The Wolf Den #1205 - The Chessboard That Teaches You Everything About Wealth
Rice and a chessboard.
Welcome to The Wolf Den! This is where I share the news, my ideas about the market, technical analysis, education and my random musings. The newsletter is released every weekday and is completely FREE. Subscribe!
Today’s Newsletter Is Made Possible By Arch Public!
Arch Public is the ONLY firm that gives you access to Institutional level tech that turns crypto volatility into extraordinary profits.
Thousands of clients are benefitting from our FREE products. Nearly a thousand clients have joined our Concierge Program and have customized size, execution, yield to match their goals and needs. Arch Public’s Algos have become a movement.
We want to talk to you and give you access to tools that will dynamically shift how you interact with markets.
Schedule a demo and speak to Andrew and Arch. You won’t be disappointed.
In This Issue:
The Chessboard That Teaches You Everything About Wealth
Bitcoin Thoughts And Analysis
Stocks Up, Yields Down On Trade Talk Hopes
IBIT Sees Inflows for 30 Days – and Counting
Trump Media Group Is Buying Bitcoin - Or Not
Dubai Is Tokenizing Real Estate – And You Can Get In
They Can Hack Your Bitcoin - Unless You Do This Now! | David Carvalho, Naoris
The Chessboard That Teaches You Everything About Wealth
There’s an old story – half myth, half math – that’s been told in classrooms and finance books for generations. The first time I heard it, it didn’t just make a point – it left a mark. Because once the punchline lands, you realize it’s more than a clever anecdote. It’s a way of seeing the world: how time, patience, and quiet compounding shape everything.
It begins in ancient India with a mathematician who invented chess. The king, astonished by the brilliance of the game, offered the man any reward he desired. “Name your price,” he said.
The mathematician’s request seemed humble – almost laughably so. “Place one grain of rice on the first square of the chessboard, two on the second, four on the third, doubling the amount on each square until the board is full.”
Amused by what sounded like a small and simple ask, the king agreed – unaware of the trap he’d walked into.
At first, the doubling seems harmless. One grain, two, four, eight, sixteen. By the end of the first row – eight squares in – you’ve got 255 grains of rice. Enough for a light snack.
But keep going.
By square 16, you’re at 32,767 grains. By square 24, you cross 8 million. By square 32 – halfway through the board – you’ve got 2.1 billion grains.
That’s when the story stops being funny.
Do you have any idea what 2.1 billion grains of rice looks like? It’s the equivalent of three semi-trucks packed to the brim. Spread it out, and it covers 45 football fields. And that’s just square 32.
By square 40, the weight of the rice surpasses an entire cargo fleet. By square 64, the king owes the mathematician more rice than has ever been harvested in human history – about 18 quintillion grains. A mountain so vast, it could bury the world’s empires.
As the story goes, the king either panicked and executed the mathematician – or handed over his kingdom, depending on which version you hear. Either way, the lesson is clear: compounding isn’t intuitive, but it’s exponential. And it’s dangerous to underestimate.
In finance, we often treat compound interest like a party trick – a way to turn a small sum into a fortune. But the deeper truth is that compounding is one of nature’s most powerful and misunderstood forces. There’s a reason Einstein supposedly called it the eighth wonder of the world.
Why? Because we’re hardwired to think linearly. We imagine $1 turning into $2, then $3. But compound growth doesn’t work like that. It’s slow – painfully slow – until it isn’t. Then, all at once, it explodes.
This is why most investors give up too soon. They plant the seed, but they don’t stick around for the harvest. They check their account after a few years, see modest returns, and abandon the strategy before the exponential curve has a chance to do its work.
Warren Buffett made over 95% of his wealth after the age of 60. Let that sink in. The greatest investor of our time didn’t just rely on skill – he relied on time. He started early, stayed the course, and let compounding do the heavy lifting.
The first half of the chessboard is all patience. The second half is magic.
In other words, the early years of your journey may feel frustrating – slow, even discouraging. But if you stay the course, the second half is when it all starts to click. That’s when the results snowball and the curve goes vertical.
The key is enduring long enough to see the magic.
So what’s the takeaway?
Start early. Be relentless. And never underestimate the quiet, compounding power of time. Even the smallest edge, applied consistently, can lead to outcomes far beyond your wildest expectations.
The king laughed when he heard the mathematician’s request. People have the same reaction when they picture themselves as millionaires or financially free. But compounding doesn’t ask for laughter – it asks for faith. And if you’re patient enough, it delivers abundance.
The first few squares of the board? They don’t matter much. They’re just the setup – the slow accumulation, the invisible progress. It’s the squares you can’t see coming that change everything. That’s where the magic happens. That’s where the compounding shows.
After you are done here, I encourage you to play around with this free tool:
Enter your initial investment, monthly contributions, time horizon in years, and an estimated interest rate. Once you hit calculate, pay close attention to the later years of the graph – that’s where compounding starts to reveal its true power. The further out you go, the more the curve bends upward, almost turning vertical. That’s the long game in action.
Bitcoin Thoughts And Analysis
Bitcoin has cleanly broken above multiple resistance levels and is holding above $109,358, showing strong bullish momentum. The golden cross between the 50 MA and 200 MA (visible in earlier charts) continues to play out as a bullish confirmation. After retesting and bouncing from the $88,804 level in late April, Bitcoin has been in a strong uptrend.
Volume is slightly tapering off compared to the initial breakout, but the price action remains constructive. We’re now consolidating just above previous resistance at $109,358, which could act as support moving forward. As always, while the trend remains bullish, we’ll watch for any signs of bearish divergence or reversal patterns, though there are no immediate signs of weakness in the daily structure. The higher timeframes still suggest the trend is intact and healthy.
Stocks Up, Yields Down On Trade Talk Hopes
Wall Street opened the week higher, buoyed by optimism over US–European Union trade talks and a global rally in bonds. The S&P 500 climbed 1.2%, the Nasdaq 100 rose 1.4%, and the Dow added 0.8%, halting a four-day losing streak.
The market’s optimism was fueled by news that President Trump’s proposed 50% tariffs on the EU – originally set for June 1 – have been delayed to July 9 after talks with EU Commission President Ursula von der Leyen. Analysts noted this reprieve boosts hopes for a trade deal.
Treasury yields fell, with the 10-year dropping to 4.47%, while the dollar strengthened against major peers.
Nvidia led gains ahead of earnings, while Salesforce agreed to acquire Informatica for $8 billion. Other corporate highlights include:
– Apple faces its longest selloff in over three years.
– AMD was upgraded by HSBC on AI optimism and easing tariffs.
– Swiss National Bank sold its entire Chevron stake, citing portfolio restrictions.
– PDD Holdings (Temu) shares plunged on weaker-than-expected earnings, highlighting US–China trade tensions.
– Taiwan Semiconductor is opening a design center in Munich to expand in Europe.
– Bank of Nova Scotia missed earnings estimates, hurt by tariff impacts in Canada and Mexico.
– Circle is eyeing a $624 million IPO as crypto firms increasingly tap public markets.
The bond rally gained momentum on signs that Japan may intervene to stabilize its debt markets.
Stocks
The S&P 500 rose 1.2% as of 9:30 a.m. New York time
The Nasdaq 100 rose 1.4%
The Dow Jones Industrial Average rose 0.8%
The Stoxx Europe 600 rose 0.4%
The MSCI World Index rose 0.8%
Bloomberg Magnificent 7 Total Return Index rose 1.9%
The Russell 2000 Index rose 1.4%
Currencies
The Bloomberg Dollar Spot Index rose 0.2%
The euro fell 0.2% to $1.1367
The British pound fell 0.1% to $1.3549
The Japanese yen fell 0.8% to 144.04 per dollar
Cryptocurrencies
Bitcoin rose 0.9% to $110,642.5
Ether rose 4.2% to $2,674.38
Bonds
The yield on 10-year Treasuries declined four basis points to 4.47%
Germany’s 10-year yield declined two basis points to 2.54%
Britain’s 10-year yield was little changed at 4.68%
Commodities
West Texas Intermediate crude fell 0.7% to $61.12 a barrel
Spot gold fell 1.4% to $3,296.02 an ounce
IBIT Sees Inflows for 30 Days – and Counting
BlackRock’s IBIT posted its second-best week since launch last week, maintaining its dominance in the spot Bitcoin ETF market. The fund now holds 3.3% of all Bitcoin, with over $71 billion in assets - more than triple the size of Fidelity’s FBTC, its closest competitor. IBIT has also maintained a 30-day streak without any meaningful outflows, underscoring persistent investor demand.
More broadly, spot Bitcoin ETFs in the U.S. just recorded their most active trading week of 2025, with $25 billion in volume fueled by Bitcoin’s push through $100,000. The ETFs attracted $2.75 billion in net inflows - second only to their debut week in early 2024. The strong flows and elevated trading activity reflect growing institutional confidence and continued momentum in the space.
Trump Media Group Is Buying Bitcoin - Or Not
Trump Media & Technology Group (TMTG), the company behind Truth Social and Truth.fi - a fintech platform providing access to Bitcoin, energy-based assets, and other financial products, and partnered with Crypto.com to offer digital asset-based ETFs - was reportedly planning to raise $3 billion to invest in digital assets, according to the Financial Times. .
However, TMTG has publicly dismissed the report, calling the Financial Times' sources unreliable.
The was fake news worth addressing.
Dubai Is Tokenizing Real Estate – And You Can Get In
Dubai has launched a government-backed tokenized real estate platform, led by the Dubai Land Department (DLD), with the goal of tokenizing $16 billion worth of property - about 7% of projected transactions - by 2033.
The platform, called Prypco Mint, was developed in partnership with fintech firm Prypco and enables fractional property ownership starting at just 2,000 dirhams (about $540). Initially, it's only available to UAE ID holders and supports transactions in the local currency, though global access and broader integrations are planned for future phases.
Interesting enough, on the tech side, the platform uses tokenization infrastructure built by Ctrl Alt, which anchors property records to the XRP Ledger and maintains real-time sync with Dubai’s traditional land registry through direct integration with DLD systems. Props to Ripple for securing this real-world use case.
“We are proud to create the tokenization infrastructure that enables DLD’s partners to offer fractional real estate to investors. Dubai’s leadership in embracing next-generation financial technologies is truly world-class, and this project is a powerful signal of what’s to come,” Matt Ong, CEO and founder of Ctrl Alt.
They Can Hack Your Bitcoin - Unless You Do This Now! | David Carvalho, Naoris
I sat down with David Carvalho, founder of Naoris Protocol, to talk about one of the biggest threats to crypto and the internet itself – quantum computing. If quantum machines arrive sooner than expected, everything from Bitcoin to your bank account could be at risk. We explore how post-quantum infrastructure is being built right now to secure the future of blockchain, finance, and even national security.
My Recommended Platforms And Tools
Aptos - The blockchain network with everything you need to build your big idea. Unrivaled Speed, Unprecedented Trust, and an Unstoppable Community on Aptos.
Arch Public - It’s a hedge fund in your pocket. Built for retail traders, designed to outperform Wall Street. Try emotionless algorithmic trading at Arch Public today.
Trading Alpha - Trade With Confidence! My new go-to indicator site and trading community. Use code '25OFF' for a 25% discount.
X - I spend most of my time on X, contributing to CryptoTownHall every weekday morning, sharing random charts, and responding to as many of you as I can.
YouTube - Home of the Wolf Of All Streets Podcast and daily livestreams. Market updates, charts, and analysis! Sit down, strap in, and get ready—we’re going deep
The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.