This week, "Deconstruction" focuses on the launch of the first quantum computer in the UAE, secret SpaceX bitcoins, crypto companies' accounts at the Federal Reserve, and the death of the cypherpunk movement.
The Threat of "Quantum Utility"
Quantum computers are moving from being a future technology to achieving "quantum utility," posing a real threat to the encryption algorithms of Bitcoin and Ethereum.
Protection against quantum hacking comes at a cost—tests of post-quantum solutions have already shown a 20–40% decrease in blockchain throughput. While Ethereum plans to transition by 2029, Bitcoin developers are lagging in discussions about protective measures.
SpaceX Bitcoins and the End of Free AI
SpaceX's IPO sets a new standard where buying shares in the rocket company indirectly invests in crypto and AI.
Top analytical platforms misjudged SpaceX's hidden reserves by over 100%—the company holds 18,712 BTC worth $1.3 billion. This demonstrates that we are far from grasping the actual volumes of cryptocurrency on corporate balance sheets.
Meanwhile, Musk's lawsuit against OpenAI confirmed that advanced AI will remain closed, forcing Web3 startups to abandon direct competition and focus on absolute privacy and censorship resistance.
Banking Plans to Capture Cryptocurrency
Governments are shifting the competition of national currencies to the blockchain. Trump is allowing crypto companies direct access to the U.S. Federal Reserve, while 37 European banks are creating their own euro stablecoin to counter the digital dollar.
Traditional financiers view backing stablecoins with gold, like Tether, as a significant risk that could trigger a liquidity crisis. This will inevitably lead regulators to compel issuers to abandon risky assets in favor of government bonds.
The End of Cypherpunk?
The Web3 industry has largely lost its original ideology of independence, trading privacy for convenience, and relinquishing the role of a payment medium to a controlled quasi-fiat in the form of stablecoins.
Despite blockchain becoming part of the banking system and decentralization remaining merely a declaration, the ideas of crypto-anarchism are not extinguished. Their popularity could surge in the event of another global financial collapse, which the world is likely approaching.
This is a shortened version of the podcast. Watch the full episode:
https://www.youtube.com/watch?v=J94TVfy-bWs
Subscribe to the podcast: