{"id":59984,"date":"2025-04-17T12:19:44","date_gmt":"2025-04-17T12:19:44","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=59984"},"modified":"2025-04-17T12:19:44","modified_gmt":"2025-04-17T12:19:44","slug":"follow-the-energy","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=59984","title":{"rendered":"Follow the Energy"},"content":{"rendered":"

The Monday after the DeepSeek news broke, I started selling off my big tech holdings. My only regret? Not selling everything that day. I see DeepSeek as a Bear Stearns moment\u200a\u2014\u200aa major red flag, much like 2008, signaling trouble in paradise. \u201cDeepSeek\u2019s energy Consumption is shaking up the AI industry, raising questions about the massive investments Western companies are making in energy-intensive infrastructure, such as the U.S.-backed $500 billion Stargate project.\u201d – www.rinnovabili.net<\/a>, January 29, 2025. DeepSeek shattered the thesis of my blog post, AI & BTC: The Locust and Dung\u00a0Beetle<\/em><\/a><\/p>\n

The race to zero in AI computing costs and profit margins has begun. Having spent three decades in cutting-edge computing startups, I\u2019ve seen this before. I feel like Jeremy Irons in Margin Call<\/em>, pounding the desk, exclaiming, \u201cThis is it! I\u2019m telling you, this is\u00a0it!\u201d<\/p>\n

AI will transform everything\u200a\u2014\u200atraditional white-collar jobs, even programming. But it\u2019s the Wild West out there, and no one knows who\u2019ll come out on top. Personally, I feel more empowered in an AI-driven world. Those of us with high EQ, even if we\u2019re not strong in math or science, can finally level the playing field. While AI will outstrip us in knowledge, empathy remains a valuable skill\u200a\u2014\u200afor\u00a0now.<\/p>\n

You might expect me to comment on the tariffs, but that\u2019s above my pay grade. I will say this: pre-2020, I worked in edge computing for robotics and smart factories. Building a factory takes time, and operational technology (OT) is a grind compared to informational technology (IT). IT made many in Silicon Valley rich beyond their wildest dreams, providing a comfortable lifestyle. But the easy money days of big IT are behind us. A reordering is underway\u200a\u2014\u200abusiness models like cloud computing and SaaS are about to become fiercely competitive.<\/p>\n

The disruption from tariffs isn\u2019t over, but we might see a brief calm in the coming months\u200a\u2014\u200aI hope so, because we could all use a break. Still, as Lyn Alden often says on X (LynAldenContact),<\/a> \u201cNothing stops this train.\u201d Things are changing forever. How long the unwinding and reordering take is anyone\u2019s guess. There will be winners, losers, and some who fade away like a \u201960s folk\u00a0singer.<\/p>\n

This brings me to the core of this post: follow the energy. Last week, as the stock market crashed, Bitcoin\u2019s hashrate\u200a\u2014\u200athe computing power and energy dedicated to mining\u200a\u2014\u200ahit an all-time high. Source: https:\/\/x.com\/documentingbtc\/status\/1909788396328788340?s=12&t=fkRmFD2VxAY11KmInSo50A<\/a><\/p>\n

Think about it: as markets plummeted, energy flowed to a superior digital currency\u200a\u2014\u200aa proven store of value over a 4\u20135 year horizon. Just last night, between drafts of this post, we hit another all-time high. That tells you everything. Fiat currency trends to zero against Bitcoin, so following the money is pointless. Bitcoin was built for times like these. Even BlackRock figured it out, launching their Bitcoin ETF (IBIT)\u200a\u2014\u200aif you can\u2019t beat them, join\u00a0them.<\/p>\n

As we stare at our brokerage accounts in shock, focus on one thing: where is the energy going? That\u2019s where the money will follow. Take the time to buy Bitcoin, learn about it, and be patient and humble. Arrogance will destroy us. AI may some day outsmart us all, but right now, Bitcoin is attracting more energy than\u00a0AI.<\/p>\n

Editing and Images Thanks to Grok\u00a0AI<\/p>\n

Follow the Energy<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":"

The Monday after the DeepSeek news broke, I started selling off my big tech holdings. My only regret? Not selling everything that day. I see DeepSeek as a Bear Stearns moment\u200a\u2014\u200aa major red flag, much like 2008, signaling trouble in paradise. \u201cDeepSeek\u2019s energy Consumption is shaking up the AI industry, raising questions about the massive […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-59984","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/59984"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59984"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/59984\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}