Here's what you don't get:
1) The investment in the data centers will still pay out because corporations, governments, and other organizations will want to outsource their AI work, but they don't want to outsource their data sets and algorithms to the wider Internet, or their potential competitors or enemies.
2) The dollar is set to fall in value, which makes all of these investment debts easier to pay back, because they are priced in dollars and will get cheaper. Big debt numbers sound big because you forget that soon all prices will also have more zeros.
3) THEY CAN USE THE GPUS AND THE NEW NUCLEAR POWER PLANTS NEXT DOOR TO MINE BITCOIN, YOU MORON.
4) Where computation takes place, on which machine, with which algorithm, trained by whom, and run by whom, matters a lot. That is, after all, why the Chinese are happy to have their own models, now, running on their own machines. They are no different than the Americans, or the EU. They know AI is opinionated.
5) The data centers are going to have amazing computing power, and not just normal chips. You have no idea what the heck they're cooking up in there, but they tend to hire the best people on the market and they are getting into some crazy stuff.
Do you have a quantum computer and an army of sys admins and data scientists on your phone? Yeah, didn't think so. Your AI will help you plan your next vacation. Their AI will be running the USA's new intelligent Iron Dome and self-directed space-mining.
6) End users running AI on their phone means WE ARE GONNA START WANTING GPUS IN OUR PHONES, LOL. You know how many friggin cellphones are out there? That is how many of these fancy schmancy new chips they'll sell... every couple of years.
Buy the fucking AI dip, bro.
You have to remember that hashrate is fungible, just like electricity or Bitcoin. These three forms of energy (computation, power, storage) can be shifted around, to produce more of one and less of another, so long as the system stays energy-efficient.
If you have idle computation capabilities, and limitless energy, you can find a way to use that computation to convert that energy into Bitcoin. Even if you burn out the GPUs, after a couple of years, you can still make a lot of money with 1.3 million GPUs.
And, you would only be using any computation leftover from the AI stuff. If you shifted the mining computation from one GPU to another, they wouldn't burn out.
Yeah, that's why Trump is demanding lower interest rates and preparing to spend like there is no tomorrow, and trying to bring manufacturing home, and everyone else is loading up with gold, Bitcoin, or fiat-denominated debt to build physical infrastructure, like oil rigs, bridges, and data centers. (Well, everyone except Germany because Mr. Habeck is absolutely deranged and economically illiterate.)
The Bitcoin market is too small, still, to absorb all of that money, so most of it has to go into other hard assets.
also, i asked one of these people (it's an extended family operation, brothers and sisters and their children) about something i noticed, about 4 out of 5 retail venues in this area around teh northeast of the island, are closed, you can see easily 4 now shuttered businesses for every one that is still operational
the ones that are left are obviously under strain as well, they are the survivors, but the same pressure that squashed their peers obviously continues to escalate on them
and people are going to get fed up with that, and that is gonna be really interesting to watch, and that's why bitcoin and lightning are really coming to a maturity level sufficient that there really is no other option for them, and they all have it on their radar
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