This week on “Deconstruction”: the Coldcard wallet hack, Jim Cramer’s quantum panic, new cryptocurrency legislation in Russia, Cloudflare’s microtransactions for AI, and Michael Burry’s bet against chip manufacturers.
Coldcard Wallet Hack
The Coldcard wallet hack involving $100 million due to an old software bug demonstrated that formal paper certification of physical devices is outdated without dynamic code execution control. AI has fundamentally changed cybersecurity, making vulnerability searches cheap, which will ultimately push major capital towards regulated instruments like bitcoin ETFs.
Cramer Sells Bitcoin
Jim Cramer’s panic over quantum computers is technically premature: the power to hack blockchains simply does not exist yet. The market ironically took this as a reliable buy signal under the “inverse Cramer” strategy, though quantum technologies do pose a future threat to encryption algorithms of all digital devices worldwide.
The Future of Russia’s Crypto Market
The new cryptocurrency law in Russia formally sets rules, but experts call it the death of the traditional P2P market. Strict limits, data sharing with tax authorities, and KYC requirements will strip Russian platforms of speed and anonymity. Ultimately, the law, designed exclusively for big business, will push retail trading deep into the black market.
Cloudflare’s Microtransactions
Already, 52% of all traffic is generated by AI bots that don’t click on ads or link credit cards. To enable content creators to earn money, Cloudflare is launching a payment gateway based on forgotten code from 1997. Now AI agents will be able to pay with stablecoins, taking the microtransaction market away from systems like Visa.
Burry Shorts AI
Famed investor Michael Burry is once again betting against the market: while everyone is buying big tech stocks, he is shorting AI equipment manufacturers. Relying on strict accounting, he points to the “depreciation trap” and pricing paradox. The investments of giants already exceed their profits, forming a debt bubble and predicting an inevitable large-scale correction.
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