If you have a crypto portfolio, at least one artificial intelligence (A.I.) cryptocurrency needs to be in it.
It all has to do with the profit-producing power of disruptive technologies – a new idea or approach that completely changes an entire industry.
Companies at the forefront of a disruptive technology tend to deliver extremely lucrative returns – just ask anyone who invested in Amazon.com Inc. (AMZN) in the early 2000s. Cryptocurrency is one of today’s disruptive technologies – and it’s still in its infancy. Over the next decade, it will completely remake the world of finance.
That game-changing potential is what’s driving those stunning price gains. Bitcoin (BTC) is up nearly 1,500% just since January 2019. Many early investors in crypto have already made life-changing wealth.
Now consider artificial intelligence; it is also an evolving, disruptive technology. It’s already changed how we shop and how we interact with personal technology, like smartphones. And it’s at the heart of many in-the-pipeline innovations, such as self-driving cars.
But A.I. is capable of much more. Ultimately it will change the very nature of labor. According to PwC‘s Global Artificial Intelligence Study, by the mid-2030s, advances in A.I. will affect nearly one-third of all jobs and 44% of all workers.
Yet, despite the job losses, the wider economic gains will be huge. PwC expects A.I. to add $15.7 trillion to global GDP by 2030.
“If you can describe your job, a robot will do it. If that bothers you, you should be investing even deeper into A.I.,” American Institute for Crypto Investors Chief Crypto Strategist Nick Black said. “This is the world we live in. And the world is changing very quickly in the next four to five years.”
The potential here is so great that Nick thinks the top A.I. cryptos could see gains of as much as 100x from where they started in 2021.
I’d say any investment with that kind of potential deserves a spot in your portfolio.
More Than the Sum of Their Parts
Before jumping into the cryptos themselves, I just want to provide a little more background on A.I. technology and cryptocurrencies.
That way, you can use what you learn to spot even more moneymaking opportunities.
Each of the technologies that I’m about to mention has qualities that enhance the other. We’ll look separately at what each tech is contributing to this marriage.
First, we have cryptocurrencies.
There are two key technologies here: The blockchain and smart contracts. A public blockchain is a decentralized, secure database that allows easy access to the data it holds via the internet.
A smart contract is a contract in the form of a program that executes automatically when the conditions set forth in the code are met. The smart contract typically accesses an online “oracle” to obtain the data needed to execute the contract. That data then becomes a part of the blockchain’s permanent database.
Artificial intelligence is the attempt to simulate human cognitive abilities in a machine. In practical terms, that means the machine can “learn” from its efforts to perform a task so it can get better and better at it. To achieve this, the machine needs the ability to gather and analyze data.
A real-world example of A.I. is the self-driving abilities in cars. Multiple sensors and cameras serve as “eyes” to collect data for the system to analyze in real time in order to simulate what a human driver does.
Another example of A.I. is the facial recognition or fingerprint recognition technology of a smartphone. When setting it up, the phone will keep requesting different angles of your face, or different areas of your finger, until it “learns” enough biometric data to securely identify the owner.
Now here’s what happens when you put A.I. and crypto together…
A.I. Cryptocurrency No. 1: SingularityNET
Remember, A.I. is good at analyzing data to “learn” how to do tasks that humans do. And crypto is good at collecting, storing, and securing large amounts of data in a public blockchain.
It also has the ability to execute smart contracts on the blockchain.
This is a natural fit because the technology can leverage the vast amount of trusted data stored in the blockchain to do what it does much better. Using blockchain tech is like injecting A.I. with steroids.
That leads me to SingularityNET (AGIX).
SingularityNET uses blockchain tech to allow interoperability between different types of artificial intelligence so they can “cooperate and coordinate at scale.”
Don’t worry if that just sounded like a bunch of gibberish.
Rejuve is a life extension project. The plan is to reward people with crypto tokens in exchange for answering surveys about their health and lifestyle. The data is not linked to the participants but is pooled together on the blockchain for artificial intelligence to analyze. Over time, the project founders expect to find ways to extend the human life span.
NuNet is a project designed to harness the mostly wasted computing power of our high-tech devices.
That would include not just PCs but smartphones, gaming systems, and even smart appliances. It seeks to use A.I. to manage a vast global network of computing devices, making it possible to share and monetize titanic amounts of computing power and data.
A.I. Cryptocurrency No. 2: Fetch.ai
Another great example of a crypto to own in this space is Fetch.ai (FET). The Fetch team is building a decentralized platform that is built on a blockchain distributed ledger that makes it possible to build “smart” infrastructure.
It uses what it calls “autonomous economic agents” to represent individuals and organizations on the network. These agents can act independently of the owner, taking the actions necessary to achieve the purpose for which they were created. They live on the Fetch blockchain.
“These autonomous economic agents can trade, they manage money, they manage currency, their whole reason to exist is to increase your economic value,” Nick said. And these things are becoming more robust. Of all the A.I. tokens I follow, Fetch is top of class.”
So what does all this mean in the real world? Let’s look at a few of Fetch’s use cases.
One use case for Fetch would remake how people book hotels. A person would set up an autonomous agent to seek out a hotel room in a particular place at a particular time and in a particular price range, among other parameters. The hotels have agents of their own on the network looking to sell rooms to the individuals’ agents that make a suitable offer.
No humans would be involved. Humayun Sheikh, co-founder and CEO of Fetch.ai, says this model could result in savings of 10% for both hotels and customers. And as we know, with the price of things now and having the ability to save money, every dollar counts.
The same technology could be used to find a parking spot in a congested urban area or to make an appointment for a personal service like a haircut or manicure.
Another use case is the creation of an “intelligent supply chain.” Suppliers, wholesalers, retailers, and transportation companies would all have agents on the network, negotiating pricing, quantities, and the time of delivery. The A.I. would offer benefits like helping companies choose the best partner to trade with while developing the most efficient way to manage the supply chain.
Nick Black says investors need to recognize that A.I. will soon begin to consume whole industries.
“This is a story that’s developing, but the speed and velocity of the adoption – the mainstreaming effect in A.I. is big – and it’s happening faster, faster and faster,” Nick said. “We’re at the stage where VCs are looking at these projects, meaning you’re in early enough that you can make life-changing money.”
For more crypto investing wisdom from Nick Black, be sure to tun in for his American Institute for Crypto Investors LIVE stream tomorrow at 11:30 a.m. E.T.
Board Member, American Institute for Crypto Investors