Ethereum Billionaire Buterin’s Fortune Faces a Major AI Test

Vitalik Buterin has rejected a forecast that artificial intelligence could cut Bitcoin’s value by more than half over the next two years. The Ethereum co-founder said his existing cryptocurrency holdings effectively put about 90% of his net worth against that scenario.

Bitcoin is trading just below $80,000 after reaching a three-month peak of $82,500 on September 3. A 50% decline from the current level would take Bitcoin to approximately $40,000.

Liron Shapira, a Silicon Valley investor and host of the Doom Debates podcast, estimates there is a 50% probability that Bitcoin will lose more than half its value within two years. His argument is based on the possibility that rapidly advancing AI could weaken the security guarantees investors currently expect from Bitcoin.

Shapira believes more powerful AI systems could eventually identify new ways to attack the technology protecting the Bitcoin network. His warning is centered on a potential erosion of Bitcoin’s security assumptions, not on evidence that its cryptographic defenses have already failed.

The disagreement raises two separate questions for the crypto industry: whether AI could create new vulnerabilities in Bitcoin’s infrastructure and whether fears surrounding such vulnerabilities could trigger a market sell-off. So far, there is no evidence that AI has successfully broken Bitcoin’s underlying cryptography.

Buterin has expressed a much more optimistic outlook. He said he expects cybersecurity to remain resilient over the long term and believes Bitcoin can address many technical problems without requiring unanimous agreement from its global community.

The Ethereum co-founder also distinguished between network-level attacks and a fundamental failure of Bitcoin’s cryptographic foundations. Developers, node operators and mining pools could upgrade their software or infrastructure to counter certain threats. Buterin considers the possibility of AI breaking Bitcoin’s hash algorithms or proof-of-work system to be extremely small.

Buterin said he would be willing to bet against Shapira’s prediction, although he argued that his current holdings already represent a substantial financial position on that side of the debate. He estimated that roughly 90% of his net worth is already exposed to cryptocurrency.

He also suggested that AI-related security concerns could eventually apply to Ethereum as well, since both networks rely on cryptographic security. Elsewhere, Buterin highlighted progress in succinct proofs and fully homomorphic encryption during 2026. Ethereum’s roadmap overhaul announced on August 10 also reportedly increased the network’s focus on quantum safety.

Different Theories on AI and Bitcoin

Shapira is not the only market figure warning about possible AI-related pressure on Bitcoin, although the mechanisms differ.

BitMEX co-founder Arthur Hayes has warned that AI-driven credit stress could contribute to a broader market sell-off and potentially push Bitcoin below $60,000. Bitcoin critic Peter Schiff has taken a different position, arguing that AI could compete with Bitcoin for investment capital, electricity and data-center resources.

The forecasts focus on distinct risks. Shapira is concerned about Bitcoin’s technical security, Hayes is focused on wider financial-market stress, and Schiff sees competition for scarce resources as the main issue.

None of these arguments proves that AI will trigger a Bitcoin crash. They instead represent different views on how artificial intelligence could affect Bitcoin’s technology, market structure and investment appeal.

Bitcoin Remains Below Key Resistance

Bitcoin struggled to break through the $80,000-$82,200 resistance range over the weekend, trading between approximately $79,750 and $80,100 during Saturday’s session.

At the same time, wallets holding at least 100 BTC reportedly added roughly 60,000 BTC during August, while smaller wallets sold a similar amount. The data points to accumulation among larger holders but does not resolve the disagreement over AI-related risks.

The core issue remains whether future AI advances could weaken Bitcoin’s security assumptions enough to cause a major loss of investor confidence. A decline of more than 50% from $80,000 would bring Bitcoin down toward $40,000.

For now, the forecast remains speculative. Buterin believes Bitcoin’s security architecture can withstand most network-level challenges, while Shapira argues that increasingly capable AI could eventually test the foundations investors currently trust.