It's interesting to see how quickly the public interest (and money!) has shifted from cryptocurrency to AI.
5+% US treasuries can quickly shift the calculus for USD holdings. And lack of “real” money in the system cascades quickly.
Silvergate Bank to begin voluntary liquidation
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Re: Silvergate Bank to begin voluntary liquidation
#12It's interesting to see how quickly the public interest (and money!) has shifted from cryptocurrency to AI.
I mean, one of them has millions of users and is poised to revolutionize the entire digital economy (and perhaps the non-digital one as well) and the other one is electronic chuck-E-cheeze tokens older than the first iphone and still useless.
Re: Silvergate Bank to begin voluntary liquidation
#13It's interesting to see how quickly the public interest (and money!) has shifted from cryptocurrency to AI.
5+% US treasuries can quickly shift the calculus for USD holdings. And lack of “real” money in the system cascades quickly.
As they say, it's only once the tide goes out that you discover who's been swimming naked.
Re: Silvergate Bank to begin voluntary liquidation
#14It's interesting to see how quickly the public interest (and money!) has shifted from cryptocurrency to AI.
Heh, cstross even has a "conspiracy" theory about that sudden shift: https://www.antipope.org/charlie/blog-static/2023/02/place-y... (Which I don't buy)
There are some pretty interesting ideas there. I had a conversation with a friend the other day and the whole blockchain then, AI now thing reminded me of a saying about shelling “Picks and Shovels during a Gold Rush”. I think it is intriguing that GPUs are the “picks and shovels” of both the Blockchain Rush and the AI Rush. One could point out conspiracies and PR, another could point out that the as GPUs become more general compute tools, new applications will emerge.
Re: Silvergate Bank to begin voluntary liquidation
#15This is a real pity.
How so?
Re: Silvergate Bank to begin voluntary liquidation
#16It's interesting to see how quickly the public interest (and money!) has shifted from cryptocurrency to AI.
I mean, one of them has millions of users and is poised to revolutionize the entire digital economy (and perhaps the non-digital one as well) and the other one is electronic chuck-E-cheeze tokens older than the first iphone and still useless.
I wish I could agree with you, but there's a lot of smoke and mirrors with "AI" right now. These companies are letting people believe these services are thinking machines that are on the verge of consciousness when they are far from it.
Re: Silvergate Bank to begin voluntary liquidation
#17Good context by Matt Levine a few days ago [1]. Basically Silvergate did a lot of business with crypto firms and got burned not by crypto speculation but just by holding long maturity safe assets when too many of their customers wanted to withdraw money on a short term basis. The result was falling below the line of being "well capitalised" as a bank. Bank regulation seems to be working here: there is no indication o…
Re: Silvergate Bank to begin voluntary liquidation
#18Earlier quoted context omitted.
I mean, one of them has millions of users and is poised to revolutionize the entire digital economy (and perhaps the non-digital one as well) and the other one is electronic chuck-E-cheeze tokens older than the first iphone and still useless.
I wish I could agree with you, but there's a lot of smoke and mirrors with "AI" right now. These companies are letting people believe these services are thinking machines that are on the verge of consciousness when they are far from it.
There's some people making outsized and unreasonable claims about AI today, sure, but AI is generally useful and valuable right this minute. Crypto never really made it over that hump.
Re: Silvergate Bank to begin voluntary liquidation
#19Necessary context: Silvergate Bank was a major (by crypto standards) bank underpinning crypto companies. https://en.wikipedia.org/wiki/Silvergate_Bank
More to the point, Silvergate was one of exactly two banks serving crypto companies in the US. The other, Signature Bank, is also under a lot of regulatory pressure and it has already cut off eg. Binance and Kraken.
Re: Silvergate Bank to begin voluntary liquidation
#20It's interesting to see how quickly the public interest (and money!) has shifted from cryptocurrency to AI.
I mean, one of them has millions of users and is poised to revolutionize the entire digital economy (and perhaps the non-digital one as well) and the other one is electronic chuck-E-cheeze tokens older than the first iphone and still useless.
I love how (unintentionally?) ambiguous your comment is.
Crypto bros and LLM bros both monetize via tokens