Posted on 11/18/2025 9:26:02 PM PST by SeekAndFind
Bitcoin has lost almost a quarter of its value. The tech-heavy NASDAQ index on Wall Street has started to fall. And even leaders of the industry, such as the Google CEO Sundar Pichai, have started to warn about valuations getting out of control. We already knew that AI was driving a boom in investment. But this week there are worrying signs the market is about to crack. The only real question is whether that turns into a full scale crash.
Bitcoin, as so often, is leading the market rout. More than $1 trillion has been wiped off the value of the crypto market over the last six weeks, with Bitcoin itself down by 28 percent since its peak. But that is just part of a wider fall in tech and AI stocks, with the chipmaker Nvidia, which has powered much of the boom, starting to slide, along with many of the other stars of the AI boom.
Plenty of stock market experts are starting to think it is looking like a bubble that is about to burst. Indeed, Michael Burry, who became famous in the crash of 2008 and 2009 for accurately predicting the collapse of the market, has started betting against the sector.
There are many worrying signs. The leaders of the boom have reached extraordinary valuations. Nvidia is up by over 1,300 percent over the last five years, and earlier this year became the first company to reach a market value of $4 trillion. It was quickly followed by Microsoft, which has soared mainly on the back of its stake in the leader of the AI boom ChatGPT, which itself became the most valuable start-up ever with a funding round that made it worth $500 billion.
Meanwhile every company that managed to attach itself to the boom, no matter how spuriously, has seen its share soar. Goldman Sachs estimates that AI stocks have added $19 trillion since ChatGPT was launched, a huge run-up in valuations.
It is starting to look very like the dot com bubble of a quarter century ago. There is little question that AI is a valuable technology, and one that is starting to have a real impact. At the same time, there is far too much hype, no one has quite figured out how to make money from it, and no one has any real idea which of the new companies will turn into the long-term winners.
This week may or may not turn out to be the moment the bubble bursts. In reality, every investment boom has lots of sharp corrections as it soars upwards, and there is nothing very unusual about a fall of 5 percent or 10 percent in prices before the market starts climbing again. It is only when there is a final “melt-up” that it becomes dangerously over-valued. The AI boom does not look like it has reached that point yet. But there is little doubt that it is turning into a classic bubble. It will be very messy when it finally bursts.
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I hope so! AI IS EVIL
And Peter Thiel pulling money out of AI stocks
Bitcoin is different from AI. Quantum computing will boost AI. Quantum computing also threatens to break the encryption for Bitcoin .
I hope so! AI IS EVIL
————
As are Electrons on a screen pretending to be “ money”. Wealth was divinely determined 4000 years ago to be based on “ equal weights and measures”, measuring electrons or even paper instruments is a fools game….which monetary history has shown us for thousands of years.
Many folks have been talking recently about AI’s role in the labor market. And over the past two days, we’ve seen two high-profile national television interviews on the subject...
In an interview with 60 Minutes that aired on Sunday evening, Dario Amodei – CEO of AI startup Anthropic, OpenAI’s smaller rival – reiterated his concerns about how AI will impact the unemployment rate.
In the past, Amodei has said that AI could push the unemployment rate to 10% to 20% within the next five years. And he has also said that AI could wipe out half of all entry-level jobs.
In August, the most recent jobs data released by the Bureau of Labor Statistics (until September’s release this Thursday), showed that 9.3% of college graduates aged 20 and 24 hit are out of work.
That’s the highest unemployment rate for that demographic since July 2021 – when the economy was still reeling from the COVID-19 pandemic. If you exclude the COVID period, it’s the highest level since July 2014.
AI could make this much worse...
Every year, 3.3 million job openings require a bachelor’s degree, according to the Bureau of Labor Statistics. These include positions like market-research analysts, accountants and auditors, and marketing specialists.
With more than 2 million college grads entering the workforce every year, there have typically been plenty of openings for graduates into these white-collar careers to find jobs.
But now that number could be cut in half (based on Amodei’s estimate). There may only be between 1.5 million and 1.7 million job openings for the same 2 million graduates.
If that ends up being the case, it’s easy to see how Amodei got to his 10% to 20% estimate – even if it is just for this one demographic.
AI has the potential to open up new job opportunities that we just can’t see yet. But in the meantime, it looks like the harm AI causes in the labor market will take center stage.
I don’t typically agree with you, and I know (GOLD!) where you’re headed (SILVER!) with this (PM!!!), but in this one instance I do agree with you.
>> In the past, Amodei has said that AI could push the unemployment rate to 10% to 20% within the next five years. And he has also said that AI could wipe out half of all entry-level jobs.
WELL THEN!!! Time to implement BMI. Am I right?
Slouching toward the Close of the Age. The Day of the LORD. The End Times. Call it what you will...
>> Quantum computing also threatens to break the encryption for Bitcoin .
I’m rooting for Mr. Quantum! That would be cool, to break Bitcoin.
AI stocks? ChatGPT has not gone public.
People are going to be shocked 😦😲🤯🙀😱
how much Digital ID and CBDC changes things
I hate to think 🤔🤔 about it but it won’t
be avoided by simply ignoring it.
OpenAI, I mean.
>> AI has the potential to open up new job opportunities that we just can’t see yet.
So your faith is in AI? Oh Lord.
Maybe it’s not so bad being 8 years into retirement. I reckon my funds & the SS will hold value for as long as I need them.
RE: So your faith is in AI? Oh Lord.
You could have made the same remark about the Internet 30 years ago. “Oh Lord” is not an argument against an inevitable trend.
Smart people will always find work, but the jobs for dumb people get fewer and fewer, and there seems to be more and more dumb people.
The advancement of computer hardware and software as is its natural evolution from prior platforms, yes.
>> I reckon my funds & the SS will hold value for as long as I need them.
Me too! Hope and pray we’re right.
RE: AI stocks? ChatGPT has not gone public.
AI isn’t just ChatGPT. It’s the ENTIRE infrastructure being built around it.
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