If you've been around Bitcoin long enough, once per cycle you
see one of your heroes fall from grace.
And this exception is no cycle. Tom Lee is aiming to create the
micro strategy of Etherium well. To me, one of the things that
caught my eye is that stable coins are the ChatGPT of.
Tom Lee became the chairman of Bit Mine Immersion Technologies
and plans to raise $250 million not to buy Bitcoin, but to buy
Ethereum. This is weird for this company
because for their investors, their entire thesis and even
their branding is centered around Bitcoin.
Today we're going to dive into a presentation that Vitalik
Buterin, the founder of Ethereum, gave, outlining the
master strategy for central banks to control your money
through the Ethereum blockchain. We're also going to share why
this theory is likely fail Gaul's law, and why Vitalik
himself said Ethereum is vulnerable.
And this is all on the heels of MicroStrategy, the strategy
they're trying to copy, potentially being included into
the S&P 500. Maybe the right thing to do is
to just buy Bitcoin. And this is some big news.
It's kind of complicated, but probably suffice to say that you
all are doing basically what MicroStrategy did with Ether.
You're going to make ether, the purchases that you buy through
this. You're going to set this whole
thing up like this. You want to explain a little?
Bit yeah, glad to you know, I'm, I'm still a big fan of Bitcoin
because I think it is, you know, digital gold.
But what we've seen in the last really in 2025 is the financial
services industry and crypto are converging.
And it really started with stablecoins, which is the
ChatGPT of crypto, right? Because it's viral adoption by
consumers, businesses, banks, and now even Visa.
Underneath the stablecoin industry is Ethereum that is
really like the the backbone and architecture of stablecoin.
So it's important to create a project that's essentially
accumulates Ethereum to essentially protect and have
some influence on the network. So that's why we're creating
this treasury vehicle to buy Ethereum.
The more Ethereum that's accumulated, the more secure the
network is. And I think it's also sort of
the architecture that future banks will have, you know, when
Goldman issues a stable coin and JP Morgan doing it on Ethereum
as a layer one blockchain, they're going to want to secure
it by staking Ethereum. So we're trying to get in front
of that by creating a treasury. But we'll cover that today.
This is Dante Koch with Bitcoin. Simply, let's go.
People are making ridiculous statements like ETH is going to
be the next Bitcoin in bit mine. Immersion Technologies is going
to become the next micro strategy.
It's funny because this is on the heels of micro strategy
being included in the Russell Top 200 index, the top 200 value
index in the top 200 growth index.
Micro strategy has passed all of the criteria to be included in
the S&P 500, and people say that they're on track to be included
by as early as August. Micro strategy will make $14
billion in net income come in Q2 this year.
That'll be more than Amazon. And as Jeff Walton and some of
the MicroStrategy Bros predicted over a year ago, with Bitcoin
around 140K in MicroStrategy being included in the S&P 500.
Well, he predicted that shares of MicroStrategy will be worth
around $4000 a share. That's 10X from even today.
One thing to point out is in the clip that Tom Lee says that
they're buying Ethereum so that they can have influence in
control over the network. Here's the thing.
It doesn't matter how much Bitcoin that MicroStrategy or
Michael Saylor buys, or the other 253 Bitcoin treasury
companies right now, buying more Bitcoin doesn't buy you more
influence in, say, over the network in the protocol.
They're competing for a fixed supply of 21 million Bitcoin and
Ethereum holders are competing in a world of unlimited fake
tokens created without restraint.
That is simply a means of propping up the existing
financial system. And what?
Just so I understand it's safer if you own more of it.
Explain why that would be. Well, Ethereum is a proof of
stake network, so unlike Bitcoin, which is proof of work
and miners do all the work for you and that's why you have
decentralized trust in Ethereum. It's important for these
entities to be essentially validate transactions.
So by becoming a staking entity, you're sort of securing the
fidelity of stable coins. So you don't want a stable coin
like USDC or USDT to be on a blockchain that's outside the
purview of the US And so I think Etherium is a high quality, the
second largest blockchain network and it's over 51% of
stable coins and 30% of all fees on Etherium are actually stable
coin revenue. The central banks, the big banks
all want to be able to control the money, to program it, to
manipulate it, to extract fees from the money that you're
saving into these protocols, sort of like they already do
with the fraction of reserve banking system.
This was always the game, and this is the game that Ethereum
helps him do at scale. And that's why Coinbase, Kraken,
Robin Hood, and even JP Morgan are building their own tokens on
the Ethereum blockchain. JP Morgan just recently came out
with their own permission coin, and this eventually will
intersect with their Conexus network, allowing them to move
trillions of dollars of your money without your permission.
Vitalik Buterin just gave this presentation at Robin Hood's
conference, talking about Ethereum's path to becoming a
store of value. The large institutions and the
pension funds are next. And then if you look all the way
to the right of this image, the central banks, that's always
been the game. That's always been the big boss.
Not only is this a system that I don't think any of us want, but
here's the problem. It's a system that's flawed
because it's built on a system that is too complex.
This is the basis of Gaul's law, which states is that a complex
system that works is invariably found to have evolved from a
simple system that worked. A complex system designed from
scratch never works and cannot be patched.
To make it work you have to start over with a working simple
system. This is the Ethereum blockchain
in protocol in a nutshell. At the base of its code is
complexity. It was originally a pre mined
proof of work coin where 80% of the tokens were issued to
investors that none of us know and that you don't have control
over. Then after a hack, the chain was
rolled back and they were able to rewrite history of other
people's tokens to save their own butts.
They created a new coin, switched from proof of work to
proof of stake, and now Vitalik Buterin himself is saying that
the system is too complex and needs to become more like
Bitcoin, which is what it was originally built after in the
1st place. So much so that a month ago,
Vitalik Buterin released a another road map in white paper
on how they're going to make it more simple.
He says that one of the best things about Bitcoin is how
beautifully simple the system is.
He then goes on to say that Ethereum is hard to understand.
It's hard to build on, its infrastructure is costly, it
requires a lot of maintenance, it has a lot of surface attack
for breaches and hacks, and there's a risk of catastrophic
bugs. Is this a system that you want
to build your money on? But back to bit mine.
You know, Joe Lubin, the Co founder of Ethereum, well, he's
already tried to do this sort of strategy.
He's implemented an Ethereum treasury strategy with Sharp
Link Gaming and I won't bore you with the returns, but they've
been less than stellar. It looks like all Ethereum or
crypto token charts eventually a huge spike, which you buy into
it and then they sell it off because you are the exit
liquidity. And there's a strong possibility
that this sort of thing happens with our very own Tom Lee's bit
mine immersion Technology Strategy.
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coach to coach you how to protect your generation of
wealth the right way. OK, so here's the ultimate
strategy for Bitmon. My immersion, what you're doing
is a $250 million private placement, which is all going to
be put into. Yes, either that's right, we, we
created a carefully curated list of investors to bet on this.
If you look at the press release, it is the blue chip
both in the financial world and in the crypto world.
We. Have founders fund Kraken Galaxy
Digital? Yep, Pantera, Yeah.
So these are in the crypto world and these are like sort of the
blue chip crypto entities. And of course, the Founders Fund
is is legendary in the traditional financial world.
And how, how do you measure this just based on exactly how
Ethereum is is trading? Well, yeah, the the strategy of
the company is going to be based on how much Ethereum is held per
share, OK. And as of today, it's $4.00 and
the company as we explained in the press release can increase
it's holdings by you know, getting yield from Ethereum,
doing financing transactions at a premium to their holdings and
of course if Ethereum goes up. So I think there's three ways
that that value per actually grows.
They're going to make money for staking and for all of you
people who are new to the crypto investing, understand that when
you hear the word staking, you typically have a scam, a breach
or a huge security incident on the horizon.
But that may not be this scenario.
But nonetheless, every time that you hear a strategy that talks
about yield or staking, it underperforms Bitcoin.
My issue with bit mine is that they've sold investors one
story, then becoming a Bitcoin network company, a Bitcoin
miner, having a Bitcoin treasury, and then they suddenly
switch gears and go to an Etherium strategy.
One of the reasons that people love and are head over heels
invested into micro strategy is that they know that they are
laser focused on one thing in one thing only, Bitcoin.
They will issue more debt, more equity, raise more capital to
buy more Bitcoin, the fixed supply asset, and sometimes
great investors, even people like Tom Lee who've been around
Bitcoin for a long time, tend to overcomplicate things instead of
just doing the simple thing, just buy Bitcoin.
I run into crypto people that have been the business for a
decade and they have very complicated ideas that don't
work. Yes.
And and Ioffer them a simple idea.
I'm like, here's an idea. You're a public company, sell
your equity, buy the Bitcoin. They're like, no, that'll never
work. OK, well, I guess it might work.
Well, what if the Bitcoin goes down?
Well, blah, blah, blah. OK, I guess it worked, you know,
and you know what the latest pushback is, Jeff?
The latest pushback is, well, it worked for you and it worked so
well that you're the winner. And there's no room for another
company to do it in the market. So we literally went from I
don't think it'll work at all to it might to it did.
Oh, it worked too well. That's my excuse for why I'm not
going to do it. And people just come up with
these giga brain excuses for why they won't.
Don't want to do the simplest thing in the world?
I didn't think I'd see the day where Tom Lee would get dragged
over to the crypto side, but here we are.
It happens every single cycle. Don't over complicate the trade.
The best trade 11 out of the last 14 years has been to just
buy and hold Bitcoin. It's outperformed everything and
it will continue to do so. The one of the ways you can
continue to not over complicate things is by learning as much as
you can not about crypto and staking and everything else, but
Bitcoin and another facet of Bitcoin Bitcoin mining.
And you could do that by coming to the largest Bitcoin mining
Expo in the world at the mining disrupt conference happening in
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Get 20% off your tickets by using the promo code simply
Bitcoin to check out. Thanks for tuning in today and
for putting up with my scratchy voice.
This is Dante Cook with Bitcoin. Simply happy stacking.