Post-bubble or breakout? Are AI altcoins worth investing in? First appeared on Coinpedia Fintech News
Crypto analyst and DeFi enthusiast Miles Deutscher recently shared an interesting thread on social media Space
Is the merger of AI and cryptocurrency really a trillion-dollar opportunity? Let’s look at this comment to understand more details.
Understanding the AI Narrative in 2024
Deutscher first points out the key catalysts that have strengthened the 2024 AI narrative.
His two main claims are OpenAI’s launch of Sora and Nvidia’s record profits.
AI startups have reached a staggering funding of over $50 billion by 2023. This means more investment in AI infrastructure, with spending expected to reach around $200 billion this year.
What Miles is trying to suggest here is that artificial intelligence can be used in a variety of industries. The widespread adoption of AI, from customers (including individuals, private and public) to corporate and B2B sectors, speaks volumes for retail investors.
Some of the best examples of AI success in other industries are successful sectors focused on cryptocurrency, such as meme coins and gaming. Miles also examines the intersection of AI and cryptocurrency in more detail, highlighting promising subsectors.
Starting with computing, Miles points out that the DePIN decentralized network is designed to address the high power demands needed to train AI models to provide cheaper computing power.
Additionally, decentralized marketplaces like DePIN’s Bittensor provide opportunities for collaborative environments for AI research where users are rewarded for adding datasets and running AI models.
Third, with deepfake fraud on the rise, cryptocurrency solutions can protect against impersonation crimes by identifying the stamp data source, device, and person behind it. Therefore, verification of data and media is a priority.
Deutscher says the fourth point is the growing market for AI agents that create economic value by automating their owners’ tasks and handling tasks such as trading and monitoring.
Lastly, he emphasizes the importance of storage in the AI pipeline, with Deutscher noting that decentralized storage projects like $FIL provide secure storage at a much lower cost than traditional projects.
‘AI Coin’ hype exposed
Deutscher covers the prevalence of “AI coins,” a subjectively new term that has caused much overestimation. The truth is – “Most AI coins are not actually AI.” He therefore advises that people should focus on distinguishing between speculative vehicles and protocols that truly advance AI technology. He expressed a long-term interest in projects that build the basic infrastructure for AI development.
Deutscher shares two strategies for trading AI coins: short-term trading around major events and long-term focus on underlying infrastructure activity such as DePIN. He recommends projects such as Aethir, Allora, AITProtocol, GPU.net, Gaimin.Io, and PAAL AI as potential gems in the evolving AI crypto landscape.
Miles Deutscher not only highlights the benefits of combining AI with cryptocurrency, but also focuses on finding the truth behind the much-hyped “AI Coin.” As AI continues to evolve and integrate with the cryptocurrency space, Deutscher’s insights provide useful insight into the opportunities and challenges within this new hybrid sector.