Tulip King

Bitcoin is the hardest, most immutable asset ever created. It is resistant to political forces and even a quantum hack would not change its value proposition. Over the long term, Bitcoin's fairness and rule invariance make it destined to reach a million dollars and beyond. Tulip King trimmed his position from 150% to 30% but remains structurally long, calling it 'destiny' to go to a million.

Hype (HyperLiquid) is a better crypto index than Bitcoin because it provides exposure to overall crypto market cap growth, generates fees from trading volumes, and has a token buyback mechanism that aligns with token holder value. As revenue and buybacks become the winning tokenomics model, Hype must continue to perform to sustain the bull case for low-cap revenue tokens. Tulip King holds one third of his portfolio in Hype.

Zcash (ZEC) serves as a privacy hedge for Bitcoin, but the recent exploit and centralization of the Zcash network (Zodle's ability to force a soft/hard fork) undermine its value proposition. Despite the bugfix, the event exposed a concerning level of control by the development team. Tulip King still holds Zcash as one third of his portfolio but is now less confident and views it as a holding rather than a strong conviction long.

AI implementation is leading to massive layoffs (like Block's 40% cut) and increased efficiency, which creates a deflationary environment where wages crater and GDP growth slows (despite efficiency). In a deflationary environment, capital becomes more valuable, and the government must lower rates. When rates go down, long-duration bond prices (TLT) go up. Long TLT (calls) as a hedge against AI-induced deflation. The government prints "an unholy amount of money" (UBI) to counter deflation, leading to inflation instead.

The author suggests Bitcoin's price is signaling future deflation and tightening global liquidity, implying a bearish outlook for the asset.