AI Cryptos Could Go 100X?! Don’t Miss Out On Big Gains!

Coin Bureau
16 Mar 202422:24

TLDRThe video discusses a recent report by Galaxy Digital on the intersection of AI and crypto, highlighting the potential for AI to revolutionize the crypto market. It outlines various sectors within AI crypto, such as decentralized computing, AI smart contracts, and AI agents, and explores how these could lead to significant efficiency gains in crypto development. The report suggests that while AI integration with crypto is still in its early stages, the future could see AI-driven demand for cryptocurrencies, potentially leading to mainstream adoption and significant market impact.

Takeaways

  • 🚀 AI cryptos have seen significant rallies recently, with a report by Galaxy Digital suggesting even greater potential in the future.
  • 🌐 The intersection of crypto and AI is being driven by the need for a trustless settlement layer, which crypto provides to AI applications.
  • 💡 Decentralized computing is a key area where AI and crypto intersect, as AI requires substantial computing power, which decentralized networks can help supply.
  • 📈 AI computation demand is increasing rapidly, doubling every 3 months, which is driving the market for computing power, including Bitcoin mining machines and Nvidia chips.
  • 🛠️ Decentralized computing platforms like Aave and Jensen aim to provide AI computing resources at lower costs and enable spare capacity sales for passive income.
  • 🔧 Decentralized AI training is an emerging niche, with projects like Jensen working on protocols to enable honest AI training despite challenges like misaligned incentives and political biases.
  • 🤖 AI agents, autonomous bots capable of executing tasks using AI models, are another area of growth, with projects like Fetch.ai providing marketplaces for AI agents.
  • 🔒 Zero-knowledge AI is a new decentralized AI primitive being explored to verify off-chain AI computations, potentially making smart contracts more efficient and secure.
  • 📝 Regulation and data privacy concerns could be significant triggers for the adoption of decentralized computing and AI crypto solutions.
  • 💹 AI's impact on crypto development could lead to a 10x increase in efficiency for crypto developers, resulting in more projects and protocols related to AI.
  • 🌐 The future of AI and crypto suggests a potential shift towards AI using crypto for payments, which could lead to mainstream adoption and significant price appreciation for chosen cryptocurrencies.

Q & A

  • What is the main focus of the report titled 'Understanding the Intersection of Crypto and AI'?

    -The report focuses on exploring the emerging relationship between cryptocurrency and artificial intelligence, highlighting how these two technologies can complement each other and potentially lead to novel use cases and mitigation of downsides associated with AI.

  • How does the report suggest that AI and crypto are related?

    -The report suggests that crypto provides a trustless settlement layer that is essential for AI, as it enables the construction of new AI use cases and helps to mitigate risks such as deep fakes. Crypto is also seen as a 'data-rich environment' that AI needs.

  • What are the sectors under the AI narrative discussed in the report?

    -The sectors discussed include decentralized computing AI, AI training, AI infrastructure, AI defi (decentralized finance), gaming AI agents, and actual AI.

  • How does the report address the issue of AI computation demand and supply?

    -It notes that the demand for AI computation is doubling every three months, leading to an incentive for various computing supplies to meet this demand. Decentralized computing is presented as a solution, allowing for more affordable access to AI computing and enabling those with excess capacity to monetize it.

  • What are the potential triggers for the adoption of decentralized computing in the AI space?

    -The triggers include the supply-demand disconnect for AI-specific hardware, regulatory restrictions on data usage in AI training, censorship efforts by governments, data privacy concerns, and the need for improved user experience in crypto.

  • How does the report view the role of zero-knowledge AI in the smart contract sector?

    -Zero-knowledge AI is seen as a tool to verify the validity of off-chain AI computations, making smart contracts more secure and efficient. It is still in its early stages but is considered crucial for integrating AI with smart contracts.

  • What are AI agents and how do they relate to the crypto market?

    -AI agents are autonomous bots capable of receiving, interpreting, and executing tasks using an AI model. They could range from personal assistants to financial managers. The report suggests that AI agents could significantly expand the scope of what decentralized applications (dApps) can do, including in the realms of decentralized finance (DeFi), gaming, and digital identity.

  • What is the biggest impact AI could have on the crypto market according to the report?

    -The biggest impact could be in crypto development, where AI tools like co-pilot could increase developers' efficiency by up to 10x, leading to more crypto projects and protocols related to AI.

  • How might AI and crypto synergize in the payments domain?

    -AI and crypto could synergize in payments by creating an open and transparent payment system preferred by AI over closed and opaque traditional systems. This could lead to increased demand for crypto by AI agents, resulting in price appreciation for the chosen cryptocurrencies.

  • What are the potential implications of AI using crypto for payments?

    -The implications include a significant increase in demand for cryptocurrencies as AI agents perform more tasks, leading to potential price appreciation. It could also necessitate further integration between crypto and the traditional financial system, potentially accelerating crypto adoption across various aspects of life.

  • What is the current state of AI crypto projects mentioned in the report?

    -Most AI crypto projects mentioned in the report are in their early stages, with many still in the proof of concept phase. This suggests that while the sector is just beginning, there will be a continuous influx of new AI crypto projects in the market.

Outlines

00:00

🚀 AI Cryptos and Their Market Potential

This paragraph introduces the recent rally in AI cryptos and the curiosity surrounding their long-term potential versus short-term speculative interest. It highlights a report by Galaxy Digital that suggests the current gains are just the beginning. The video's host, Guy, emphasizes the importance of understanding this intersection of crypto and AI for those interested in significant gains. The report, titled 'Understanding the Intersection of Crypto and AI,' discusses how crypto provides a trustless settlement layer for AI, enabling novel use cases and mitigating downsides like deep fakes. It also touches on the belief that AI will choose BTC as its currency due to its data-rich environment.

05:01

🌐 Overview of AI Crypto Projects and Decentralized Computing

This section provides an overview of various AI crypto projects categorized into different sectors such as decentralized computing, AI training, AI infrastructure, AI Defi, gaming, and AI agents. It emphasizes the central role of decentralized computing in the AI-crypto intersection, highlighting the need for significant computing power and the potential for Bitcoin mining machines to contribute. The report also discusses the underutilization of AI chips and how decentralized computing offers solutions like lower-cost AI computing access and passive income opportunities. It further explores niches within decentralized computing, including generalized compute, secondary markets, decentralized AI training, and actual AI, with examples like aCache, Jensen, and Bit Tensor.

10:01

🔍 Exploring AI Smart Contract Sector and Challenges

The paragraph delves into the AI smart contract sector, discussing the inefficiencies of traditional smart contracts and the potential benefits of integrating AI. However, it acknowledges the challenge of high costs and feasibility issues related to running intensive AI computations on-chain. The introduction of zero-knowledge AI as a decentralized AI primitive is presented as a solution, with a focus on verifying off-chain AI computations. The report mentions crypto projects like Easy KL and Giza that are developing tooling for zero-knowledge AI solutions. It also highlights the importance of tooling and infrastructure for deploying verifiable off-chain computation and enabling non-crypto native builders to bring AI models on-chain.

15:01

🤖 AI Agents and Their Role in the Crypto Ecosystem

This segment discusses the AI agents sector, defining AI agents as autonomous bots capable of executing tasks using AI models. It mentions the crypto project Fetch.ai, which operates as a marketplace for AI agents. The report also explores the concept of AI agents using BTC as a native currency, as Lightning Labs is working on integrating AI agents within the Lightning Network. However, the author expresses skepticism about AI using crypto for payments due to regulatory hurdles and the likelihood of traditional financial institutions adapting to AI compatibility, potentially reducing the appeal of crypto for AI payments.

20:02

🌟 Impact of AI on Crypto Development and Market

The conclusion of the report suggests that AI's most significant impact on crypto will be through development efficiency, potentially increasing crypto developers' productivity by up to 10x. This could lead to more crypto projects and protocols, including those necessary for AI-related applications. The report indicates that the crypto AI sector is still in its early stages, with most projects in development, implying a future influx of new AI cryptos. It also discusses the potential shift from traditional smart contract cryptos to off-chain AI processes, which could bolster the narrative of modularity in crypto. The biggest potential impact of AI on the crypto market is through payments, with the possibility of AI driving demand for crypto and integrating it further into the traditional financial system. The report ends with a speculative scenario where AI might prefer an open and transparent payment system like crypto over closed and opaque traditional currencies.

📈 Crypto's Future with AI Integration Beyond Finance

This final paragraph expands on the potential integration of AI with various aspects of the crypto ecosystem beyond finance, such as decentralized gaming, physical infrastructure, and social media. It suggests that if crypto becomes the primary payment method for AI, it could lead to the adoption of decentralized alternatives to centralized technologies. The paragraph acknowledges the theoretical nature of AI-crypto applications and encourages viewers to stay informed about these developments for personal and portfolio benefits. It concludes with a call to action for viewers to engage with the content, subscribe to the channel, and explore the Coin Bureau deals page for crypto-related offers.

Mindmap

Keywords

💡AI Cryptos

AI Cryptos refers to cryptocurrencies or blockchain-based projects that integrate artificial intelligence (AI) into their functionality. These projects aim to leverage the power of AI to enhance various aspects of the crypto ecosystem, such as security, efficiency, and innovation. In the context of the video, AI cryptos are seen as having significant long-term potential and are currently experiencing a rally, indicating a surge in interest and value.

💡Decentralized Computing

Decentralized computing is a model of computing where resources and data are distributed across multiple, often geographically dispersed, nodes or computers instead of being centralized in a single location. This approach can enhance security, resilience, and accessibility. In the video, decentralized computing is highlighted as a key area where AI and crypto intersect, particularly because AI requires substantial computing power, which decentralized networks can help provide more efficiently.

💡AI Training

AI training refers to the process of teaching artificial intelligence systems how to perform tasks by providing them with large amounts of data and feedback. This process is essential for machine learning models to learn and improve their accuracy. In the context of the video, AI training is discussed as a challenge due to the need for significant human oversight and the potential for misaligned incentives or biases. The video introduces a project called Jensen, which aims to facilitate more honest AI training through a protocol that allows for decentralized participation.

💡Decentralized AI Stack

A decentralized AI stack refers to a comprehensive set of technologies and platforms that enable AI applications to run on a decentralized network. This stack typically includes components for computing, training, and interacting with AI, all operating in a decentralized manner. The concept is that by decentralizing these components, the AI ecosystem can become more robust, secure, and accessible to a wider range of participants. The video discusses how combining various decentralized computing niches can form a theoretical decentralized AI stack, which could significantly impact the future of AI and crypto.

💡AI Smart Contracts

AI smart contracts are self-executing contracts with the terms of the agreement directly written into code. These contracts can be enhanced with AI to make them more flexible, efficient, and secure. The integration of AI with smart contracts can address the limitations of traditional smart contracts, which are often rigid and lack the ability to adapt to changing circumstances. In the video, the author explores the potential of integrating AI with smart contracts, but also acknowledges the challenges, such as the high computational requirements and the need for new decentralized AI primitives like zero-knowledge AI.

💡Zero-Knowledge AI

Zero-knowledge AI refers to a concept where AI computations are performed off the main blockchain (off-chain), and only the results or proofs of correctness are submitted on-chain. This approach reduces the computational burden on the blockchain and maintains the integrity of the smart contracts. It is a novel concept in the AI smart contract sector that aims to verify the validity of off-chain AI computations. The video mentions projects like easy KL and Giza that are working on creating the necessary tooling for zero-knowledge AI solutions.

💡AI Agents

AI agents are autonomous bots or software programs capable of performing tasks using AI models. These agents can act independently, interpret data, and execute actions based on their programming and learned behaviors. In the context of the video, AI agents are discussed as a sector within the AI-crypto space, with potential applications ranging from personal assistants to financial management tools. The video specifically mentions Fetch.ai as a project that operates in the AI agent space, providing a marketplace for AI agents.

💡Decentralized Finance (DeFi)

Decentralized Finance, or DeFi, refers to financial services that are built on blockchain technology and operate without the need for traditional intermediaries like banks or financial institutions. DeFi aims to provide more accessible, transparent, and efficient financial services. In the video, DeFi is mentioned as one of the areas where AI-based decentralized applications (dApps) could significantly expand the scope of what is possible, potentially leading to innovative financial products and services.

💡Decentralized Digital ID

Decentralized digital ID refers to a digital identity system that is managed and authenticated through decentralized networks, often using blockchain technology. This type of identity system offers enhanced privacy, security, and control for individuals over their personal information. In the video, decentralized digital ID is discussed as a niche within the AI agents sector, with the potential to leverage AI for more secure and efficient identity management.

💡Modularity

Modularity in the context of the video refers to the design principle of creating a system where components can be easily separated and recombined to optimize specific functions or to add new capabilities. In the crypto and AI space, modularity could allow for the efficient integration of AI processes with blockchain-based systems, leading to more adaptable and innovative solutions. The video suggests that the nature of AI computing could lead to a greater focus on modularity within the crypto ecosystem, with AI-focused smart contract cryptos potentially dividing their processes to better optimize AI-related use cases.

💡Crypto Payments

Crypto payments refer to the use of cryptocurrencies as a means of exchange for goods, services, or other transactions. The video explores the potential for AI to adopt crypto payments, which could significantly impact the crypto market by increasing demand for cryptocurrencies and leading to price appreciation. However, it also notes that regulatory hurdles must be overcome before AI can widely use cryptocurrencies for payments.

Highlights

AI cryptos have been rallying significantly, leading to curiosity about their long-term potential.

A recent report by Galaxy Digital reveals insights on the intersection of crypto and AI, suggesting significant future developments.

Crypto provides a trustless settlement layer, which is beneficial for AI applications and can help mitigate issues like deep fakes.

AI requires substantial computing power, doubling every 3 months, which incentivizes increased computing supply.

Decentralized computing is crucial at the intersection of crypto and AI, offering solutions like lower-cost AI computing.

The report discusses various sectors within AI cryptos, including decentralized computing, AI training, AI infrastructure, and AI agents.

Decentralized AI training platforms like Jensen aim to make AI training more accessible and honest.

Bit Tensor aims to decentralize and commodify AI generation, with tokenomics modeled after Bitcoin but using 'proof of intelligence'.

The report outlines five triggers for the adoption of decentralized computing: AI hardware supply and demand disconnect, regulation, censorship, data privacy, and user experience.

Zero knowledge AI is an emerging niche within the AI smart contract sector, potentially verifying off-chain AI computations.

Modulus Labs is highlighted for its work on zero knowledge tooling for AI solutions, mentioned by Vitalik Buterin.

AI agents, like those provided by Fetch.ai, are autonomous bots capable of executing tasks using AI models.

The Lightning Network is working on integrating AI agents, potentially leading to BTC being used as AI's native currency.

The report suggests that AI's biggest impact on crypto might be through increasing the efficiency of crypto development.

AI using crypto for payments could be a game-changer, leading to increased demand for crypto and mainstream adoption.

The synergy between AI and crypto could lead to decentralized alternatives being adopted for various technologies, changing the world significantly.

AI crypto integration with payments could lead to a shift towards open and transparent payment systems preferred by sentient AI.

The report indicates that the crypto AI sector is just beginning, with many projects in early stages, suggesting a future influx of AI cryptos.

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