A few thousand recently minted millionaires might become former-millionaires if they decide to HODL. Construction at these Manhattan-sized data centers might slow or stop. The tech industry might go back to solving problems for real people. I'm not really seeing a substantial downside.
The only assumption I am making is that NVIDIA and others dig thier claws into western governments and make decade long contracts for even greater surveillance. Trillions of dollars worth.
Nvidia goes back to being a 100 billion dollar business and everyone else reaps the benefits of cheap tokens.