Categories: Blockchain Investments / Technology
Topics: Cryptocurrency / Artificial Intelligence

AI and Cryptocurrency: The Next Big Thing in Finance and Technology

Narratives drive bull markets in the cryptocurrency space.
 
This was evidenced in 2021 and 2022 with the rise of Metaverse tokens and the rampant speculation that followed.
 
Top projects like ApeCoin (APE), Internet Computer (ICP), and Decentraland (MANA) exploded in value in a short period of time. Those three alone currently have a market cap over $4.7 billion. 

It was a classic narrative driven bubble. And the crypto market is in the early stages of its next one right now.
 
What is it you ask?
 
Artificial Intelligence (AI)

With all of the hype surrounding the recent release of ChatGPT, investors are piling into AI related investments. And cryptocurrencies are no exception. 

Major AI crypto tokens have surged massively in recent weeks.

And while it's normal to see pullbacks after such massive pumps in price, I still believe this sector will be incredibly profitable in the months and years to follow as AI becomes the dominant trend in the next crypto bull market run.

AI and crypto is the next big thing in the world of finance and technology. That’s because it has the potential to transform the way we invest, manage money, and interact with technology.

Benefits of Crypto AI
 
One of the key benefits of using AI in cryptocurrency is that it can help simplify and streamline the investment process. 

For example, AI algorithms can analyze large amounts of data and provide investment insights and recommendations, making it easier for individuals to make informed decisions. Additionally, AI can help detect and prevent fraudulent activity in the crypto market, providing a safer and more secure investment environment.
 
Another exciting aspect of AI in cryptocurrency is the potential for new financial products and services. AI can be used to develop new investment opportunities and risk management strategies, providing investors with a wider range of options and increasing the efficiency of the financial system. This, in turn, can lead to increased economic growth and a better overall financial landscape.

The integration of AI and blockchain technology can increase the automation of repetitive tasks, improve decision making, provide better customer experience, improve security, and increase trust and transparency in supply chains.
 
AI can provide enhanced security for blockchain networks by using advanced cryptographic algorithms to protect data. AI can also be used to manage blockchains more efficiently than humans or conventional computers. Additionally, AI can help track and explain decisions made by algorithms used in financial transactions or other areas where decisions are made by AI.
 
The merger of blockchain technology and AI is enabling the supply chain industry to scale up its operations by providing digital solutions and seamless sharing of data, as well as improving farm-level decision-making and speeding up transactions in the pharmaceutical industry. By combining these two technologies, organizations can achieve their goals more efficiently and effectively.
 
The trend is already starting to take shape and there is no doubt that we will see continued growth and development in this area in the coming years. Whether you are a seasoned investor or just starting out, AI in cryptocurrency is worth paying attention to.

AI Art

AI Art refers to the creation of art through the use of artificial intelligence algorithms and technology. This can involve the use of machine learning algorithms to generate images, music, or other forms of creative content, as well as the use of AI tools to assist artists in the creative process. 

Some examples of AI art include computer-generated images, music compositions, and digital paintings. In some cases, AI algorithms can be trained on existing art to generate new pieces that are similar in style or content. AI art can also be interactive, responding to the audience or changing over time in response to input. The use of AI in the creation of art raises questions about the role of the artist and the definition of creativity, and has the potential to reshape the art world in new and exciting ways.
 
AI art is artwork created using artificial intelligence (AI) algorithms and technology. AI art generators are available online, such as NightCafe Creator, OpenArt, Hotpot.ai, and starryai.

These AI art generators allow users to create artworks from text prompts or images, with the help of AI algorithms. AI art has become increasingly popular in recent years, with some artists using it to create unique works of art or to remix existing works. However, there are concerns that AI art may be infringing on the rights of human artists by creating works that are too similar to their own.

Additionally, some worry that AI art could replace human artists altogether.

Despite these concerns, many believe that AI can be used as a tool to spark creativity and generate ideas for refinement by human artists.

As a fun exercise I uploaded some pictures of myself to an app that generated dozens of AI avatars within minutes. They ranged from beautiful to frightening:

AI art and generative technology will no-doubt be incredibly disruptive to a number of industries and is worth keeping a close eye on. I’ve already started investing in related crypto tokens in my premium publication, Crypto Cycle.

AI Tokens

AI tokens are a type of cryptocurrency designed to support and facilitate the use of Artificial Intelligence (AI) applications and services. These tokens can be used to access AI-based services such as cloud computing, machine learning algorithms, or data analytics tools. 

Additionally, AI tokens can provide incentives for the development and improvement of AI technology by offering rewards to contributors or participants. They can also be used to fund AI research or support AI startups and projects, thus promoting the growth and adoption of AI by creating a means of monetizing and financing AI-related initiatives.

There are at least 120 AI crypto tokens on the market today with many more in the works.

Below are 8 AI-powered cryptocurrencies that you should keep an eye on:

1. SingularityNET (AGIX): This cryptocurrency uses AI to build decentralized applications and services. It provides a platform for developers to create and monetize their AI models.
2. DeepBrain Chain (DBC): This cryptocurrency leverages AI to create a decentralized computing platform for AI applications. It aims to reduce the cost and improve the efficiency of AI development.
3. Vectorspace AI (VXV): This cryptocurrency uses AI to identify and analyze trading opportunities in the crypto market. It provides a platform for traders to access real-time market insights and execute trades.
4. Polymath (POLY): This cryptocurrency focuses on security tokens and uses AI to streamline the process of issuing and trading them.
5. Ocean Protocol (OCEAN): This cryptocurrency uses AI to provide a platform for sharing and exchanging data securely and transparently.
6. Matrix AI Network (MAN): This cryptocurrency combines AI and blockchain technology to create a fast, secure, and scalable platform for decentralized applications.
7. IOTA (MIOTA): This cryptocurrency uses AI to provide a platform for secure and decentralized data sharing and communication.
8. NEXO (NEXO): This cryptocurrency uses AI to provide a platform for instant loans and credit services, using cryptocurrencies as collateral.

These AI-powered cryptocurrencies are just a few examples of how it is being integrated into the market. Whether you are an experienced investor or just starting out, it's worth keeping an eye on the developments in this space.
 
Additional Use-cases
 
AI is increasingly being used to improve the security and efficiency of cryptocurrency transactions.
 
AI can be used to detect anomalies in cryptocurrency transactions, as well as to create automated trading systems that buy and sell cryptocurrencies based on market conditions.

AI algorithms can also help optimize calculations to reduce miner load which results in less network latency for faster transactions. 

Additionally, blockchain technology can be used to store and distribute AI models, providing an audit trail and enhancing data security.
 
The potential benefits of using AI in the world of cryptocurrency are numerous, but there are also risks associated with it such as potential errors or biases in algorithms. Of course, many of these risks currently exist with human-based systems.
 
Despite this, the combination of blockchain and AI is transforming industries by bringing trust, removing friction from multi party transactions, accelerating the speed of transactions, and digitizing traditionally paper-based processes.
 
Blockchain technology provides immutable records of all the data, variables, and processes used by AIs for their decision-making, while AI can rapidly read, understand, and correlate data at incredible speed. 
 
This combination of blockchain and AI has the potential to bridge the utility gap between centralized and decentralized platforms as well as create a breakthrough technology that is catalyzing innovation across industries.
   
The rise of crypto AI projects is being driven by the decentralized nature of blockchain technology, cost efficiency, improved data management, democratization of AI, and increased trust. As the field continues to develop and mature, it will be interesting to see how AI and blockchain technology continue to shape and impact the world.

Companies currently utilizing AI and Blockchain

Examples of companies combining AI and blockchain include Wealthblock.AI, Hannah Systems, AI BlockChain, and more.
 
Wealthblock.AI is a SaaS platform for businesses raising capital that handles automated marketing and messaging powered by a blockchain-based investor referral and suitability checking process.
 
Hannah Systems brings AI and blockchain to autonomous vehicles with an AI-powered data exchange platform, real-time mapping tool, insights dashboard, and blockchain for secure data sharing between vehicles.
 
AI BlockChain is a company that offers a range of products and services in the areas of conversational AI and enterprise blockchain. 

Their conversational AI products include an AI cloud and voice platform that is open and agnostic, and can work with voice interface platforms such as Alexa, Google Assistant, and Siri. They also have a knowledge base and perform logical reasoning to enhance the user experience.

Their enterprise blockchain products include fast and scalable technology for tamper evidence, an open source library for securing enterprise applications, and a tamper evidence solution for various industries, such as supply chain and financial services. 

They also offer a payments and digital asset cloud platform that is more resistant to hacking than Bitcoin or Ethereum, and employs artificial agents on the blockchain for secure and immutable data storage.

The driving forces behind the rise of crypto AI projects are:

1. Decentralization: The decentralized nature of blockchain technology provides a secure and transparent platform for AI applications. This is particularly important in the field of AI, where data privacy and security are major concerns.
2. Cost Efficiency: The integration of AI and blockchain technology has the potential to greatly reduce the costs associated with developing and deploying AI solutions. By leveraging decentralized computing power and data storage, AI applications can be developed more efficiently and at a lower cost.
3. Improved Data Management: AI applications require large amounts of data to train and improve their algorithms. The decentralized nature of blockchain technology provides a secure and transparent platform for sharing and exchanging data, which is crucial for the development of AI solutions.
4. Democratization of AI: By making AI more accessible and affordable for individuals and businesses, the integration of AI and blockchain technology has the potential to democratize access to AI and level the playing field.
5. Improved Trust: The decentralized and transparent nature of blockchain technology increases trust in AI applications by allowing for a clear and auditable trail of data and decisions.

The rise of crypto AI projects is being driven by the decentralized nature of blockchain technology, cost efficiency, improved data management, democratization of AI, and increased trust. As the field continues to develop and mature, it will be interesting to see how AI and blockchain technology continue to shape and impact the world.

We’re at the beginning.

And I’m buying related tokens now in Crypto Cycle.

 

Chris Curl
Editor, Daily Profit Cycle