| | | The Most Incredible Time | | By Jeff Brown, Editor, The Bleeding Edge | | | | Thanks for everyone’s patience, and apologies for the delay in getting this week’s Bleeding Edge AMA out to you. | | There were some great questions about autonomous driving technology, electric vehicle infrastructure and associated government policies, and cryptocurrencies that required a bit of extra work. | | I don’t like to give good questions short shrift, which is why I decided to delay publishing. The best way to learn and understand interesting topics, technology, and issues is to have enough information to become better informed. That means we have to dig a bit deeper. | | My goal isn’t to convince anyone of anything. It’s to give you all a more complete picture of what’s going on and the factors we can consider to have a better perspective. And as things evolve and the data changes, our outlook will do the same. | | We’re living through the most incredible time. | | Just think, in the next five years we’re going to experience artificial general intelligence, artificial superintelligence, the first Starship landing on Mars, a return to the moon, self-driving cars, intelligent humanoid robots, supersonic and hypersonic travel, the world’s first commercial space station (a space hotel), nuclear fusion (the power of the sun), and who knows… perhaps even the discovery of extraterrestrial life. | | I could go on and on… | | This is why The Bleeding Edge and Brownstone Research exist. To stay on top of and make sense of it all, to understand how it will impact our lives, and, of course, how we can profit from it. | | We have so much to look forward to. | | Jeff | | How Long Before Autonomous Vehicles Overcome Human Skepticism? |
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| Hi, Jeff. | | My husband and I have been Brownstone Unlimited members since the beginning and appreciate the education and insight you and your team provide. We have been avid followers of your insights into the autonomous vehicle industry and have found your research incredibly informative. Thank you for breaking down such a complex topic in a way that’s easy to understand. | | Recently, we purchased a vehicle with “Super Cruise” capability. To be honest, I find this new technology both fascinating and nerve-wracking. During a cross-country drive from Tennessee to Arizona, my husband used the system while driving. While I understand the remarkable advancements and research behind it, I still feel very uneasy about the idea of “keeping my hands off the wheel and brake” while driving. | | Adding to this, our daughter works for Zoox, the autonomous ride-hailing company. They recently showcased their technology at CES in Las Vegas, and it was a very successful experience for them. It’s fascinating to hear about the progress her company is making, but I’d love to get your perspective on robotaxis. | | What are your thoughts on how companies like Zoox fit into the larger picture of autonomous vehicle progress? Do you think this technology is poised to overcome public skepticism and become more widely adopted? | | Thank you for your time and for sharing your expertise on such an exciting—and occasionally nerve-wracking—topic! | | – Karen J. |
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| Hi Karen, | | That’s very cool that your daughter works for Zoox. What an exciting time to be involved in such a transformational technology and industry. | | I actually share your feelings about the Super Cruise functionality. I have a similar functionality in my other car, which is not a Tesla. While I do use it, I have to stay alert. It’s far from perfect and it’s a completely different technology architecture than Tesla’s neural network which has been trained literally on billions of miles driven. | | Cars with Super Cruise – or advanced driver assistance system (ADAS) – do use some artificial intelligence for maintaining a safe distance from cars/trucks in front, as well as lane changes. But the technology is far less ambitious and sophisticated compared to what Tesla has done with full self-driving (FSD). | | Super Cruise and technology like it is largely map-dependent programming. That’s why it is primarily designed for highways or large roads. It can’t transport passengers safely from point A to point B. It’s considered Level 2 autonomy. | | If you’re curious about all the levels, you can go here to see the National Highway Traffic Safety Administration’s definitions of all five levels. | | Google’s Waymo division – and Zoox, for that matter – would be considered Level 4 autonomy. They don’t require a human driver’s engagement, but they are limited to specific geographical service areas (i.e. they are geofenced). | | Tesla’s latest full self-driving software, version 13.2.7, is basically level 5, full autonomy. Tesla calls it “supervised,” meaning we have to pay attention. But that’s just how Tesla stays out of trouble with the regulators. | | The technology is there now. It’s really remarkable. And Musk has already publicly stated that the first Tesla robotaxi network will be launched in Texas this June. | | As for your question about overcoming skepticism, the only way to understand how advanced the technology has become is to experience it. | | I’ve been literally testing the technology since 2011 in one of the very first Google prototypes for a self-driving car. Passengers need to experience it to understand it. Once someone has been driven in a Tesla with the current AI software for 10 or 20 minutes, it’s like turning on a lightbulb in a dark room. | | And once Tesla’s robotaxi network is launched, not only will awareness skyrocket, but it will also be the catalyst for other states to follow. The reality is that Telsa’s Autopilot and FSD software are now safer than human drivers by almost a magnitude (10x). | | Zoox has always been a unique player in the autonomous driving industry. Founded in 2014 and came out of stealth in 2016, it was designed from the beginning for full autonomy without any front or back – it can go either direction as needed – or any driving wheel or pedals. | | | | Zoox Vehicle in Las Vegas | Source: Zoox | | Zoox vehicles have actually been operating in Las Vegas since June 2023. It’s the first fully autonomous service in Nevada. Aptiv was the first to deploy commercial autonomous services in Las Vegas, but it always had human safety drivers behind the steering wheel. With Zoox, no safety driver is possible without a steering wheel. | | Zoox technology architecture is very much like Google’s Waymo vehicles. The autonomous vehicles are laden with cameras, lidar, and radar components – 32 in total – providing a 360-degree field of view. Zoox is also programmed with very detailed geometric and semantic maps specific to whatever area it is operating in. | | To be fair, the Zoox vehicles operating in Las Vegas – now on the strip and some adjacent areas – are only being used by Zoox employees. It has not been opened yet to the general public. But that is the plan for 2025. | | It’s worth mentioning Amazon acquired Zoox for $1.3 billion back in June 2020 for $1.3 billion but has largely allowed the Zoox division to remain autonomous and keep building its technology. Amazon has not spoken much over the years about its plans for Zoox, so the future isn’t very clear. | | Amazon’s business is fundamentally creating marketplaces for products and services. Amazon likely sees Zoox as a means for creating a marketplace for public transportation. And captive audiences riding in a Zoox vehicle can be served up advertisements related to Amazon’s services and brands. | | Given the limitations of Zoox’s technological approach, it will most certainly be targeting cities and metropolitan areas with high population densities. | | Another obvious application of Zoox vehicles by Amazon is to use the technology for last-mile delivery for Whole Foods, and potentially one-hour delivery of products ordered from Amazon where the buyer will be home to receive the package(s). | | Whole Foods staff would simply load the groceries into the Zoox, and their work would be done. This is far more efficient than relying on gig workers to make the deliveries. | | Nuro is another company making a smaller autonomous vehicle for exactly this purpose. | | Regardless, with Amazon’s financial wherewithal, Zoox still has the potential to be a major player in the autonomous industry with a specific market focus. And 2025 will be its biggest year yet with the launch of driverless services in Las Vegas to the general public. | | Hopefully, you’ll be able to enjoy a ride with your daughter in Las Vegas very soon. If you do, I’d love to hear about it… |
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| Are Exchange Complications Putting People Off Crypto? |
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| Hello Jeff, | | Right now, I am doubtful that I will ever be able to get access to my Coinbase assets. My account is restricted and I am not able to transact in any way. I have followed the Coinbase prompts to clear the restriction, but that does not work. I have tried their phone helpline but got no response. I have made two attempts for help on their chat line for a total of 10 ½ hours wait time with no live response. All I get is repeated automated messages that I am in a 30-minute queue. Coinbase has NO customer service. | | Jeff, my question to you is, if Coinbase is the most “buttoned up” crypto exchange out there, how will cryptos ever become widely used by the general public? I am at a dead end trying to deal with them. What other options do I have? | | – Iver L. |
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| Hello Iver, | | Sorry to hear that you’re having this trouble. My advice is to hang in there, as I am certain this issue will be resolved. | | We’ve reached out to our network and believe we understand what’s going on. It appears that one of the major hacking groups has been targeting Coinbase users and has managed to trick many people into providing access to their accounts. | | Over the last several months, we’ve also experienced a lot of phishing emails that appear to come from Coinbase, but they’re actually from the hacking group. These are very clever attacks that look legitimate. It’s critical we never click on any of these kinds of emails. | | If you think a communication is legitimate but still have concerns, the smartest thing to do is avoid clicking on any links and simply log directly into your account. I fully understand you can’t do that right now, but it’s a good rule of thumb for the future. | | Coinbase is one of the most buttoned-up centralized exchanges in the industry for digital assets. It is extremely well-run and compliant. And I believe Coinbase is simply locking down temporarily to deal with the attacks from the hacking group. I am certain the purpose is simply to keep Coinbase customer assets safe. It is probably overprotective, but I believe the intentions are good and this will all get sorted out. | | I know it’s frustrating not to have access to your account, but I don’t think it will take much longer for these security issues to get sorted out. | | Oddly enough, this kind of security situation reminds me of the value of public, permissionless blockchain technology. Unlike the banking system or brokerage accounts, blockchain technology empowers users to self-custody their assets on digital wallets. | | Blockchain technology can function without any centralized exchange or middleman. There doesn’t need to be a “trusted” intermediary to transact on blockchains. That’s why the technology is called “trustless.” | | Self-custody is recommended for long-term holdings of digital assets that we don’t intend to be trading in and out of. And centralized exchanges can be used for more active trading and investing. Coinbase and Kraken are both great options. | | One final reminder to everyone, please don’t ever click on a link in an email or text you don’t actively request or initiate from the exchange or speak to someone on the phone about sensitive information related to your account. Log into your account directly – preferably in a new browser window – and check to see if there are any actions to address in your account. | | How Will New Policy Impact EV Infrastructure? |
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| [Trump] has announced his intention to dismantle the charging grid for electric cars viewless in the USA. How is this going to affect Tesla and all the other electric cars? | | – Carter B. |
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| Hello Carter, | | Well, I have some good news for you – I think. | | President Trump has not made any plans or policies to dismantle any of the charging grid for electric cars (EVs) in the U.S. That claim is simply not true. | | Some heavily biased media outlets have been paid almost half a billion dollars by the Internews Network through USAID – specifically to promote censorship, media control, and political narrative – to push out this kind of messaging, though. | | Several of these “bought and paid for” media outlets have put out exaggerated and false claims along the lines of what you have suggested. | | Fortunately, it’s all nonsense. | | What is true, however, is that President Trump and DOGE have been shutting down unused or underutilized government-owned real estate and preparing it for sale. | | It has been shocking to read about the trillions of dollars of waste and fraud (at the expense of U.S. taxpayers, i.e., you and me), and the millions of taxpayer-funded employees who haven’t been showing up for work. | | If assets are not being used or are being underutilized and still costing taxpayer dollars, they should be shut down. | | And just to avoid any confusion, President Trump will not be dismantling any of the non-governmental EV charging grids around the country. He and his administration have no desire to do so. | | It’s worth remembering that the use of EVs doesn’t reduce CO₂ emissions, it simply displaces where the fossil fuels are burned. | | Most of the energy in the U.S. – and around the world for that matter – comes from fossil fuels. That means electricity is produced primarily from fossil fuels. Fossil fuels are burned at the power plant and distributed through the power grid to “fuel” an EV. | | If we want to have a cleaner environment – and I certainly do – we’ll need to address a few fundamental issues: | | The source of electricity and the baseload power generation infrastructure must be upgraded. And that means we need to migrate to nuclear fission or nuclear fusion. If the goal is to stop using coal and natural gas, then this is the only logical way to power economies and cleanly “fuel” EVs. The power distribution grid needs to be completely upgraded. If we all had EVs today, the power grids would collapse. It couldn’t carry the load. And our aging power grids tend to lose between 7–15% of the electricity between the source of production and your EV. This is what is referred to as transmission and distribution losses (T&D losses). That means we have to burn extra amounts of fossil fuels for each unit of electricity delivered to an end user.Power generation of major developing economies like China and India must be addressed. These countries continue to increase their use of coal, especially China, despite developed countries around the world reducing the use of coal. | | The U.S. private sector continues to lead the world in terms of investment and technological innovation on both next-generation forms of nuclear fission (small modular reactors, or SMRs) and nuclear fusion technology. It’s not even close. | | U.S. energy technologies are aggressively “doing something about it” rather than just talking about it over tea parties. And fortunately, the Trump administration is very pro-nuclear as a source of energy. We haven’t had this in the U.S. for decades. | | I expect that we’ll see some major regulatory changes that will safely streamline the regulatory process for developing and commissioning nuclear fission and nuclear fusion reactors. | | In summary, we’re going to continue to see the expansion of the national EV charging network led by the free market. The private sector will continue to fund this, as it should. And we’ll also see the rebirth of clean energy production through a more pro-innovation administration with regard to clean energy production (nuclear power). | | EV companies that make great cars and are competitive in the market will thrive. Weak companies with weak products that are uncompetitive will suffer. | | This is the way. | | Gold’s Great, But So Is Crypto |
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| Crypto is a scam of gigantic proportions and everybody pushing it at high levels, including you guys, needs to be put out of business. Crypto is going to wreck the economy and when that happens, beware the pitchforks. I am not interested in using a few lines of code on a server somewhere to store my wealth and transact business. Gold and silver will do that, as they have done for millennia. | | – Charles L. |
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| Hi Charles, | | You may very well be surprised to know that I very much like silver and gold. | | They both have important industrial uses, and gold certainly has been a great store of value over the years. Unfortunately, though, it doesn’t pay any dividends and certainly hasn’t risen anywhere near the forecasts made over the last several decades. | | On a very related note, I’m very curious to see what becomes of the forthcoming audit of Fort Knox. It pleases me greatly that U.S. taxpayers are going to find out the truth about what’s actually still there. I’m excited to find out and curious to see what the impact will be on gold as an asset class. | | Where we’re in disagreement is about “crypto” being a “scam.” | | There certainly are some scams in crypto, as there are some scams in the gold industry and even more scams that involve the U.S. dollar. You and I can pick any industry and I’m certain we can find some bad actors in every one of them. | | But blockchain technology and cryptocurrencies, in general, are not a scam. | | Blockchain technology is the next generation of internet technology and financial services. Many of the largest banks in the world are already using blockchain technology to improve their operational efficiencies and affect transaction settlements measured in seconds, rather than days or weeks which is what happens over the legacy financial system infrastructure. | | Blockchain technology incentivizes individuals and companies to build network infrastructure upon which their blockchain networks can run by the use of a digital asset related to that blockchain. The economics of blockchain network operation and utilization are built into the technology. | | A simple way to look at it is rather than everyone paying Amazon and Google to run our cloud-based software, blockchain technology enables a distributed network that everyone can use and isn’t controlled by a single party like Google and Amazon. | | During the pandemic, we saw the impact and dangers of such a centralized architecture. Google and Amazon literally censored scientific debate and even removed content and applications from the internet and our smartphones. They have the power to do that. Blockchain technology is a defense against totalitarian centralized control. | | Brownstone Research is dedicated to producing the best investment research in the industry with a keen focus on growth assets. That’s precisely why we work so hard to understand and research blockchain technology and digital assets. This is a very high-growth sector and represents the next generation of internet and financial services technology. | | Charles, you’re smart to own some silver and gold. | | I know a lot of people thought I was crazy to recommend Bitcoin at $240 back in 2015. They don’t think I’m crazy any longer. It’s up more than 415 times since then. That turned a $5,000 investment into more than $2 million. | | So maybe it’s not such a bad idea to have a couple of high-quality, high-growth digital assets alongside your gold and silver. And we can have a gentlemen’s bet about which assets will increase more in value over the next 5–10 years… | | Thanks for writing in. | | Jeff | | P.S. We’re going to stay in business and keep working hard for our subscribers as the best independent and conflict-free source of investment research on growth assets for self-directed investors. | | P.P.S. For any readers who would like to learn more about the next generation of high-quality, high-growth digital assets, you can go right here to learn more. | | |
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