14 June 2024
The intersection of artificial intelligence (AI) and crypto is poised to unleash a notable wave that could add a staggering $20 trillion to the global gross domestic product (GDP) by 2030, according to a recent report by Bitcoin ETF issuer Bitwise.
The study by analyst Juan Leon highlights the potential magnitude of this synergy, which is expected to surpass current expectations. The annual Consensus conference in Austin further underscored the significance of this trend, with industry experts discussing its wide-ranging implications, from tokenization and regulation to monetary policy and Bitcoin ETFs.
Convergence Of AI And Crypto
According to Bitwise’s analyst, the AI boom led by companies like Nvidia has propelled the market cap of the world’s leading AI chip producer above $3 trillion, making it the second-largest public company globally.
However, Leon contends that this boom has created “an unprecedented shortage” of data centers, AI chips, and electricity access as the race for AI supremacy intensifies.
AI companies are turning to Bitcoin miners, who possess the necessary resources—powerful chips, top cooling systems, and supporting infrastructure—to process and store vast amounts of data to address this issue.
The report further highlights recent developments, such as CoreWeave’s offer to acquire Core Scientific and their subsequent partnership, exemplify the growing collaboration between miners and AI providers.
For the analyst, the convergence of AI and cryptocurrency opens up longer-term prospects that warrant attention. One such area is information validation, where the accessibility, transparency, and immutability of public blockchains can counter potential AI abuses.
Startups like Attestiv leverage blockchain technology to create digital fingerprints for videos, enabling verification of their authenticity and combating the prevalence of “deep fakes.” This application can extend to validating research, government communications, and more, offering essential checks and balances on AI-generated content.
The Perfect Pair?
Another promising intersection, according to Bitwise, lies in the realm of virtual assistants. While AI-powered assistants like Siri and Alexa introduced in Apple devices have become “increasingly versatile,” Leon contends that their capabilities can be further enhanced by integrating them with smart contracts and cryptocurrencies like Bitcoin or stablecoins.
The analyst points out that this potential integration would enable secure and efficient execution of complex tasks, boosting productivity and expanding the potential of AI-driven virtual assistants.
PwC projects that AI and cryptocurrency could individually contribute $15.7 trillion and $1.8 trillion to the global economy by 2030. However, Leon states that their integration’s “synergistic effects” could result in a compounding effect, potentially driving the combined value to $20 trillion or beyond.
Ultimately, the convergence of AI and crypto presents a notable opportunity for global economic growth. With the potential to add $20 trillion to the global GDP by 2030, this “megatrend” promises to reshape industries, addressing challenges in data centers, information validation, and virtual assistant capabilities.
Featured image from Shutterstock, chart from TradingView.com