If AI Crashes, Does Bitcoin Rise? Examining the BTC–AI Relationship

[Lexandroove]

The AI boom has been noticeable, with the tech having made its way into several sectors in varying capacities. While it brings its set of advantages, particularly in the form of speed, scale, and programmability, the glaring effect is the immense cost of running and sustaining the tech, reaching a point where it siphons interest and funds from the crypto ecosystem.
While reports have established an inversely proportional relationship between artificial intelligence and crypto, many are betting on the resilience of crypto, with ParaFi’s Jeff Park, stressing that AI wealth creation is very bullish for BTC, with his reasoning behind this being that whenever the asset-liability mismatch breaks (which they always do) and capital flees, the infinite-duration asset that is Bitcoin will be waiting coiled in a generational indifference. As expected, this notion has so far faced lots of criticisms from those who pointed out the correlation between the stock market and the crypto industry, arguing that a mutual fall might ensue if AI finally falls.
I’d like to get your takes on this: If AI’s boom or crash will exert ripple effects on the eventual valuation of Bitcoin, or if it’s a development that shouldn’t be held with much reverence

[Rruchi man]

I’d like to get your takes on this: If AI’s boom or crash will exert ripple effects on the eventual valuation of Bitcoin,

The ripple effects on the eventual valuation of Bitcoin are that people will get to value it more because currently there is competition for investment capital between AI stocks and then direct investments into Bitcoin from investors because AI stocks are something that are trending this year considering the growth that artificial intelligence is making, and this is distracting investors from focusing their capital on investing in Bitcoin. If Artificial intelligence crashes, more persons will shift their investment capital towards Bitcoin once again and then focus on investing there because of its long-lasting reputation that it has already built. A crash in AI will lead to more people wanting to buy Bitcoin, and that will increase the value.

[Catenaccio]

I’d like to get your takes on this: If AI’s boom or crash will exert ripple effects on the eventual valuation of Bitcoin, or if it’s a development that shouldn’t be held with much reverence

During a latest market cycle, with interest rates and political chaos in the USA, around the globe, people globally try to secure their capital as safest as possible. Their main concern is to keep their capital safely than try to get richer and with this risk management, the majority have become more careful with use of their capitals. This approach has forced many people to hesitate to use their capital for investment, and if they invest into something, their main interests will be with traditional assets that look like safer than Bitcoin and an emerging market like cryptocurrency market.

AI is a hot trend but it is risky too but people have invested in stocks of AI companies while in cryptocurrency market, many AI related projects or even scam projects that abuse AI trends have gotten a lot of interest and capital from cryptocurrency investors.

When the AI trend cools down, Bitcoin will attract more capital into Bitcoin market and price will be lifted. I believe that Bitcoin's four-year market cycle still works, just at different levels which perhaps have smaller effects and ROIs than previous market cycles.

[citywise2]

I’d like to get your takes on this: If AI’s boom or crash will exert ripple effects on the eventual valuation of Bitcoin, or if it’s a development that shouldn’t be held with much reverence

AI boom no doubt powers across board every area of the economy - crypro incusive, however it must be noted that AI is never one of the critical highlights of Bitcoin so in the event of a crash in AI, it can be expected to only jolt the value of Bitcoin as would  any other economic factor but that would be of no major effect in the valuation of Bitcoin in the long run as the market would sooner than later absolve that and move on. Things that can really hurt Bitcoin are when it stops to be decentralized, when it is no longer trustless and when the community stop believing in it and not on tools used to work on it..

[MainIbem]

They're don't have a direct connection but ripple effect that might occur is that  people who bought AI stocks would channel their attention to other good alternatives most likely Bitcoin and Gold so if more money is channeled into those it could cause an increase therefore the crash would indirectly affect the price of Bitcoin through the rotation of money. People have always look for alternatives if something fails just like attention is gradually switching from fiat to Bitcoin in term of store of value, security and decentralization.

[Taricoins]

I join the voices with the community to say, it would definitely affect the value of Bitcoin for a short period of time and if the crash is permanent, bitcoin might even increase in value. The problem for immediate bear trend is that most of this institutional funds have stocks in both AI and bitcoin investment so if times of crashes, this institutions might sell off for correct or mitigate there loses. But the surety is eventually over some time if the persist the market will even correct itself.

[Loyang]

Bitcoin is much better than all other investments in terms of long-term investment, especially we can say that it has become a better investment than gold. If the AI ​​market falls, its impact on the Bitcoin market may not be very visible. It can be seen in some cases. For example, if a person invests a large amount of money in AI and at the same time if he invests in Bitcoin. If the AI ​​market ever falls or faces a loss, then maybe that person will want to save money by selling Bitcoin, due to which we may see some volatility in the Bitcoin market.

Maybe in the long term we can see a lot of good in the Bitcoin market. The volatility of Bitcoin is the main surprise of the Bitcoin market. We can also consider this from this point of view that if every person gains a large amount from AI, then maybe they can choose Bitcoin as a long-term investment and we can see a very big upside in the market

[Pumpsta]

Dude, imo if AI crashes then BTC just follows it (at least for a while), then AI stays at the bottom & BTC eventually sticks out like a sore thumb next bull run it'll take a while for some of that money to rotate back into btc. but it's not like AI had a close connection to bitcoin

[Oshosondy]

I do not know the reason most people are posting that if AI crash, bitcoin price will fall or that bitcoin price will first fall. To me if AI crash, that has nothing to do with bitcoin unless there is something that is disrupting human existence that is causing the fall like the end of the world or something that significantly affect people negatively in away that it affect economic

[BlackHatCoiner]

When institutional investors panic, they don't sell their bleeding Nvidia bags to buy magic internet money. They go straight to cash to cover their margin calls. History has shown us time and time again that Bitcoin still trades like a leveraged tech stock at times like these.

It will be fine LONG TERM.

[Nathrixxx]

If AI’s boom or crash will exert ripple effects on the eventual valuation of Bitcoin, or if it’s a development that shouldn’t be held with much reverence

The context at which AI is applicable for use is quite different from how it relates to bitcoin network and they are two different things, AI use is already on a boom and this wasn't the reason to why bitcoin is rising of falling and same why I don't think they can be a decline on the approach at which people admit in making use of AI on relevant areas, bitcoin market value is something that depends on its network and not on a third party artificial intelligence development circumstances.

[Dr.Bitcoin_Strange]

The misconception in this idea is that, even if AI fails, Bitcoin is not the only asset that those AI investors would consider to move their money into. Assuming AI crashe so badly and caused a big panic among investors which might probably lead to a big effect in the entire stocks market, how sure are you that this might not also affect Bitcoin such that some of those investors might also sell their Bitcoin? 

If peradventure AI faces a major crash,  the outcome of such crash can result in two ways, first; it might also be bearish for Bitcoin on a short term period, because such event can cause FUD in investors and before you know it, lots of investors might start selling their digital assets which could affect the stock market at large and also affect Bitcoin on the short term. Second outcome; This depends greatly on how investors react to such crash, if major invest finds Bitcoin as the best option to move their large capital to, then Bitcoin would experience huge inflow of capital and that will drive deman and make price go up.

It is not automatic that if AI crashes and investors lose money, that the remain money that is left for them will be transferred immediately to Bitcoin.

[Ambatman]

Maybe I'm a little intoxicated, why do I find this hard to read.
I'm going to go with the title
From my understanding
Bitcoin and AI are not really correlated.
AI rising doesn't directly influence Bitcoin price
They fall under same technology driven investment.
So If AI crashes it depends on the why
If it's something that cuts across everything within that section then Bitcoin would be affected too
But if it's just unique to AI then Bitcoin might have some growth.

[YOSHIE]

If AI Crashes, Does Bitcoin Rise? Examining the BTC–AI Relationship

When speculative capital funds no longer flow into AI technology and infrastructure, that is when the great potential for changes to Bitcoin will increase, a situation that all requires AI artificial intelligence to fail or break.

In fact, Al's presence currently has a big influence on the price of Bitcoin, where investors no longer focus on digital assets like Bitcoin, but if Al fails, there is a big possibility that big investors such as investment companies will return to the crypto market, Of course, the return of the industry will strengthen Bitcoin's growth globally, this will again increase the price of Bitcoin.

Believe it or not, AI euphoria can hinder the growth of crypto prices and affect the liquidity of the Bitcoin market, in fact the Bitcoin price has the biggest influence on investors who buy Bitcoin.

[ruykeri]

AI technology is still in its initial stage. At this time, they are focusing on how to improve AI more than reducing the cost of operating AI. And since it is moving towards a long time process. Already many people have become dependent on AI in their workplace. And now most of the users purchase AI and use it to get full benefits. So what I think is that in the future, when the development of AI goes to a stage where it will take a long time to develop further. At that time, maybe AI companies will try to reduce costing. They will use reusable electricity. And since people are getting used to AI. if the costing increases in the future, they will increase the price of the paid version. Now if a company can buy AI pro models with the money that it used to pay one person as salary and get the rest of the 10 people to work, then it will not feel a problem to spend that amount . And AI companies will continue to do business taking advantage of this, as a result, AI will be stable and strong in the future. And I don't want to say much about other cryptos, I have little idea, but if I talk about bitcoin, I don't think bitcoin has a direct influence on the rise or fall of AI. I don't see any reason for it to be created in the future. Bitcoin is a digital form of the financial system that has freed people from the negative aspects of the traditional financial system. And in the future, the demand for bitcoin will increase, its popularity will increase, and the supply of bitcoin will decrease, so its price is probably to increase. And people will invest in bitcoin knowing its benefits. Not because of the collapse of AI or any other technology.

[bitLeap]

I’d like to get your takes on this: If AI’s boom or crash will exert ripple effects on the eventual valuation of Bitcoin,

The ripple effects on the eventual valuation of Bitcoin are that people will get to value it more because currently there is competition for investment capital between AI stocks and then direct investments into Bitcoin from investors because AI stocks are something that are trending this year considering the growth that artificial intelligence is making, and this is distracting investors from focusing their capital on investing in Bitcoin. If Artificial intelligence crashes, more persons will shift their investment capital towards Bitcoin once again and then focus on investing there because of its long-lasting reputation that it has already built. A crash in AI will lead to more people wanting to buy Bitcoin, and that will increase the value.

AI shares are many while Bitcoin is only one, so the impact does not make Bitcoin dependent on what AI shows in the market. Investors know how to choose which ones are rare and have value resilience and bitcoin has been through that process for quite some time. If you look at the growth of AI then it is too early to attribute its resilience to Bitcoin. Al failed, but the value of Bitcoin remained untouched.

[Alvin_talk]

Maybe I'm missing something, but I'm really finding it difficult to connect the dots here. Are you referring to general ai tools and large language model such ChatGPT? AI has been in existence since the fifth generation of  computers were introduced around 1980, let's not mix things here, there are ai components in every computer we use today to run nodes, but that aside, I don't see how ai crashing will affect bitcoin price.

Bitcoin price is influenced by demand and supply.

[Doll2233]

Different views about this topic with arguments are always open because talk gives a better view of understanding. I am also expecting things could be positive for Bitcoin because currently people are running behind AI hype. If this breaks, Bitcoin could have a big jump, and investors are surely going to enjoy this because right now they mostly are focusing on AI and its increasing investors intention. Even though they mostly are right, both have no direct connection, but it's making some noise.
The last few months are not good; the price is stuck, and things are getting normal. Bitcoin always has good volatility, but now it's moving around on the same figures. These are making things painful. Small investors are sidelined while institutes are doing their stuff with holding and keeping things under their control. It needs good flow and movement for big change.

[MinoRaiola]

When more powerful AI becomes, they more intense it will be used by humans. I dont think there is any way to ban or ignore it. Bitcoin is independent and will based on peoples decisions. With or without AI, Bitcoin will continue and move forward block...block...block. Perhaps in the future, AI see something more in Bitcoin and maybe help increase its acceptance.

[Jewan420]

There is a lot of money being invested in real estate, if real estate investment stops, will it have any impact on Bitcoin? This is kind of a stupid question.
Is there any relationship between AI and Bitcoin at all? I don't see any relationship that would say that Bitcoin will be affected by AI.

We have seen Bitcoin remain stable even during times of global economic instability and there has been no long-term impact on Bitcoin. So why do you think AI can affect the Bitcoin market? As long as something is affecting people's demand or their ability to save, we will not see any impact on the Bitcoin market.