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Investments: 5 false myths to dispel

Investments: 5 False Myths

It’s a common misconception that you must constantly follow the markets to invest. Discover the five most prevalent myths about investing.

What are the common myths about active market investors? Many misconceptions exist, much like the popular beliefs that wholemeal bread has fewer calories than regular bread, that eating carbohydrates in the evening causes weight gain, and that dogs perceive the world in black and white. These false myths permeate our daily lives until we accidentally uncover the truth, often by reading a revealing article like this one. When it comes to finances, these myths can resemble urban legends. So, what are some of the most prevalent misconceptions in the world of investments?

In this article, we will examine various myths, including the unrealistic time horizons that young investors often believe they have, as well as the paradox of the over-informed investor who ultimately harms themselves.

The CAP is the best way to invest.

What? We started with a cannonball, huh? Is this a myth? Hold on, don’t run away; I’ll explain. The CAP, or Capital Accumulation Plan, is undoubtedly a great way to build wealth, especially if you don’t have large sums of money available or if the idea of investing everything at once makes you anxious. 

Regularly setting aside a small amount of money not only reduces the risk of entering the market at the wrong time, but it also helps you develop self-discipline—much like a Tibetan monk—especially when you use automatic deposits. Plus, let’s be honest: it lessens the emotional toll of experiencing the market’s ups and downs.

However, there is always a caveat: this approach is not the most mathematically efficient way to invest. Statistically, putting all your capital into a single, bold solution (PIC) offers higher returns. Why is that? It’s simple: all your capital works for you immediately, allowing you to fully benefit from the power of compound interest from day one. Additionally, since markets tend to rise over the long term, the likelihood of buying an asset at a lower price today is generally higher than it will be tomorrow or the day after.

The effectiveness of a Premium Allocation Contract (PAC) in managing purchase prices during bearish market phases is somewhat limited, particularly if the portfolio is still in its growth phase. Initially, payments into a PAC are more likely to influence the average price positively, but this effectiveness tends to decrease as the portfolio matures.

That said, I want to emphasise that a PAC remains a strong investment option while also providing a savings mechanism. For many investors—likely the majority—it is the best solution available. Although it may not be the most efficient option in absolute terms, the peace of mind it offers can often outweigh the benefits of marginal gains.

More risk means more return.

This may sound controversial, almost like a challenge to the popular saying “no pain, no gain.” How can the concept of balancing risk and return be deemed a myth?

To clarify this, we need to explore the physical and statistical idea of ergodicity. In simple terms, a system is considered ergodic if, over the long run, the time average of a single path equals the average across all possible paths. If this sounds confusing, you’re not alone.

Let’s use a more relatable example. Imagine your favourite motorcyclist, who is exceptionally talented and often finishes on the podium. However, he rides recklessly—he brakes at the last moment and performs wheelies in corners, which leads to frequent crashes and injuries. For simplicity, let’s say he has a 20% chance of winning each race but also faces a 20% chance of getting seriously injured and missing the rest of the championship. What are his chances of winning in a 10-race championship?

Intuition might suggest that with a 20% chance of winning each race, our hero could expect to win about 2 out of 10 races. This seems logical. However, the situation is more complicated than it appears. The high risk of injury is a significant factor to consider. Supposef our daring competitor suffers a serious injury—there’s a 20% chance of this in every race—his dreams of glory could come to a swift end. An injury would prevent him from participating in the rest of the championship, effectively eliminating his chances of overall victory. He could win two races and then spend the remainder of the season watching from the sidelines, perhaps with a leg in a cast.

Non-ergodicity is a crucial concept to understand in this context. It emphasises that a person’s skill is closely linked to their willingness to take risks, which can sometimes lead to “ruin”—especially in sports. Similarly, in investments, taking high risks, even with the potential for significant returns, can result in the investor’s downfall and render historical averages irrelevant. In non-ergodic situations, the focus shifts from maximising yields to ensuring survival. To reduce these serious risks, diversification is essential; it helps lower the chances of facing losses from which one might never recover.

To invest, one must be informed

It may surprise you, but sometimes an investor who is blissfully unaware of market happenings—meaning they choose to ignore the noise—can be more effective. Yes, you read that correctly. This is because those overwhelmed with information, charts, opinions, and alarmist tweets are more likely to make impulsive decisions.

Additionally, investors who see themselves as the next Warren Buffett—always well-informed and on top of everything—might be tempted to experiment. They may use complex financial instruments that seem straight out of a science fiction movie, buy ‘exotic’ assets, or develop strategies so intricate they would challenge a NASA engineer. The outcome? Often, they take on more risk and lose control. Sometimes, the overly informed investor ends up like a cook who ruins an otherwise good dish by adding too many ‘special’ spices.

Young people have a long-term horizon.

More than just a common misconception, we are facing a logical fallacy—a classic error in perspective. Many people believe that young individuals have decades ahead of them to invest: twenty years, twenty-five, thirty… it feels like an eternity! This mindset stems from thinking of ourselves as if we are playing a video game, to maximise our final score, which in this case means accumulating capital for retirement.

However, the reality is quite different. Suppose you are young and take a moment to reflect. In that case, you may realise that the money you plan to invest might be needed long before you reach your golden years—if those years even include a pension, given the uncertainties around social security. You may need that money for a down payment on a house, a wedding, an expensive master’s degree, or that dream trip you’ve always wanted. In short, sooner or later, you will enjoy—or need—to use that money.

Investing exclusively in equities simply because “there’s still time” is similar to preparing for a marathon by consuming only sweets. It’s essential to include a mix of assets with varying risk and return profiles in addition to stocks, as these may take time to generate positive results. For example, consider incorporating bonds or bond ETFs, as well as cryptocurrencies or commodities, to diversify your investment portfolio.

The global ETF is the holy grail that faithfully replicates the world economy

We arrive at a fundamental principle for forum investors known as ‘VWCE & Chill’ (or its global equivalent). This philosophy resembles a way of life, almost akin to a religion, complete with excommunications for those who dare to stray from the established path of the global index. Many investors adopt this nearly blind faith approach, overlooking the true nature of their investment choices.

It’s crucial to understand that the stock market does not comprehensively represent the entire world economy. Instead, it only reflects a large subset of companies that choose—and are able—to go public. In the United States, financial culture and demand for the stock market are so ingrained that a significant number of large companies are publicly listed. In contrast, many successful companies in Europe and other parts of the world opt to remain private, choosing alternative forms of financing. Consequently, a global equity ETF, no matter how diversified, may overlook essential segments of the real economy.

How can we exclude the crypto world from this discussion? Bitcoin, in particular, has become a focal point in recent years due to its relatively predictable growth, which results from the cyclical nature of its price movements. It has created fortunes for many investors and has become one of the most popular assets globally, thanks in part to exchange-traded funds (ETFs) issued by major American investment firms. Often referred to as “digital gold,” Bitcoin serves as a crucial haven asset in today’s financial landscape.

Bitcoin’s mathematically finite supply and decentralised nature position it as a safeguard against unregulated monetary policies and missteps by central banks. In the context of soaring U.S. government debt and ongoing turmoil that erodes confidence in traditional currencies, Bitcoin is not merely an alternative; it is a resilient solution and a strategic store of value. Thus, it becomes an essential component of conscious asset diversification, helping to protect against the evident and increasing vulnerabilities of the traditional financial system.Bitcoin’s volatility is undeniable, but it is also a hallmark of a revolutionary asset class that is still working towards global acceptance. Ignoring Bitcoin in today’s financial climate would be akin to repeating the mistake of those who underestimated the internet’s potential in its early days.

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Long-term Investing ETF on S&P 500 or Bitcoin?

S&P 500 ETF or Bitcoin: Which Is Better for Long-Term Investing?

Is it still wise to invest solely in S&P 500 ETFs? We compare this traditional strategy with Bitcoin.

The long term is generally considered safe, but as Keynes noted, “In the long run, we are all dead.” The idea of the long run is often associated with investing in assets that have a medium to high risk and volatility profile, as time is the key factor that increases the likelihood of a positive return.

But is the best investment strategy really to simply buy an ETF that tracks the S&P 500 and wait 30 years?

The time horizon in which one invests is a personal factor

The statement that concludes this introduction is likely something you’ve heard before, and it holds a kernel of truth. Since the 1980s, the main index of the US stock market has increased by over 6000%. However, the investment horizon varies for each individual, primarily depending on the investor’s goals.

While a longer investment horizon—especially for equity investments—can increase the likelihood of achieving a positive return, it’s essential to recognise that this probability will never reach 100%. In other words, a risky investment can never guarantee a predictable return.

Time is our greatest ally as investors. Unless we want to bet against the market, it’s best to let it work in our favour. Time also enables us to maximise the benefits of compound interest, which is essential for achieving outstanding results over the long term.

While compound interest drives returns on established indices like the S&P 500, the modern market also offers instruments that promise exponential growth in potentially shorter timeframes, albeit with varying degrees of risk. This perspective aligns perfectly with the ongoing debate surrounding Bitcoin.

The alternative: Bitcoin

The approval of spot Bitcoin ETFs in January 2024 made an investment that was previously confined to complex procedures accessible to a wider audience. This raises a question: Can Bitcoin, or its ETFs, serve as an alternative or complement to the S&P 500 in a long-term portfolio?

The most obvious argument in favour is related to the potential asymmetric return: against a risk of total loss, there is a growth potential of several orders of magnitude, much higher than that of a mature index. Theoretically, then, Bitcoin could also act as a diversifier, given its historically low correlation with equities, although this tends to increase during periods of high financial stress.

However, the critical points are equally important. The first is extreme volatility. While the S&P 500 has suffered 30-50% crashes in conjunction with epochal crises, Bitcoin has regularly experienced 7 drawdowns of 0-80%. A very long time horizon may not be enough to recover if you enter a market peak.

Second, unlike the S&P 500, which represents the ownership of real companies that generate profits, Bitcoin does not produce cash flows. Its value is driven solely by the law of supply and demand, relying on trust and its planned scarcity. This makes it more like a digital commodity than a productive investment. Finally, regulatory uncertainty should not be overlooked: as a young asset, it is exposed to future regulatory changes that could drastically impact its value.

Conclusion: What is the best strategy?

So, can the Bitcoin ETF stand alongside or even replace the S&P 500 in a long-term perspective? The answer, again, is not unambiguous and goes back to the heart of our discussion: it depends entirely on the risk profile, objectives and awareness of the individual investor.

For those seeking stable, relatively predictable growth based on economic fundamentals, passive investing in the S&P 500 remains the most logical and proven choice.

For those with a very high risk tolerance, who understand the speculative nature of the asset and want to allocate a small portion of their capital to a potentially disruptive technology, an ETF on Bitcoin may be an interesting addition.Ultimately, the question is not which of the two is ‘better’ in absolute terms, but which is the most suitable instrument to help us achieve our personal goals, accepting a level of risk that we can live with peacefully over the long, and sometimes turbulent, period.

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What Labubu are and why they are viral

Labubu: Why These Plush Toys Are Going Viral

Labubu: The Viral Soft Toys Loved by the Stars. Is the “Lipstick Effect” at Play?

Have you ever noticed how specific trends suddenly go viral on social media? Well, “Labubu” is the latest sensation capturing everyone’s attention. These furry little creatures have quickly become fixtures on the bags of the world’s most celebrities, dominating TikTok and creating a buzz at major fashion week events.

But what exactly are Labubu? How did they rise from being simple keychains to coveted status symbols? And, most importantly, how does this phenomenon relate to the economic theory known as the “lipstick effect”?

The history of the Labubu

To fully understand what Labubu is, we should start with their origin as plush puppets initially created as cute key rings. These key rings can be attached to backpacks, bags, or anywhere you want to add a touch of extravagance. A notable episode in Italy illustrates the popularity of this phenomenon. Picture this: in Milan, on Corso Buenos Aires – one of the prime shopping destinations – a queue stretching a kilometre long formed at dawn in front of the Pop Mart store, a Chinese giant in the collectable toy industry. This long line was reminiscent of hype surrounding an iPhone launch or a rock star concert. The reason for such excitement? The arrival of the latest and highly anticipated Labubu collection. This event even piqued the interest of those who had never heard of these furry little monsters before.

Who is responsible for the creation of these now-viral objects of desire? The father of the Labubu is Kasing Lung, an artist originally from Hong Kong. These puppets are not solitary beings; they belong to a much larger universe filled with a variety of little monsters, collectively known as “The Monsters.” 

Artistically speaking, what makes the Labubu particularly fascinating is its ability to blend two styles that might initially seem contradictory. On one hand, there are the oriental influences stemming from the artist’s heritage, and on the other, the imagery drawn from Nordic European fairy tales. Kasing Lung is intimately familiar with this latter world, having spent part of his childhood in Belgium.

Interestingly, the Labubu is not a recent creation; the first models were introduced in 2015. However, it wasn’t until 2019 that Pop Mart recognised their potential, acquiring the rights and preparing them for a leap to global fame.

But why does everyone go crazy over a Labubu?

Labubu’s rise to popularity has been notable for some time, but the real surge—what can be described as a tsunami—has a specific epicentre: the social media profile of Lisa Manoban, the charismatic rapper and singer of Blackpink, the most famous and influential K-Pop girl group in the world. Lisa, who also starred in the acclaimed latest season of *The White Lotus*, has played a pivotal role in this phenomenon. 

Towards the end of 2024, she began sharing her passion for small animals with her millions of followers, regularly showcasing them as fashionable accessories at glamorous events, often attached to her designer bags. The effect was profound: an unstoppable media wave, one that only social networks, with their viral power, can generate and amplify.

From that point onward, a collective frenzy ensued. Other international divas, such as Dua Lipa, Kim Kardashian, Selena Gomez, and Rihanna, began sporting these unique accessories, attaching them to their fashionable bags. The result? An unprecedented Labubu hunt, leading to a staggering increase in the prices of the rarest specimens and limited editions. These items have now become authentic collectors’ pieces and lucrative investments.

Does the Labubu phenomenon mean recession?

Now, let’s delve into the less glamorous yet more intriguing aspect of this phenomenon: its potential connection to the current period of economic uncertainty, or even outright recession. This seemingly strange link can be explained by an economic concept known as the “lipstick effect.” Don’t worry; you don’t need an economics degree to grasp it! In short, this theory outlines a tendency that has been observed throughout history: during times of economic crisis, consumers tend to prefer purchasing cheaper and more accessible luxury goods. When finances are tight and larger purchases, such as a new car or a house, feel out of reach, we often seek small comforts—little luxuries that provide a sense of satisfaction without significantly impacting our budgets.

The concept of lipstick as an economic indicator, known as the “lipstick effect,” originated from observations made by Leonard Lauder, the son of Estée Lauder and chairman emeritus of the Estée Lauder Companies. This idea gained popularity during the recession that followed the September 11, 2001, attacks and the beginning of the war in Afghanistan. Lauder noticed an interesting trend: while many sectors of the economy struggled and demand for luxury goods declined, sales of cosmetics—especially lipsticks—remained steady and even increased. It’s intriguing, isn’t it? After all, lipstick is not a basic necessity.

The idea that small luxuries can play a significant role during difficult times isn’t entirely new. For instance, it is said that Winston Churchill, during the Second World War, chose to exclude cosmetics from rationing. He reasoned that these products were essential for maintaining the morale of the population, particularly women, during a time marked by immense sacrifices and concerns. Allowing for a small act of normalcy and self-care helped people cope in a world turned upside down.

Why do lipsticks, and by extension, other small pleasures like Labubu today, become “crisis-proof” goods? The answer lies in the psychological gratification that comes from purchasing something that satisfies a small desire or vanity, especially when we have to give up so much else. During times of crisis, when morale is often low and worries about financial security are prevalent, buying a product that appeals to the aesthetic sphere or personal pleasure can significantly boost one’s mood. 

A branded lipstick, a fragrance, or a cute accessory like a Labubu, while not strictly necessary, serve as affordable luxuries that provide a sense of pampering and help one feel more at ease. Sometimes, people forgo their usual inexpensive options to indulge in a slightly more expensive and desirable version of these small luxuries. This behaviour is known as compensatory consumption: I may not be able to afford a thousand-euro designer bag, but I can attach a collector’s Labubu to my existing bag, which yields a similar, albeit lesser, dopamine rush.

Social dynamics also play an essential role in this phenomenon. Maintaining a certain aesthetic standard or possessing trendy items can help preserve self-esteem and foster a sense of belonging.

The effects of consumer behaviour observed in previous years are still evident today. Market data from 2022- 2023, analysed by companies like Circana, reveals that sales of beauty products have continued to grow, including a notable increase in luxury cosmetics, despite a challenging global economic environment.

To understand the connection between these cute (and often pricey for collectors!) Labubu puppets and the economy make it clearer that they may represent a ‘lipstick effect’ 2.0. This phenomenon suggests that, similar to the past with lipsticks, people are seeking small joys and affordable status symbols as a way to momentarily escape the complexities and uncertainties of the world around them.

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What are the 5 most popular crypto AI agents in the crypto world?

Top 5 Crypto AI Agents You Should Know

What are the five most popular crypto AI agents? Decentralised ChatGPT variants are also capable of handling money.

What are the most popular crypto AI agents? You may be familiar with ChatGPT, Gemini, Claude, and other artificial intelligence systems that we interact with daily. Now, imagine if these digital brains could not only write poetry or solve complex problems but also manage real money, invest, earn, and even spend cryptocurrencies. Sounds like science fiction? Not at all! Welcome to the world of crypto AI agents, an exciting new frontier that emerges from the convergence of two revolutionary technologies: cryptocurrencies and artificial intelligence.

In simple terms, we are discussing digital entities that can operate autonomously in decentralised financial markets, providing analyses and price forecasts. The most remarkable aspect is that these are not just bots following a fixed algorithm; they are designed to learn from their mistakes and adapt to changing market conditions, much like a human would.

At first glance, this might seem like an extreme simplification, and to some extent, it is. However, there’s no need to worry! In this article, we won’t dive into the theoretical explanations of what crypto AI agents are or how they function in detail—we’ve already covered that elsewhere. Today, we aim to get straight to the point: we will review the five most popular and interesting crypto AI agents, exploring what they do and why they have garnered so much attention.

The 5 most popular crypto AI agents

Virtual Protocol: the ‘factory’ of AI agents

Let’s start with an exciting introduction! Virtual Protocol is not just a single AI agent; it is a comprehensive platform, or as it refers to itself, an “AI agent company”—that allows users to create customised AI agents. Thanks to Virtual Protocol, once configured, these agents “come to life” and can begin to operate autonomously in the digital world. What does this mean? Imagine having the ability to “program” your digital assistant that can process cryptocurrency transactions, make decisions based on its past experiences or analysed data, and interact with its surroundings, whether it’s the blockchain or other platforms like social networks.

Most of the agents created through Virtual Protocol fall under the category of IP (Intellectual Property) agents, which can be described as true virtual personalities or digital influencers. A striking example is Luna, an agent who has gained immense popularity on TikTok, accumulating nearly one million followers through her engaging content. Additionally, there are functional agents, which are less focused on the social aspect and more oriented toward performing specific tasks to enhance the user experience on various platforms or services.

AIXBT: the oracle of X

If you are a crypto enthusiast and spend time in the community, you have likely encountered AIXBT. This platform stands out as one of the most popular and widely followed crypto AI agents. Built on the Virtual Protocol ‘agent factory’, AIXBT is described as a sentient agent with a clear primary purpose: to keep holders of its associated token informed by sharing market analysis, insights, and forecasts related to the crypto world.

These analyses are not arbitrary; they are the result of an ongoing process involving data collection, analysis, and interpretation. AIXBT has successfully amassed a substantial following, currently totalling around 500,000 followers. This success can be attributed to its ability to identify emerging market narratives and provide valuable information—referred to as alpha—that gives investors a competitive edge. The quality of AIXBT’s content is so high that even CoinGecko, a leading and trusted data analysis platform in the crypto sector, has chosen to integrate AIXBT’s analyses.

One small detail is not insignificant: the token linked to this agent has experienced moments of glory, reaching a market capitalisation of no less than $745 million at its peak.

Eliza OS: the first Venture Capital managed by AI

The concept behind Eliza OS, previously known as ai16z, is quite fascinating: envision a world where your investments not only work for you passively but do so intelligently, proactively, and completely automatically. This concept extends beyond traditional notions of compound interest or standard financial formulas. Instead, we are discussing a tokenised artificial intelligence built on the Solana blockchain, designed to generate returns through sophisticated and continuous trading activities.

In simple terms, Eliza OS can be described as a fully decentralised and automated venture capital fund that leverages AI to make informed financial decisions. It operates like a tireless financial advisor, constantly active and staying updated on the latest market trends. The Eliza OS-linked token saw extraordinary success, exceeding a remarkable $2.5 billion in capitalisation within just four months of its launch. However, it is important to note that the token’s price has since dropped significantly.

Hey Anon: GPT Chat for DeFi

The penultimate project in our roundup features a prominent figure in the Italian DeFi scene: Daniele Sesta. Hey Anon is a protocol created with a simple yet powerful objective: to significantly simplify interactions with the complex world of Decentralised Finance (DeFi).

It is a chatbot similar to ChatGPT, but specifically designed to interact directly with DeFi. You can give it instructions in natural language, connect your crypto wallet, and it will handle all the technical aspects for you. 

For example, if you have a certain amount of ETH and want to use it as collateral to secure a loan on Aave but aren’t sure where to start or find the process cumbersome, you can simply ask ‘Hey Anon’ to do it for you. However, there is a caveat: to utilise the services of this platform and issue commands to the chatbot, you need to hold a certain amount of the project’s native token, ANON.

Kaito: A Search Engine for Web3?

We conclude our list with Kaito, a platform designed to simplify access to and understanding of the vast amount of data within the Web3 universe. Staying informed about the ever-evolving crypto world can be challenging, given the constant influx of news, social media trends, discussions on Discord and Telegram, on-chain data, and the rapid emergence of new projects. Kaito aims to address this issue.

Utilising AI, Kaito collects, analyses, and presents essential information from a variety of sources, assisting users, investors, and developers in navigating this expansive landscape and making more informed decisions. It functions like an enhanced version of ‘Google Search,’ focused explicitly on cryptocurrencies and Web3. This tool promises to streamline the search for quality information, making it faster and more efficient.

That’s just a glimpse into the current state of the crypto AI agent landscape, which is rapidly evolving with new ideas and projects emerging daily. While it’s still early in this development phase—and, like all emerging technologies, it comes with challenges, risks, and a great deal of experimentation—one thing is clear: the combination of artificial intelligence and blockchain has the potential to create possibilities that, until recently, seemed like they belonged in science fiction novels.

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Token YNG: Q1 2025 Report

Token Young (YNG): updates and news Q4 2024

The Q1 2025 Report on the YNG Token. What has happened? What are the next steps?

The first months of 2025 have concluded with tangible results for our ecosystem, and, most importantly, several key developments related to our strategy for organic growth. Amid evolving regulations and the launch of new services, we are laying the foundations to make Young Platform increasingly central to the financial lives of our users.

There are also several updates specifically concerning the Young (YNG) token, the beating heart of our ecosystem. The strategy we have adopted aims to facilitate the token’s organic growth while mitigating the risk of excessive selling pressure that could undermine its long-term stability and value. However, this section appears exclusively in the members-only version of our report, which for the first time will be split into two editions:

  • A public version, accessible to all, outlining the achievements reached and new services launched.
  • An exclusive version, reserved for Club members, providing in-depth insights into data, future strategies—including key strategic decisions concerning the growth of the YNG token—and updates on the Young (YNG) tokenomics, including figures on issuance, distribution, and, for this edition, additional information on decentralised listing.

If you’re overcome with curiosity, there’s only one thing to do: join one of the Young Platform Clubs. If you’re already a member… what are you still doing here? Check your inbox: the deluxe version—musically speaking—of this report is waiting for you.

2025 So Far: Achievements and Newly Released Features

During the initial months of 2025, a significant part of our efforts has been dedicated to addressing the regulatory and fiscal aspects of the crypto sector. In addition to the work initiated months ago to ensure compliance with the European Markets in Crypto-Assets Regulation (MiCA), we have launched initiatives focused on taxation to provide our users with comprehensive tools to handle their tax declarations in a simple, secure, and compliant manner in line with Italian regulations.

At the same time, we have continued to advance our planned strategic projects. Our overarching goal for this year remains clear: to become a digital hub that merges the best of traditional finance (TradFi) and decentralised finance (DeFi). However, the path to achieving this is now enriched with new, early milestones.

Young Platform’s Tax Services

For three years, we have been supporting our users with tailored financial solutions. What began as a simple report has evolved into a full-fledged ecosystem of tools designed to make the tax declaration process quick and stress-free. Today, we offer the following documents, all updated for the 2025 tax filing season:

  • Young Platform Tax Report: For those who use our exchange exclusively.
  • Young-Okipo Tax Report: For users active on multiple exchanges, including decentralised platforms, those holding NFTs, or engaging with DeFi protocols.
  • Transaction Report: To neatly archive the history of trades, orders, and Smart Trades.
  • Stamp Duty Receipt: To be retained for any potential tax audits.
  • Crypto Accountant Service: For those who prefer to rely on an expert to manage their tax declaration directly.

The Box

One of the standout features of Q1 2025 has undoubtedly been The Box, our competition designed to make the world of finance more accessible, dynamic, and engaging. The initiative has proven to be a great success, with thousands of users actively participating, completing missions, climbing the leaderboard, and contributing to the ongoing development of the Young Platform ecosystem. The current competition is scheduled to conclude on 31 May, and shortly thereafter, we will announce the winners and distribute the prizes.

At the heart of the initiative is the Young Card, our phosphorescent debit card offering cashback in YNG. It is a cornerstone of our long-term vision.

Club Price Rebalancing Mechanism

Since 4 February 2025, access to Young Platform’s Clubs has been governed by a monthly price adjustment mechanism based on the market value of YNG. The objective is to maintain a stable entry cost in euros, ensuring a balance between accessibility and the token’s value:

  • If the price of YNG decreases, the number of tokens required increases proportionally.
  • If the price of YNG increases, the number of tokens required decreases, though less sharply, thanks to a discount factor.

This system, with pricing updated on the first Tuesday of each month, prevents the Clubs from becoming either excessively exclusive or too inexpensive in the event of significant price fluctuations.

Updated Prices for May 2025 (YNG Price = €0.193):

  • Bronze: 1,865 YNG
  • Silver: 6,217 YNG
  • Gold: 12,435 YNG
  • Platinum: 31,088 YNG

New Club Benefits

The first quarter of 2025 has also been particularly rewarding for members of Young Platform’s Clubs, with the introduction of new exclusive benefits designed to enrich the user experience both financially and personally. Here are some of the most notable additions:

  • BuiltDifferent: A personalised fitness and nutrition platform that allows users to follow tailored workout programmes, access advanced nutritional plans, and enhance their lifestyle—wherever they are. All of this is offered under significantly more favourable conditions than those of a traditional personal trainer.
  • Milano Finanza: One of Italy’s most authoritative sources for investors. Club members now enjoy free access to premium content and daily analysis on markets, macroeconomics, and investment strategies—a practical tool for making better-informed decisions.
  • Serenis: Italy’s number one online medical centre for psychological support. Through our partnership, Club members benefit from access to counselling and therapeutic support at preferential rates, because financial and emotional well-being should always go hand in hand.

These benefits are in addition to the already extensive range of advantages available to Club members—from financial education and exclusive privileges on crypto services to personal well-being and new growth opportunities.

And this is just the beginning: new partnerships are already in development to make the Young Clubs even more comprehensive, distinctive, and aligned with a truly holistic vision of value.

An example? Exclusive access to the most analytical and data-rich section of this Report. While transparency has always guided us in publicly sharing all information related to the YNG token—including supply, purchases, sales, and emissions—starting with this first quarter of 2025, we have chosen to reserve such in-depth analyses exclusively for our Club members, who are direct holders of Young (YNG) and primary supporters of our ecosystem.

Our most engaged supporters deserve full transparency regarding the strategies shaping the future. Therefore, in the members-only version of this Report, we delve into the measures adopted to safeguard the value of YNG and foster sustainable, organic growth.

We will explore plans for the token’s future presence on the decentralised market and clearly outline the carefully considered reasons behind our decision to decline specific proposals from certain venture capital firms concerning the YNG token. This was a strategic decision made to protect our community from potential selling pressure and the dilution of the token’s value.

These strategic insights are a privilege reserved for those who actively live and shape the Young Platform ecosystem.

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How were Donald Trump’s tariffs calculated?

Les droits de douane de Trump : comment ont-ils été calculés et leur impact

Donald Trump has announced tariffs on a large number of countries. How much are they, and how have they been calculated? Spoiler: bad

Donald Trump’s announcement of duties on Tuesday sent shockwaves through various groups: politicians, citizens, companies, and especially the markets. Specific points were particularly emphasised. One notable aspect is the range of countries targeted by the US president’s decision—nearly all countries, including an island in Australia home only to penguins, except Russia, Cuba, North Korea, and Belarus.

However, the most intriguing aspect of this sovereignist, anti-globalisation decision is how the duties were calculated. This article will explore this aspect in greater detail.

A wave of global tariffs

The Trump administration’s trade offensive includes additional tariffs on nearly all goods imported into the United States, varying rates based on the country of origin. Here are some key details from the tariff plan:

  • Universal Basic Duty: A 10% tariff will be applied to all imports into the U.S.

“Worst Offenders”: Approximately 60 countries accused of unfair trade practices will face significantly higher tariffs starting April 9. These include:

  •  China: 34% tariff, added to the existing 20%, for 54%.
  •  Vietnam: 46% tariff.
  •  Thailand: 36% tariff.
  •  Japan: 24% tariff.
  •  European Union countries: 20% tariff.

The following section will discuss how misleading this classification can be.

Automobile Tariffs: A special 25% tariff will be imposed on all foreign cars and their components, significantly impacting foreign car manufacturers.

President Trump did not hold back in his trade offensive; countries from Europe to China, Japan to Brazil, are all set to “pay the price.” This list includes microstates and remote territories, ranging from the Svalbard Islands in the Arctic Circle to the uninhabited Heard and McDonald Islands, home only to penguins.

“We have been robbed for more than 50 years, but that won’t happen again,” thundered Trump, asserting that jobs and factories will return to the U.S. thanks to the tariffs. He even invited foreign companies: ‘If you want zero tariffs, come produce in America.’ In summary, this is America First version 2.0, which this time criticises virtually anyone living beyond the borders, even penguins.

How are duties calculated? The confusion between duties and VAT

As you may have noticed from the quotes, Donald Trump’s narrative has consistently centred on reciprocal tariffs. The former president has referred to his tariffs as “reciprocal tariffs,” claiming that the United States will impose duties only equivalent to the tariffs other countries have on American products. On the surface, this reasoning seems almost reasonable; however, the calculation method used by the White House is flawed.

In practice, Washington classified any existing foreign levy to justify high tariffs, confusing value-added tax (VAT) with actual duties. For instance, regarding Europe, Donald Trump claimed, “The EU is charging us 39%!” However, this figure is derived from Europe’s actual duties on some American products (less than 3%) and the VAT. This consumption tax varies from country to country. This calculation also includes any environmental or technical regulatory taxes, leading to a misleading representation of the actual tariff burden.

In simpler terms, the U.S. administration interpreted every existing tax on European products as punitive tariffs against the U.S.. It used basic mathematical operations to calculate the duties we see today. 

No serious economist would equate the Added Tax (VAT), which all consumers pay, including Europeans, with a duty specifically targeting foreign goods. However, this is how it is perceived to work in the “alternative reality” of the Trump trade war.

Reverse engineering on the trade deficit

The second part of the creative process by which the Trump administration determined the duties to impose on other countries is quite intriguing. The primary focus here is the trade deficit. Trump has consistently viewed this deficit as a scorecard: if the US imports more from one country than it exports, he interprets it as ‘losing’ and believes the other country is cheating.

For instance, it is well known that the US has a trade deficit of around $2.5 billion with Russia (importing more from Moscow than it exports). Trump frequently highlighted this fact in the past to justify implementing punitive measures.

During his narrative, the president mistakenly conflated the trade deficit with subsidies and integrated it into the formula discussed earlier. The result? The duties announced by the Trump administration are simply derived from the trade deficit divided by the respective country’s total exports to the United States.

Let’s illustrate this with a practical example by calculating the duty applied to Indonesia. The United States has a trade deficit of $17 billion with Indonesia, while Indonesian exports to the US amount to $28 billion. 

Calculating it: 

17 / 28 = 0.64 → 64%, precisely the figure on Donald Trump’s chart.

This aligns with ​​the government’s Reciprocal Tariff Calculations page: you take the US trade deficit in goods with a specific country, divide it by the total imports of goods from that country, and then divide the result by two. A trade deficit occurs when a country imports more physical goods from other countries than it exports to them.

The possible impact of these decisions

We have already observed the impact of the tariffs imposed by Donald Trump, at least on the surface. During the first day following the announcement, the US stock market plummeted approximately 8% (S&P 500), while the NASDAQ dropped about 9% since the beginning of the week. 

On the other hand, Bitcoin has held up slightly better. Although it is currently down about 7%, it remains in a favourable position compared to last week. 

From a geopolitical perspective, the situation appears even more critical. It is difficult to understand the rationale behind the decisions made by the US president. Trump seems to be aiming to dismantle globalisation, which is the process that has gradually removed barriers to free trade and facilitated economic integration between countries.

There’s an interesting paradox: for many countries, selling goods abroad at higher prices has been a means to accelerate capital accumulation and move closer economically to wealthier nations. This is how China experienced rapid growth, and Europe has also benefited somewhat from this process. However, the real winner of globalisation has been the United States. Why is that?

The U.S. gained favour with half the world by defeating the Soviet system, which failed to provide both consumption and growth. The United States initiated this process by reducing tariffs and showcasing the strength of its market economy. Free trade allowed the U.S. to emerge as a cultural, technological, and economic superpower, contributing to the decline of both the Soviet Union and Maoist China. This approach has generated significant wealth.

Contrary to what Trump might suggest, global trade does not harm the United States today. Thanks to its technological advantages, the US has focused on sectors that yield high productivity and added value. The outcome is a wealthier nation that produces fewer low-cost goods (which it imports) while buying these products at a low price, thus maintaining a very high per capita income.

This success is primarily due to American dominance in the services sector. Consider how many digital services we use daily—such as social media, search engines, streaming platforms, and software—are designed, operated, and monetised in the United States.

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Are Bit Bonds, US government bonds with underlying Bitcoin, on the way?

Obligations sur Bitcoin: les Bit Bonds sont-ils en approche?

The Bitcoin Policy Institute has proposed Bitcoin bonds, an innovative financial instrument that guarantees good returns without risk. Learn more about it.

Bonds based on Bitcoin may soon become a reality. The Trump administration’s favourable stance towards cryptocurrency is evident and has been demonstrated at various times, particularly with the approval of government reserves in Bitcoin.

Recently, however, discussions have emerged regarding an innovative financial development: a new method for integrating Bitcoin into the global financial system. Could BTC potentially serve as one of the pillars supporting U.S. debt through “Bit Bonds”? How do these instruments work?

US debt rises and worries.

The proposal to introduce Bitcoin-backed bonds has emerged in response to the growing US public debt, which has steadily increased relative to the GDP since the pandemic began. Naturally, when a problem becomes acute, the search for solutions accelerates. In this case, that could lead to the launch of Bitcoin-backed bonds.

Bitcoin does not fully collateralise these bonds; ​​they are financial instruments that include a strategic allocation to cryptocurrencies. The fundamental concept is quite ambitious, so we find it appealing. The idea is to enhance virtually risk-free financial instruments with a digital commodity, creating a net benefit for both governments and investors.

Buy BTC!

How Bit Bonds Work

Bit Bonds function similarly to traditional US government bonds. They are essentially Treasuries—debt securities issued by states to raise funds at a lower interest rate (coupon rate) than the market average. The yield on these financial instruments is lower not because they are inefficient but because a market segment that accommodates Bitcoin must be created.

The interest—or yield—is lower because part of the money raised through these bonds is invested in Bitcoin. As Bitcoin’s value increases, it could positively impact the bonds’ interest.

As you can see, the theoretical framework for how Bit Bonds work is straightforward and advantageous for both parties involved: the state and the investors. Since the rate associated with these bonds is lower, the state saves billions of dollars in interest payments on debt. At the same time, investors gain indirect exposure to Bitcoin (BTC), an asset historically appreciated over the long term.

Why are they not risky financial instruments?

The most interesting thing about Bitcoin bonds is that they are not risky. Rather, they have the same degree of risk as government bonds. How is this possible? The price of Bitcoin does not always rise, so there must be some risk associated with it.

False! Every time a new Bit Bond is issued, a small part of the capital raised is used to buy Bitcoin, which is then locked in a separate pool. At the bond’s maturity, you receive back all the initial capital (principal), just like when you buy a normal bond. In addition, if the price of BTC has increased, you will receive an extra payment proportional to the increase. 

This means that your investment is unpacked in two: a fixed tranche (typical of government bonds) and a variable tranche that follows the price trend of Bitcoin. Similar instruments such as TIPS (inflation-linked bonds) or gold-linked ones exist. 

However, as historical data shows, Bit Bonds incorporate higher volatility and a much higher expected return. The reason? The price of Bitcoin has always experienced soaring bullish movements in every market cycle, whereas the fluctuations that gold or inflation are subject to are much smaller.

This makes Bit Bonds more attractive for the state, which can afford lower interest rates, and for the investor, who can obtain a return similar to that guaranteed on average by the stock market (around 10 per cent) and a minimum degree of risk.

Buy BTC!

How much could the US save thanks to ‘Bit Bonds’?

According to some estimates, refinancing $2 trillion of debt with Bit Bonds at 2% instead of 5% would save the US government about $700 billion over 10 years. These savings could lower some debt, finance public programmes, or make infrastructure investments without raising taxes.

The key concept behind Bit Bonds is familiar to anyone interested in the investment world: the asymmetry between risk and return:

  • In the worst-case scenario, Bitcoin does not go up, but the government still pays less interest.
  • In the best case, Bitcoin will rise, and the state will collect extra income to repay the debt.

This structure is not very different from many structured products already used in traditional finance, in which a low-risk asset is combined with a more volatile one to create a profile with a more favourable risk-return balance.

Moreover, pension fund issuers, insurance companies and sovereign wealth funds are often reluctant to invest directly in cryptos. But if rating agencies were to classify Bit Bonds as ‘quasi-risk-free’ (because the state guarantees the principal), these instruments could enter institutional portfolios.

In short, for the retail investor, Bit Bonds could be the perfect gateway into the crypto world. They don’t require wallet setup or the vagaries of custody. They’re just like government bonds but with an edge.

In an era of trillion-dollar deficits and a total lack of fiscal discipline, Bit Bonds offer an innovative solution: harnessing the growth of Bitcoin to ease the burden of interest and lower (at least some of) the national debt. 

One thing is sure: if even part of this idea becomes a reality, we could be at a turning point. In a few years, we might say, “This is when everything changed.”

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Pectra: Ethereum’s next big update explained simply

Ethereum Pectra update: How does it work?

The Ethereum Pectra update is set to arrive on May 7. This article explains what it is, how it works, and the improvements it introduces.

The Ethereum Pectra update is set to be activated on the Ethereum blockchain. Currently undergoing testing, this update has clear objectives: to enhance the network’s speed, scalability, and user-friendliness.

With the Pectra update, users will no longer be required to pay gas fees solely in ETH. Additionally, it aims to improve the execution of smart contracts. In the long term, innovations such as Verkle trees and Peer DAS are expected to make the entire network more affordable, powerful, and capable of accommodating millions of additional users.

Pectra may not be as well-known as The Merge, but has the same revolutionary potential. It is a hard fork, representing a significant structural change that will create a clear division between the ‘before’ and ‘after’ of the Ethereum blockchain. The name Pectra comes from combining two distinct updates: Prague, which affects the execution layer and Electra, which impacts the consensus layer. For example, in 2024, with Dencun (from Deneb + Cancun), Pectra merges two components into one evolutionary upgrade.

How does Pectra work?

To truly understand what Pectra is and how it works, we must focus on practical aspects that are more effective for successfully mastering technology.

1. Account Abstraction

The Ethereum Pectra update’s first focus is account abstraction, a key concept that has gained significant attention in the on-chain world over the past two years. Account abstraction refers to a technology introduced through the technical proposal EIP-4337 on the Ethereum blockchain. It merges the functionalities of traditional accounts with smart contracts, resulting in the creation of smart wallets.

This innovation simplifies the user experience by eliminating the need for a seed phrase, automating transactions, and reducing gas fees. Account abstraction is the technology that will make decentralised applications (dapps) as seamless as traditional applications.

This change will also impact the current status quo, where users must hold at least a small amount of Ether (ETH) in their wallets to cover gas fees—transaction costs incurred whenever a transfer is made or when interacting with a dapp.

2. More efficient smart contracts

The second focal point of the Pectra update is the efficiency of Ethereum smart contracts, particularly concerning their execution. One planned improvement is the introduction of proposal EIP-7692, which consolidates several other technical proposals. 

To summarise, this proposal alters how smart contracts are compiled from a coding perspective and managed overall. For example, contracts will be divided into sections with clear headers, making code analysis, maintenance, and security easier. New commands will be introduced to jump between sections, manipulate the stack, and read data more efficiently. 

Additionally, code validation will occur only once during deployment rather than at each execution, which will help reduce costs and errors. These changes will occur at the bytecode level instead of in a high-level language like Solidity. In practice, the EVM Object Format (EOF) will change how Solidity code is compiled and executed within the Ethereum Virtual Machine (EVM).

3. More flexible validators

Let’s focus on the consensus front, where the Ethereum Pectra update will significantly improve the Ethereum network. Currently, a validator must stake a minimum of 32 ETH ETH to receive rewards. However, any amount staked above 32 ETH does not generate additional rewards; it remains idle and unused. The Pectra update will modify this system by introducing flexible staking (EIP-7002) and increasing the maximum staking limit per validator from 32 to 2048 ETH (EIP-7251). These changes will enhance the system’s flexibility and efficiency, particularly for entities managing large amounts of ETH, such as companies or institutional traders.

Another essential feature of the update is the “consolidation of validators.” This function will enable platforms like Lido, which stake on behalf of multiple users, to manage fewer validator nodes for the same amount of ETH. The outcome will be reduced pressure on the network, increased efficiency, and a more sustainable use of resources.

4. Verkle Tree

This integration is quite technical, so we will explain it without delving into the details. Verkle Trees will enable network nodes to store less data than currently. The outcome? A lighter, faster, and more scalable network. 

This is a new and more efficient way of organising data compared to the current method. This change will ultimately make Ethereum more efficient and cost-effective to use in the long run.

5. Peer DAS for Layer 2

Ethereum relies on Layer 2 solutions, such as Arbitrum (ARB) and Optimism (OP), to enhance network scalability. With the recent Ethereum updates, Peer Data Availability Sampling has been introduced. This technology helps reduce costs and improve transaction speeds on these Layer 2 solutions by allowing rapid verification of transaction data without downloading it. It is a practical measure to keep fees low, even during periods of high on-chain activity.

A double update in two stages

Pectra will be released in two phases. The first phase, which will feature the more visible new enhancements, such as account abstraction and updates for validators, is scheduled to be released in less than a month, with the official date set for May 7, 2025. The second phase will focus on more technical improvements, including the EVM Object Format (EOF) and Peer DAS, which are intended to enhance Layer 2 solutions and smart contracts., This phase is expected to arrive in 2026. What is the impact on ETH price? Hard to say…

Ethereum is currently facing some challenges. After reaching multiple all-time highs, it has lost over 60% of its value and appears stuck in a continuous downward trend. For this reason, we are not confident that the Pectra update will significantly impact its price.

However, this update could pave the way for broader adoption and may positively affect Ethereum’s fundamentals, which is the most crucial aspect. With features such as the ability to pay gas fees using any token, more efficient writing and deployment of smart contracts, and flexible staking management, it’s clear that these enhancements make Ethereum more attractive to both developers and end users.In summary, Pectra is not just another upgrade; it represents a critical step toward creating a more scalable, affordable and accessible Ethereum network. This update is a quiet but significant stride toward overcoming the blockchain trilemma of scalability, security, and decentralisation, ultimately preparing the network for mass adoption.

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Why is the bull market struggling?

Will quantitative easing kick-start the explosive bull market?

According to the most optimistic investors, the recent bearish movement will kick off the altcoin season. According to the most pessimistic the bull market is over. What is the truth? Does it all come down to quantitative easing?

The season of quantitative easing still appears distant, while the prices of significant assets—ranging from cryptocurrencies to equities—have dropped significantly in recent days. What is lacking in this bull market, which seems quite different from previous ones? While nothing has been lost, the global landscape regarding monetary policies, particularly those of the United States, appears far from a turning point.

In this article, we will explore quantitative easing and discuss why igniting the next alt season might be necessary.

Quantitative easing: what is it?

Understanding quantitative easing is crucial for navigating the current market landscape. Simply put, it is “the central banks‘ secret weapon” for stimulating the economy. This contrasts with quantitative tightening, which involves raising interest rates and decreasing the money supply.

Quantitative easing involves significantly lowering interest rates, making it easier for individuals and businesses to borrow money. It also includes the purchase of government bonds and other financial assets. It acts like an “all you can eat” buffet for central banks. This influx of cheap liquidity, which comes from the money that investors choose not to invest in bonds due to their very low yields, then flows into assets that are considered riskier, particularly stocks and cryptocurrencies.

For the past fifteen years, quantitative easing has been the solution for every crisis, from the collapse of Lehman Brothers in 2008 to the COVID-19 pandemic in 2020. It has also fueled recent bull markets. However, the current situation is different. Despite declining inflation between 2021 and 2023, interest rates remain above the 2% target, at 3% in January 2025. This limits the potential for aggressive monetary policy easing. Additionally, this comes on the heels of Trump’s recent announcements about new tariffs, which have been confirmed for Canada and Mexico. According to the Federal Reserve, cutting rates too quickly could lead to excessive speculation in the financial markets and an overheated economy.

The growth of Bitcoin’s market capitalisation

Despite the absence of quantitative easing monetary policies, the market has experienced explosive growth in the final months 2024. Since November 2022, Bitcoin’s price has surged by 448%, and its market capitalisation has risen from USD 300 billion to USD 1,760 billion, peaking at USD 2,150 billion.

This impressive growth is partly due to the approval of spot ETFs. These financial instruments have attracted approximately $38 billion to Bitcoin and currently hold $101 billion worth of BTC, representing 5.79% of the circulating supply. Bitcoin had never before seen a market capitalisation increase of $1.7 trillion at its peak in January 2025. A look at past cycles reveals the following performance:

  • 2015-2017: +11,082% over 1,068 days, with a $326 billion increase in market capitalisation.
  • 2018-2021: +2,021% over 1,060 days, with a $1.21 trillion increase in market capitalisation.

Overall, this market cycle appears strongly positive when analysing Bitcoin’s performance and the milestones achieved over the past three years.

For example, Bitcoin (BTC) has become a central topic in global financial discussions, significantly influencing debates in the United States, including during the presidential elections. Notably, Senator Cynthia Lummis and former President Donald Trump have both advocated for creating a strategic reserve of BTC for the U.S. Treasury.

Some considerations on the market cycle we are currently experiencing

Let’s set aside quantitative easing, which we’ve already noted is a missing element in this market cycle, and instead focus on how this cycle differs from previous ones. The key question for many crypto enthusiasts is: Will there be an altseason, and will it follow the recent market crash?

It is difficult to determine ‘where we are in the cycle’.

On one hand, we can confidently say that we have not yet experienced a true altcoin season. On the contrary, we have gone through one or more meme coin seasons, the most recent coinciding with the launch of TRUMP, a meme coin introduced directly by the former U.S. president in January.

On the other hand, the price of Bitcoin has increased significantly, rising by 60% from the previous cycle’s all-time high. Additionally, it has been over 12 months since Bitcoin first broke its all-time high in January 2024, making this cycle even more unusual.

Despite this, some industry experts believe the outcome is still uncertain. The new retail investors who have entered the market—partly due to the launch of TRUMP—could return if an altcoin season finally takes place.

Has the meme coin casino replaced the altseasons?

This point is closely related to the previous one. The launch of numerous new meme coins, along with the strong performance of associated platforms such as pump.fun, acts as a funnel that attracts and drains liquidity from the crypto market.

As a result, many investors have shifted their focus to the meme coin sector, while others are giving up on altcoins. Additionally, the high expectations surrounding Donald Trump’s election have somewhat diminished. The president has notent has commented in a while on crypto, particularly since the launch of his meme coin.

An axiom that has always applied in previous crypto market cycles—likely triggered by quantitative tightening and liquidity injections—states that the price of Bitcoin rises first, then Ethereum’s price follows. Finally, liquidity flows into smaller altcoins. However, today, the situation seems to have changed. Only time will tell if this marks a paradigm shift or a delay.

Major market players are continuing to accumulate.

Let’s conclude this article with some positive news. Despite the lack of quantitative easing, which has historically catalyzed bull markets, the current cycle demonstrates remarkable resilience. Bitcoin, fueled by institutional ETFs and unprecedented political recognition, has defied historical patterns by growing in a more restrictive monetary environment. However, the absence of a traditional ‘alt season’ and the dominance of meme coins prompt questions about the future of cryptocurrency: Are we witnessing a paradigm shift or merely a temporary pause?

The answer may be found in patience. Institutional investors continue to accumulate assets, indicating that long-term confidence remains strong. While the current macroeconomic climate—characterised by high interest rates and geopolitical tensions—may dampen enthusiasm, it also creates opportunities for strategic accumulation, potentially setting the stage for a future surge. The actual ‘trigger’ for market movement may not be the return of quantitative easing but rather the market’s adaptation to new rules, where innovation, regulation, and mass adoption craft a different narrative. As the history of past cycles teaches us, one certainty remains: markets always surprise us, often just when expectations are low.

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Out Tesla, in Bitcoin: Standard Chartered revolutionises index Mag 7

Standard Chartered replaces Tesla shares with Bitcoin

Standard Chartered has replaced Tesla with Bitcoin in its Mag 7B index, citing higher yield and lower volatility. Discover how cryptocurrency has entered the realm of elite assets.

The banking giant Standard Chartered has released a new report proposing a variation of the well-known “Magnificent Seven,” which includes seven major tech companies that dominate the global stock market. In this latest version, called “Mag 7B,” Tesla shares have been replaced by Bitcoin.

This approach evaluates whether cryptocurrency can be a viable alternative—if not a superior one—to one of the most iconic companies in the technology sector. Early results indicate that Bitcoin has provided higher returns with less volatility. Tesla is struggling due to the significant downturn it experienced following Donald Trump’s arrival in the White House.

Tesla shares and Bitcoin: what is the Mag 7B index and the information ratio

Substituting Bitcoin for Tesla shares in the Mag 7 index, which replicates the behavior of top global technology assets, creates what we can call the Mag 7B. This idea is not original; it comes from Standard Chartered, one of the leading banks in the UK. Interestingly, Geoffrey Kendrick, the bank’s Head of Digital Assets Research, stated that this new composition could generate returns approximately 5% higher from 2017 to the present while reducing average annual volatility by nearly 2%.

This claim is particularly evident when analysing the information ratio, which measures an asset’s extra return compared to a market benchmark about the volatility of its differential returns against a reference index. The information ratio helps evaluate an asset’s performance by comparing it to its associated risks.

Replacing Tesla shares with Bitcoin within the Mag 7 index yields a higher information ratio, suggesting better performance: 1.13 compared to 1.04. Kendrick’s decision to include Bitcoin instead of Tesla shares is based on the observation that Bitcoin behaves more like a tech stock than a traditional store of value. Consequently, it is more correlated to the Nasdaq 100—an index tracking the performance of the 100 most capitalised American tech companies—than gold.

Additionally, the data indicate that since January 2025, following Donald Trump’s assumption of the presidency, Bitcoin’s price performance has shown similarities to Nvidia’s, while Tesla’s seems to be more closely aligned with Ethereum’s in terms of volatility.

Will Bitcoin in institutional wallets become the norm?

The decision to include Bitcoin in the Mag 7B index at the expense of Tesla shares is more than just an academic exercise; it signifies a significant shift in the investment landscape. Various funds, including sovereign wealth funds, are increasingly exploring direct exposure to Bitcoin. BlackRock CEO Larry Fink has emphasised this trend over the past two years. With the recent launch of BlackRock’s Bitcoin ETF in Europe, the prospect of institutional investors allocating capital to Bitcoin has become even more tangible. Furthermore, Europe is home to many affluent savers considering investing in a new but undeniably solid asset.

In summary, Kendrick’s analysis extends beyond potential returns. The lower volatility that could be achieved by substituting Tesla shares with Bitcoin indicates that this cryptocurrency may help rebalance the overall risk of a technology-focused portfolio. The conclusion is clear: Bitcoin is no longer an outsider; it can now be regarded as a legitimate asset in innovation-oriented portfolios.