Abuirfhan on Nostr: AI is consuming enormous amounts of power, and every week there seems to be a new ...

AI is consuming enormous amounts of power, and every week there seems to be a new plan for bigger data centers. Some are even discussing building them in space.

AI is a real technological breakthrough, but technology is inherently deflationary. Over time, hardware improves, software becomes more efficient, and costs fall. What requires massive infrastructure today may run on consumer hardware tomorrow.

That creates a risk of overbuilding. If too much capital flows into AI infrastructure, many projects may struggle to earn acceptable returns.

The power grids won't disappear. The infrastructure will remain.

And Bitcoin mining may be the natural buyer of that excess energy when the cycle turns.

#bitcoinmining