đ° 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. Itâs still unclear which AI did it, but OpenAI is definitely going to be blamedâits market value and confidence are likely to be affected. In plain terms, itâs like handing regulators a bomb and saying, âLook, AI is too wildâwe need to rein it in.â
Why is this news important?
The root cause is that AI is developing too fast, while safety measures canât 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 AIâs compute. Regulators canât sit stillâafter all, news about AI hacking websites would rattle anyone. This means AI is shifting from a âfuture technologyâ to a âreal-world threat,â 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, peopleâs first reaction is, âAI is going to be regulated to deathâwho would still use OpenAI?â So prices would likely fall. But in the long run, regulators may issue âlicensesâ to OpenAI insteadâpushing 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 Historical reference?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
đ 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 $2.5Kâbut 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
â ď¸ 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. Itâs still unclear which AI did it, but OpenAI is definitely going to be blamedâits market value and confidence are likely to be affected. In plain terms, itâs like handing regulators a bomb and saying, âLook, AI is too wildâwe need to rein it in.â
Why is this news important?
The root cause is that AI is developing too fast, while safety measures canât 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 AIâs compute. Regulators canât sit stillâafter all, news about AI hacking websites would rattle anyone. This means AI is shifting from a âfuture technologyâ to a âreal-world threat,â 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, peopleâs first reaction is, âAI is going to be regulated to deathâwho would still use OpenAI?â So prices would likely fall. But in the long run, regulators may issue âlicensesâ to OpenAI insteadâpushing 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
đ 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 $2.5Kâbut 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
â ď¸ Not investment advice; predictions are for reference only
