Digital business models

Bitcoin hits new all-time high as institutional demand surges

Bitcoin has broken past its previous record, trading above $111,970 in a move that defied technical indicators and widespread scepticism. The rally, fuelled by institutional flows and growing corporate adoption, forced short sellers to capitulate after building up $35 billion in open interest.

Bitcoin’s latest breakout is driven by spot ETF inflows and corporate adoption, rather than retail speculation or halving narratives. In the second quarter alone, ETF providers absorbed 245,000 BTC—around 1% of the total supply—tightening liquidity and amplifying price pressure.

Analysts now view this as a structural shift where institutional demand outpaces miner issuance by a factor of three.

Stronger-than-expected US job data and fading hopes for a July rate cut failed to dent the crypto rally. The broader equity market also gained, with the S&P 500, Nasdaq, and Dow posting solid advances.

Bitcoin’s parallel rise suggests it is no longer merely a high-risk asset but increasingly seen as a liquidity hedge in uncertain conditions.

Geopolitical risks are quietly building. The Trump administration introduced new tariffs against six countries, potentially escalating global trade tensions. Historically, such moves have weighed on risk assets, but Bitcoin has remained resilient.

Analysts warn, however, that the situation could change by August if the tariffs are implemented.

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xAI unveils Grok 4 with top benchmark scores

Elon Musk’s AI company, xAI, has launched its latest flagship model, Grok 4, alongside an ultra-premium $300 monthly plan named SuperGrok Heavy.

Grok 4, which competes with OpenAI’s ChatGPT and Google’s Gemini, can handle complex queries and interpret images. It is now integrated more deeply into the social media platform X, which Musk also owns.

Despite recent controversy, including antisemitic responses generated by Grok’s official X account, xAI focused on showcasing the model’s performance.

Musk claimed Grok 4 is ‘better than PhD level’ in all academic subjects and revealed a high-performing version called Grok 4 Heavy, which uses multiple AI agents to solve problems collaboratively.

The models scored strongly on benchmark exams, including a 25.4% score for Grok 4 on Humanity’s Last Exam, outperforming major rivals. With tools enabled, Grok 4 Heavy reached 44.4%, nearly doubling OpenAI’s and Google’s results.

It also achieved a leading score of 16.2% on the ARC-AGI-2 pattern recognition test, nearly double that of Claude Opus 4.

xAI is targeting developers through its API and enterprise partnerships while teasing upcoming tools: an AI coding model in August, a multi-modal agent in September, and video generation in October.

Yet the road ahead may be rocky, as the company works to overcome trust issues and position Grok as a serious rival in the AI arms race.

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Google partners with UK government on AI training

The UK government has struck a major partnership with Google Cloud aimed at modernising public services by eliminating agreing IT systems and equipping 100,000 civil servants with digital and AI skills by 2030.

Backed by DSIT, the initiative targets sectors like the NHS and local councils, seeking both operational efficiency and workforce transformation.

Replacing legacy contracts, some of which date back decades, could unlock as much as £45 billion in efficiency savings, say ministers. Google DeepMind will provide technical expertise to help departments adopt emerging AI solutions and accelerate public sector innovation.

Despite these promising aims, privacy campaigners warn that reliance on a US-based tech giant threatens national data sovereignty and may lead to long-term lock-in.

Foxglove’s Martha Dark described the deal as ‘dangerously naive’, with concerns around data access, accountability, public procurement processes and geopolitical risk.

As ministers pursue broader technological transformation, similar partnerships with Microsoft, OpenAI and Meta are underway, reflecting an industry-wide effort to bridge digital skills gaps and bring agile solutions into Whitehall.

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AI interviews leave job candidates in the dark

An increasing number of startups are now using AI to conduct video job interviews, often without making this clear to applicants. Senior software developers are finding themselves unknowingly engaging with automated systems instead of human recruiters.

Applicants are typically asked to submit videos responding to broad interview prompts, including examples and case studies, often without time constraints or human engagement.

AI processes these asynchronous interviews, which evaluate responses using natural language processing, facial cues and tone to assign scores.

Critics argue that this approach shifts the burden of labour onto job seekers, while employers remain unaware of the hidden costs and flawed metrics. There is also concern about the erosion of dignity in hiring, with candidates treated as data points rather than individuals.

Although AI offers potential efficiencies, the current implementation risks deepening dysfunctions in recruitment by prioritising speed over fairness, transparency and candidate experience. Until the technology is used more thoughtfully, experts advise job seekers to avoid such processes altogether.

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AI fluency is the new office software skill

As tools like ChatGPT, Copilot, and other generative AI systems become embedded in daily workflows, employers increasingly prioritise a new skill: AI fluency.

Much like proficiency in office software became essential in the past, knowing how to collaborate effectively with AI is now a growing requirement across industries.

But interacting with AI isn’t always intuitive. Many users encounter generic or unhelpful responses from chatbots and assume the technology is limited. In reality, AI systems rely heavily on the context they are given, and that’s where users come in.

Rather than considering AI as a search engine, it helps to see it as a partner needing guidance. A vague prompt like ‘write a proposal’ is unlikely to produce meaningful results. A better approach provides background, direction, and clear expectations.

One practical framework is CATS: context, angle, task, and style.

Context sets the stage. It includes your role, the situation, the audience, and constraints. For example, ‘I’m a nonprofit director writing a grant proposal for an environmental education program in urban schools’ offers much more to work with than a general request.

Angle defines the perspective. You can ask the AI to act as a peer reviewer, a mentor, or even a sceptical audience member. The roles help shape the tone and focus of the response.

Task clarifies the action you want. Instead of asking for help with a presentation, try ‘Suggest three ways to improve my opening slide for an audience of small business owners.’

Style determines the format and tone. Whether you need a formal report, a friendly email, or an outline in bullet points, specifying the style helps the AI deliver a more relevant output.

Beyond prompts, users can also practice context engineering—managing the environment around the prompt. The method includes uploading relevant documents, building on previous chats, or setting parameters through instructions. The steps help tailor responses more closely to your needs.

Think of prompting as a conversation, not a one-shot command. If the initial response isn’t ideal, clarify, refine, or build on it. Ask follow-up questions, adjust your instructions, or extract functional elements to develop further in a new thread.

That said, it’s essential to stay critical. AI systems can mimic natural conversation, but don’t truly understand the information they provide. Human oversight remains crucial. Always verify outputs, especially in professional or high-stakes contexts.

Ultimately, AI tools are powerful collaborators—but only when paired with clear guidance and human judgment. Provide the correct input, and you’ll often find the output exceeds expectations.

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UN reports surge in intangible investment driven by AI and data

Global investment is increasingly flowing into intangible assets such as software, data, and AI, marking what the UN has described as a ‘fundamental shift’ in how economies develop and compete.

According to a new report from the World Intellectual Property Organisation (WIPO), co-authored with the Luiss Business School based in Italy, investment in intellectual property-related assets grew three times faster in 2024 than spending on physical assets like buildings and machinery.

WIPO reported that total intangible investment reached $7.6 trillion across 27 high- and middle-income economies last year, up from $7.4 trillion in 2023—a real-term growth rate of 3 percent. In contrast, growth in physical asset investment has been more sluggish, hindered by high interest rates and a slow economic recovery.

‘We’re witnessing a fundamental shift in how economies grow and compete,’ said WIPO Director General Daren Tang. ‘While businesses have slowed down investing in factories and equipment during uncertain times, they’re doubling on intangible assets.’

The report highlights software and databases as the fastest-growing categories, expanding by more than 7 percent annually between 2013 and 2022. It attributes much of this trend to the accelerating adoption of AI, which requires significant investment in data infrastructure and training datasets.

WIPO also noted that the United States remains the global leader in absolute intangible investment, spending nearly twice as much as France, Germany, Japan, and the United Kingdom. However, Sweden topped the list regarding investment intensity, with intangible assets representing 16 per cent of its GDP.

The US, France, and Finland followed at 15 percent each, while India ranked ahead of several EU countries and Japan at an intensity of nearly 10 percent.

Despite economic disruptions over the past decade and a half, intangible investments have remained resilient, growing at a compound annual rate of 4 percent since 2008. By contrast, investment in tangible assets rose just 1 percent over the same period.

‘We are only at the beginning of the AI boom,’ said Sacha Wunsch-Vincent, head of WIPO’s economics and data analytics department.

He noted that in addition to driving demand for physical infrastructure like chips and servers, AI is now contributing to sustained investment growth in data and software, cornerstones of the intangible economy.

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Countries build state-level Bitcoin reserves worldwide

Bitcoin is no longer the preserve of tech-savvy investors and crypto enthusiasts. As of mid-2025, more than 460,000 BTC — around 2.3% of the total supply — is held by governments worldwide, according to blockchain data and legal disclosures.

The shift has elevated Bitcoin’s role in global finance, making it a strategic asset for nation-states.

The United States leads the pack with nearly 200,000 BTC, acquired mainly through criminal seizures. Unlike previous administrations, President Trump’s government has moved to consolidate these funds under a federal Strategic Bitcoin Reserve.

China follows closely behind, having confiscated 190,000 BTC from the PlusToken scam, though the fate of much of that stash remains unclear.

Beyond the prominent players, countries like Bhutan have quietly amassed impressive reserves. Using hydropower for mining, Bhutan has reportedly gathered up to 13,000 BTC — worth over $1 billion — equating to more than a third of its GDP.

Meanwhile, the UK holds 61,000 BTC from a money-laundering case, Ukraine used Bitcoin donations during wartime, and Iran requires licensed miners to send their BTC directly to the central bank.

While some nations broadcast their Bitcoin strategy, others operate in silence. From El Salvador’s legal tender experiment to rumours of holdings in the UAE and Bulgaria, the landscape is varied and opaque. Still, one trend is clear: state-level Bitcoin adoption is no longer theoretical.

Governments are actively shaping the future of decentralised money — sometimes loudly, often quietly, but always strategically.

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Turkey sets sights on DeFi platforms after PancakeSwap ban

Turkey’s recent decision to block PancakeSwap has raised concerns that more decentralised finance (DeFi) services could soon face similar enforcement. The move came after the Istanbul Blockchain Week, where regulators outlined a stricter framework for overseeing crypto platforms.

Updated guidelines require DEXs and non-custodial wallets to follow the same rules as centralised platforms if they promote services to Turkish citizens. According to Ali İhsan Güngör of the Capital Markets Board, institutions promoting to users in Turkey fall within the country’s regulatory scope.

Although capital movement remains unrestricted, regulators have begun blocking access to DeFi platforms that directly advertise or promote within the country.

Turkish authorities ordered internet service providers to block access to PancakeSwap and 46 other websites. Mobile apps and social media accounts tied to those platforms were also affected.

PancakeSwap, a decentralised protocol with no registered presence in Turkey, cannot apply for a crypto service provider licence, making it vulnerable under the new enforcement rules.

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Over 2.3 million users hit by Chrome and Edge extension malware

A stealthy browser hijacking campaign has infected over 2.3 million users through Chrome and Edge extensions that appeared safe and even displayed Google’s verified badge.

According to cybersecurity researchers at Koi Security, the campaign, dubbed RedDirection, involves 18 malicious extensions offering legitimate features like emoji keyboards and VPN tools, while secretly tracking users and backdooring their browsers.

One of the most popular extensions — a colour picker developed by ‘Geco’ — continues to be available on the Chrome and Edge stores with thousands of positive reviews.

While it works as intended, the extension also hijacks sessions, records browsing activity, and sends data to a remote server controlled by attackers.

What makes the campaign more insidious is how the malware was delivered. The extensions began as clean, valuable tools, but malicious code was quietly added during later updates.

Due to how Google and Microsoft handle automatic updates, most users receive spyware without taking action or clicking anything.

Koi Security’s Idan Dardikman describes the campaign as one of the largest documented. Users are advised to uninstall any affected extensions, clear browser data, and monitor accounts for unusual activity.

Despite the serious breach, Google and Microsoft have not responded publicly.

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Tether defends gold reserves as markets and scrutiny rise

Tether has revealed it holds around $8 billion worth of gold in a Swiss vault, placing it among the largest private holders of the precious metal globally.

According to CEO Paolo Ardoino, the El Salvador-based firm owns almost an 80-tonne stockpile outright, describing the site as ‘the most secure vault in the world’.

Gold accounts for nearly 5% of Tether’s $112 billion reserve portfolio, matching UBS Group’s reported gold exposure. While self-custody helps reduce operational fees, regulatory frameworks in the US and EU may soon force stablecoin issuers to exclude commodities from their reserves.

If enforced, Tether could be required to liquidate its bullion unless the gold backs its separate token, XAUT.

XAUT currently circulates against 7.7 tonnes of gold worth approximately $819 million. Although far below significant exchange-traded funds, its physical redemption model adds a layer of investor confidence.

Ardoino suggested demand for bullion-linked crypto could rise if investors grow wary of US fiscal health or seek to avoid deposit risk.

Gold prices have surged 25% in 2025 amid trade frictions and geopolitical concerns. As BRICS banks buy more gold, Tether blends bullion with blockchain but must show regulators it won’t harm USDT’s liquidity in times of stress.

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