Vitalik Buterin Says Crypto Won’t Break Because of AI
The co-founder of Ethereum, Vitalik Buterin, says that crypto can withstand the latest advancements in AI. According to Buterin, AI has a slight chance of breaking into cryptographic hashes and proof-of-work (PoW) at some point in the next two years. Buterin made his statement as Bitcoin was hitting $80K and volatility was setting in.
What Vitalik Buterin Thinks of the AI Threat About Bitcoin
AI risk and Silicon Valley angel investor Liron Shapira stated that AI can break Bitcoin resulting in a 50% crash. Buterin stated that the risks associated with AI are equivalent to breaking every Bitcoin cryptographic hash. Buterin is more optimistic about various blockchain networks and associated security issues. He believes blockchains can challenge innovations and advances, but will not break and become totally unusable under significant social pressure.
Buterin Believes That AI Will Not Break Bitcoin
Buterin calls the chances of AI breaking Bitcoin a slight possibility. He differentiated between cryptographic risks and network layer risks.
Security Risks on the Network
Buterin stated that some network layer issues can be resolved if a mining pool and clients make a few upgrades. Security issues do not always need a social agreement across the Bitcoin network to be resolved.
This builds confidence in blockchain security for him and his investments. Buterin explained that he is already taking the offered bet since about 90% of his net worth is in line with his long-term blockchain security bet.
Bitcoin Still Holding Steady Near $80,000
Current uncertainty in global markets has Bitcoin remaining at the $80,000 range in the last 24 hours. At the time of this report, BTC was at $79,564, with a low for the last 24 hours at $79,426, and a high at $80,493.
Volatility across markets is expected as we await the result of the U.S. Consumer Price Index (CPI) in the next hours. However, Bitcoin’s trading volume is up approximately 12% over the last 24 hours, which could mean more market activity.
Bitcoin Futures Open Interest Looks Good
Bitcoin futures trading data has also looked good, showing selling pressure. In the last 24 hours, open interest for Bitcoin futures has dropped to $52.92 billion. Binance and CME futures open interest also dropped by about 0.40% over the same period.
Even with the slight decline in futures trading open interest, which could mean less demand, it isn’t a cause for major concern.
Bitcoin Still Looking Bullish
Despite what AI or macroeconomic uncertainty might mean for Bitcoin, there are still positive signals coming out of predictions markets. According to Polymarket, 74% of the predictions made so far believe that by December 31, 2026, Bitcoin will be valued at $85,000.
Buterin appears to believe that, for now, the development of AI does not endanger Bitcoin. He thinks that, while new versions of AI may change the way people perceive cyber threats, the risk of AI successfully attacking Bitcoin through breaking cryptographic or proof-of-work methods is virtually zero.
For now, then, it remains the case that investors can focus on the usual market factors of interest (macroeconomics and liquidity), as well as the network and potential future use of the coin, rather than worrying about an imminent AI cyber-attack.
