Bankless: 2024 will be the AI+Crypto cycle

Original title: This is the AI x Crypto Cycle

Original author: David Hoffman, Bankless

Original compilation: Kate, MarsBit

AI x Crypto is real. The fundamentals are there, and so is the speculation.

Every bull market cycle is defined by the mania it breeds.

• 2013 was the era of “proof-of-work forks and fair releases”

• 2017 was the ICO boom

• 2021 is the NFT bubble

I now call it:

2024 The cycle will be called the AI x Crypto cycle.

Two parallel industries were driven by huge potential energy, and a huge bubble was created during the collision.

Dollars flowing into Bitcoin ETFs are like jet fuel injected into a rocket ship. This rocket ship will soon push capital downstream toward riskier crypto markets. Soon, probably in May or November, the ETH ETF will be approved and further capital flows will be injected into the blue chips of the crypto market, giving people ammunition to start looking for low 100x market caps, which is the tradition of every bull market.

Meanwhile, Nvidia's $2.2 trillion market capitalization has almost single-handedly achieved this narrative growth in the trading stock market. Tech giants like Google and Microsoft are pushing Web2 to capture the zeitgeist of artificial intelligence and change the future of the tech market. Beyond this, Silicon Valley continues to invest the vast majority of startup capital in artificial intelligence.

The era of artificial intelligence has arrived.

Only one question. AI without encryption is a massively centralized phenomenon, with Web2 companies and their leaders controlling all the wealth and power that comes with AI. AI thinkers and philosophers have been touting the problem long before it entered the public consciousness, and now the problems with the concentration of wealth and power AI brings are surfacing.

Peter Thiel’s famous saying:

“Encryption is the Centralized, AI is centralized. Or, if you want to frame it more ideologically, cryptocurrencies are libertarian and AI is communist."

Cryptocurrency and artificial intelligence are at opposite ends of the spectrum, but they are not opposing forces. They are better together, and together they will create a whole that is greater than the sum of its parts. AI needs encryption to avoid creating a centralized dystopian oligarchic hell, and encryption needs all the utility and power of AI!

Bankless: Interpreting the AI crypto investor narrative on Bankless

Artificial intelligence in crypto appears poised to break the cycle, but why?

Decentralized Artificial Intelligence

I think we will hear a lot about " The term "decentralized artificial intelligence". This very simple meme packs a lot of information and meaning into a very simple phrase, "artificial intelligence, but for people."

Centralized Web2 AI has a huge monopoly on data and computing. They will devote all their resources to the development of artificial intelligence models to produce the most versatile and powerful models possible. They will stifle competition and limit innovation. They will engage in regulatory capture and do whatever they can to strengthen their positions. They will make a very small number of people very rich and powerful, and they will become our new overlords.

https://x .com/TrustlessState/status/1762318512507208182?s=20

I was listening to Casey Curaso’s speech at the ETH Denver AGI Summit:

“We all want open source AI and the widespread proliferation of customized models suitable for various uses, but the driving force behind economies of scale in AI models is very powerful. Data monopoly and compute monopoly Limits the development of open AI models."

The idea here is that we are interested in a wide range of AI models - all models: music, movies , art, personal assistance, trading algorithms, recommendation and curation models...

As humans, we would like to have as many AI models as blogs and websites. By democratizing AI models, human creativity, expression, and value creation will flourish.

But due to centralized artificial intelligence, we cannot do this.

We need decentralized artificial intelligence.

https://x .com/anna_kazlauskas/status/1764675698310926459?s=20

Decentralized Computing

The AI x Crypto narrative begins with the decentralized computing layer—the lowest layer of the AI x Crypto technology stack.

Decentralized computing has been a crypto space for a long time – there’s nothing new here. The only thing new is the massive price swings these platforms have seen since the rise of the AI investment cycle. The bids behind the decentralized computing platform are getting higher as Nvidia adds billions to its market value and OpenAI launches new artificial intelligence products that redefine society.

• Filecoin - Up 100% in 30 days

• Arweave - Up 200% in 30 days

• Render - Up 300% in 3 months

• Bittensor - Up 1250% in 5 months

This is just me from the crowd A selection of four platforms. Hundreds more companies with varying levels of quality have taken significant action over the past few months.

Some of these platforms have real fundamentals. Some of them are actually experiencing growth due to the rise of the AI industry.

But in general, their price action is entirely speculative, based either on their views on future AI industry adoption or on future changes. Big fool's view.

In my opinion, it is the latter.

AI Meme Coin

Worldcoin is a very real project with a very real Founders, a real team, a real vision, its current valuation is a highly unreal $63 billion, which can only be explained by people trying to get their hands on artificial intelligence, and they're using WLD to do it.

This is what cryptocurrencies offer the AI industry: tokens and liquidity.

AI Meme Coin&Lessons on Bankless Narrative Investing

Establishing guidelines for this bull market is necessary

Our industry is made up of fast-moving, radical innovators who are pushing the limits of what technology can do.

We ask, "Why not?" and we ask for forgiveness.

The pace of regulation and public market bureaucracy is unsatisfactory and restrictive. As Crypto x AI, we won’t wait for the old guard and those in power to catch up with us, we will surpass them and create a better future.

But until all AI builders learn to use cryptocurrencies, we will be the first to be hit by the AI meme coin wave. Impact, these waves will be able to overtake them.

The overlap between AI and Crypto is real - it's just going to be preempted by complete vaporware and shitcoinery.

This is the desired sequence of operations.

Issuing and selling an AI meme coin is much easier than building a real project. Real Crypto x AI projects will take at least a few years to build, and we don't have that much time in a crypto bull market, which lasts 12-18 months at most.

https://x .com/MikeIppolito_/status/1762262716671021465?s=20

AI tokens are the shiny new thing.

The reason AI tokens are bullish is that buying them requires no brainpower at all. Up and coming retail investors just need to find some AI related stocks, watch a youtube video on them, and hit the buy button.

This is what we call the left side of the curve, which is why CorgiAI is investing in the top 100 coins.

The first page of the CorgiAI "White Paper" is everything you need to know.

This is stupid. It's not going anywhere. It's cute and fun. This is what happens when the masses get the financial asset printing press: ERC20 tokens.

This is a passage from Zora’s Jacob that I like:

https://x.com/js_horne/status/1764765731797729610?s=20

In the meantime, check out what I discovered on my timeline: real innovation using Crypto x AI!

https://x .com/js_horne/status/1765110257359954367?s=20

What happens next?

Welcome to the next 18 months of your life.

AI x Crypto is real. The fundamentals are there. And signals surrounding fundamentals will be completely overwhelmed by the next wave of crypto speculative degradation.

Crypto projects will find ways to make themselves Crypto x AI projects, and their tokens will rise as a result.

Then everything will come crashing down.

Then we will rebuild it on a better basis than before.

This is tradition.

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