This newsletter – Digital HUB – is dedicated to
the digital transformation of industries and implications for companies, people
and society. It is intended to provide currated insights into topics
such as: AI and Machine Learning, Crypto Assets and blockchain in the context
of practical applications.
DecemBER 2022 Newsletter
The Takeaway - This issue of the Digital HUB focuses on the crypto assets. In light of the recent crypto meltdowns, the key takeaways are: 1) in a hyped and unregulated market, such as crypto, investor knowledge and education are essential; 2) for now, the crypto market and traditional financial markets are reasonably separated limiting the larger risks; 3) regulations could be coming soon; 4) due diligence with focus on valuations and corporate governance is key. According to the MarketWatch, in the 2021 high, the crypto market valuation was ~$3T (yes, with a T!). As of this writing, valuation is at $850B, a historical loss of capital. My recent article address the crypto tech stack and market dynamics, so read on.
Just a year ago, crypto prices of all kinds were at their all time high. It was going great until it wasn’t. Today, investors are wondering if this is the tip of the iceberg. With the spectacular collapse of several crypto firms, one scenario would be that this is the tip of the iceberg, and we are witnessing the collapse of the crypto industry. Another scenario would be that the crypto ecosystem is much more extensive and that we are mostly seeing the tip of a deeper industry. There is evidence for both scenarios. The title of the article is a telltale of how we can arrive at an answer to this question: The Good, The Bad and The ugly. In this brief, I review the scenarios with an investor focus, looking at both technology and market dynamics. Read More
Wall Street’s biggest banks have mostly avoided investing directly in cryptocurrencies. But many are working to integrate blockchain, the technology behind crypto, into trading and other services. The promise is to lower counter party risk, settle trades much faster, and make it easier for issuers to track who owns their shares or assets. “Blockchain technology is going to rewire all financial services,” said Tom Farley, the former president of the New York Stock Exchange. Read Article Here
The much-anticipated scientific breakthrough happened on Tuesday December 13, 2022, at the Lawrence Livermore National Laboratory! 192 lasers were pointed to a pallet of Deuterium and Tritium to heat and compress the hydrogen atoms to 180 million degrees Fahrenheit. The reaction released 3.15 megajoules of energy for every 2.05 megajoules of input—with some major caveats. The lasers are less than 1% efficient and used about 300 megajoules – “300 megajoules at the wall [socket], two megajoules at the laser.” Generating electricity from fusion would require such reactions to be performed every second of the day, a vast increase in laser efficiency and reduction in their size. Nonetheless, a momentous occasion that marks a major scientific achievement several decades in the making. Article Here