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Cryptocurrency News Articles

AI Tokens: Real Opportunity or Just Another Gamble?

Nov 28, 2024 at 10:17 pm

Artificial intelligence (AI) is transforming industries and reshaping the global economy. Its growing integration with blockchain technology has turned the spotlight on AI tokens. But as 2025 approaches, the big question is clear: Are these tokens a real opportunity or just another gamble?

AI Tokens: Real Opportunity or Just Another Gamble?

Artificial intelligence (AI) is quickly changing many different industries and having a big impact on the world economy. Its growing connection with blockchain technology has put a spotlight on AI tokens, but as 2025 approaches, a key question remains: Are these tokens a promising opportunity or just another risky bet?

AI's Multi-Trillion Dollar Impact on Economy

According to McKinsey & Co, risk and compliance departments have seen a 62% increase in revenue thanks to AI, while IT and supply chain sectors posted 62% and 53% growth, respectively. The firm’s analysis suggests generative AI could boost the global economy by $4.4 trillion annually.

Dune Analytics highlighted that nearly 69% of blockchain discussions now revolve around AI. The data storage industry, which is crucial for both AI and blockchain, could be valued at $778 billion by 2030, growing 18% each year.

Arthur Hayes and Murad Mahmudov have expressed contrasting views on AI tokens. Hayes sees potential in early movers like the AI-based meme coin GOAT, highlighting its first-adopter advantage and growing attention. He suggests these tokens might yield strong returns as interest in AI grows.

On the other hand, Mahmudov points out challenges related to technological tokens. He argues that rapid advances in AI will commoditize code, ultimately reducing the long-term value of tech-reliant cryptocurrencies.

Bitcoin's Role in AI Tokens' Success

Bitcoin's recent bullish momentum could pave the way for AI tokens to flourish. Crypto analyst Miles Deutscher noted that Bitcoin consolidated above 2021 highs, indicating potential growth toward $100,000. He also highlighted $2 billion in institutional inflows into Bitcoin ETFs last week, suggesting increasing optimism from traditional finance.

Deutscher pointed out that altcoins, including AI tokens, are likely to rally during Bitcoin's late-cycle bull run. However, he advises against spreading investments too thinly, encouraging investors to focus on fewer high-conviction tokens in strong narratives like AI and real-world asset tokenization.

As Donald Trump prepares to assume office in Jan. 2025, pro-crypto policies could influence the trajectory of blockchain and AI tokens. Trump's collaboration with Elon Musk might signal potential shifts in tech-driven crypto adoption under his administration.

While the technology's economic potential is undeniable, rapid advancements could render many tokens obsolete. Experts like Deutscher advocate for disciplined strategies, including incremental profit-taking and selective investments, to navigate this volatile market.

News source:coinchapter.com

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Other articles published on Nov 29, 2024