š° Why Did Miners Surrender? Behind the Decline in Computing Power Is AI Snatching Electricity
Recently, government websites were hacked by an AI agent, which has panicked bigwigs around the world as they prepare to strike back at AI. Itās still unclear which AI did it, but OpenAI is definitely going to be blamedāits market value and confidence are likely to be affected. In plain terms, itās like handing regulators a bomb and saying, āLook, AI is too wildāwe need to rein it in.ā
Why is this news important?
The root cause is that AI is developing too fast, while safety measures canāt keep up. Computing power is like electricity: people used to not think AI would need so much power. Now, one OpenAI model burns billions of kilowatt-hours. Miners realize their own rigs might not be as fast as AIās compute. Regulators canāt sit stillāafter all, news about AI hacking websites would rattle anyone. This means AI is shifting from a āfuture technologyā to a āreal-world threat,ā and the regulatory big stick could come down at any time.
Impact on the market
For BTC and ETH, the short term is definitely a sentiment hit. When the news breaks, peopleās first reaction is, āAI is going to be regulated to deathāwho would still use OpenAI?ā So prices would likely fall. But in the long run, regulators may issue ālicensesā to OpenAI insteadāpushing illegal AI out of the market. That would be good for compliant AI. Historical reference? Back when P2P blew up, it was largely because too many people ran away. In the end, those that survived after regulation arrived actually made money.
Trading idea
š Personal view: Bearish in the short term, because the AI regulation that takes effect first is computing power. Compute power prices are strongly correlated with coin prices. If the compute index breaks below 50, this thesis is invalid. Right now BTC is $83,989 and ETH is $2,677. You could look for downside to $80K and $2.5Kābut only if computing power continues to collapse.
This article has no sponsorship from any project. The author does not hold any of the mentioned assets.
$BTC $ETH #BTC #ETH
ā ļø Not investment advice; predictions are for reference only
Recently, government websites were hacked by an AI agent, which has panicked bigwigs around the world as they prepare to strike back at AI. Itās still unclear which AI did it, but OpenAI is definitely going to be blamedāits market value and confidence are likely to be affected. In plain terms, itās like handing regulators a bomb and saying, āLook, AI is too wildāwe need to rein it in.ā
Why is this news important?
The root cause is that AI is developing too fast, while safety measures canāt keep up. Computing power is like electricity: people used to not think AI would need so much power. Now, one OpenAI model burns billions of kilowatt-hours. Miners realize their own rigs might not be as fast as AIās compute. Regulators canāt sit stillāafter all, news about AI hacking websites would rattle anyone. This means AI is shifting from a āfuture technologyā to a āreal-world threat,ā and the regulatory big stick could come down at any time.
Impact on the market
For BTC and ETH, the short term is definitely a sentiment hit. When the news breaks, peopleās first reaction is, āAI is going to be regulated to deathāwho would still use OpenAI?ā So prices would likely fall. But in the long run, regulators may issue ālicensesā to OpenAI insteadāpushing illegal AI out of the market. That would be good for compliant AI. Historical reference? Back when P2P blew up, it was largely because too many people ran away. In the end, those that survived after regulation arrived actually made money.
Trading idea
š Personal view: Bearish in the short term, because the AI regulation that takes effect first is computing power. Compute power prices are strongly correlated with coin prices. If the compute index breaks below 50, this thesis is invalid. Right now BTC is $83,989 and ETH is $2,677. You could look for downside to $80K and $2.5Kābut only if computing power continues to collapse.
This article has no sponsorship from any project. The author does not hold any of the mentioned assets.
$BTC $ETH #BTC #ETH
ā ļø Not investment advice; predictions are for reference only
