Bitcoin is in Big Danger.

🎣 w3.catch-of-the-week cw50

Author

Vicktoria Klich
December 13, 2024

GMGM and welcome to the 🎣 w3.catch-of-the-week, your moonshot that kicks you into the banana zone far away from all bears.

Would you have believed at the beginning of 2024 that the next US president would be a DeFi Degen buying our bags?

Well, the upcoming President Donald Trump has not only bought Ethereum, but now also Aave & Chainlink.

On Thursday, a total of $10 million in Eth and $1 million in $Aave and $Link was purchased with the wallet of his DeFi project (World Liberty Financial).

Speaking of Ethereum: institutional interest in Ethereum also seems to be increasing, as ETFs currently have a 13-day net inflow streak 🔥.

💀 The Potential End of Bitcoin
👀 What’s our source of Alpha?
🐧 Pudgy Penguin Playbook
🏎️ BMW x Web3
🗺️ Berlin Web3 Ecosystem Map

Quantum computing could destroy Bitcoin

This week, the internet was full of it and I'm not just talking about Web3, but also about all the backwoodsmen who are still stuck in Web2ish media.

Google has introduced Willow...

Who or What is WIllow?

Willow is Google's newest quantum computer chip that represents a major breakthrough in quantum computing technology.

How it Works: Unlike regular computers that use bits (0 or 1), quantum computers use qubits that can exist in multiple states at once through a principle called superposition.

Willow has 105 qubits and can perform incredibly complex calculations much faster than traditional computers.

🤓 Okay Vicky sounds cool, but how exactly can a normal human being imagine it?

The coin toss comparison

Classic computer (bits)

  • A coin is either heads (1) or tails (0)

  • To check 3 coins, the computer has to perform each toss individually

  • So for 3 coins it needs 3 separate tosses

Quantum computer (qubits)

  • A quantum “coin” can behave like a spinning coin

  • It is heads AND tails at the same time until you observe it

  • With 3 qubits, the computer can check ALL possible combinations simultaneously

  • This means that 8 different combinations (2³) are calculated at once

Practical use case

Imagine you had to find a specific book in a library of 1000 books:

  • A classical computer would have to check each book individually

  • A quantum computer could theoretically search through all the books at the same time

What does this have to do with Bitcoin?

Bitcoin's security is built on two main mathematical systems:

  • SHA-256 for mining (creating new bitcoins)

  • ECDSA (Elliptic Curve Digital Signature Algorithm) for protecting wallets and transactions

The Quantum Threat Explained

For Mining

  • Bitcoin mining is like solving a complex mathematical puzzle

  • Current computers try solutions one by one

  • A powerful quantum computer could theoretically try many solutions simultaneously

  • This could lead to one computer mining all new bitcoins, disrupting the entire system

For Wallet Security

  • Your Bitcoin wallet is protected by a private key (like a super-complex password)

  • Current computers would need millions of years to guess this key

  • A quantum computer could potentially crack these keys much faster

  • This would mean someone could steal bitcoins from any wallet

👉🏽 Not just the secret key of your wallets, but basically every other password you have.

Why We're Safe For Now

  • Willow has “only” 105 qubits

  • To break Bitcoin's encryption, we'd need:

    • At least 5,000 perfect (logical) qubits

    • Or millions of physical qubits like those in Willow

  • Current quantum computers are like early prototype calculators

  • We need something more like a modern supercomputer to pose a real threat

The Time Factor

The crypto community has years (experts speak of 10-20 years) to prepare before quantum computers become powerful enough to pose a real threat. This gives developers time to create new security systems that even quantum computers can't break.

If you want to delve deeper, you can read Vitalik's thoughts here:

What sources do our fund managers use to outperform the market?

In this video, Philipp Beer reveals how research is conducted at our liquid token fund:

How do we maintain a competitive edge for our investors?

It comes down to in-depth technical knowledge coupled with the analysis of business models of individual protocols and an extensive network of experts.

One Pudgy Penguin > One Bitcoin

The famous NFT collection Pudgy Penguins has flipped Bitcoin: One cute penguin currently costs more than a whole Bitcoin.

Floor price increased by 194% over the last 30 days.

This was triggered by the recent $Pengu Token Announcement, which interestingly will launch on Solana.

Lucas' acquisition for over $2.5 million in April 2022 is probably the biggest success story the Web3 has seen so far.

Exactly a year ago, in the 2023 Recap Newsletter, we crowned Pudgy Penguin the winner of the year and we've reported on it many times before.

So it comes as no surprise to us that the Pudgy Penguins are now the most valuable PFP collection after the Crypto Punks.

Here are some of the biggest milestones:

  • Walmart Launch: Introduced Pudgy Toys in 3,100 Walmart stores

  • Retail Expansion: Entered additional major retailers like Toys R Us, Hot Topic, and Smyths Toy Stores

  • $9 Million Funding Round: Raised $9 million in funding, led by 1kx

Digital presence

  • 1.6 million Instagram followers

  • 215.000 followers on X (Twitter)

  • Over 34 billion views on GIPHY

  • Featured in various TV shows and news segments

Products

  • Launch of PudgyWorld, an immersive, digital 3D gaming experience

  • Launch of Overpass, a platform for NFT licensing and IP management

What is cooking inside the Igloo?

$PENGU Token

  • Official token of the Pudgy Penguins

  • Launch on the Solana blockchain in 2024

  • Total supply: 88.8 billion tokens

Abstract - Layer-2 solution on Ethereum

Was acquired by Igloo Inc. (parent company of the Pudgy Penguins) and is being positioned as the “Consumer Chain”. Wen launch? Soon…

💅 Small add-on: There are rumors that Igloo Inc. will buy the NFT marketplace Opensea 👀.

BMW has entered Web3

BMW considers Web3 to be essential to reaching future generations. The company is taking a step-by-step approach with small test projects.

BMW at Apefest

The driving experience: Participants were able to drive a real BMW M car in a closed-off area. They wore VR goggles through which they saw a virtual environment while they were driving the physical car. It's an exciting experience that combines digital worlds with a physical sports car.

👉🏽 “Everyone who experienced it couldn't stop grinning” - Richard.

I had the opportunity to do a podcast with Pia and Richard. Pia has been with BMW for 17 years and currently heads BMW M Driving Experience. Richard, the founder of the agency “Value of We”, is responsible for the technical implementation of BMW's Web3 projects.

Future Outlook

The focus for BMW remains on authentic community engagement rather than direct sales. Further collaboration with Yuga Labs (Bored Ape Yacht Club) is planned.

My team and I have built a Web3 ecosystem in Berlin to help integrate blockchain into everyday life and solve real-world problems.

On the Onchain Culture Podcast, we explore how Web3 is transforming industries and who’s driving the change.

Don't miss out on any news, updates, & vibes anymore. Discord is so yesterday. Let's meet on Telegram.