Are AI-Altcoins Worth Investing: Bubble or Breakthrough?
Cryptocurrency analyst and DeFi enthusiast, Miles Deutscher, recently took to social media to share his perspective on the intersection of artificial intelligence (AI) and cryptocurrency and blockchain. According to Deutscher, while many coins claim to be AI-focused, they are often just using AI as a buzzword to generate hype.
Deutscher first discusses the catalysts that have boosted the AI narrative in 2024, namely OpenAI’s Sora release and Nvidia’s record-breaking earnings. With AI startups receiving over $50 billion in funding by 2023, Deutscher suggests that there is significant investment in AI infrastructure, with an estimated expenditure of around $200 billion this year.
The broad application of AI in various industries, from retail to gaming, makes it an attractive story for retail investors. Deutscher highlights promising subsectors within the intersection of AI and cryptocurrency, such as decentralized networks designed to address the high power demand for training AI models and decentralized marketplaces that facilitate cooperative AI research.
Additionally, Deutscher emphasizes the importance of cryptocurrency solutions in combating deepfake frauds and protecting against impersonation crimes by verifying data and media origins. He also discusses the growing market of AI agents that automate tasks and create economic value for their owners.
Deutscher debunked the hype around “AI coins,” stating that most of them are not actually AI-focused. He advises investors to differentiate between speculative vehicles and protocols that genuinely advance AI technology. He recommends focusing on projects that build fundamental infrastructure for AI development, such as DePIN.
In terms of trading AI coins, Deutscher suggests a two-fold strategy: short-term trades around major events and a long-term focus on fundamental infrastructure plays. He highlights projects like Aethir, Allora, AITProtocol, GPU.net, Gaimin.Io, and PAAL AI as potential gems in the evolving AI crypto landscape.
Deutscher’s insights shed light on the opportunities and challenges within the merging of AI and cryptocurrency. As this hybrid sector continues to evolve, his perspective offers valuable guidance for investors.