Bitcoin and the wider cryptocurrency market face another turbulence wave, hinting at greater uncertainty. Recent crackdowns in the US and FED actions already rattled Bitcoin prices. A leak by Forbes reveals that US President Joe Biden may soon issue an executive order on artificial intelligence (AI), potentially shaking the crypto world further.
Alexander Grieve, a key figure at Paradigm—a Bitcoin and crypto-focused investment firm—voiced concerns regarding the imminent executive order on AI from the White House. According to Grieve, the crypto sector might soon hear “alarm bells” ringing louder.
Sources cited by Semafor indicate that the executive order could compel tech giants like Microsoft, Google, and Amazon to divulge information when customer processing power purchases exceed set thresholds. Grieve draws attention to a notable section of the leaked report that labels computing power as a pivotal “national resource.” Activities spanning Bitcoin mining, video game development, and AI model operations, such as ChatGPT, hinge on substantial computing prowess.
The backbone of the Bitcoin network lies in its miners, who employ robust computers to authenticate transactions and are rewarded with newly minted BTC. Annually, the energy consumed by this system rivals the consumption of several smaller nations.
Elaborating on the report’s implications, Grieve speculates that Bitcoin mining could soon be viewed as “stealing electricity from families.” There’s also a rising notion that channeling resources into the crypto arena might divert developer expertise from more meaningful endeavors.
As details continue to unravel, one thing is clear: the upcoming executive order on AI can potentially send shockwaves throughout the cryptocurrency landscape. Stakeholders await the full scope of its implications, but the initial outlook spells heightened caution.
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