I believe the AI and crypto gold rush is colliding with a basic problem: we do not have enough cheap, reliable power to run the future everyone is buying into.
I want to walk you through a simple idea that most people are missing while they cheer for fancy software and crazy market caps: digital tech needs real world power and land, and those two are not free or unlimited. If you are invested in tech, crypto, real estate, or simply want to understand where risk actually lives in this boom, keep reading. I am going to break this down clearly, give plain talk on the numbers, point out a few historical lessons, and offer practical steps for how to think about investments through this lens.
THE BIG PICTURE: WHAT IS HAPPENING RIGHT NOW
Companies are promising an AI-driven future. They talk about tools that will change how businesses run, how consumers live, and how money moves. Crypto believers say digital money will reshape finance. Investors have poured huge sums into both ideas.
Source: OpenAI
When lots of money chases a belief, prices go up. That is normal. But two things make today special:
AI needs enormous amounts of compute and data centres.
Crypto mining and some blockchain projects need constant power too.
Both put extra stress on electricity systems and land near grid and water resources. That stress has real costs for households, businesses, and governments.
MEGA-RISK 1: CONCENTRATION IN TECH AND THE NVIDIA EXAMPLE
A tiny group of companies is carrying a massive share of the market and expectations. That creates a fragile system: if one big link breaks, the chain could snap.
I like to use single examples to show a bigger problem. Nvidia is not just another chip company—today it plays an outsized role:
It accounts for a huge share of the market value of the tech sector.
Most of its revenue comes from selling chips that power AI data centres.
A few customers generate a large chunk of its sales, creating geopolitical and supply concentration risk.
Big numbers to grab your attention.
When a single firm represents a big part of the market, that market becomes dependent on that firm’s ability to deliver revenue and profit. If something interrupts the supply chain, demand, or the firm’s growth, the market can swing violently. That is a major source of systemic risk.