CryptoSlate
Ethereum co-founder Vitalik Buterin has publicly taken the other side of a market-shaking bet, telling AI-risk commentator Liron Shapiro that he expects crypto to absorb AI-driven attacks rather than capitulate to them. Buterin said he would normally offer Shapiro a straight wager on his call that Bitcoin has a 50% chance of dropping more than 50% over the next two years, but his existing crypto holdings already constitute roughly 90% of his net worth, effectively locking him into that position without paperwork.
Buterin argued Bitcoin should be able to handle security failures that don't require social consensus, covering attacks on clients, mining pools and adjacent infrastructure. He placed low odds on AI producing a fundamental break in Bitcoin's hashing functions or proof-of-work system, and said the same logic applies to Ethereum. Shapiro's bear case does not require breaking SHA-256; a wave of AI-assisted exploits against the surrounding stack that exposes weaknesses investors had assumed were hard to reach could shake confidence even if developers eventually patch the holes.
Why it matters
The dispute crystallises a maturing crypto debate: AI does not need to break a chain's cryptography to inflict real damage on the industry. Evidence of that pressure is already operational. In August, Bitcoin swap provider Boltz indefinitely suspended its service after months of AI-assisted probing produced a string of contained exploits that outpaced its small team's ability to patch. Cyvers CEO Deddy David has separately warned that financial exposure from AI-powered crypto attacks could eventually reach the hundreds of millions or billions of dollars. The defenders' response is now organised at scale. Anthropic has restricted public access to its Claude Mythos model over autonomous vulnerability discovery and routed that capability into Project Glasswing with AWS, Google, Microsoft and JPMorgan Chase, committing up to $100 million in usage credits to pre-emptively find and fix flaws.
Frequently asked questions
-
What is the Vitalik Buterin vs Liron Shapiro AI-crypto bet about?
Shapiro floated a 50% probability that Bitcoin drops more than 50% within two years because AI undermines crypto's perceived security. Buterin took the other side, saying he would normally offer a counter-wager but his existing crypto holdings already make up roughly 90% of his net worth.
-
Does Buterin believe AI can break Bitcoin's cryptography?
No. Buterin placed low odds on AI producing a fundamental break in Bitcoin's hashing functions or proof-of-work system. He argued the network can absorb security failures that don't require social consensus, such as attacks on clients, mining pools and adjacent infrastructure, and said the same logic applies to…
-
Has AI already been used to attack crypto infrastructure?
Yes. In August, Bitcoin swap provider Boltz indefinitely suspended its service after months of automated, AI-assisted probing produced contained exploits faster than its small development team could patch. Cyvers CEO Deddy David has separately warned that financial exposure from AI-powered crypto attacks could…
-
What is Project Glasswing and who is involved?
Project Glasswing is an Anthropic-led initiative that uses its Claude Mythos Preview model to find and repair vulnerabilities in critical systems before malicious attackers can exploit them. Partners include AWS, Google, Microsoft and JPMorgan Chase, with Anthropic committing up to $100 million in usage credits to the…
-
Which major companies signed the open letter on AI-enabled cyberattacks?
More than 100 organisations signed, including Google, Microsoft, Anthropic, OpenAI, Capital One, Mastercard, Visa, Adobe, Oracle and IBM. The signatories warned that AI-enabled cyberattacks are likely to become substantially more widespread and sophisticated within months and called for governments and tech companies…
Crypto News
WuBlockchain
CoinTelegraph
Crypto Rank News
TheBlock
WatcherGuru