Winklevoss recommends Bitcoin and Zcash amid the collapse of the AI sector: situation analysis
Gemini co-founder Cameron Winklevoss made a bold statement, urging investors to move capital from the artificial intelligence sector into Bitcoin (BTC) and Zcash (ZEC). In his view, the era of speculation around AI has definitively ended, and it is time to seek refuge in cryptocurrencies with fundamental value.
This statement came amid a sharp decline in South Korea's Kospi index, which plunged 10.84% on Tuesday, triggering an automatic 20-minute trading halt. Samsung Electronics shares fell 13.4%, and SK Hynix dropped 14.7%. Japan's Nikkei 225 also lost about 4%, with Tokyo Electron shares down 10.96% and memory manufacturer Kioxia collapsing over 18%.
Reasons for the Collapse: The China Factor and Cyclical Scheme
The key trigger for the decline was news from China. Memory chip manufacturer Changxin Memory Technologies (CXMT) debuted on Shanghai's STAR Market with a surge of over 466%, reaching a market capitalization of approximately 3.3 trillion yuan. This made CXMT the most valuable company among those listed on mainland exchanges, surpassing Industrial and Commercial Bank of China. According to its prospectus, by 2025 CXMT will account for 7.67% of the global DRAM market — fourth place after Samsung, SK Hynix, and Micron.
Additionally, reports emerged that a state-controlled Chinese company had begun producing lithography machines for immersion deep ultraviolet (DUV) printing — the very equipment previously restricted by Western sanctions. This raised concerns that Chinese manufacturers could significantly reduce costs and intensify competition.
Against this backdrop, deVere Group CEO Nigel Green proposed a theory about a cyclical financial scheme involving Nvidia, OpenAI, and Oracle. He claims that the same dollar is counted three times as revenue, circulating in a closed loop: Nvidia funds OpenAI, which purchases cloud capacity from Oracle, which then buys Nvidia chips. "There is no real demand here. It's just an accounting trick masquerading as a growth story," Green stated. However, verification of primary documents reveals inaccuracies in his claims: Oracle's order volume turned out to be higher than the figures cited, but more than half of that amount comes from a single buyer.
Winklevoss's Recommendation: Bitcoin and Zcash
Winklevoss has long shown sympathy for Zcash. Last spring, he recommended that tech investors buy anonymous cryptocurrencies to protect capital, and after discovering a vulnerability in the Orchard private pool, he paid for an independent protocol audit. Zcash's price has risen approximately 1,033% over the past year, and the project team successfully launched the Ironwood upgrade.
Economist Peter Schiff also views the current decline as confirmation of his own concerns, pointing to SpaceX shares, which have fallen nearly 48% from their peak price. UBS analysts, on the other hand, believe the AI sector is entering a phase of maturity rather than destruction, and the emergence of cheap models merely redistributes demand for capacity.
My comment: Winklevoss's recommendation looks like a timely but risky hypothesis. Bitcoin has not yet shown confident growth during stock market declines, casting doubt on its status as a "safe-haven asset" in current conditions. Zcash, despite its impressive rise, remains a niche tool. Investors should consider that the China factor and cyclical schemes in the AI sector could lead to further volatility, and diversification into cryptocurrencies requires careful analysis of liquidity and fundamental indicators.