Goodbye, Bitcoin: The base logic of the encrypted world has been rewritten

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Original language: Luffy, Foresight News

AI STOLE THE RISK SPECULATIVE PROPERTIES OF BITCOIN, THE DOLLAR-STABILIZED CURRENCY REPLACED BITCOIN AS THE UNIVERSAL CURRENCY IN THE ENCRYPTED MARKET; AND IT WAS ONCE SILENTLY MAINTAINED AS AN ANCHOR IN THE ENCRYPTED WORLD, AND NO LONGER AS A BITCOIN. IT IS THE MOST ADVANTAGEOUS STRUCTURAL CHANGE IN THE ENCRYPTION INDUSTRY IN SEVERAL YEARS, BUT VERY FEW UNDERSTAND THE LOGIC BEHIND IT。

BITCOIN FELL BY $70,000 THIS WEEK, ABOUT 45 PER CENT HIGHER THAN LAST OCTOBER, AND THE MARKET WAILING. THE REAL ETF HAS EXPERIENCED THE CONTINUED FLOW OF HISTORIC LARGE SUMS OF MONEY, THE LONGEST FORECLOSURE CYCLE SINCE THE PRODUCT WENT ONLINE; THE BITCOIN KNOWN AS "DIGITAL GOLD" HAS GONE DOWN THE LINE, REMINISCENTING THE PROGRESS OF PHYSICAL GOLD。

But the market regrets the wrong direction。

At a time when Bitcoin continues to fall, a chain exchange that most people have not heard of, with transactions exceeding Coinbase last year; a projected market platform valuation that hit $20 billion and generated an annual fee of $365 million; a single-week increase of 70 per cent in private currency that was once out of the market, moving out of isolation during a bicoon shock; and a long-undervalued bottom-line network that allows for private transfers across the entire chain, without even having to purchase its original currency。

the encryption industry did not sink with bitcoin, and crypto no longer needs bitcoin。

At first glance, it is the opposite. Encryption is becoming mature, leaving behind the past brutal phase in which bitcoin was tied up in all currencies and made on the basis of love games, which evolved into a real economic ecology denominated in dollars. Projects rely on their fundamental merits, with a completely new base connectivity infrastructure that is replacing Bitcoin and connecting the entire encrypted world。

Bitcoin lost two core functions this year, replacing two new things, and the original ecological space is creating new opportunities。

AI TOOK AWAY BITCOIN'S VENTURE CAPITAL

BITCOIN ITSELF DOES NOT GENERATE CASH FLOWS, NO PROFITS, NO DIVIDENDS AND NO INTEREST, AND PRICE INCREASES AND DROPS ARE ALMOST ENTIRELY DETERMINED BY THE SIZE OF SPECULATIVE FUNDS AND ARE TYPICAL OF FINANCIAL POOLS: WHEN LIQUIDITY IS RELAXED, PRICES SOAR, AND THE TIGHTENING OF FUNDS SOARS IN DEPTH. IN 2026, THE AI TRACK ROSE STRONGLY AND CONTINUED TO DIVERT SPECULATIVE MONEY FROM THE ORIGINAL BITCOIN。

THE SIZE OF AI CAPITAL INPUTS THIS YEAR IS PROJECTED TO BE IN THE RANGE OF $70 BILLION TO $83 BILLION, ABOUT HALF THE SIZE OF THE US-MARKET INVESTMENT-GRADE BONDS, WITH AN EXPECTED IMPACT OF $7 TRILLION IN 2030; AI ' S INDUSTRY CONTRIBUTES ABOUT 5 PER CENT OF US GDP, AND THE PULL OF US ECONOMIC GROWTH HAS EXCEEDED RESIDENTIAL CONSUMPTION. IN ENGLAND ALONE, THE MARKET VALUE IS 8% OF THE INDEX WEIGHT OF 500. AI IS NO LONGER AN ORDINARY TRACK, BUT RATHER A SUPER-POWERED GRAVITATIONAL FIELD THAT RECREATES MARKET-WIDE CAPITAL PRICING LOGIC。

AI CONTINUES TO DRAW BITCOIN FROM THREE MAJOR DIMENSIONS:

1) AI CAPTURES THE CORE OF NARRATIVE. BITCOIN'S CORE PAST SALES POINT WAS "A BET ON FUTURE ASYMMETRIC OPPORTUNITIES", BUT AI HAD SOLID REVENUE, SUSTAINED MARKET DEMAND AND NATIONAL POLICIES THAT ENABLED INVESTORS TO ORGANIZE THROUGH INDEX FUNDS. TODAY, THE AGENCY CLASSIFIES THE BITCOIN AND NON-PERFORMING TRASH UNITS AS THE SAME CATEGORY OF RISK ASSETS. IN THE SAME RISK POOL, WHERE THE PROFITS ARE CASHED WHILE THE EXPECTATIONS ARE PURE, THE FUNDS NATURALLY CONTINUE TO BE WITHDRAWN FROM BITCOIN, AND THIS IS WHERE THE ETF IS REDEEMED。

2) AI NEEDS FUNDING. AI, WHOSE EXPANSION IS HEAVILY DEPENDENT ON DEBT FINANCING, HAS SURPASSED THE SCALE OF ITS DEBT OVER THE ENTIRE PAST YEAR, WITH PRIVATE CREDIT TO THE AI INDUSTRY BREAKING $20 BILLION. HIGH-QUALITY, HIGH-VOLUME DEBT DISBURSEMENTS ABSORB TOP-LEVEL FUNDING, AND THE FUNDS THAT FLOW TO HIGH-RISK ASSETS SUCH AS BITCOIN ARE BEING STAGGERED。

3) AI REVERSES HIGH INTEREST RATE ENVIRONMENT. AI INDUSTRY PUSHES UP PRODUCTION COSTS SUCH AS HYDROPOWER, STORAGE CHIPS, AND THE RELATED PRICE INCREASES ARE GENERALLY IN THE RANGE OF 5 PER CENT TO 2 DIGIT, LEADING TO INFLATION ANCHORING IN THE UNITED STATES NEAR 3.8 PER CENT. THE FED WAS FORCED TO MAINTAIN A HIGH BENCHMARK RATE OF 3.5 PER CENT TO 3.75 PER CENT, AND THE MARKET HAD LITTLE PROSPECT OF FALLING INTEREST RATES THROUGHOUT THE YEAR. AI NOT ONLY COMPETES WITH BITCOIN FOR MONEY, BUT ALSO LOCKS LOOSE MOBILITY IN THE MACRO ENVIRONMENT。

In addition to this, the calculus is being subverted. Bitcoin mining and AI computing are essentially power-consuming conversions, competing for the same power resources, while the economic benefits of the power in the British servers are much higher than those of the miners. In the previous quarter, the head-listed mining company had recovered a bitcoin at a combined cost of approximately $80,000, but the bitcoin market price was only $70,000, with a single currency loss of $19,000. A large number of mining companies have transformed AI ' s capacity: the industry has accumulated over $70 billion AI ' s over-calculated cooperative orders, with head mining companies accounting for up to 70 per cent of all revenues at the end of the year. Core Science spent $10.2 billion to transform a 300 MWbitco mine into an AI data centre; Riot sold its own bitcoin and sublet land AMD. These cyborgs, which were supposed to guard the safety of Bitcoin, are collectively fleeing。

COMPARED TO PEOPLE'S RELUCTANCE TO CALCULATE THE RISKS OF QUANTUM, AI HAS BROUGHT ABOUT PERMANENT STRUCTURAL CHANGE. EVEN IF FUTURE QUANTUM COMPUTERS ARE ABLE TO BREAK THE BITCOIN ENCRYPTION ALGORITHM, THE INDUSTRY CAN USE THE BACK QUANTUM CODE STANDARD, SOFT FORK UPGRADE PROTOCOLS; HOWEVER, AI CAPTURES NARRATIVES, CAPITAL AND ELECTRICITY RESOURCES, AND NO UPGRADES CAN BE RESTORED. THE FIRST CORE VALUE OF BITCOIN WAS COMPLETELY LOST。

The dollar stability currency replaced bitcoin as the base currency of the encrypted market

THIS IS THE KEY CHANGE THAT IS MOST EASILY IGNORED. IN THE HISTORY OF ENCRYPTION, BITCOIN HAS LONG BEEN TRANSFERRED FROM INDUSTRIAL RESERVES AND ACCESS MONEY: FRENCH COINS HAVE BEEN CONVERTED INTO BITCOINS, THEN ALL KINDS OF COINS HAVE BEEN CONVERTED, ALL AT BTC PRICES, AND OFF-SITE FUNDS HAVE HAD TO BE BOUGHT FIRST, WHICH WAS THE CAUSE OF PAST MARKET-WIDE INCREASES AND DECLINES。

Stabilized coins cut the link. For the first time in 2019, USDC traded more than USDT, and the annual global stable currency trade surpassed $30 trillion. The user's financial path has now become French currency, USDC's assets and Bitcoin has been completely kicked out of the circulation chain. Polymarket re-engineered this year the original United States dollar stabilization currency (an anchored USDC 1:1 reserve), and Hyperliquid, the entire platform, is settled in dollars. As the industry summed up, the stabilization currency became the lowest common reserve currency to be used, and platforms were labeled only on it。

As a result, the dominant chart shows a decline in the share of bitcoin and an increase in the share of the stable currency as the risk-averse sentiment rises. The funds did not flow out of the encrypted market, but simply switched to dollar-denominated assets within the industry. Investors wanted to configure the encrypted track and no longer had to hold bitcoin, a function assumed by the dollar stabilization currency. The transactions in the chain are fully dollar-based, and the flow of funds in the chain can no longer bring a buyout for bitcoin. Bitcoin ' s second core function, officially ended。

After leaving Bitcoin, the encryption economy flourished

Leaving aside the bitcoin, the product at the drop is no longer a speculative chip tied to the price of the currency, but a commercialization project with real cash flows。

Hyperliquid exists enough to keep the argument that "encrypted money is dying" from self-destruct. This chain of spot-contract exchanges, which bring depth and speed of trade to the head of the marker CEX, has an autonomous hosting of user assets; last year's total turnover was $2.6 trillion, higher than Coinbase's 1.4 trillion and annual revenue of $80-13 billion. The Platform 97% of the process costs HYPE, which buys back on the secondary market and buys back approximately $1.3 billion a year, representing 7% of the total market value of the coin, at 4-5 times the rate of the Taifeng and 14 times the rate of Solana. The project is not funded, values are closed by community air drops and buybacks, trade increases and drops are entirely dependent on the demand of traders and have nothing to do with Bitcoin, the size of the platform rising during the period of Bitcoin。

Another major actor is Polymarket, the forecast market leader, which values $20 billion, the annual turnover of $250-300 billion, the annualized fees of $365 million and the five-month increase of 2.5 times the daily user; and the release of the platform ' s dollar-stabilized currency, which is on line. Polymarket products are betped around general elections, sports events, global events, and demand and bitcoin price increases are irrelevant。

Such projects now follow the traditional business valuation logic: collection, user size, valuation multiplier, which is a sign of industry maturity。

New track dividend: privacy becomes a scarce resource

If a transparent and monitored book of bitcoin is a default option in the past, privacy is a new upgrade option. This is a self-sovereign and untraceable currency that can be acquired only in the chain. But the way in which this currency is purchased is quite different, and the difference is the key。

Self-held privacy. Zcash (ZEC) rose by 70 per cent a week, with total market value approaching $10 billion, 45 times higher than the 2024 low point, and moving out of the stand-alone situation at the Bitcoin Transverse stage. The basics are solid: private transfer flows rose from 11 per cent last year to 30 per cent, privacy assets mostly do not turn back into open chains, and the flow drives continue to shrink and raise demand. The pressure on privacy compliance, which was originally pressured by regulation, helped to push the value of privacy money to the ground: Robinhood on line ZEC cash, Graysdale submits the first private currency spot in the industry. Privacy has been upgraded from a single application scenario to a long-line investment logic. But ZEC needs to buy the tokens alone and switch the chain。

Full-chain generic privacy. NEAR does not need to purchase private currency, move assets across the chain, rely on chain signature techniques, and individual NEAR accounts can directly manipulate Bitcoin, Ether Workshop, Solana raw assets, unenclosed tokens, no cross-link risk, and secure key hosting on a centralized multi-security network. Covering confidentiality intent agreements allows users to transfer assets into any public chain of privacy, and the counterparty and route information is hidden throughout, depending on the privacy segment. User assets are kept in the original public chain and privacy becomes a generic bottom-up service。

THIS MODEL IS MORE SUBVERSIVE THAN A SINGLE CURRENCY. USERS DO NOT HAVE TO HOLD ZECS, DO NOT HAVE TO LEAVE THE ETHER WORKSHOP, BITCOIN'S ORIGINAL ECOLOGY, AND PRIVACY MOVES FROM EXCLUSIVE ASSET PROPERTIES TO A FULL-SCENARIO TRADING SELF-BAND FUNCTION。

The bottom coordination layer of the multi-chain era, replacing the Bitcoin hub

LOOK AT THE WHOLE ENCRYPTION PATTERN: THE INDUSTRY IS NO LONGER INTEGRATED, BUT IS EXPANDING IN PARALLEL CHAINS AND ECOLOGY, THE DOLLAR-STABILIZED CURRENCY BECOMES THE BOTTOM COMMON CURRENCY, THE AI SMART BODY OWNS THE VOUCHER, CALLS THE INTERFACE, TRANSFERS THE MONEY INTO A BRAND NEW PARTICIPANT。

The vast multi-chain + intelligent ecology urgently needs connectivity infrastructure, a role that has been played by Bitcoin over the past decade; the vacant space is now filled by a whole new level of coordination privacy: cross-chain signatures, dollar settlements, privacy transactions, and self-execution of intelligence。

NEAR IS AIMING AT THIS TRACK. IT SUPPORTS AN AI SMART BODY WITH A USDC PRIVACY SETTLEMENT, A SECURE OPERATION BASED ON A HARDWARE SAFETY ZONE, A KEY MANAGEMENT HUB FOR A SIGNATURE NETWORK TO CREATE AN INTELLIGENT ECONOMY, AND CROSS-CHAIN, PRIVATE SERVICES FOR USERS AND ROBOTS THAT ARE UNCHAINED。

There's another Vénice from the same track. It focuses on the interactive AI application, covering a large number of original Web2 users; platform passes for VVV pledge to split AI reasoning proceeds, with the project destroying more than 40% of currency traffic by repurchase, demand driven by AI usage, and movement of tokens delinked from bitcoin。

The focus of the new industry has now taken shape: it is no longer a single currency, but a bottom-up infrastructure, with physical projects dependent on the creation of real value。

Summary

COMBINING THEM: US DOLLARS ARE INDUSTRY-WIDE CASH FLOWS, AND PROJECTS SUCH AS HYPE, POLY, ZEC, NEAR, VVVV ARE CERTIFIED TO CORRESPOND TO BUSINESS EQUITY, AND PRIVACY IS INDUSTRY-WIDE INFRASTRUCTURE ACROSS THE CHAIN. BITCOIN IS JUST AN ECOLOGICAL BLOCK. AI TAKES OVER MACRO-SPECULATION, PHYSICAL GOLD TAKES OVER RISK AVOIDANCE NEEDS, STABILIZES CURRENCY MONOPOLIZATION OF RESERVE CURRENCY FUNCTIONS, AND THE TRIPLES OF BITCOIN ARE NO LONGER UNDER PRESSURE。

Over the past decade, the whole industry has been watching bitcoin, and all the movements have followed bitcoin, an era that has completely ended. The project is now judged to be good and bad, and the corporate standards of traditional entities are consistent: there are no real receipts, active users, and whether tokens capture the growth gains of the project。

It's not like you can use bitcoin up and down to judge encryption. Focus on project revenue generation, user increments, bottom-up infrastructure of the chain: full chain privacy transfer, dollar settlement, human utility cross-chain infrastructure。

AI TOOK AWAY CAPITAL FROM MACRO-SPECULATION, THE UNITED STATES DOLLAR TOOK AWAY THE RESERVE CURRENCY POSITION, AND A NEW BOTTOM-UP AGREEMENT TOOK OVER THE BURDEN OF INDUSTRY-WIDE CONNECTIVITY. BITCOIN FELL $70,000, NOT THE END OF THE ENCRYPTION INDUSTRY, BUT THE HISTORIC POINT WHERE ENCRYPTION WAS COMPLETELY OUT OF BITCOIN。