From Dogecoin to Twitter: The Making of the Everything App

Depending on whom you ask, Elon is either an egotistical villain or a savior. He is currently the world’s richest man, with a net worth of about 200 Billion. Well, with that kind of money it becomes easy to create products that have a direct impact on people’s daily lives- with huge repercussions.

Now, Elon is not your average billionaire. Most of the time, he has swayed the masses to his favor, much to the chagrin of big tech. This has turned him into somewhat of a cult, with a huge following and an enviable portfolio of companies that seek to upend conventional beliefs and corporations. From Neuralink to Space X , Tesla to the Boring Company, he is an entrepreneur who seeks to “disrupt” global order as he strives to achieve what may somewhat be thought to be impossible — until it’s done.

Twitter Acquisition and Association with Dogecoin

Elon’s recent acquisition of Twitter may not have come as a surprise, seeing the influence this app has on disseminating and sharing “truth”.

He offered to buy it at a ridiculously high rate ( USD 44 Billion)- perhaps an indication that he believed the app was worth a lot more. The buying process was initially marred by accusations and counter-accusations, until the deal finally went through at the end of October 2022. After purchasing it, he said that he intends to make Twitter the most accurate source of information across the world by empowering citizen journalism.

” It is important for the world to have a common digital square where a wide range of beliefs can be debated in a healthy
manner without resorting to violence” ,

he stated in a statement after the acquisition.

Recently, Elon shared screenshots of an internal meeting he had on Twitter- showing the progress of the platform and future plans that included introducing a payment system. This caused Dogecoin to rally and gained about 19% from the news. The relationship between Elon and Dogecoin isn’t new. From the time Elon bought Twitter, there were rumors that the company has been working on a development that would allow crypto payments, and the market interpreted this to mean Dogecoin would be the choice of crypto. Elon has also been posting dog-themed memes
on his account, perhaps confirming the widely held beliefs that indeed this may be the crypto that would most likely be adopted on the platform.

The Everything App

How he intends to promote global truth, we are yet to know, but one thing is for sure, he is on a mission to redefine this space and we are already seeing lots of resistance from Big tech — If recent rumors of Apple delisting Twitter from its App store are anything to go by. What we also know is that this acquisition may gel well with his desire to create an app that he once called the x app or the everything app- something similar to TenCent’s we chat or Alipay, but for the world.

Also called a super app, an everything app is an app where you can do everything without leaving the app. Think of it as a single app that contains all the digital services you may need-from chatting to booking a hotel,
even hailing a taxi, or making payments to your local store. These apps are dominant in the Asian region. In China, an app like Wechat is ubiquitous and essential for everyday use. More than a billion people have access to We chat in China and use it to do basically everything from paying bills to booking medical appointments. Other apps in Asia that have adopted this model are the Grab app in Malaysia and Singapore and the Line app in Japan.

Elon once mentioned that acquiring Twitter will accelerate the development of X or the everything app by at least three to five years.

We have already started seeing developments geared towards attaining this goal, especially with the launch of Twitter 2.0. It seems that Elon would like to ape the models of Wechat, Grab, and Line but this time scale it up for the global audience. So basically, the X app would be the same as Wechat, but for the world. If the recently shared screenshots on his Twitter page are anything to go by, then the new app will include video streaming, video chats, long texts, and payment platforms- building blocks for a diversified platform.

Add Neuralink to all this talk and the conversation on what this app may accomplish changes. Neuralink is a company owned by Elon that wants to implant coin-sized computer chips into human minds.

They recently stated that they are awaiting FDA approvals and will start trials for this in the next 6 months. So, maybe, Elon’s goal for the X app is to ultimately have it work as a computer- chip implanted in human brains and do “ everything”, if it could.

Challenges in Setting up the Everything App

As he pursues this goal, there are hurdles that have to be overcome. Firstly, he is not the only entrepreneur that wants to create this app.

Some companies have already tried this and achieved success (within their geographies). He is therefore bound to face stiff competition from these companies and other big tech companies that are working on this- Facebook is a good example. Facebook is striving to create a platform that will be a melting pot for all online services- from payments to interactions and even booking appointments. Other big tech companies that have also made forays into this domain are Google, Tiktok, and even Uber. Secondly,
most people, especially in the West, are not accustomed to this and may find it hard to adopt a single app that “does everything”. This may explain the modest success achieved by other big tech companies that have tried to launch this kind of app in America. Finally, regulatory hurdles may arise, especially if he were to incorporate crypto payment solutions.

Even with all these bottlenecks, Elon doe not shy away from a good fight. He has demonstrated time and again his ability to get into industries that are considered ‘impossible to penetrate and deliver game-changing products that reshape an entire industry. Wishing him away may not
be an efficient strategy. Savvy investors may try to get into some of the
companies/ solutions that would most likely be adopted into this trend.
Cryptocurrencies like Doge are a good buy at this stage.

It will most likely continue its upward trajectory for as long as Twitter intends to create a payment gateway. However, there is no guarantee that it will be X app’s currency of choice.

Did you like this post? Do you have any feedback? Do you have some topics you’d like me to write about?Do you have any ideas how I could make this better? I’d love your feedback!

Feel free to reach out to me on Twitter!

Bitcoin on the Brink: What Could Trigger a Capitulation?

Bitcoin has been on a roller coaster ride over the past few weeks, with prices swinging wildly from highs of around $80k by June 2021 to lows below $15k in the past few weeks. This volatility is nothing new for Bitcoin, but it seems to ramp up as we approach what could be a critical juncture for the digital currency.

So, what exactly is a capitulation? The Cooperate Finance Institute has a concise definition.

In the financial world, it generally refers to a situation where investors give
up on an asset and sell it en masse, leading to a sharp decline in prices. This can often be seen as a final stage before prices bottom out and begin to rebound.

In the case of Bitcoin, a capitulation could be triggered by several factors, including the following:

When miners receive rewards in Bitcoin for verifying transactions, they are motivated to keep the network secure. However, if the price of Bitcoin falls below the cost of mining (i.e., electricity and other expenses), miners will be operating at a loss. As a result, they will be less likely to continue verifying transactions, and the Bitcoin network will become less secure. This is known as a miner capitulation. 

In a severe case, it can lead to a Bitcoin death spiral, in which the price of Bitcoin falls so low that no miners are willing to continue verifying transactions. This would make Bitcoin unusable as a currency, as there would be no way to verify transactions. Therefore, it is important for the price of Bitcoin to remain high enough to incentivize miners to keep the network secure.

Brain Drain

When people are anxious about the future, they tend to sell their assets and move their money into assets they see as safer. In the case of Bitcoin, when people become anxious about its future, they sell their Bitcoins and move their money into assets like the US dollar. 

This mass exodus of money from Bitcoin to other assets causes the price of Bitcoin to drop, which leads to even more people selling their Bitcoins, causing a downward spiral.

Closed/Overprotective Community

There have been a few times in Bitcoin’s history when the community has become too closed off and overprotective, leading to a capitulation. One such example was when Introducing NFTs to Bitcoin forums and discussion groups led to a massive flame war that ended in many members leaving the community. Another example was when the Bitcoin Lightning Network was first proposed, there was a lot of infighting, and eventually, some members left to start their own projects. While it’s understandable that people want to protect their investments, Ultimately, these capitulations happen because the community becomes too insular and fails to listen to new ideas. To avoid this in the future, it’s important for the community to remain open-minded and willing to discuss new proposals. 

Increased Regulation from Governments 

When a government begins to tighten its regulation of a particular industry – in this case, Bitcoin – it can significantly impact the market. In the case of Bitcoin, when it was announced that the governments of South Korea and China were planning to introduce new regulations around cryptocurrency, the price began to drop significantly. 

This is because investors felt that the increased regulation would make it more difficult to trade or use Bitcoin, so they began selling off their holdings. As more investors sold off their holdings, the price continued to drop until it reached a point where many people decided to sell their coins at a loss. This caused an overall panic in the market and led to a massive capitulation event.

Bitcoin Verdict

The jury is still out on whether or not Bitcoin will survive in the long term. However, it is clear that several factors could trigger a capitulation event.

If the price of Bitcoin falls too low, miners will be incentivized to leave the network, which could lead to a death spiral. Additionally, if investors start to panic, they may sell their holdings en masse, which could also lead to a capitulation.

Did you like this post? Do you have any feedback? Do you have some topics you’d like me to write about?Do you have any ideas how I could make this better? I’d love your feedback!

Feel free to reach out to me on Twitter!

Watch your Emission! Time for Individual Carbon Credit Allowance

Governments across the world are trying to tackle climate change. One way to do this is through the reduction of greenhouse gas emissions such as CO2. As a result, they have been actively seeking ways to achieve net zero carbon Emissions as envisaged in the UN climate change goal 2050- an initiative kickstarted in 1998 in the now defunct Kyoto protocol. Unfortunately, Kyoto agreement achieved little success and was restructured into the 2015 Paris Climate agreement. Basically, the idea behind these agreements was to get governments to commit to setting caps on the carbon emissions and set up markets for carbon trading. While this may have started as a corporate/government endeavor to limit carbon emissions, it is slowly spilling over to basic consumers, morphing into an attempt to track individual carbon footprints and encourage the trade of carbon credits at a household or individual level.

  Carbon Credits

Carbon Credits are defined as 1 ton of CO2 Emissions traded in the market to allow buyers emit CO2 into the atmosphere. To get a better understanding of Carbon Credits, let’s briefly look at the Carbon Market Mechanism concept: First, a country identifies its limit of total greenhouse gas emissions. It then creates permits and assigns them to different companies within its jurisdiction with allocated carbon emission limits. The companies that can emit green house gases below those limits will have a surplus of Carbon credits. Those that exceed the allocated limits will need to buy Carbon credits from the companies that ‘saved’ on carbon emissions so as to make up for their shortfall. This buying and selling of carbon credits works in the same way as stock exchanges work. Subsequently, the caps get stricter and the permits get even more expensive. This is meant to drive up the cost of emitting greenhouse gas into the atmosphere while at the same time make it expensive to buy Carbon credits from the markets. This whole scheme is also known as Cap and Trade. Europe, the US and China are some of the regions that are currently actively trading in Carbon. It is market that is estimated to be worth over $ 250 Billion annually.

Individual Carbon Credits

Recently, while speaking at the World Economic Forum in Davos, the president of Alibaba, J. Michael Evans, said that they are in the process of creating an app that will track Individual Carbon footprints. 

   ” We are developing a technology that will allow consumers to monitor their carbon footprint. What will this mean? It will monitor individuals on where they are travelling, how they are travelling and what they are eating,” he said, much to the angst of the internet population.

Individual Carbon Credits will work in the same way as Cap and trade schemes. While all this  conversation may be purely speculative at this stage, it is not far-fetched to think that this is the path the global elite may want us to take

With individual carbon credits, people will be assigned a limit on CO2 they can emit every year based on their consumption levels, wealth, age and even nationality. When this cap is achieved, you will need to purchase more credit from individuals who may have saved on their carbon emissions. Failure to do this may mean that you are grounded or may even face jail term or fines. So for example, if you are assigned a  specific quota of carbon emission in a year and you exuberantly squander it in travel and  partying, then you will need to cut back just as you would when it comes to spending money, so as not to exhaust your limit. On the other hand, if you haven’t been active for the most part of the year, say you travelled less and ate ‘green’ products, then you may have an abundance of carbon that you can sell to other consumers. All this can be done via government regulated or private apps that have been licensed to track individuals.

In Europe, companies that are currently helping corporates and governments track carbon footprints are Plan A and Planetly. There is also an app , called Klima, that is used for individual voluntary carbon offsets- basically buying and selling of carbon credits on a voluntary basis. While these companies are currently focusing on corporate entities ( and the app works on voluntary submission), it is only a matter of time before governments legislate and insist they should also start monitoring individual carbon emissions.

Is this the right way to go?

Individual carbon trading will create a whole new market for trading carbon and may ultimately help in reducing carbon emissions. It will also attract investors into this industry just as they are flooding the regulated Carbon trading markets- pushing up the prices of carbon credits and making  it harder for people to engage in emissions unless necessary. For example, if the price of credits is pushed higher, one will have to reconsider unnecessary travels and consumptions that may exhaust their carbon allowances. Cap and trade at an individual level will also encourage households to be cognizant of their carbon footprints and therefore put effort into saving energy.

While this may look rosy and ideal, it may also lead to a dystopian society where all activities are monitored and closely tracked. Discussions are rife on what this really means and what tangent it can take. Some worry that it may mimic a social system that may strive to reward good behavior and punish bad practices. Individuals may also stop engaging in economically productive activities so as to cut their carbon footprint. Done at scale, this will have adverse effects in the growth of an economy  at a macro level and may easily cascade into civil unrest. We may also experience widespread arrests as most people may find it hard to work or move within their specified limits. Just as is the case with the corporate Cap and trade systems, individuals cap and trade schemes may also cause carbon leakages- a situation where  people migrate to  countries that are more flexible and offer better terms on carbon offsetting. This will lead to talent erosion and may adversely affect economic production.

Hedge Yourself

Carbon Credits have been designed in such a way that they get harder to access and their permits also get more expensive. So in the long-term, it is safe to assume that this is a market that will grow as the price of the  carbon credits is envisaged to keep growing- with the exception of a global  catastrophe such as  the 2008 economic crisis or the Covid pandemic that hindered movement thus causing a glut in carbon credits, thereby, bringing down their prices. Savvy investors can invest in projects that track carbon credit, stock up on carbon credit or even buy CBDCs from governments that are actively legislating on carbon emissions.

Did you like this post? Do you have any feedback? Do you have some topics you’d like me to write about?Do you have any ideas how I could make this better? I’d love your feedback!

Feel free to reach out to me on Twitter!