December Week 3 - 2025

CRYPTO RESET
The Erosion of Currency and the Flight to Hard Assets

The fundamental risk to wealth is often hidden in plain sight, the slow steady debasement of national currencies. According to one of the world's most respected investors, the inherent nature of government fiscal policy is to make its currency worth less over time, a trend that is not slowing down. This dynamic presents a significant concern, especially when considering the recent performance of the U.S. dollar, which has lost over 20% of its purchasing power in just the last five years.

This reality creates a paradox for major capital allocators. While Berkshire Hathaway one of the worlds leading investment company is currently sitting on over $400 billion in cash, the consensus view is that holding cash long term is imprudent because it is only losing value. The necessity to deploy this capital into more durable assets is a fiduciary duty to shareholders, serving as a clear signal that a massive shift into non sovereign reserves is forthcoming.

This global trend underscores the necessity of owning a basket of store of value assets, such as gold and decentralized digital currencies. Digital assets, in particular, have shown a remarkable ability to act as an inflation hedge. For instance, the cost of a typical U.S. house, when priced in Bitcoin, has seen a dramatic reduction over the past decade, trending toward zero in Bitcoin terms (down from around 688 Bitcoin in 2015 to less than 5 today).

The smart money recognizes that currency is not a wise long term hold. Beyond core digital currencies, the ecosystem is expanding with assets focused on specific utility, such as the rise of platforms like Solana, which is dominating on chain transaction volume for stablecoins, and next-generation systems like Bit Tensor, which are building a decentralized model for incentivizing AI development. The movement toward assets with fixed supply and clear product market fit is the essential strategy for protecting wealth against a system designed for perpetual debasement.

AI RESET
Disney & OpenAI Ushers in a New Era for Digital Storytelling

The landscape of digital media is undergoing a profound transformation, opening up unprecedented avenues for user engagement with beloved characters and stories. A recent landmark licensing agreement, pairing a leading technology platform Open AI with the world's premier storytelling company Disney, is set to usher in a new era of creative expression, particularly for younger audiences. This initiative provides consumers with an opportunity to engage with characters on what is considered the most modern of media and technology platforms today.

This strategic collaboration is centered on enabling consumers to interact with a library of approximately 200 iconic characters through a powerful new video generation model. The media giant sees this as a significant opportunity to play a key role in the breathtaking growth of artificial intelligence and new forms of media and entertainment. Furthermore, this partnership is built on the foundation of respecting and valuing the core creativity, both the characters themselves and the creators who brought them to life.

The deal has been structured with creator respect and intellectual property value at its core. It is emphasized that the agreement is not a threat to the original creators, on the contrary, it honors and respects them, in part due to an associated license fee. Crucially, the license for the characters explicitly excludes the use of actors' names, likenesses, and character voices. Robust guardrails are being put in place to ensure a safe and secure environment for consumers. Additionally, the user created content is strictly limited to 30 second videos, ensuring the focus remains on novel consumer engagement in short form media rather than creating full length shorts or movies that compete with professional studio productions.

From the technology side, experts believe this move will unleash a wave of "latent creativity" across the globe. By dramatically lowering the required skill, and time, new tools are empowering everyday people to quickly bring their creative ideas to life. The partnership establishes a new, responsible model for how technology developers and rights holders can collaboratively manage the use of protected intellectual property. Users, who hold the storytelling company in high regard, are expected to respond positively to the ability to connect with these characters and express creativity in entirely new ways.

AI RESET
Why Knowledge Work is Collapsing Faster Than Expected

The digital landscape is undergoing a revolutionary transformation, driven by the release of powerful new foundational models whose capabilities are considered "shockingly different" compared to just a few weeks prior. With this technology nearing one billion active users, the pace of change is accelerating so rapidly that many people are failing to properly project its immediate economic impact.

The most dramatic shift is happening in the domain of knowledge work, which can now be considered obsolete. Machines have proven capable of performing tasks across 44 human occupations, achieving competence in 70.9% of the required specialized work, from creating presentations to handling spreadsheets. In comparisons with human professionals, the technology does a better job 71% of the time, operates more than 11 times faster, and costs less than 1% of the human wage. The economics of this innovation make automation inevitable.

This is more than a simple efficiency drive; it marks a structural change to the global economy. As this tipping point is reached, the market is already seeing dramatic shifts, including over 1.1 million layoffs in 2025. Looking ahead, experts warn that 2026 is poised to witness what could become the biggest collapse of the corporate world in business history, as companies unable to integrate or compete with this new level of automation are quickly superseded. Preparation for this future is now paramount.

DISCLAIMER:
This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions or investments. Please be careful and do your own research.