Power

Bloomberg: AI companies are competing with Bitcoin miners for power supply

ChainCatcher news, according to Bloomberg, artificial intelligence (AI) companies have significantly outpaced cryptocurrency mining enterprises in energy demand for data centers, becoming a new dominant force in the global electricity market. AI technology giants are willing to pay up to three times the price of electricity compared to Bitcoin miners to support their data centers. This fierce competition is forcing Bitcoin miners to turn to marginalized or intermittent power sources.MAR Holdings CEO Fred Thiel stated that the electricity costs paid by AI companies are much higher than those of crypto miners, putting the latter under survival pressure. For example, his company recently acquired a wind farm in Texas to maintain operations, but this type of power supply is not stable. Additionally, the disadvantages that crypto miners face in loan default rates and financing costs make electricity suppliers more inclined to cooperate with technology giants.It is worth noting that the recent surge in Bitcoin prices, surpassing $100,000, may slow down the trend of miners' data centers being acquired. However, industry experts predict that Bitcoin miners will be further pushed into marginal markets that cannot meet AI's electricity demands, such as inefficient power facilities in remote areas. This competitive landscape indicates that the energy demand patterns of the AI and cryptocurrency industries are undergoing significant changes, while also revealing the relative weaknesses of miners in terms of technology and capital capabilities.

Opinion: Trump plans to weaken the SEC's jurisdiction over cryptocurrency, granting greater regulatory power to the CFTC

ChainCatcher news, according to a report by the Hong Kong Economic Journal, the Executive Director of the Hong Kong International New Economy Research Institute, Fu Rao, published an analysis stating that U.S. President-elect Trump plans to reshape the regulatory framework for cryptocurrencies, granting the Commodity Futures Trading Commission (CFTC) greater regulatory power. This change aims to cover the $3 trillion digital asset market while weakening the jurisdiction of the U.S. Securities and Exchange Commission (SEC). This move is seen as a significant policy turning point in the cryptocurrency sector and could have far-reaching effects on the global crypto market.U.S. cryptocurrency regulation has long faced issues of unclear responsibilities. Under the existing framework, the SEC and CFTC enforce regulations on the crypto industry through separate enforcement actions. However, due to a lack of clear legal basis, there has been ongoing controversy over the scope of authority between the two agencies. In contrast, the CFTC is known for its more lenient approach to cryptocurrency regulation and is viewed as a more friendly regulator by the industry.The CFTC primarily regulates the derivatives market, including futures and options trading, while its authority over the spot market is limited. The Trump administration intends to expand the CFTC's responsibilities, allowing it to comprehensively regulate the spot market for digital commodities, including Bitcoin and Ethereum. This move not only helps enhance market transparency but also provides a clearer legal framework for the development of the digital asset industry.
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