đ° Why did miners collectively surrender? Behind the dip in computing power, is AI snatching up electricity?
Alibaba announced that it plans to build a 500 trillion-parameter AI model, and also launched the Zhenwu V900 chip. This matters a lot to Chinese people, because it could make Chinaâs AI industry more independent. But for the crypto communityâespecially Bitcoin and Ethereumâthe more thought-provoking part is the hidden story behind it: has global computing demand really reached saturation?
Why is this news important?
Behind it are two key questions: first, has global computing power truly saturated? Second, how big is the demand for AI compute? If this is just Alibaba âself-complimenting,â then Bitcoinâs compute data would get yet another new angle of interpretation. If AI really needs to burn that much electricity, what does it mean? It could imply a need for larger-scale renewable energy, or higher-cost traditional powerâand that would indirectly affect minersâ profit margins.
Market impact
For BTC and ETH, the impact is mostly emotional. If AI really requires that much compute, in theory it would increase demand for electricity and chips, and could even push up the prices of those resources. But thatâs only in theory. More realistically, if compute demand really slows down, Bitcoinâs compute data decline might not be coincidental. If compute continues to grow but AI grabs all the cheapest electricity, some Bitcoin miners might truly be priced out.
Trading approach
đĄ If the compute data continues to fall, even breaking below 2.5 EH/s, this judgment is invalidated. Honestly, Iâm more inclined to believe that compute data will stay strong, since Bitcoinâs block reward halving is right around the corner. If a compute downtrend truly appears, it would mean we may need to pay close attention to how electricity costs change for mining. That price range may be tested again.
This article has no project sponsorship, and the author does not hold any of the referenced assets
$BTC $ETH #BTC #ETH
â ď¸ Not investment advice; forecasts are for reference only
Alibaba announced that it plans to build a 500 trillion-parameter AI model, and also launched the Zhenwu V900 chip. This matters a lot to Chinese people, because it could make Chinaâs AI industry more independent. But for the crypto communityâespecially Bitcoin and Ethereumâthe more thought-provoking part is the hidden story behind it: has global computing demand really reached saturation?
Why is this news important?
Behind it are two key questions: first, has global computing power truly saturated? Second, how big is the demand for AI compute? If this is just Alibaba âself-complimenting,â then Bitcoinâs compute data would get yet another new angle of interpretation. If AI really needs to burn that much electricity, what does it mean? It could imply a need for larger-scale renewable energy, or higher-cost traditional powerâand that would indirectly affect minersâ profit margins.
Market impact
For BTC and ETH, the impact is mostly emotional. If AI really requires that much compute, in theory it would increase demand for electricity and chips, and could even push up the prices of those resources. But thatâs only in theory. More realistically, if compute demand really slows down, Bitcoinâs compute data decline might not be coincidental. If compute continues to grow but AI grabs all the cheapest electricity, some Bitcoin miners might truly be priced out.
Trading approach
đĄ If the compute data continues to fall, even breaking below 2.5 EH/s, this judgment is invalidated. Honestly, Iâm more inclined to believe that compute data will stay strong, since Bitcoinâs block reward halving is right around the corner. If a compute downtrend truly appears, it would mean we may need to pay close attention to how electricity costs change for mining. That price range may be tested again.
This article has no project sponsorship, and the author does not hold any of the referenced assets
$BTC $ETH #BTC #ETH
â ď¸ Not investment advice; forecasts are for reference only
