AI is not killing Bitcoin but I will probably drag several use Pubco miners into insolvency.
“AI pays $200-500 MWh vs Bitcoin mining at $57-129 MWh” is an incomplete comparison, what actually matters is what either of these things COSTS per MWh relative to what they make/pay. The perennially negative economics of major AI providers suggests that hyerescaled AI costs significantly more than what it “makes.” Many of these Miner + AI deals are seeing miners take on capex ownership of GPUs and ongoing AI operations.
This brings us to the second important point that the cost of AI services to day are massively subsidized (by VC and private credit fluff), perhaps the most subsidized thing ever, and even that these subsidized price levels there is not enough organic, paying customer demand to make these operations profitable.
Bitcoin be fine. US PubCo miners pilling into the AI narrative just as it’s breaking, will be extra rekt.
#Plebchain
📝 d97726bc…