There are more than 80 articles on johnpatrick.com about Bitcoin and cryptocurrencies. I have not written anything on the subjects lately, so I decided to make this blog post a crypto update. I will include some history and where I see things going in the future. At this time, Bitcoin is at its early stage. Think of it like the World Wide Web in 1995.
Electronic money is not a new idea. The Electronic Fund Transfer Act was passed by the U.S. Congress and signed by President Jimmy Carter 35 years ago (1978). Other forms of electronic money include payment processors, direct deposit, and digital currencies such as Bitcoin. What distinguishes Bitcoin from other electronic money is it is a cryptocurrency. There are approximately 17,134 cryptocurrencies in existence, according to major tracking platforms. There have been more than 37 million crypto tokens created. Both a cryptocurrency and a token are digital assets. All cryptocurrencies are tokens, but not all tokens are cryptocurrencies. The total value of all tokens is $3.37 trillion. Sixty-three percent of that is Bitcoin. The remainder of this post will focus on Bitcoin.
Cryptocurrencies are a type of digital currency created on an infrastructure relying on cryptography to protect the security of data. Crytocurrencies also rely on a global network of servers called a blockchain which communicate with each other. There is no central bank. Bitcoin, established in 2009, was the first cryptocurrency. Will Bitcoin replace the dollar, euro, yen, franc, kroner, et al? I believe it is possible, but most authorities say it is doubtful. Will Bitcoin dominate as a new method of payment, replacing Western Union, PayPal, credit cards, and various banking services? I believe it is very possible these payment methods will be supplemented or even replaced by stablecoins, which are another form of cryptocurrency.
The only threat I see to slow down the growth of cryptocurrencies is from politicians who may want to “protect” us with some legislative or regulatory schemes. However, the political environment has changed significantly. The new chairman of the SEC is supportive and there are a number of bills circulating in Congress. The private sector is also becoming more supportive. Some major bank CEOs and investment visionaries had called Bitcoin “rat poison”, “a joke”, and a “Ponzi scheme”. They have changed their tune and now see crypto as an opportunity.
There are hundreds of crypto exchanges where you can buy or sell BTC and other tokens. Think of them like Fidelity, Schwab, etc. Some exchanges provide digital wallet services, so you have a place to hold, trade, buy, sell, or convert your crypto. The largest exchange in the U.S. is San Francisco based Coinbase. As of 2025, Coinbase has over 108 million customers worldwide. Coinbase is innovative and in my opinion has strong governance. (Disclosure: I was a seed investor in Coinbase in 2017.)
The question I get about Bitcoin most often is, “Who is in charge?” The answer is an algorithm, a set of mathematical formulas which determine when and how cryptocurrency is created. Bitcoin emerged in 2009 as the first decentralized cryptocurrency, created by the pseudonymous Satoshi Nakamoto. Nakamoto’s 9-page whitepaper, “Bitcoin: A Peer-to-Peer Electronic Cash System (2008)”. You can read it here. The Bitcoin algorithm limits the supply of new Bitcoin to 250 created every 10 minutes. The ultimate limit of supply is 21 million, currently at 19.87 million. The last Bitcoin will arrive in 2140. Another way to think about it is Bitcoin has a limited supply. As the demand for Bitcoin rises, and with the limited supply, I believe the price of Bitcoin will rise. What would make the demand rise?
Until recently, Bitcoin was not on most investor’s radar. As it became more visible in business reporting and gained a ticker on CNBC, investors began to ask questions of their brokers or financial advisors. Initially they said don’t touch it will a ten-foot pole. Things have changed. In a keynote address at Abu Dhabi Finance Week on December 10, 2024, billionaire investor and hedge fund manager Ray Dalio recommended allocating up to 2% of a portfolio to Bitcoin as a hedge against inflation and global debt risks. This marked a notable endorsement from Dalio, who previously expressed skepticism about cryptocurrencies. The question became how does one invest in Bitcoin?
There are two ways. First is to go to an online crypto exchange such as Coinbase or any of hundreds of other exchanges. Many potentially new investors were hesitant about signing up on an exchange, connecting a bank account to it to transfer money for the purchase, and then storing the purchase in a digital wallet either online or on their smartphone. Things changed in January 2024 when the SEC approved Blackrock, Fidelity, and nine other companies to offer Bitcoin in the form of exchange traded funds (ETFs).
As of May 2025, over $100 billion has been invested in U.S. spot Bitcoin ETFs, making them one of the most successful ETF launches in history. Monthly inflows have surged recently, with May 2025 seeing over $3.6 billion in new investments. To back these ETFs, investment companies collectively hold over 550,000 Bitcoin in custody. This figure represents the actual Bitcoin purchased and held by ETF issuers to ensure each share is backed by real BTC, rather than derivatives or futures contracts. The largest funds, such as BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund, each hold tens of billions of dollars in Bitcoin assets. These assets are likely not going to be traded, hence reducing the total available supply of Bitcoin. I believe over time the ETFs will cause the price of Bitcoin to rise.
My own Bitcoin strategy started in 2013 when I attended the Inside Bitcoins Trade Show in New York. The enthusiasm there convinced me. I set up an automatic purchase with Coinbase every Monday morning at $100 per week. Shortly thereafter, I upped it to $250 per week. The dollar-cost-averaging approach has worked well so far. I purchased some at more than $800 and some at less than $400 with an average cost to date of approximately $600. In 2018, when Bitcoin reached $10,000, I sold half of my holdings, and paid the capital gains tax. Since then, I have been a HODLer. HODL means hang on for dear life. That has proved to be the right strategy with the price as I write this at $111,000. I made a philanthropic Bitcoin gift to a healthcare organization at the end of 2021.
Bitcoin’s journey from cryptographic experiment to a multi-trillion-dollar asset reflects its resilience and adaptability. The ETF era has democratized access, aligning Bitcoin with traditional finance while preserving its decentralized ethos. As institutional inflows tighten supply and global adoption accelerates, Bitcoin is poised to redefine wealth storage for the digital age. Whether it reaches a million dollars or faces regulatory headwinds, its impact on finance is undeniable, a testament to Satoshi Nakamoto’s vision of electronic cash without trusted third parties. Will the value of Bitcoin continue to go higher? Many years ago, my father said the following about investment advice, “Don’t give any and don’t take any”.
In this section, I share what I am up to, pictures of the week, what is new in AI and crypto, and more.
My next presentation will be at Heritage Hills in Somers, NY on June 10.
On June 17, I will be speaking at the Danbury, CT Library at 6 PM
On June 18, I will be speaking via Zoom to the Economic Round Table of San Francisco at 11 AM. If you are interested in watching this, let me know. They do allow guests.
Not exactly a webinar, but I had a 45 minute Google Meets with Pat Banya at Coinbase. They have set up a concierge program which provides periodic video chats with investors one on one. Very informative discussion about crypto security.
I love to read books. All the books I have written and the books I have read are in profile. Feel free to view it here.
I finished reading Colum McCann’s Let the Great World Spin: A Novel. It was a complex novel. I gave it a 4-star on Goodreads.
Next I started reading Polostan: Volume One of Bomb Light. It was billed as a riveting historical epic of international espionage, intrigue, and the dawn of the atomic age. It is by bestselling author Neal Stephenson. I have read some of his other books, but this one was over the top. At 30% complete, I ditched it.
Now I am reading Quantum Supremacy: How the Quantum Computer Revolution Will Change Everything by Michio Kaku. So far, this book is excellent.
Office of Neuroscience at Vassar Hospital in Poughkeepsie, NY. Picture to the right of the plaque is Joanne in 1967.
Paul Wright M.D., M.B.A., FAAN, FANA
SVP, System Chair
Neuroscience Institute
Very happy with the Apple MacBook Air with M4 chip. Anxious to see what Apple announces in June about the Fall lineup of iPhones. Many rumors circulating.
This week in AI saw major announcements and product launches from leading tech companies, along with notable industry shifts and breakthroughs.
Google unveiled significant AI advances at its annual I/O 2025 conference. Highlights include the introduction of new generative models: Veo 3, a video generation model now supporting audio, and Imagen 4, an advanced image generation model. Google also launched Flow, an AI-powered filmmaking app, and evolved Project Starline into Google Beam, a 3D video communication platform. Gemini Live, an AI assistant, now features real-time camera and screen-sharing capabilities, and Agent Mode brings AI agents that can interact with web tools to complete complex tasks. Google emphasized making AI more personal, proactive, and cost-effective, with expanded AI features coming to Search and Gmail. There was also a preview of a $250-a-month AI subscription for power users.
OpenAI completed the rollout of GPT-4.1 and GPT-4.1 mini across ChatGPT, officially replacing previous GPT-4o models. These new models are available to both free and paid users, offering improved performance and efficiency. OpenAI defended its decision to launch without a full safety report, noting that GPT-4.1 does not introduce new modalities or surpass its o3 model in intelligence.
Industry-wide, the shift toward multimodal AI continued, with new models from OpenAI and Anthropic enabling seamless interaction across text, images, audio, video, and code within a single interface. This marks a transition from AI as a tool to AI as core infrastructure, underpinning creative work, business processes, and decision-making.
Other notable developments include Google DeepMind’s breakthroughs in mathematical reasoning, ongoing regulatory debates around AI safety, and continued competition for top AI talent among OpenAI, Google, and xAI. Meta announced plans for a $65 billion investment in AI and a new data center to support its Llama large language model.
In summary, this week’s AI news was dominated by major model upgrades, expanded multimodal capabilities, new creative and productivity tools, and a focus on integrating AI more deeply into daily life and business operations.
This week has been historic for crypto, with several major developments shaping the market.
Bitcoin hit a new all-time high, trading above $111,000 for the first time. Analysts now see $120,000 as a realistic short-term target, driven by record institutional demand, the impact of the 2024 halving, and a friendlier U.S. regulatory environment. The U.S. Senate advanced a key stablecoin bill, and President Trump signaled he will sign new crypto regulations into law by August, adding clarity and boosting investor confidence. Spot Bitcoin ETFs continue to attract billions in new inflows, and major asset managers like BlackRock and Fidelity are seeing their funds become some of the most actively traded in the U.S. market. Wall Street banks, including Goldman Sachs and JPMorgan, are now advising clients to allocate 2–5% of portfolios to Bitcoin, while Fidelity’s Bitcoin ETF is now among the top 10 most traded U.S. funds.
Coinbase was officially added to the S&P 500 this week, marking the first time a major crypto platform has joined the iconic stock index. This inclusion is seen as a milestone for institutional acceptance of digital assets. Altcoins such as Solana, Ether, and XRP are also seeing significant inflows as the broader market rallies.
On the innovation front, Kraken launched tokenized U.S. equities, allowing 24/7 trading of stocks like Apple and Tesla as digital tokens, expanding access for global investors. New projects like Qubetics are gaining traction with large presale volumes, and established blockchains such as Tezos are rolling out upgrades to improve smart contract functionality and energy efficiency.
The global crypto market cap reached $3.5 trillion, up more than 4% in a single day. Improved macroeconomic conditions, easing U.S.-China trade tensions, and a weaker U.S. dollar are all contributing to bullish sentiment. Regulatory clarity in both the U.S. and Europe is expected to remain a key driver for the rest of the year, with further ETF approvals and stablecoin regulations on the horizon.
In summary, this week’s crypto news is dominated by Bitcoin’s record surge, growing institutional adoption, major regulatory progress, and continued innovation in both established and emerging projects. The sector is experiencing renewed optimism and momentum as it becomes further integrated into mainstream finance and technology infrastructure.
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