Founder of Bankless: The AI X Crypto Cycle Has Started
The intersection of artificial intelligence and cryptocurrency is a reality.
The year 2024 marks the AI x cryptocurrency cycle.
AI x cryptocurrency is real.The infrastructure is in place, and there is also hype surrounding Degen.
The AI x Cryptocurrency Cycle of 2024 represents the intersection of two parallel industries, each filled with tremendous potential, heralding the formation of an epic bubble. This article explores the relationship between cryptocurrencies and Artificial Intelligence (AI) and how they interact to drive the market.
It is predicted that the 2024 cycle will be defined by the AI x Cryptocurrency cycle.
The AI x cryptocurrency cycle defines each bull cycle, with 2013 focusing on 'proof-of-work forks and fair launches,' 2017 on ICO mania, and 2021 on the NFT bubble.
Two industries with enormous potential energy are colliding to create a significant bubble.
The inflow of dollars into the BTC ETF is like jet fuel being pumped into a rocket ship. Soon, the money will flow downstream into the riskier coins in the cryptocurrency market. It is expected that the ETH ETF will be approved, probably in May or November, and capital flows will move further into the blue chips of the crypto market. In every bull market, people seek 100-fold growth in low-cap torrents.
Meanwhile, Nvidia's market capitalization of $2.2 trillion has almost single-handedly captured this narrative growth in traditional stock markets. Tech giants such as Google and Microsoft are pushing Web2 to capture the AI zeitgeist and shape the future of the tech market. Additionally, Silicon Valley continues to invest the vast majority of its startup capital in AI.
The age of AI is upon us.
Decentralized Artificial Intelligence
I think we're going to hear the term "decentralized AI" a lot in 2024. There's a lot of information and meaning in this very simple model, which simply means "AI for the people".
Centralized Web2 AI has a huge monopoly on data and computation. They will devote all their resources to the development of AI models in order to produce the most general and powerful models possible. They will stifle competition and limit innovation. They will seek regulatory capture and do their best to consolidate their position. They will make a very small number of people extremely rich and powerful, and they will be our new overlords.
We, as humans, want to have as many AI models as there are blog sites. By democratizing access to AI models, human creativity, expression and value creation will flourish.
But we can't have that because of centralized AI. We need decentralized AI.
Decentralised computing
The AI x cryptocurrency narrative is rooted in decentralized computing, which forms the foundation of the technology stack. Decentralized computing has been a part of the crypto space for a long time, and while there is nothing new about it, the recent AI investment cycle has led to significant price movements in related projects. Nvidia has contributed significantly to its market capitalization, and OpenAI has launched new AI products that redefine society. As a result, the value of decentralized computing platforms continues to rise.
AI's meme coin
Worldcoin is a legitimate project with a founder, team, and vision. Its valuation of $63 billion is likely due to the desire for exposure to AI, with WLD being used as a means to achieve it.
Cryptocurrencies offer the AI industry tokens and liquidity.
The intersection of AI and cryptocurrency is real, but it is important to be cautious of inferior coins and projects.
AI tokens are currently a popular trend.
What happens next
The potential of AI x cryptocurrency is real, and the necessary infrastructure is already in place. However, the signals surrounding this infrastructure may be drowned out by the next wave of cryptocurrency speculation.
It is likely that cryptocurrency projects will attempt to rebrand themselves as Crypto x AI projects in order to boost their token value, but this will ultimately lead to a collapse of the market bubble.
