Another victim! AI crushes IBM stock for its worst drop in 25 years ❌
IBM plummeted 13% in the session
(its worst drop in 25 years).
But it's not alone: panic is sweeping through software and financial sector stocks globally.
Artificial Intelligence has become the "exterminator" of monopolies!
- COBOL (The Jurassic Language)
To understand the panic, you need to know COBOL.
Think of it as the "old plumbing" of the financial system.
It's a programming language created in 1959 that, incredibly, still processes 95% of ATM and card transactions.
It's the code that moves your money.
- Today's Trigger: The Fall of the Empire
Most of the programmers who wrote these systems have either retired or died.
Banks paid IBM fortunes to keep supercomputers running COBOL because rewriting it was nearly impossible.
Nobody wanted to tamper with 60-year-old code for fear of bankrupting the entire bank. IBM profited from this complexity.
- The "AI Asteroid"
Everything crumbled this week.
Anthropic (Claude) launched an AI capable of reading, deciphering, and translating this prehistoric code into modern languages in a matter of months.
What previously required armies of expensive consultants and years of work is now solved by software.
The hostage has been freed.
- The Bloodbath on Wall Street
IBM didn't fall alone.
The market realized that AI had destroyed the difficulty barrier.
Shares of traditional software (SaaS) giants and financial infrastructure companies also plummeted.
If AI can create, translate, or integrate complex systems in seconds, the model of charging million-dollar subscriptions collapses.
- Breaking the Barrier
In just six trading days at the beginning of February, software companies lost approximately US$830 billion in market value.
Broader analyses already indicate that the disruption caused by "AI agents" has wiped out up to US$2 trillion from the software industry this year.
Giants like Salesforce, Adobe, and Intuit suffered violent setbacks.
- Breaking the Barrier
In just six trading days at the beginning of February, software companies lost approximately US$830 billion in market value.
Broader analyses already indicate that the disruption caused by "AI agents" has wiped out up to US$2 trillion from the software industry this year.
Giants like Salesforce, Adobe, and Intuit suffered violent setbacks.
Wonder what the Bitcoin sell off has to do with this. AI doesn't seem to be of any threat to Bitcoin. They're likely to use it in fact.