Will AI Crash Bitcoin 50% Vitalik Buterin Weighs In

Ethereum co-founder Vitalik Buterin has rejected a warning that artificial intelligence (AI) will trigger a Bitcoin crash. He took the opposite side of a claim that BTC could lose more than half its value within two years.  The exchange played out on X on Monday. AI risk commentator Liron Shapira set the terms, and Buterin answered that his portfolio already sits on the other side.  Sponsored  Sponsored  Where the AI Bitcoin Crash Claim Came From  Shapira, who hosts the Doom Debates podcast on AI risk, published his prediction on Monday. He assigned 50% confidence to a fall of more than 50% in BTC prices over two years.  His case for an AI Bitcoin crash rests on security rather than demand. AI, in his view, will erode the guarantees that holders believed protected the network. Buterin answered in the same thread within hours.  I take the opposite side of that.  My basic reasons are that I am quite optimistic about cybersecurity in the long term and I see the primary problem as being getting the transition, and I expect BTC to handle at least any issues that do not require social consensus well
  — vitalik.eth (@VitalikButerin) September 7, 2026  Bitcoins security rests on mining power and cryptographic hashing. Shapira did not

09-07Industry

CZs Kyrgyzstan visit highlights why state backing cannot guarantee a stablecoin exit

Changpeng Zhao‘s September 5 visit to Kyrgyzstan’s crypto council came as President Sadyr Japarov set a three-month deadline for new regulations and officials discussed the risks posed by international sanctions. The decisions put the limits of domestic crypto policy in focus: approval at home does not ensure access abroad.  Related Person Changpeng Zhao Former CEO counterparties provide retail liquidity; administrators retain specified powers over token movement.  Japarov‘s September deadlines now create concrete milestones for Kyrgyzstan’s domestic framework: secondary regulations, possible legislative amendments and the licensing-platform pilot. Those measures can shape how the country supervises virtual assets.  For USDKG holders, the practical test is whether those services connect to an exit they can use. A retail sale still needs a counterparty, institutional redemption still requires issuer approval, and UK-facing services still have sanctions obligations. The next regulations will shape domestic supervision; access depends on how those separate conditions are met.

09-07Industry

Philippines eyes payment operator registration freeze, tighter VASP checks

The Philippines central bank has proposed freezing new payment-system operator registrations for 12 months while imposing tighter controls on payment arrangements involving virtual asset service providers (VASPs).  Under a draft circular, the Bangko Sentral ng Pilipinas (BSP) said it would suspend acceptance and processing of applications for operators of payment systems (OPS) to conduct a “holistic review” of its taxonomy and licensing framework.  Applications submitted before the suspension could continue to be evaluated, but the BSP would not approve or deny any until the pause ends. Entities would be barred from starting activities that require OPS registration unless the regulator authorizes them otherwise.  The proposal would require BSP-supervised institutions offering merchant acquisition services to handle regulated VASPs through direct merchant arrangements. Those relationships would be subject to enhanced due diligence and monitoring, transaction and settlement limits and other risk-based controls.  The requirement covers virtual asset firms that must be licensed, registered or authorized by the BSP, the Philippine Securities and Exchange Commission, or another authority. VASPs are listed alongside gambling businesses, gaming providers, adult-oriented businesses and money service businesses.  The draft would take effect 15 days after publication if finalized, and the BSP is currently accepting feedback.  Cointelegraph reached out to the BSP for more information

09-07Industry

A Coinbase-backed crypto bridge is shutting down after its business model stopped working

Router Protocol will shut down all remaining operations by Sept. 30 after failing to build a sustainable bridge business.  Related Asset Router Protocol ROUTE · $2.34 24-hour change: up 61.35% Price history is not available. 24H Up 61.35% 7D Up 32.61%  The cross-chain infrastructure project said it spent the past year exploring commercialization, licensing, and acquisition opportunities, including talks with teams that could take over parts of its technology stack.  However, none of this process produced an outcome that could support the protocol team.  Router blamed the economics of cross-chain infrastructure, where bridge fees have compressed while the cost of running always-on systems remains largely fixed. It explained:  Much of cryptos demand revealed itself to be dopamine wearing a painkillers clothes: when the speculative tide went out, the fee pool that was supposed to sustain the infrastructure went with it. A business that has to run painkiller-grade infrastructure on vitamin-grade revenue inside a dopamine-driven market is structurally upside down.  That is the honest post-mortem, and it applies to most of our category, not just to us. Bridging economics are thin, compressing fees against costs that never sleep, and the sector has run net negative for a long stretch. We felt every basis point of it.  It also

09-07Industry

WikiBit Exchange Exit Scam Risk Rankings — Issue 19: BVOX: BitVenus Reborn Under a New Name — The Art of Being a “Rebranded Exchange”

Introduction: Can Changing Your Name Really Wash Away the PastïŒŸă€€ă€€In the first 18 issues, we dug into a series of crypto exchanges ranging from HashKey to Poloniex. Today, in Issue 19, we turn our attention to a “master of rebranding” — BVOX.  On paper, its rĂ©sumĂ© actually looks pretty decent: “Founded in 2018,” “a global professional cryptocurrency trading platform,” “spot and perpetual futures trading,” “U.S. + Canadian MSB registrations,” and a “56.44% confidence score on CoinPaprika.”  Sounds like the standard setup for a “reliable, established exchange,” rightïŒŸă€€ă€€But on the other side of the story:  BVOX was only renamed from BitVenus in July 2024, effectively continuing operations under a new identity. Its Trustpilot rating sits at just 1.9/5, with users openly calling it a “SCAM.” Users have complained that “once you deposit, you cant withdraw,” that their accounts were “frozen after making profits,” and that “customer service is completely nonexistent.”  South Korean media have also reported allegations that the platform refused to process a $20,000 withdrawal, citing “illegal proceeds” as the reason. Meanwhile, WikiBit indicates that the company currently has no valid crypto-asset regulatory authorization.  So, can an exchange that emerged from BitVenus simply put on a new name and leave all its problems behindïŒŸă€€ă€€Today, were

09-07Deep Dive

Will AI Cause 50% BTC Price Crash Buterin Does Not Think So

Ethereum co-founder Vitalik Buterin has pushed back against the prediction that artificial intelligence could undermine Bitcoins security badly enough to trigger a 50% or greater price collapse within years.  The prediction came from entrepreneur and AI-risk commentator Liron Shapira, who said he assigns a 50% probability to such an outcome.  “I claim (50% confidence) that BTC prices will crash 50%+ in the next 2 years because of AI undermining what people imagined were its security or robustness guarantees,” Shapira wrote on X.  Buterin said he was willing to take the opposite side.  He believes that increasingly capable AI systems may create serious cybersecurity challenges, but that does not necessarily mean Bitcoins fundamental security assumptions will collapse.  “I take the opposite side of that,” Buterin replied.  The Ethereum co-founder says that he remains quite optimistic about cybersecurity in the long term.  Patching AI-related attacks  According to the Ethereum co-founder, Bitcoin should be capable of responding relatively smoothly to vulnerabilities that do not require changes to the networks social consensus.  These could include network-layer attacks, vulnerabilities affecting Bitcoin client software or problems involving mining-pool infrastructure.  “I expect BTC to handle at least any issues that do not require social consensus well,” Buterin said.  That distinction matters because AI does not necessarily need to

09-07Industry

Bitcoin faces three major U.S. catalysts this week

Bitcoin traded near $79,500 on Sept. 7 as investors prepared for U.S. inflation reports and a Treasury auction during the final full week before the Federal Reserves Sept. 15–16 policy meeting.  Bitcoin stabilizes after the U.S. jobs report  Bitcoin was trading around $79,519 on Monday, down approximately 0.5% over 24 hours. The cryptocurrency reached an intraday high near $80,494 before retreating toward $79,120 during holiday-thinned trading.  U.S. stock and bond markets were closed for Labor Day, limiting conventional market activity. Cryptocurrency markets remained open, but lower participation can make short-term price movements less representative of broader institutional positioning.  Bitcoin slipped below $80,000 after the Bureau of Labor Statistics reported that U.S. nonfarm payrolls increased by 162,000 in August. The unemployment rate remained at 4.1%. The employment increase exceeded the average monthly gain of 31,000 recorded during the preceding year.  Following the release, traders increased the estimated probability of a September rate increase to approximately 58%, according to futures-market data cited by Reuters. That estimate is market pricing, not a Federal Reserve forecast or commitment.  As crypto.news reported, strong employment data pushed Bitcoin below $80,000 after the asset encountered resistance near $82,500. The immediate reaction showed how closely Bitcoin traders are watching monetary policy expectations.  Thursdays PPI provides

09-07Industry

XRP Healthcare says 4,011 wallets lost $452,000

XRP Healthcare said 4,011 XRPH Wallet accounts were affected by unauthorized transactions beginning Sept. 3, with approximately $452,000 in XRP and related assets removed.  XRP Healthcare traces stolen funds to Ethereum  XRP Healthcare initially confirmed unauthorized transactions involving XRP, XRPH, XRPHAI and other assets. The company instructed users to stop using XRPH Wallet until further notice while its developers investigated the compromise.  A subsequent update placed the affected wallet count at approximately 4,011 and the estimated loss at $452,000. The company said investigators traced the assets to one Ethereum address and contacted exchanges and other parties about freezing or recovering them.  Independent on-chain researcher Handy Andy reported that the affected accounts lost 267,664 XRP and approximately 23.2 million XRPH tokens. The researcher said the assets were converted into roughly 445,198 DAI on Ethereum and remained in the destination wallet at the time of the update.  Investigators examine a possible seed phrase leak  Independent investigators attributed the XRPH Wallet breach to its staking function. Their analysis alleged that activating staking caused users seed phrases to be transmitted to a remote server.  XRP Healthcare had not published source code, server logs or an independent forensic report confirming that explanation when this article was prepared. The seed phrase exposure therefore

09-07Industry

A whitehat hacker is holding $320 million in drained Bitcoin until developers prove they patched a fatal network flaw

Liquid Network was effectively halted after nearly $320 million in Bitcoin left its federation reserve through an abnormal peg-out.  Related Asset Bitcoin #1 BTC · $78,737.55 24-hour change: down 1.20% 24H Down 1.20% 7D Up 0.17% 30D Up 21.10%  The incident began Sept. 6 when a customer submitted 4,000 L-BTC to SideSwaps peg-out service, which converts Bitcoin represented on Liquid back into BTC on the main network.  SideSwap said the request passed the normal authorization process and prompted the Liquid Federation to release about 3,996 BTC. The Bitcoin later moved to an address that held roughly 3,998.5 BTC at the latest check.  Liquid disabled its bridge nodes after the withdrawal, while SideSwap suspended swaps, peg-ins, and peg-outs. Exchanges also paused or prepared to pause L-BTC deposits and withdrawals as operators investigated the incident.  The actors controlling the Bitcoin subsequently identified themselves through on-chain messages as “whitehats” and said they intended to return most of the funds once the underlying bug had been fixed across the network.  That prospect could limit the eventual financial loss. However, it does not resolve the more important question of how almost 4,000 BTC left the federation without an apparent key compromise.  The withdrawal appears to have followed the rules  Liquid and SideSwap say

09-07Industry

A Better Trade Than Bitcoin or Gold in 2026 Is Sitting in Your Kitchen

Raw sugar futures have gained roughly 20% in 2026, outpacing Bitcoin (BTC), gold, and the S&P 500 as the European Union, Brazil, and India signal tighter supply.  The rally accelerated last month, when the contract climbed 21.5% for its strongest monthly gain since October 2010. Bitcoin and gold both posted gains in August, yet neither holds a comparable lead this year.  Sponsored  Sponsored  Why the Sweetener Turned Scarce  The FAO Sugar Price Index averaged 106.4 points in August, up 11.9% from July and the highest reading since June 2025. The agency tied the move to a tighter 2026/27 supply outlook.  The agency pointed to several key pressure points:Heat and drought forced the EU to cut sugarbeet yield forecasts on already smaller plantings.El Niño clouded output prospects across Asia, while Brazils Center-South growing belt produced less.Indias duty-free raw sugar import plan added further pressure to international prices.  “The surge reflected expectations of lower sugar beet yields in the European Union due to adverse weather, concerns over the impact of El Niño on production prospects in key producing countries in Asia, lower sugar production in Brazil, and Indias announcement of duty-free raw sugar imports,” the report said.  Forecasters have moved in one direction. The European Commission expects EU output to

09-07Industry
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