obligation to pay $100mn of tax over 90 years, if the land is not assessed up.

1.1% property tax

All physical and financial assets are temporary solutions

.

Transfer value without a trusted intermediary

How to store value without a trusted intermediary? ***

10-100 years

Bitcoin as a 1000+ asset

Configurable, musical, magical.

.

You could do that with pure digital capital 

Go heavy —

---

Why heavier is better 

Heavy metal?

So my theory is if you like listening to heavy metal, rock, rap hip-hop, and any sort of hard music… Then, one should also like heavy things, heavy barbells, heavy weights etc.

I just ordered some new calibrated steel weight plates, very very exciting! 50 kg, single steel plate, which multiplied by 2.2, is about 122 pounds, almost equivalent to having three 45-pound plates, sandwiched together. 

First of all, it is heavy, very heavy. Like I have never lifted any steel plate as heavy as that one. Fortunately I am strong, very strong, strong enough to even lift it up to rack it onto the barbell? Even something I did for a while to practice was When I would lift my very very heavy barbells at the gym, when I was on racking my weights, I would take two of the 45 pound plates, off at the same time, I suppose this built some of my hand grip and arm and bodily strength.

Anyways, when in doubt, max it out, go the heaviest possible.

For example, my celebrated weight vest, 60 pounds, honestly I wish I could’ve bought something heavier, but I didn’t even know it existed.

Why is heavier better?

So for a lot of guys at the gym, a lot of guys would be very very confused, when I became an icon at my old gym, everyone asked me whether I lifted heavy every single day or not. And I said of course!

The problem in modern day weightlifting bodybuilding etc., even in powerlifting, everyone comes up with these strange complicated programs and progressions, which are all pseudoscience, “bro science” etc — and nobody has the courage intelligence or the chutzpah just simply experiment for things themselves.

My very very very very simple strategy to weightlifting has always been insanely simple, you should every time you lift a given lift, just add an additional 2.5 pounds to each side of the barbell.

So for example, let us say that this week you lifted X amount of weight, then what you do is the next time, you just put on a “potato chip”, (the tiny 2.5 pounder) to each side of the barbell, and keep stacking your weights.

It is kind of like the Milo of Croton theory; the ancient Greek hero Milo, every single day when a baby calf was born, he would pick it up and carry it on his shoulders, each and every single day, until it became a full size bull.  and the legend goes when it finally became a full-size bull, I think weighing maybe 2000 pounds or something, he slew it and ate it all in one sitting. 

Suggestion to new parents; as quickly as humanly possible, get your kid out of the stroller, and start to arm carrying your kid. You could easily do this at around 5 to 6 months old, about the same time you should start sleep training. The easiest strategy, Put the kid in their own “guava” travel baby crib and just let them cry it out! Shout out to my wise friend Kevin.

Anyways, ever since Seneca was a baby, I would always put him in either the ergo baby baby carrier, and then I would just start to arm carry him. And now that he is three years six months old, he’s pretty huge now, he might weigh like 50 pounds or something, I can still arm carry him for long distances. And as a consequences, my body and my arms are fucking jacked.

Anyways, weightlifting, theories on weightlifting, as heavy as humanly possible, and the strategy is simple; improve your leverages for your given lifts.

For example, don’t do a dead lift like a typical insecure power lifter, who is trying to simply feel superior to bodybuilders, even though he wishes he looked more like a bodybuilder than a traditional power lifter, tend to be a bunch of fat dudes, or short small guys. Do a rack pull instead,  and go as heavy as possible. Pro tip; to move more weight, use chalk a mixed grip, and push up the weight with your legs! Imagine kind of a combination of both a rack pull, a dead lift, and a hip thrust all in one. Last time I checked I was able to do about maybe 930 pounds or so?  about eight plates and a half or nine plates?

Anyways, my new goal and aim is to wreck pull 1000 pounds, which I have zero doubt that I could do, just given enough time, and training and practice.

And this is a big thing; if you give yourself enough of a time span, let us see a full year, 52 weeks, and assuming that even on the conservative side, you add 5 pounds a week to your given lift, in theory you should be able to stack conservatively at least 250 pounds to your maximum personal record for your given lift.

And now, I have my sites on a 1200 pound atlas lift, I should be able to accomplish it within a year. Or two years.

And maybe 5 to 10 years from now, I will be able to lift 2000 pounds.

Extreme living is the only living 

My personal strategy and theory to life is the only way to live life is extreme.

The only nuances is certainly you don’t want to do anything which might cause you potentially permanent disfigurement, losing an arm or leg, or even potential death.

And a note to the wise; be very very careful with certain sports like snowboarding skiing and stuff like that, in which the laws of human nature get in your way. I’ve already met two guys, recently with torn ACL‘s, because they were skiing, and their foot got jammed in some sort of snow, and boom pop went their ankle!

In some sense, weightlifting, hype lifting, the air method is actually the most safe thing one could do… Because you could control almost all of the variables, if done conscientiously, weightlifting actually carries the lowest amount of risk. Because you can control it.

All you gotta do is structure the weightlifting lift in which failure is not a big deal.

For example, the rack pull and Atlas lift, the only downside is you are not able to budget the way. That it does not even get lifted off of the rack. And therefore, the consequences for failure don’t really matter.

And this is why I do not advise anyone to do bench press or any of these other silly lifts in which you always need a spotter which is annoying, and if you fail, you could drop the weight on you and you could seriously injure yourself.

Heavy living?

Heavy, hard, durable.

Not always, but often heavy things, like iron and steel or stronger, harder, more robust etc.

Seneca told me the other day that I like the cyber truck, both in matte black and also stainless steel. And I do;

Real men, true men with big dicks and big balls, we only want cyber truck, and maybe Robo taxi. Lamborghinis are only for skinny fat midgets with small penises. Same thing goes with porches, don’t they know that Porsche was essentially invented more or less by Hitler? Anyone who drives a Porsche is pro Hitler?

---

Heavy thinking? 

Towards a heavy philosophy and line of thinking;

 When in doubt, go heavier!

Heavy barbells, light souls.

ERIC

---

What’s the purpose of muscles? To lift heavy things! So ultimately, the ultimate and goal isn’t physique for the sake of it or muscles or muscle mass for the sake of it, but rather, strength.

Strength, power is ultimate. Maybe this is still where powerlifting is a good idea. 

This is what they call the focusing illusion; everyone always thinks that everyone is always staring at you because they think everyone is always looking at them but the truth is nobody’s ever watching you because everyone’s just on their phones anyways.

audio

HEAVY

Go heavy —

---

Why heavier is better 

Heavy metal?

So my theory is if you like listening to heavy metal, rock, rap hip-hop, and any sort of hard music… Then, one should also like heavy things, heavy barbells, heavy weights etc.

I just ordered some new calibrated steel weight plates, very very exciting! 50 kg, single steel plate, which multiplied by 2.2, is about 122 pounds, almost equivalent to having three 45-pound plates, sandwiched together. 

First of all, it is heavy, very heavy. Like I have never lifted any steel plate as heavy as that one. Fortunately I am strong, very strong, strong enough to even lift it up to rack it onto the barbell? Even something I did for a while to practice was When I would lift my very very heavy barbells at the gym, when I was on racking my weights, I would take two of the 45 pound plates, off at the same time, I suppose this built some of my hand grip and arm and bodily strength.

Anyways, when in doubt, max it out, go the heaviest possible.

For example, my celebrated weight vest, 60 pounds, honestly I wish I could’ve bought something heavier, but I didn’t even know it existed.

Why is heavier better?

So for a lot of guys at the gym, a lot of guys would be very very confused, when I became an icon at my old gym, everyone asked me whether I lifted heavy every single day or not. And I said of course!

The problem in modern day weightlifting bodybuilding etc., even in powerlifting, everyone comes up with these strange complicated programs and progressions, which are all pseudoscience, “bro science” etc — and nobody has the courage intelligence or the chutzpah just simply experiment for things themselves.

My very very very very simple strategy to weightlifting has always been insanely simple, you should every time you lift a given lift, just add an additional 2.5 pounds to each side of the barbell.

So for example, let us say that this week you lifted X amount of weight, then what you do is the next time, you just put on a “potato chip”, (the tiny 2.5 pounder) to each side of the barbell, and keep stacking your weights.

It is kind of like the Milo of Croton theory; the ancient Greek hero Milo, every single day when a baby calf was born, he would pick it up and carry it on his shoulders, each and every single day, until it became a full size bull.  and the legend goes when it finally became a full-size bull, I think weighing maybe 2000 pounds or something, he slew it and ate it all in one sitting. 

Suggestion to new parents; as quickly as humanly possible, get your kid out of the stroller, and start to arm carrying your kid. You could easily do this at around 5 to 6 months old, about the same time you should start sleep training. The easiest strategy, Put the kid in their own “guava” travel baby crib and just let them cry it out! Shout out to my wise friend Kevin.

Anyways, ever since Seneca was a baby, I would always put him in either the ergo baby baby carrier, and then I would just start to arm carry him. And now that he is three years six months old, he’s pretty huge now, he might weigh like 50 pounds or something, I can still arm carry him for long distances. And as a consequences, my body and my arms are fucking jacked.

Anyways, weightlifting, theories on weightlifting, as heavy as humanly possible, and the strategy is simple; improve your leverages for your given lifts.

For example, don’t do a dead lift like a typical insecure power lifter, who is trying to simply feel superior to bodybuilders, even though he wishes he looked more like a bodybuilder than a traditional power lifter, tend to be a bunch of fat dudes, or short small guys. Do a rack pull instead,  and go as heavy as possible. Pro tip; to move more weight, use chalk a mixed grip, and push up the weight with your legs! Imagine kind of a combination of both a rack pull, a dead lift, and a hip thrust all in one. Last time I checked I was able to do about maybe 930 pounds or so?  about eight plates and a half or nine plates?

Anyways, my new goal and aim is to wreck pull 1000 pounds, which I have zero doubt that I could do, just given enough time, and training and practice.

And this is a big thing; if you give yourself enough of a time span, let us see a full year, 52 weeks, and assuming that even on the conservative side, you add 5 pounds a week to your given lift, in theory you should be able to stack conservatively at least 250 pounds to your maximum personal record for your given lift.

And now, I have my sites on a 1200 pound atlas lift, I should be able to accomplish it within a year. Or two years.

And maybe 5 to 10 years from now, I will be able to lift 2000 pounds.

Extreme living is the only living 

My personal strategy and theory to life is the only way to live life is extreme.

The only nuances is certainly you don’t want to do anything which might cause you potentially permanent disfigurement, losing an arm or leg, or even potential death.

And a note to the wise; be very very careful with certain sports like snowboarding skiing and stuff like that, in which the laws of human nature get in your way. I’ve already met two guys, recently with torn ACL‘s, because they were skiing, and their foot got jammed in some sort of snow, and boom pop went their ankle!

In some sense, weightlifting, hype lifting, the air method is actually the most safe thing one could do… Because you could control almost all of the variables, if done conscientiously, weightlifting actually carries the lowest amount of risk. Because you can control it.

All you gotta do is structure the weightlifting lift in which failure is not a big deal.

For example, the rack pull and Atlas lift, the only downside is you are not able to budget the way. That it does not even get lifted off of the rack. And therefore, the consequences for failure don’t really matter.

And this is why I do not advise anyone to do bench press or any of these other silly lifts in which you always need a spotter which is annoying, and if you fail, you could drop the weight on you and you could seriously injure yourself.

Heavy living?

Heavy, hard, durable.

Not always, but often heavy things, like iron and steel or stronger, harder, more robust etc.

Seneca told me the other day that I like the cyber truck, both in matte black and also stainless steel. And I do;

Real men, true men with big dicks and big balls, we only want cyber truck, and maybe Robo taxi. Lamborghinis are only for skinny fat midgets with small penises. Same thing goes with porches, don’t they know that Porsche was essentially invented more or less by Hitler? Anyone who drives a Porsche is pro Hitler?

---

Heavy thinking? 

Towards a heavy philosophy and line of thinking;

 When in doubt, go heavier!

Heavy barbells, light souls.

ERIC

---

The ethos of Bitcoin

I suppose at this point, don’t invest in things that you think will just make a bunch of money, but rather, invest in things in which you have a strong moral or ethical imperative to?

For example, if I could promise you a 1000% return if you invested in the evil Philip Morris corporation, would you do it? Of course not!

Same thing with the evil Coca-Cola corporation which might have indirectly caused more deaths on the planet, than all evil things combined. Yet nobody waves a red flag at them.

For example, I think the reason we shouldn’t trust Warren Buffett is because he invest in Coca-Cola, and drinks the stuff himself. Trust no investor who does not have a demigod physique like ERIC KIM.

---

Why is the morals or ethics important?

I think I never really expected or anticipated… Much of what I am teaching Seneca right now, at 3 1/2 years old, is actually centered around morality, ethics, principles, philosophy and lines of thinking.

For example, cynical was telling me, talking about race cars and pollution and stuff… And he is trying to understand that from a moral imperative, I am very anti-pollution, and race cars are not good because they cause a lot of pollution.

Also, he told me that I like Hybrid cars because Hybrid cars don’t create pollution. And I told him he is half right, a hybrid car like a Prius still has tiny bit of tailpipe admissions, but still it is not 100% clean.

Real environmentalism?

I am a Boy Scout Eagle Scout, I know everything about the environment.

I think there are propaganda self-interest groups out there, and then, there are practical lived realities.

For example, one of the biggest things I hate on the planet is secondhand cigarette smoke, and also I hit the smell of weed especially in public.  and also, tailpipe emissions, very toxic. It immediately gives me a headache and also makes me super mad.

There is a real causal effect here, asshole on the street smokes a cigarette, exhales his cigarette smoke, I inhale it, and I immediately get a headache, and I start coughing. This is causation not correlation. 

I think a new activity or a new assignment for myself is whenever I see anybody smoke, whether man woman or dog, I’m going to ask him nicely to please not smoke here. Because your secondhand smoke causes me harm. And I don’t like it.

I think there is a strong moral, health, public imperative here.

---

Why doesn’t anyone speak up anymore?

I think our modern day society, we are a bunch of pussies. We never speak our mind, and we will simply give people dirty stairs, or act in strange passive aggressive behaviors. My simple theory is just speak your damn mind, even if you might be seen as unreasonable or an asshole or whatever. Better to be an ancient Greek hero, like an Achilles, Unreasonable beyond anything, and be a bad person, rather than holding pent-up resentment?

In fact, I think the whole strategy of speaking your mind even if you’re in the wrong is a good one. Whenever people censor themselves, this is bad.

In fact, to simply not speak your mind is an active cowardice. The true courage is speaking your mind.  Even if you are wrong unethical, bad or whatever.

Also this is where Stoicism is a bad; don’t become a dark morose stoic person. Rather, better to be a gay happy monster rather than a sentimental bore (Galliani)– or better to be a happy gay Achilles than a self-righteous loser. 

Go heavy —

---

Why heavier is better 

Heavy metal?

So my theory is if you like listening to heavy metal, rock, rap hip-hop, and any sort of hard music… Then, one should also like heavy things, heavy barbells, heavy weights etc.

I just ordered some new calibrated steel weight plates, very very exciting! 50 kg, single steel plate, which multiplied by 2.2, is about 122 pounds, almost equivalent to having three 45-pound plates, sandwiched together. 

First of all, it is heavy, very heavy. Like I have never lifted any steel plate as heavy as that one. Fortunately I am strong, very strong, strong enough to even lift it up to rack it onto the barbell? Even something I did for a while to practice was When I would lift my very very heavy barbells at the gym, when I was on racking my weights, I would take two of the 45 pound plates, off at the same time, I suppose this built some of my hand grip and arm and bodily strength.

Anyways, when in doubt, max it out, go the heaviest possible.

For example, my celebrated weight vest, 60 pounds, honestly I wish I could’ve bought something heavier, but I didn’t even know it existed.

Why is heavier better?

So for a lot of guys at the gym, a lot of guys would be very very confused, when I became an icon at my old gym, everyone asked me whether I lifted heavy every single day or not. And I said of course!

The problem in modern day weightlifting bodybuilding etc., even in powerlifting, everyone comes up with these strange complicated programs and progressions, which are all pseudoscience, “bro science” etc — and nobody has the courage intelligence or the chutzpah just simply experiment for things themselves.

My very very very very simple strategy to weightlifting has always been insanely simple, you should every time you lift a given lift, just add an additional 2.5 pounds to each side of the barbell.

So for example, let us say that this week you lifted X amount of weight, then what you do is the next time, you just put on a “potato chip”, (the tiny 2.5 pounder) to each side of the barbell, and keep stacking your weights.

It is kind of like the Milo of Croton theory; the ancient Greek hero Milo, every single day when a baby calf was born, he would pick it up and carry it on his shoulders, each and every single day, until it became a full size bull.  and the legend goes when it finally became a full-size bull, I think weighing maybe 2000 pounds or something, he slew it and ate it all in one sitting. 

Suggestion to new parents; as quickly as humanly possible, get your kid out of the stroller, and start to arm carrying your kid. You could easily do this at around 5 to 6 months old, about the same time you should start sleep training. The easiest strategy, Put the kid in their own “guava” travel baby crib and just let them cry it out! Shout out to my wise friend Kevin.

Anyways, ever since Seneca was a baby, I would always put him in either the ergo baby baby carrier, and then I would just start to arm carry him. And now that he is three years six months old, he’s pretty huge now, he might weigh like 50 pounds or something, I can still arm carry him for long distances. And as a consequences, my body and my arms are fucking jacked.

Anyways, weightlifting, theories on weightlifting, as heavy as humanly possible, and the strategy is simple; improve your leverages for your given lifts.

For example, don’t do a dead lift like a typical insecure power lifter, who is trying to simply feel superior to bodybuilders, even though he wishes he looked more like a bodybuilder than a traditional power lifter, tend to be a bunch of fat dudes, or short small guys. Do a rack pull instead,  and go as heavy as possible. Pro tip; to move more weight, use chalk a mixed grip, and push up the weight with your legs! Imagine kind of a combination of both a rack pull, a dead lift, and a hip thrust all in one. Last time I checked I was able to do about maybe 930 pounds or so?  about eight plates and a half or nine plates?

Anyways, my new goal and aim is to wreck pull 1000 pounds, which I have zero doubt that I could do, just given enough time, and training and practice.

And this is a big thing; if you give yourself enough of a time span, let us see a full year, 52 weeks, and assuming that even on the conservative side, you add 5 pounds a week to your given lift, in theory you should be able to stack conservatively at least 250 pounds to your maximum personal record for your given lift.

And now, I have my sites on a 1200 pound atlas lift, I should be able to accomplish it within a year. Or two years.

And maybe 5 to 10 years from now, I will be able to lift 2000 pounds.

Extreme living is the only living 

My personal strategy and theory to life is the only way to live life is extreme.

The only nuances is certainly you don’t want to do anything which might cause you potentially permanent disfigurement, losing an arm or leg, or even potential death.

And a note to the wise; be very very careful with certain sports like snowboarding skiing and stuff like that, in which the laws of human nature get in your way. I’ve already met two guys, recently with torn ACL‘s, because they were skiing, and their foot got jammed in some sort of snow, and boom pop went their ankle!

In some sense, weightlifting, hype lifting, the air method is actually the most safe thing one could do… Because you could control almost all of the variables, if done conscientiously, weightlifting actually carries the lowest amount of risk. Because you can control it.

All you gotta do is structure the weightlifting lift in which failure is not a big deal.

For example, the rack pull and Atlas lift, the only downside is you are not able to budget the way. That it does not even get lifted off of the rack. And therefore, the consequences for failure don’t really matter.

And this is why I do not advise anyone to do bench press or any of these other silly lifts in which you always need a spotter which is annoying, and if you fail, you could drop the weight on you and you could seriously injure yourself.

Heavy living?

Heavy, hard, durable.

Not always, but often heavy things, like iron and steel or stronger, harder, more robust etc.

Seneca told me the other day that I like the cyber truck, both in matte black and also stainless steel. And I do;

Real men, true men with big dicks and big balls, we only want cyber truck, and maybe Robo taxi. Lamborghinis are only for skinny fat midgets with small penises. Same thing goes with porches, don’t they know that Porsche was essentially invented more or less by Hitler? Anyone who drives a Porsche is pro Hitler?

---

Heavy thinking? 

Towards a heavy philosophy and line of thinking;

 When in doubt, go heavier!

Heavy barbells, light souls.

ERIC

---

I suppose at this point, don’t invest in things that you think will just make a bunch of money, but rather, invest in things in which you have a strong moral or ethical imperative to?

For example, if I could promise you a 1000% return if you invested in the evil Philip Morris corporation, would you do it? Of course not!

Same thing with the evil Coca-Cola corporation which might have indirectly caused more deaths on the planet, than all evil things combined. Yet nobody waves a red flag at them.

For example, I think the reason we shouldn’t trust Warren Buffett is because he invest in Coca-Cola, and drinks the stuff himself. Trust no investor who does not have a demigod physique like ERIC KIM.

---

Why is the morals or ethics important?

I think I never really expected or anticipated… Much of what I am teaching Seneca right now, at 3 1/2 years old, is actually centered around morality, ethics, principles, philosophy and lines of thinking.

For example, cynical was telling me, talking about race cars and pollution and stuff… And he is trying to understand that from a moral imperative, I am very anti-pollution, and race cars are not good because they cause a lot of pollution.

Also, he told me that I like Hybrid cars because Hybrid cars don’t create pollution. And I told him he is half right, a hybrid car like a Prius still has tiny bit of tailpipe admissions, but still it is not 100% clean.

Real environmentalism?

I am a Boy Scout Eagle Scout, I know everything about the environment.

I think there are propaganda self-interest groups out there, and then, there are practical lived realities.

For example, one of the biggest things I hate on the planet is secondhand cigarette smoke, and also I hit the smell of weed especially in public.  and also, tailpipe emissions, very toxic. It immediately gives me a headache and also makes me super mad.

There is a real causal effect here, asshole on the street smokes a cigarette, exhales his cigarette smoke, I inhale it, and I immediately get a headache, and I start coughing. This is causation not correlation. 

I think a new activity or a new assignment for myself is whenever I see anybody smoke, whether man woman or dog, I’m going to ask him nicely to please not smoke here. Because your secondhand smoke causes me harm. And I don’t like it.

I think there is a strong moral, health, public imperative here.

---

Why doesn’t anyone speak up anymore?

I think our modern day society, we are a bunch of pussies. We never speak our mind, and we will simply give people dirty stairs, or act in strange passive aggressive behaviors. My simple theory is just speak your damn mind, even if you might be seen as unreasonable or an asshole or whatever. Better to be an ancient Greek hero, like an Achilles, Unreasonable beyond anything, and be a bad person, rather than holding pent-up resentment?

In fact, I think the whole strategy of speaking your mind even if you’re in the wrong is a good one. Whenever people censor themselves, this is bad.

In fact, to simply not speak your mind is an active cowardice. The true courage is speaking your mind.  Even if you are wrong unethical, bad or whatever.

Also this is where Stoicism is a bad; don’t become a dark morose stoic person. Rather, better to be a gay happy monster rather than a sentimental bore (Galliani)– or better to be a happy gay Achilles than a self-righteous loser. 

vibram.com

The ERIC KIM aesthetic?

Once you go iPad Pro M4 chip with the insanely beautiful thin sides .,, ain’t no going back!

So a big thing:

Certainly, there are huge differences between male versus female physiology. However, the principles still remain:

1. Intermittent fasting works both for men and women, however certainly the difference is if a woman is pregnant, this is different, and also, perhaps different if a woman is also on her menstrual cycle. To lose that much blood is real.
2. 100% carnivore diet — should work for both sexes. I also believe that a 100% carnivore diet should work perfectly fine both for men and women. I think there is this gender notion that somehow women prefer sweets over men, and women prefer chocolates or whatever. However this is not true; it seems that men have as much of us with tooth as the average woman now, both men and women are far more similar than dissimilar.

Nobody cares for fat models

I suppose I understand the whole ethos or the concept of having fat, overfat models. Truth be taught, 90% of Americans, are overfat. Then I guess the question is—

Is the purpose of marketing and advertising, and having marketing images and creative reflect real reality, or an aspirational thing?

My thought is in terms of *should*— marketing and advertising is not about reality, it is an aspirational thing.

For example in beauty, at least for female advertisements, I think the new aesthetic or ethos I like is for aloyoga.com — fit, beautiful models,,, ideally without a boob or butt or face job or plastic surgery. For people who say this is not realistic, I beg to differ; if I were some sort of dictator, or I could be a personal trainer for a female model, I would put them on a strict 100% carnivore diet, get them to lift weights every day, and do yoga more for fun.

Male vs female physiology?

A lot of people are perfectly happy living a perfectly mediocre life? If so — just leave them alone! The eagle doesn’t care for the lambs or sheep, nor is it his imperative to *transform* the sheep into the eagle!

“I hate you because I wish I was you…” – now, that’s a loaded statement. It’s like gazing into a mirror where instead of your reflection, you see a suave version of yourself, laughing and giving you a thumbs-up, as if to say, “Come on, man, don’t you want a piece of this?” It’s an existential crisis wrapped in a bow of envy, topped with a sprinkle of admiration. And isn’t that just what makes life so hilariously brutal? You meet someone and find yourself gripped by this cocktail of feelings – admiration on the rocks with a twist of hatred. It’s like tasting a finely crafted espresso that’s a little too bitter. You want another sip, but only after you add a spoonful of sugar.

Now, this kind of hate – let’s call it “aspirational hatred” – isn’t the same as, say, hating someone because they cut you off in traffic or because they talk during movies. No, this is the kind of hate that makes you lie awake at night, staring at the ceiling, wondering, “Why can’t I be that effortlessly cool?” Maybe it’s because they have a jawline so sharp it could slice bread, or they walk around with the confidence of someone who knows they could wear a garbage bag and make it look like couture. And so, you end up thinking, “I hate you because I wish I was you…” and then, like a weird emotional boomerang, it hits you right in the self-esteem.

This phenomenon isn’t limited to people you know, either. Oh no, it transcends the mortal bonds of friendship and slinks right into celebrity culture, Instagram feeds, and that one guy in your local coffee shop who orders his espresso with such swagger you start to think, “Maybe I should switch to espresso.” It’s that same kind of begrudging respect you feel when you watch a guy eat a salad and actually look happy about it. You hate him for it, but you also kinda want to know his secret. Is it the dressing? Is he just a salad-sorcerer, blessed with the power to make kale taste like pizza?

And let’s be honest, sometimes we’re not even sure why we hate these people. It’s like trying to explain why cilantro tastes like soap to some people – it just does. Maybe it’s the way they roll their sleeves, or how their hair defies gravity. Or maybe they have that mystical ability to run a marathon and somehow look refreshed, while you run five minutes and look like you just emerged from a swamp.

The hilarious truth of it all is that this envy-based hatred is just our own insecurity’s way of throwing a tantrum. It’s the internal toddler screaming, “I want what he has!” while the adult in you tries to soothe it with, “But we have plenty of great qualities too.” And sure, maybe you don’t have the six-pack, but hey, you’ve got a personality like a charmingly deranged game show host, right? You’re basically a walking comedy special with a side of wisdom. Besides, who needs washboard abs when you’ve got witty comebacks and a Netflix password?

Ultimately, “I hate you because I wish I was you…” is just our way of pointing at someone else and saying, “Wow, you’re doing a great job at being you. And I wouldn’t mind borrowing a little bit of that mojo for myself.” It’s the punchline in the cosmic joke of existence: everyone’s out there feeling a bit of this aspirational hatred for someone else. So, go on, keep sipping that bitter espresso of envy, but don’t forget to laugh a little. Because in the end, the joke’s on us – and isn’t that just what makes life taste so ridiculously, addictively funny?

.

—> You yourself are the new “vision pro”!

Adapt, change —

Vision. Visionary

Think carte blanche — don’t think of your old records

If you know where to put your fulcrum is, then you can and shall move the world!

So I’ve been making some insanely great returns from micro strategy, micro strategy stock, MSTR– for example, in just a month, I was able to take $150,000, put it into micro strategy, and I saw it go up to $200,000! A $50,000 gain, in just a month. Pretty awesome.

Currently reading the Bernstein interview that Michael Saylor has, and the gist of the news is that the general goal strategy is that micro strategy will become the first native bitcoin bank.

The first shall win

So the first thought was, what is the point of a company, continuing to leverage debt, borrowing money at very very low interest rates, to just keep buying more and more bitcoin?

But then again maybe the same question is what is the point of a company or a corporation, buying up scarce in desirable real estate in New York City, in Manhattan…? In fact, assuming that you’re a rich elite New York City family, the goal is to buy as much property as you possibly can on the main island, and you keep accumulating it, forever, and pass it down to your kids kids kids kids kids.

Assuming that bitcoin is the first true digital property, then what that then means is if there is a hard cap on the amount of digital property you could ever buy, let us say that it is 21,000,000 square blocks in Cyberman Manhattan, then once again, also the logical goal right now is to accumulate as much property as humanly can right now… Within your means.

For example, assuming bitcoin is currently trading at around $60,000 a bitcoin right now, if I could’ve told you 30 or 50 years ago that you could buy one square block in Manhattan, on the main island for only $60,000… Wouldn’t you borrow as much money as you possibly could in order to do it, assuming you had 100% perfect foresight, like Bluff from back in the future? 

Anyways, big thing I’ve been thinking about is for myself… What is my true our comedian lover? Simply put it is photography. It is the thing that feels like breathing to me, and I think I really do have a gift in a talent for it, which supersede possibly anyone else on the planet?

For example, my ability to see photos scenes opportunities, analyze compositions for photos, to understand things visually… Perhaps this is a gift that I want to share with humanity, the whole planet… I don’t want my insights to die with me when I’m dead. 

ERIC KIM AI?

So one fun idea I have is what if I could just create some sort of bot, in which you could just upload a picture to it or a bunch of photos to it, and it could automatically within seconds, analyze the picture, and embed all these compositional Insights to the photos?

Or even another funny thing, assuming that you have an iPhone or iPhone Pro or whatever… And let us say that you’re just walking on the streets, and you could just open up the ERIC KIM photo app, and as your actively real time scanning the scene, the ERIC KIM voice can either talk to you via speakerphone or your AirPods, and encourage you; taking step forward, taking a step back, how to arrange or rearrange the scene.

The reason why I feel that this might be such a great idea is that I guess the future of AI is here. Even the new iPhone, iPhone Pro; maybe now in the year 2024, AI has finally arrived. ChatGPT already right now is fucking amazing, don’t be a cheapo, make sure to get the $20 a month version.

Becoming a publicly traded company 

Now that I’m already dumb rich, and also, I’m the most spartan person of all time; I might be the sexiest, most handsome, most intelligent person in terms of being frugal; I only spend money on meat and barbells, nothing else. 

Michael Saylor started micro Reggie in 1989, just one year after I was born. Maybe one new school I have is to create my own publicly traded company? Not because I want money or whatever… But interestingly enough, the idea of becoming a publicly traded company, in which being open and transparent is actually a virtue, this is something that actually appeals to me?

---

VISION AI

So the general premise that I have is becoming some sort of vision AI company. Certainly vision AI is the future, for example, the whole promise of Robo taxi, Tesla, Nvidia and the like is towards vision, AI vision.

Already now, in LA… waymo the self driving car is ubiquitous. Nobody really blinks an eye anymore. I am still waiting for my invitation code… But I would definitely trust it a lot more than some of these distracted Uber drivers; a lot of Uber drivers, especially though starting off, are fuddling around with their phone, getting distracted, getting random WhatsApp notifications etc., I would definitely trust a self driving car a Tesla Robo taxi, or way more car 1000 times more than any Uber driver. 

Why this is an imperative

OK, the truth is it kind of is life for a death situation, and only that… Potential life or death situation for you your kids and your family.

Why? Assuming that 99% of LA drivers text while driving… This is effing scary. It just takes one dumb millennial, texting while driving in their lucid car or whatever, to get distracted for half a second, unintentionally killing you your kids your wife etc. And I think also the thing which is a bit scary or concerning is that a lot of these people who text while driving, they are actually not malicious, just foolish.

In fact, if Apple had a true imperative, to save lives or whatever, it would automatically turn on the distracted driving mode do not disturb function when it sees that you are driving a car, and even though this would create a lot of backlash, Apple should have the balls to enforce this, The simple workflow is this:

Apple automatically turns on the Do Not Disturb While Driving function when it detects you are driving in a car, and then afterwards, it gives the driver the option to disable dysfunction, assuming you’re a passenger in a car or whatever.

And actually, it would force the user to click “I am a passenger“, not the driver.

---

VISIONS

VISIONS, VISIONARY.

 so essentially, I think the best way to think about things is when it comes to visions, being or becoming a visionary or whatever… It is simple; it means having a vision! It isn’t about being some sort of genius or whatever, which doesn’t exist, but rather, somebody with a stubborn and creative vision about something, is unyielding, full of balls and chutzpah — the desire to craft the world according to his creative vision, unyielding.

---

This is going to be the Archimedes lever of the future 

Once you have discovered your Archimedes lever in life, just devote 1000% of your energies into it!

ERIC

---

Bitcoin ARR is 46% 6 yr, 78% 8yr, 65%10yr, 103% 12yr, 168%
14yr).

Invest in paradigm shifts

Near death experience

Ethical imperative

Clean air

10,000 hours

the digital transformation of energy

Extract energy from matter ***-> fire

Water is the next idea. It’s basically the extraction of energy from a gravitational field.

Water is the extraction of energy from a gravitational field?

Water dropping vertically, can turn a wheel

Oil is liquid energy

Clean carbon, clean energy

The digital transformation of capital

Capital is a form of energy ***

We as investors are interested in making money

Long-term capital, store your energy store your power for the long-term

Capital is economic energy

.

Annual maintenance cost for the thing

Lifespan / maintenance cost