Ethereum’s Potential Mirrors Amazon’s Rise

CRYPTO
Ethereum’s Potential Mirrors Amazon’s Rise

Ethereum’s growth potential is being compared to Amazon's early days by 21Shares, with crypto analysts highlighting that the network’s current development phase echoes Amazon’s trajectory from a modest online bookstore to a global e-commerce and tech powerhouse. Ethereum, launched in 2015 with basic smart contract functionality, now powers over $140 billion in decentralized finance applications, showcasing its expanding utility.

According to 21Shares’ Leena ElDeeb, Wall Street remains largely unaware of Ethereum’s capabilities, which she says are “complex and promising.” Federico Brokate, also from 21Shares, adds that, unlike Amazon in the ‘90s, Ethereum benefits from a robust talent pool of over 200,000 developers working on its evolution.

While challenges from competitors like Solana persist, Ethereum maintains dominance in areas such as decentralized finance. Investors remain cautious about Ether ETFs, but analysts expect growing interest as Ethereum’s real-world applications and layer-2 scaling strategies continue to mature.
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WARREN BUFFETT
Berkshire Reduces Apple Holdings Again

Warren Buffett's Berkshire Hathaway is now holding over $325 billion in cash, having sold off billions in Apple and Bank of America shares this year. Despite not pursuing major acquisitions, Berkshire has maintained a strong cash flow from its diverse businesses. In the third quarter, Berkshire continued reducing its Apple stake, which was valued at $69.9 billion by the end of September, down significantly from $174.3 billion at the end of last year.

Driven largely by investment gains, Berkshire’s third-quarter profits soared to $26.25 billion, or $18,272 per Class A share, a notable increase from last year’s paper losses. However, operating earnings—a better indicator of business performance, according to Buffett—fell slightly, coming in at $10.09 billion, down 6% from $10.8 billion last year. Revenue remained steady at nearly $93 billion, slightly surpassing analysts’ predictions. Berkshire’s holdings include major assets like Geico, BNSF railroad, utilities, and brands like Dairy Queen and See’s Candy.
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ELECTION
U.S. Election: Europe’s Future Uncertain

The upcoming U.S. election, with Trump and Harris vying for presidency, could have significant repercussions for Europe. Both candidates’ policies hold implications for trade, defense, and Europe’s role in a shifting geopolitical landscape.

1. Trade and Tariffs: Europe relies heavily on trade with the U.S., employing millions across the Atlantic. Trump has proposed additional tariffs on European imports, which could hit EU economies like Germany, reliant on exports to the U.S. Retaliatory tariffs could also drive up prices for European consumers. Harris, by contrast, would likely pressure the EU to lessen ties with China, encouraging European companies to shift production to the U.S.

2. Business and Innovation: Trump’s policies might increase scrutiny on EU’s tech regulations, as he has previously criticized European fines on U.S. companies. Harris might foster collaboration on tech policies, potentially boosting productivity and trade, though the EU must still strengthen its own tech sector to stay competitive.

3. Defense: Europe’s dependence on U.S. defense support is vital amid the Russia-Ukraine conflict. Trump’s past threats to reduce NATO support could strain Europe’s security framework. Harris, however, is expected to uphold defense alliances, providing Europe with stability amidst growing global tensions.
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AI
Quantum Computing to Power AI

To power AI’s growing energy demands, Big Tech is exploring innovative solutions, from nuclear energy to quantum computing. The rapid expansion of data centers worldwide has intensified the need for sustainable energy sources to support AI's vast processing power. Major tech companies like Microsoft, Google, and Amazon have signed multi-billion-dollar nuclear energy deals, aiming to boost energy capacity. Meanwhile, liquid cooling, a process that uses water to cool data centers, is gaining traction as a more efficient alternative.

However, critics caution that this push could have significant environmental costs, especially as the efficiency gains from electricity usage are leveling off. Raj Hazra, CEO of quantum computing company Quantinuum, believes that while AI’s potential is transformative, its sustainability remains in question. He argues that quantum computing could complement AI and high-performance computing to create a sustainable infrastructure for the future. As Big Tech powers forward, balancing innovation with environmental responsibility is increasingly crucial.
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Meme of the day

Word of the day
Amalgamate

Amalgamate is a formal verb meaning "to unite (two or more things) into one thing.

DISCLAIMER: None of this is financial advice. 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. Please be careful and do your own research.