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“If you randomly follow the algorithm, you probably would consume less radical content using YouTube as you typically do!”

So says Manoel Ribeiro, co-author of a new paper on YouTube’s recommendation algorithm and radicalization, in an X (formerly Twitter) thread about his research.

The studypublished in February in the Proceedings of the National Academies of Sciences (PNAS)is the latest in a growing collection of research that challenges conventional wisdom about social media algorithms and political extremism or polarization.

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Δ Introducing the Counterfactual Bots

For this study, a team of researchers spanning four universities (the University of Pennsylvania, Yale, Carnegie Mellon, and Switzerland’s cole Polytechnique Fdrale de Lausanne) aimed to examine whether YouTube’s algorithms guide viewers toward more and more extreme content.

This supposed “radicalizing” effect has been touted extensively by people in politics, advocacy, academia, and mediaoften offered as justification for giving the government more control over how tech platforms can run. But the research cited to “prove” such an effect is often flawed in a number of ways, including not taking into account what a viewer would have watched in the absence of algorithmic advice.

“Attempts to evaluate the effect of recommenders have suffered from a lack of appropriate counterfactualswhat a user would have viewed in the absence of algorithmic recommendationsand hence cannot disentangle the effects of the algorithm from a user’s intentions,” note the researchers in the abstract to this study.

To overcome this limitation, they relied on “counterfactual bots.” Basically, they had some bots watch a video and then replicate what a real user (based on actual user histories) watched from there, and other bots watch that same first video and then follow YouTube recommendations, in effect going down the algorithmic “rabbit hole” that so many have warned against.

The counterfactual bots following an algorithm-led path wound up consuming less partisan content.

The researchers also found “that real users who consume ‘bursts’ of highly partisan videos subsequently consume more partisan content than identical bots who subsequently follow algorithmic viewing rules.”

“This gap corresponds to an intrinsic preference of users for such content relative to what the algorithm recommends,” notes study co-author Amir Ghasemian on X. Pssst. Social Media Users Have Agency

“Why should you trust this paper rather than other papers or reports saying otherwise?” comments Ribeiro on X. “Because we came up with a way to disentangle the causal effect of the algorithm.”

As Ghasemian explained on X: “It has been shown that exposure to partisan videos is followed by an increase in future consumption of these videos.”

People often assume that this is because algorithms start pushing more of that content.

“We show this is not due to more recommendations of such content. Instead, it is due to a change in user preferences toward more partisan videos,” writes Ghasemian.

Or, as the paper puts it: “a user’s preferences are the primary determinant of their experience.”

That’s an important difference, suggesting that social media users aren’t passive vessels simply consuming whatever some algorithm tells them to but, rather, people with existing and shifting preferences, interests, and habits.

Ghasemian also notes that “recommendation algorithms have been criticized for continuing to recommend problematic content to previously interested users long after they have lost interest in it themselves.” So the researchers set out to see what happens when a user switches from watching more far-right to more moderate content.

They found that “YouTube’s sidebar recommender ‘forgets’ their partisan preference within roughly 30 videos regardless of their prior history, while homepage recommendations shift more gradually toward moderate content,” per the paper abstract.

Their conclusion: “Individual consumption patterns mostly reflect individual preferences, where algorithmic recommendations play, if anything, a moderating role.” It’s Not Just This Study

While “empirical studies using different methodological approaches have reached somewhat different conclusions regarding the relative importance” of algorithms in what a user watches, “no studies find support for the alarming claims of radicalization that characterized early, early, anecdotal accounts,” note the researcher in their paper.

Theirs is part of a burgeoning body of research suggesting that the supposed radicalization effects of algorithmic recommendations aren’t realand, in fact, algorithms (on YouTube and otherwise) may steer people toward more moderate content.

(See my defense of algorithms from Reason’s January 2023 print issue for a whole host of information to this effect.)

A 2021 study from some of the same researchers behind the new study found “little evidence that the YouTube recommendation algorithm is driving attention to” what the researchers call “far right” and “anti-woke” content. The growing popularity of anti-woke content could instead be attributed to “individual preferences that extend across the web as a whole.”

In a 2022 working paper titled “Subscriptions and external links help drive resentful users to alternative and extremist YouTube videos,” researchers found that “exposure to alternative and extremist channel videos on YouTube is heavily concentrated among a small group of people with high prior levels of gender and racial resentment” who typically subscribe to channels from which they’re recommended videos or get to these videos from off-site links. “Non-subscribers are rarely recommended videos from alternative and extremist channels and seldom follow such recommendations when offered.”

And a 2019 paper from researchers Mark Ledwich and Anna Zaitsev found that YouTube algorithms disadvantaged “channels that fall outside mainstream media,” especially “White Identitarian and Conspiracy channels.” Even when someone viewed these types of videos, “their recommendations will be populated with a mixture of extreme and more mainstream content” going forward, leading Ledwich and Zaitsev to conclude that YouTube is “more likely to steer people away from extremist content rather than vice versa.”

Some argue that changes to YouTube’s recommendation algorithm in 2019 shifted things, and these studies don’t capture the old reality. Perhaps. But whether or not that’s the case, the new realityshown in study after recent studyis that YouTube algorithms today aren’t driving people to more extreme content.

And it’s not just YouTube’s algorithm that has been getting reputation rehabbed by research. A series of studies on the influence of Facebook and Instagram algorithms in the lead up to the 2020 election cut against the idea that algorithmic feeds are making people more polarized or less informed.

Researchers tweaked user feeds so that they saw either algorithmically selected content or a chronological feed, or so that they didn’t see re-shares of the sorts of that algorithms prize. Getting rid of algorithmic content or re-shares didn’t reduce polarization or increase accurate political knowledge. But it did increase “the amount of political and untrustworthy content” that a user saw. Today’s Image Esme side-eyes your algorithm panic (ENB/Reason)

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EV realism is here. How automakers react in 2026 will be telling

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EV realism is here. How automakers react in 2026 will be telling

Frederic J. Brown | Afp | Getty Images

DETROIT – The U.S. automotive industry has entered a new phase for all-electric vehicles: realism.

The industry was euphoric about the EV segment in the early 2020s, but consumer demand never took off as much as expected and, as it fizzled, automakers monitored and planned how to react. Now, they’re pivoting, as companies have wasted billions of dollars in capital, Detroit automakers are refocusing on large gas-guzzling trucks and SUVs, and many have admitted that policies, not consumers, were driving the charge for EVs.

“We have to make the investments to get to … the regulatory environment they set. We’ve seen a complete change in that. One way, 180 degrees. One way, 180 degrees back. That’s the world CEOs of automakers are living in,” GM CEO and Chair Mary Barra said earlier this month during The New York Times’ DealBook conference.

How automakers like GM that invested heavily in EVs will respond over the next year will be telling for the future of the vehicles in the U.S., according to industry insiders and experts.

Barra said “it’s too early to tell” what true demand for EVs is following the end of up to $7,500 in federal incentives in September to purchase an electric vehicle. She said the industry will likely find its natural demand over the next six months.

In the meantime, GM continues to reassess its EV plans after disclosing a $1.6 billion impact from its pullback in those investments, with more write-downs expected in the future. Ford Motor last week said it expects to record about $19.5 billion in special items related to a restructuring of its business priorities and a pullback in its all-electric vehicle investments.

“We evaluated the market, and we made the call. We’re following customers to where the market is, not where people thought it was going to be,” Ford CEO Jim Farley told CNBC last week.

Ford CEO on ending Ford Lightning EV production: We are following market trends

U.S. EV sales peaked in September, ahead of the federal incentives ending, at 10.3% of the new vehicle market, according to Cox Automotive. That demand plummeted to preliminary estimates of 5.2% during the fourth quarter.

“The long-term direction toward electrification remains clear: The future is electric. However, the timeline is being recalibrated,” said Stephanie Valdez Streaty, Cox director of industry insights. “In the near term, automakers will continue to adjust their strategies and significantly expand hybrid offerings to meet consumers where they are today.”

Most industry experts, including those at consulting firm PwC, don’t believe it’s the end days for EVs, but rather that expectations are more realistic now. PwC expects the EV industry to pick up toward the end of this decade, with EVs forecast to make up 19% of the U.S. industry by 2030.

“As several of the U.S. [automakers] have announced, there’s some level of charges, and we got out in front of the customer demand and likely the infrastructure that’s otherwise available here in the U.S.,” C.J. Finn, U.S. automotive industry leader for PwC, told CNBC.

‘What is the normal state of EVs?’

That projected EV market share doesn’t justify the billions of dollars companies have spent on the research, development and production of the vehicles, so automakers are significantly altering their plans to allow customers more choice of all-electric vehicles, hybrids and traditional internal combustion engines.

“If you think back a few years ago, it was like, ‘If you’re not all-in on EV, you’re going to eventually go out of business. Your terminal value is zero,'” KPMG partner and U.S. automotive leader Lenny LaRocca told CNBC. “Now I think that multi-propulsion technology approach is what’s panning out to work out well. We used to call it the ‘mosaic of powertrains.'”

A NYC charging station seen in the Yorkville neighborhood of New York City.

Adam Jeffery | CNBC

The changes have taken different forms for companies that have already heavily invested in EVs.

GM, which was by far leading in such investments in the U.S., will continue to offer its current models but has little to no plans of expanding in the future, according to Barra. Instead, it will use some of its planned capacity for increased production of large trucks and SUVs. The automaker also has said it plans to offer plug-in hybrid vehicles in the years ahead, but it hasn’t disclosed many other details.

Ford has said it will refocus investments on hybrid vehicles, including plug-in models rather than pure EVs; cancel a next generation of large all-electric trucks in exchange for smaller, more affordable EVs; and rebalance its investments in core products such as trucks and SUVs.

And Stellantis is deprioritizing EVs, including for its coveted Jeep brand, as it attempts to revive its U.S. sales.

“All of us are waiting to see what the demand is, how it’s going to continue to shake out,” Jeep CEO Bob Broderdorf told CNBC. “The [EV] industry will slide. It’s going to slow down. And then what is the normal state of EVs?”

Read more CNBC auto news

Hyundai, which also invested billions in EVs, is taking a mixed approach compared with its peers. Like GM, it plans to continue offering its current models but it is also expected to have new models coming. On the other hand, like Ford, it’s decided to more heavily emphasize hybrids and allocated production at a new $7.6 billion plant for Hyundai and Kia vehicles in Georgia.

Others such as Honda, Nissan, Porsche, Volvo and Jaguar that announced ambitious plans for EVs have canceled or significantly scaled back those goals. GM also has backtracked on its pledge to exclusively offer EVs by 2035, including several of its brands before that time frame.

The Tesla effect

A litany of factors played into the current EV marketplace, including industry dynamics and external factors such as pressure from Wall Street and political whiplash from the Trump and Biden administrations.

“No doubt the policy had a big impact on customer demand. The net-net is the market’s changed,” Farley told CNBC last Monday.

The bullishness around EVs began with the rise of Tesla. The company, which remains the U.S. leader in EV sales by a wide margin, was able to significantly boost sales and its market valuation from Wall Street analysts at the beginning of this decade.

That led other automakers to take notice and, as the industry does, attempt to replicate Tesla’s success, according to officials. But what executives didn’t realize was consumers were buying Teslas — not just any EV.

“Tesla wasn’t creating a battery-electric vehicle market. They created a market for the Tesla brand.” said Stephanie Brinley, associate director in AutoIntelligence at S&P Global Mobility.

Tesla vehicles were, and continue to be, a “tech-buy” of software-first products that just happened to be EVs, Brinley said. The company also set up its own charging network and created a tech-savvy customer base of loyalists who looked past many quality and growing pain issues.

A Tesla Cybertruck near General Motors’ Renaissance Center world headquarters in Detroit.

Michael Wayland / CNBC

That success led Wall Street to seek out the “next Tesla,” ushering in an unsustainable amount of new companies. From 2019 to 2022, nearly a dozen EV carmakers went public as well as a litany of related ones. Most of those have gone bankrupt amid federal investigations, scandals and executive upheaval.

“The attention that Tesla got woke everyone else up. But now there’s competition, and there’s competition from trusted, known and respected brands,” Brinley said.

The euphoria surrounding EVs started waning as companies kept spending with little to no success and “legacy” automakers entered the market, investing big sums to bring unprofitable vehicles to market.

Hopes for profitable EVs further eroded with the second inauguration of President Donald Trump this year. Trump has killed or rolled back many of the Biden administration’s support and funding for the sale and production of EVs.

The biggest blow was in September with the end of up to $7,500 federal incentives for the purchase of an EV.

“The end of federal incentives came to an abrupt stop at the end of Q3, driving a lot of demand and sales for the new and used market,” Jeremy Robb, Cox interim chief economist, said last week. “Since then, we’ve seen the slowdown in both the pace of sales as well as the growth of new vehicle production. Next year will be pivotal for EVs.”

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World

Russia launches major deadly missile and drone attack on Ukraine

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Russia launches major deadly missile and drone attack on Ukraine

Russia launched a major overnight missile and drone attack on Ukraine that killed at least three people – including a four-year-old child.

Officials say Russia fired more than 650 drones and three dozen missiles in an assault that began during the night and stretched into daylight hours Tuesday.

Ukrainian President Volodymyr Zelenskyy said the barrage struck homes and the power grid in 13 regions across Ukraine, causing widespread outages in bitter temperatures.

It comes a day after he described recent progress towards a peace deal as “quite solid”.

The bombardment demonstrated Russian President Vladimir Putin’s intention of pursuing the invasion of Ukraine, Mr Zelenskyy said in an online post.

A damaged apartment building in Kyiv. Pic: Reuters
Image:
A damaged apartment building in Kyiv. Pic: Reuters

A damaged apartment building in Kyiv. Pic: Reuters
Image:
A damaged apartment building in Kyiv. Pic: Reuters

Ukrainian and European officials have said Putin is not sincerely engaging with US-led peace efforts.

The attack “is an extremely clear signal of Russian priorities,” Mr Zelenskyy said.

More on Donald Trump

“A strike before Christmas, when people want to be with their families, at home, in safety. A strike, in fact, in the midst of negotiations that are being conducted to end this war. Putin cannot accept the fact that we must stop killing.”

US President Donald Trump has for months been pressing for a peace agreement, but the negotiations have become entangled in the very different demands from Moscow and Kyiv.

US envoy Steve Witkoff described talks in Florida with Ukrainian and European representatives as “productive and constructive”.

A drone explodes during a Russian missile and drone strike, in Kyiv. Pic: Reuters
Image:
A drone explodes during a Russian missile and drone strike, in Kyiv. Pic: Reuters

Trump was less effusive on Monday, saying, “The talks are going along.”

Initial reports from Ukrainian emergency services said the child died in Ukraine’s northwestern Zhytomyr region, while a drone killed a woman in the Kyiv region, and another civilian death was recorded in the western Khmelnytskyi region, according to Mr Zelenskyy.

Russia launched 635 drones of various types and 38 missiles, Ukraine’s air force said. Air defences stopped 587 drones and 34 missiles, it said.

Read more
Russian general killed by car bomb and Moscow blames Ukraine
Putin didn’t sound like he will alter his course anytime soon

Polish and allied fighter jets were deployed after the Russian airstrikes towards western Ukraine, near Poland’s border.

“Fighter jets were scrambled, and ground-based air-defence and radar reconnaissance systems were put on heightened readiness,” the operational command of Poland’s armed forces said.

It was the ninth large-scale Russian attack on Ukraine’s energy system this year and left multiple regions in the west without power, while emergency power outages were in place across the country, acting Energy Minister Artem Nekraso said. Work to restore power would begin as soon as the security situation permitted, he said.

Ukraine’s largest private energy supplier, DTEK, said the attack targeted thermal power stations in what it said was the seventh major strike on the company’s facilities since October.

DTEK’s thermal power plants have been hit more than 220 times since Russia’s full-scale invasion began in February 2022. Those attacks have killed four workers and wounded 59.

Authorities in the western regions of Rivne, Ternopil and Lviv, as well as the northern Sumy region, reported damage to energy infrastructure or power outages after the attack.

In the southern Odesa region, Russia struck energy, port, transport, industrial and residential infrastructure, according to regional head Oleh Kiper.

A merchant ship and over 120 homes were damaged, he said.

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Politics

How Bhutan is building a green Bitcoin economy from the ground up

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How Bhutan is building a green Bitcoin economy from the ground up

Key takeaways

  • Bhutan is using surplus, carbon-free hydropower to mine Bitcoin, converting excess electricity into a liquid digital export rather than curtailing generation.

  • Mining and custody are handled by the sovereign investment arm, Druk Holding and Investments (DHI), and confined to designated jurisdictions, limiting retail exposure.

  • Officials describe mined Bitcoin as a foreign-currency liquidity buffer that has already supported government finances.

  • The central bank permits crypto activity only under a phased, sandbox-style framework linked to Gelephu Mindfulness City, with an emphasis on risk control and transparency.

Bhutan’s pitch to the crypto world is simple: If a country has abundant renewable power and limited domestic demand, it can turn electrons into digital assets.

In practice, the Himalayan kingdom has been quietly doing exactly that: using hydropower to run industrial-scale Bitcoin (BTC) mining and to build a state-backed, values-driven “green digital assets” strategy that officials say can generate hard-currency liquidity, support public spending and help develop a domestic tech workforce.

Step 1: Start with the only natural resource that scales

Bhutan’s energy system is dominated by hydropower, and electricity exports, especially to India, are a core pillar of the economy. Reportedly, Bhutan’s leadership views expanded hydropower capacity as a prerequisite for scaling its “green” crypto ambitions.

The government’s own energy planning documents frame this expansion in large numbers. Bhutan’s National Energy Policy 2025 cites a “techno-economically viable hydropower potential” of 33,000 megawatts (MW), based on the Power System Master Plan 2040, and positions hydropower alongside solar, wind and storage as central to long-term growth.

A World Bank report similarly places Bhutan’s feasible hydropower potential at roughly 33 gigawatts and notes the macroeconomic impact of recent imports of IT equipment linked to crypto mining expansion.

Recent cross-border project announcements underline how tangible the buildout has become. In November 2025, India inaugurated the 1,020-MW Punatsangchhu-II hydropower project and extended a new credit line tied to deeper energy cooperation. Officials also noted that Bhutan’s domestic power demand is around 1,000 MW, with surplus electricity exported.

Step 2: Use surplus hydropower as “computing fuel”

Bhutan’s crypto strategy is spearheaded by Druk Holding and Investments (DHI), the commercial investment arm of the royal government.

In an April 2025 interview with Reuters, DHI CEO Ujjwal Deep Dahal said Bhutan began adding cryptocurrencies to DHI’s portfolio in 2019. He framed Bitcoin mining as a way to increase access to foreign-currency liquidity and create value from surplus hydropower.

Bhutan has used some crypto-related profits to help pay government salaries for the past two years, according to senior officials in Thimphu.

A key industrial lever is the Bitdeer and DHI partnership, announced in May 2023. Bitdeer said the parties planned to launch a closed-end fund of up to $500 million to develop carbon-free digital asset mining operations in Bhutan, leveraging the country’s renewable power and Bitdeer’s mining expertise.

Step 3: Treat Bitcoin like a financial buffer for a seasonal grid

Hydropower systems often face a timing problem: Generation can surge when rivers run high and shrink when flows drop.

In January 2025, Bhutan’s Gelephu Mindfulness City (GMC) project described the country’s approach as a way to monetize surplus summer hydropower via “green Bitcoin,” then convert that value back into electricity or imports when power is tighter. The project quoted DHI’s Dahal as describing Bitcoin “strategically as a battery.”

That “battery” framing matters because it is one of Bhutan’s most consistent arguments for why mining is not merely speculation. Instead, it is positioned as infrastructure-adjacent, turning otherwise curtailed renewable generation into a liquid reserve asset.

Step 4: Keep it sovereign and increasingly regulated

Bhutan’s mining and reserve-building efforts have attracted attention because they are state-linked rather than purely private. In September 2024, blockchain analytics firm Arkham disclosed that it had identified Bhutan government-linked Bitcoin holdings on its platform and characterized those holdings as originating from mining rather than seizures. However, onchain estimates fluctuate with price movements and wallet attribution and should not be treated as audited public accounts.

On the regulatory front, Bhutan’s central bank, the Royal Monetary Authority (RMA), has publicly signaled a controlled approach. In an April 30, 2025, notice titled “RMA’s Regulatory Stance on Cryptocurrency,” the RMA said it would adopt a phased and focused strategy.

The notice stated that crypto mining and exchanges would be permitted only for entities registered with GMC. Participation would also be limited to business partners operating under the GMC framework.

This sandbox-like containment aligns with how GMC is being positioned as a special jurisdiction with its own policy toolkit and a prominent finance and digital assets pillar. That framework includes a proposed blockchain-linked currency concept, “ter,” and a planned fully reserved digital bank, Oro Bank.

Did you know? In 2024, Bhutan’s state-linked Bitcoin mining operations generated an estimated $750 million in revenue, according to blockchain analytics firm Arkham Intelligence.

Step 5: The “green coin” narrative and the risks involved

Bhutan’s officials explicitly emphasize the climate angle. For example, Dahal has argued that coins mined using Bhutan’s hydropower offset coins mined with fossil energy elsewhere and contribute to the green economy.

But even in a renewables-heavy system, these risks do not disappear:

  • Volatility and fiscal risk: Bitcoin’s price can swing sharply, and using volatile assets in public finance introduces budgeting risk, even if holdings are built from surplus power rather than taxes.

  • Transparency: Onchain tracking is not the same as official disclosure. Audited reporting and clear governance matter when reserves are state-linked.

  • Financial crime and consumer protection: The RMA’s phased stance and the restriction of permitted activity to GMC-registered entities reflect a preference for controlled participation rather than open retail speculation.

Testing a green Bitcoin model

Bhutan’s green Bitcoin economy is not a meme trade; it is a state-directed effort to bolt a new export, digital assets, onto the country’s existing comparative advantage in renewable power. The strategy uses a special jurisdiction, Gelephu Mindfulness City, alongside central bank guardrails to limit spillover risk.

Whether it becomes a durable model will depend less on slogans and more on hydropower expansion, disciplined reserve management and how transparently the state accounts for what it mines, holds and sells.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.

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