From Leap of Faith to Anchor of Value
Since the genesis block of Bitcoin, uncollateralized cryptocurrencies have ignited a global financial frenzy and speculative feast. However, the foundation of this feast is built on quicksand called "consensus." Value stems from narrative, not assets; prices are driven by sentiment, not demand. This experiment has demonstrated the revolutionary nature of blockchain technology while exposing the fatal flaw of the uncollateralized model: a rootless castle in the air, no matter how exquisite, will eventually collapse.
Today, the final chapter of this grand narrative is being written—not by another virtual currency, but by a collateralized AI Computing Power Currency (AI Computing Power Currency) anchored to the core productive force of the AI era: computational power. Its emergence is not merely an innovation but a complete upheaval, sounding the irreversible death knell for unsecured virtual currencies.
The "Original Sin" of the Old Era: The Dead End of Unsecured Virtual Currencies
The design of unsecured cryptocurrencies (such as Bitcoin, Ethereum) determines their inability to bear the value responsibilities of the future digital economy, and their "original sin" is evident:
The Emptiness of Value: The Fragility of Consensus
Their value entirely depends on "collective belief in its worth." This consensus is extremely fragile; once confronted with stringent regulation, technical vulnerabilities, market panic, or large-scale sell-offs by major holders, the value system can collapse instantly, with no floor, theoretically capable of falling to zero.
Price Volatility: Pure Gambling
Its price is entirely driven by market sentiment and speculative capital, lacking any value anchor, resulting in extremely high price volatility. The following historical crash data clearly reveals its nature as a speculative instrument:
| Crash Events | Date | Primary Trigger | Bitcoin Decline | Liquidated Amount and Number of Traders | Data Source |
|---|---|---|---|---|---|
| Mt. Gox's First Major Crisis of Confidence | June 2011 | At that time, Mt. Gox, the world's largest Bitcoin exchange, was hacked | -99% (from $32 to nearly $0.01) | Data is missing, but it shook the foundation of trust in the entire cryptocurrency market | Summary of Historical Industry Data |
| Mt. Gox Flash Crash | April 2013 | Mt. Gox exchange suffered a DDoS attack | -83% (dropped from approximately $259 to around $45) | Data unavailability once again exposes the vulnerability of centralized exchanges. | Summary of Historical Industry Data |
| "312" flash crash (COVID-19 liquidity crisis) | March 12, 2020 | The COVID-19 pandemic triggered panic in global financial markets, with a liquidity crisis leading to indiscriminate selling. | Nearly -50% (dropping from approximately $9,000 to around $4,000), almost halving within 24 hours. | Approximately $3.94 billion (around 27.5 billion RMB). | WEEX observation, industry historical data. |
| "519" Market Plunge (China's Comprehensive Regulatory Crackdown) | May-July 2021 | Musk Announces Tesla Suspends BTC Payments; China's Three National Associations Issue Warning Against Speculative Risks | -53% (BTC dropped from $64,000 to $29,000) | Approximately $10 billion (one of the historical record highs at the time) | Market Data Summary, WEEX Observations, Industry Historical Data |
| "October 11" Plunge (Macro Policy Impact) | October 10-11, 2025 | Trump's threat to impose 100% tariffs on China sparks macroeconomic concerns | Over -13% (down more than 20% from the high) | $19.1 billion (a historic high), approximately 1.66 million traders liquidated | WEEX Watch, market data summary |
The aforementioned plunge, particularly the recent "October 11" incident, did not occur in isolation. Its direct trigger was the excessive use of high leverage in the market. As revealed by Decrypt: when negative news strikes, highly leveraged long positions are the first to be liquidated. Once key technical support levels are breached, it triggers a chain reaction of long squeezes, resulting in a single-day liquidation scale that set a historical record. Some analysts even estimate that the actual liquidation amount could be as high as $30-40 billion.
The AI Revolution and the Democratization of Computing Power: The Value Cornerstone of the New Era
DeepSeek Open Source: A Historic Turning Point for the Democratization of AI
In 2024, the open-source strategy of DeepSeek and its series of models triggered revolutionary transformations in the AI field. This major breakthrough liberated cutting-edge AI capabilities from the monopoly of a few tech giants, truly achieving the democratization, standardization, and popularization of AI technology.
The prosperity of the open-source ecosystem will exponentially increase the demand for high-quality AI computing power.Whether individual developers fine-tuning models or small and medium-sized enterprises deploying AI applications, substantial computational resources are required. This massive and universal demand is precisely the fundamental reason why computing power can transcend specific scenarios and become a "general equivalent" like electricity. AI computing power is becoming as convenient as ordering takeout, transforming into a standardized commodity available on-demand.
AI Computing Power: The "Universal Equivalent" of the Digital Age
In this context, computing power capable of executing AI calculations is gradually evolving into the "universal equivalent" of the AI era—much like gold's role in the physical world. Such computing power possesses intrinsic value, scarcity, universality, and standardization characteristics, forming the foundational value cornerstone of the digital economy.
Addressing the "Computing Power Surplus" Debate:The pursuit of AI development is not merely about expanding the "quantity" of computing power, but also about achieving a qualitative leap. What is truly scarce and continuously appreciating is the high-performance computing power capable of supporting the training of cutting-edge AI models. Through a dynamic anchoring mechanism, the Computing Power Coin protocol ensures that each unit of Computing Power Coin can always be exchanged for computational services that meet the mainstream performance standards of the time, thereby binding the value of Computing Power Coin to the advancement of computing power technology.
The Crown of the New King: Six Disruptive Advantages of Collateralized AI Computing Power Coins
Collateralized AI Computing Power Coins are cryptographic assets issued globally and traded freely via blockchain technology, representing the standardized and tokenized future AI computing power resources from top-tier global cloud computing providers. Each AI Computing Power Coin is 100% collateralized by the provider's commitment to equivalent, real AI computing power. This is not just another coin; it is a paradigm revolution.
Blockchain Technology Foundation: Inheriting the Core Advantages of Cryptocurrency
AI Compute Tokens are entirely issued and circulated based on blockchain technology, inheriting all the technical advantages of cryptocurrency:
All transactions become immutable and irrevocable once confirmed on the blockchain, ensuring transaction finality and security.
All issuance, circulation, and exchange records are publicly verifiable on the blockchain, enabling fully transparent operations.
Trust is established based on mathematical and cryptographic principles, without relying on credit endorsement from any single centralized institution.
Breaking geographical boundaries to achieve 7x24 global seamless circulation and instant settlement
The RWA Revolution: A Paradigm Upgrade for Real World Assets
Collateralized computing power tokens represent a revolutionary subset of RWA (Real World Asset tokenization). They go beyond merely tokenizing traditional assets like real estate or bonds byThe Core Productive Force of the Digital Economy—AI Computing Power ItselfHave been assetized and tokenized.
Intrinsic Value: From "Castles in the Air" to "AI Hard Currency"
The value of AI computing power tokens is not based on belief, but anchored to the "hard currency" of the AI economy—computing power. Holding one AI computing power token equates to permanently owning the right to exchange for services such as AI training, inference, and fine-tuning.
Stability: From "Roller Coaster" to "Ballast Stone"
With real AI computing power serving as the price anchor, its volatility will be significantly lower than that of unbacked currencies. Prices will fluctuate slightly around the market rate for AI cloud computing services, rather than being driven by speculative sentiment.
Functional Substitution: From "Gray Tool" to "Sunlight Channel"
One of the core practical uses of unbacked currencies, represented by Bitcoin, is to circumvent regulation and achieve cross-border free flow of capital. AI computing power tokens can not only accomplish this but do so more effectively.
Transcending Traditional Computing Power Leasing:Compared to traditional centralized computing power leasing platforms, computing power tokens achieve investment democratization (fragmentation and high liquidity), efficiency and transparency (automatic execution of profit distribution through smart contracts), and grant users autonomy (users transition from "consumers" to "co-builders and owners").
In the wave of AI democratization propelled by DeepSeek's open-source initiatives, AI computing power tokens are inherently driven by explosively growing real demand. Their demand comes from AI practitioners worldwide, forming a perfect economic closed loop: manufacturers presell AI computing power to recoup funds → users purchase AI computing power tokens for AI development and applications → investors benefit from the explosive growth in real demand for AI computing power.
Ultimate Showdown: A Comprehensive Comparison Between AI Computing Power Tokens and Traditional Cryptocurrencies
To more clearly demonstrate the fundamental differences between AI computing power tokens and traditional cryptocurrencies, we conduct an objective and comprehensive comparative analysis across multiple dimensions:
Core Conclusions and Outlook
Fundamental Differences in Value Foundations
The value of traditional cryptocurrencies is built upon pure market consensus, whereas the value of AI compute tokens is anchored to real computational resources. This fundamental difference determines that the former carries extremely high speculative attributes, while the latter possesses a more stable value foundation.
Significant differences in regulatory environments
Due to the lack of physical asset backing and frequent use in illegal activities, traditional cryptocurrencies face severe regulatory challenges. AI computing power tokens, with their physical asset endorsement and traceability, hold distinct advantages in compliance.
Generational Evolution of Application Scenarios
Traditional cryptocurrencies primarily remain in the realm of financial speculation, while AI compute coins directly serve the core productivity demands of the AI era, achieving a fundamental shift from "financial games" to "productivity tools".
Comprehensive Upgrade of Investment Logic
Traditional cryptocurrency investments primarily profit from price fluctuations, whereas AI computing power token investments are essentially long-term value investments in AI computing power, a foundational element of the digital economy, resulting in a healthier and more sustainable investment rationale.
For Whom the Bell Tolls: An Undeniable Dimensional Reduction Strike
When a collateralized AI computing power token backed by a globally distributed architecture and top-tier commercial credibility enters the stage, its impact on uncollateralized virtual currencies is akin to "dimensional reduction."
For users and developers: one is a "productivity tool" capable of developing next-generation AI, while the other is merely a "digital chip" for betting on price fluctuations in exchanges—the choice is self-evident.
For investors and institutions: one is a "digital real estate" anchored to the lifeline of the global AI digital economy with real asset collateral, while the other is a "virtual lottery ticket" that can plummet to zero—the more stable option is immediately clear.
For regulators and governments: one is an "innovative financial product" supported by tangible AI industries, beneficial to economic development, with accountable issuers, and easier to integrate into a compliant regulatory framework; the other is a "regulatory challenge" that is difficult to control, often linked to illegal activities, and repeatedly banned—who will gain support is clear.
The "digital gold" narrative of unbacked virtual currencies will appear utterly pale and powerless when confronted with AI compute coins—a super composite embodying "AI utility + value storage + global circulation + functional substitution + institutional credibility + blockchain technological advantages." Its death knell is not forced elimination but rather complete marginalization through the natural selection of markets, users, and capital.
The True Dawn of the Internet of Value in the AI Era
The chaotic era of virtual currencies will ultimately come to an end. Bubbles inflated by narratives and consensus are destined to be burst by assets with solid intrinsic value.
In the AI democratization revolution propelled by DeepSeek's open-source initiatives, AI computing power is rapidly becoming the universal equivalent in the digital economy. The emergence of AI computing power tokens signifies that blockchain development is formally transitioning from "virtual" to "real," from "energy-consuming" to "value-producing," and from "speculative" to "practical."
This death knell marks the curtain fall of an old era while heralding the dawn of a new epoch where blockchain technology deeply empowers AI-driven real economy, enabling value to flow freely under sunlight.