I don’t have much use for old-school Wall Street. The feeling’s probably mutual, but, hey – I don’t really care.
There’s a ton of B.S. there on the Street, which should come as no big shock. These people practically invented the art of the scam.
But it’s just as true that there have been authentic geniuses at work there, building fortunes.
Still, as an investor, you have to be able to recognize a good thing when you see one, whether it’s a great tip, or some rare piece of realwisdom, or a strategy.
So, they’ve got a great saying on Wall Street: “Don’t fight the tape.”
It means you’d be wise to invest with the prevailing trend, as opposed to running headlong against it. Yes, there are times when it pays big to be a contrarian, but there are just as many times contrarians get steamrolled.
I’m convinced, and I’ll tell you why in a second, that the Trend to End All Trends is headed our way right now, and it’s going to unfold much faster than anyone realizes. It’s already starting to happen, and when it plays out, it will have changed everything. The people who aren’t ready for it are going to get steamrolled.
And owning a certain class of cryptocurrencies is the best way – maybe even the only way – to ride this thing. The tokens I’m talking about are still extremely oversold. Most of them are trading for pennies right now; the most expensive of these trades for less than 20 bucks.
The people who are ready, who invest smartly right now, will probably end up set for life. I realize that sounds hyperbolic, but I believe it’s true.
And, prices being what they are, now is definitely the right time to move.
Once This Happens, It’s Game Over for Traditional Markets
It’s time we talked about artificial intelligence – AI. Most of us interact with it on a daily basis, probably via Siri or Alexa, but it goes a lot deeper than that. We’ve already got artificial intelligences that can express an eerie level of creativity – they make art, they generate lifelike portraits.
These are artificial specialized intelligences, and they’re mighty impressive, but compared to what’s coming, they’re parlor tricks.
I’m talking about artificial general intelligence. Something that learns and grows the way people do, but much faster and at a far larger scale. Right now, we’ve got AI that can run your phone or your calendar, but I’m talking about something capable of running entire corporations, societies, markets, planets – name it.
It’s hard to even imagine what an AI really is, but to get my point across, we’re going to have to try. Imagine a brain that can read any book or webpage ever written, watch any footage or listen to any audio recording. Now imagine it can do all these things at the same time, and finish in nanoseconds or less. And, if this “entity,” (because, let’s face it, at that point it’ll be an “entity”) wants or needs to crunch more data, it just builds more brain for itself.
That’s hugely oversimplified because AI is a really big, headache-inducing concept, and we are sure as hell not getting into the weeds of it today; I mean, people dedicate years toward PhD theses in this kind of AI, and billions of dollars are spent chasing after it.
Those cumulative efforts are going to pay off – it’s inevitable – and one day, probably well inside a decade, maybe even inside five years, someone’s going to find it.
Within a few hours, maybe a day or two, tops, of that event, everything will change – and it’s likely investors and traders will be the first to notice. A human veteran stock trader, even a regular Gordon Gekko with decades of experience in all kinds of markets, will be left in the dust by an AI with complete, perfect mastery of mathematics, economics, psychology, probabilities and statistics, and finance, which can act at will as often as it needs to.
The AI will eat Gordon Gekko’s lunch. Because Gordon Gekko can’t compete with that. I can’t compete with that. You can’t compete with that.
Given all this, it’s not unreasonable to say AI could well be the final frontier of investing. It might just be the last market, and now is the time to get ready.
In fact, the only thing that conceivably could compete with that is another AI. The AIs will essentially race against each other, and the humans backing the best AI will enjoy the profits, while the rest are, more than likely, frozen out.
If you can describe your job, and AI will be able to do it eventually. PwC forecasts suggest AI will impact nearly 33% of jobs and 44% of workers by the mid-2030s, even as it adds $15.7 trillion to global GDP by the end of this decade.
Now – it’s a pretty safe bet a lot of you are unsettled by this. I mean, you’ve seen The Matrix, you’ve seen The Terminator, movies about people being used as AA batteries or hunted down like cockroaches, courtesy of malevolent artificial intelligences.
And to be honest, there’s a small chance it won’t go super-well for people. We’re talking about artificial beings with perspectives we can’t imagine making decisions based on information we can’t even comprehend.
But for precisely that reason, I think the odds are much better that humans will come up aces after the Dawn of AI. And like I said, a few humans will make out like bandits.
Why? Because AI will be better at solving the tough, intractable problems that make life tough for billions of people and hell for billions more people – food distribution, clean water, electrification, education, medicine, and on and on. AIs are quickly going to become really good at things, and odds are they’ll probably be better at making sure everyone’s fed and sheltered than a government run by people.
Maybe when the AIs run the show, we suddenly find ourselves with the bandwidth to improve ourselves, learn a foreign language, travel, needlepoint, whatever.
But, again, this is in the future.
How to Start Getting Ready
In the here and now, the race is on to build out the machine learning projects that will enable artificial general intelligence to come into its own.
This is starting to happen on the blockchain right now; that technology is connecting machine learning tasks with the capacity to power them. Money is already being made here; you can tokenize any asset, and computing power certainly qualifies in this case.
In just one project I know, a researcher or app developer or entrepreneur might request the services of the network’s AI “nodes” for help in learning how to recognize faces, or process a natural human language, say, or learn how to recognize some particular human sentiment from a voice sample.
And it’s all tokenized – and more and more of it will be as time goes on.
I’m intentionally oversimplifying, but, in exchange for open access to that computing “firepower,” or service, the requester pays in the native token, kind of like if you request a pizza in New York or a plate of sushi in Tokyo, you pay in the native currency – dollars and yen.
Nodes… service requests… networks… process – it sounds banal, even boring, but the end result is going to be totally revolutionary. That’s a word I don’t use lightly.
So we have this world-changing trend unfolding, and the gas, the stuff that makes it go, is cryptocurrency. Not only that, we have, specifically, cryptocurrencies that are massively oversold right now. Bitcoin (BTC), Ethereum (ETH), and the “majors” have been slowly but surely gaining buying momentum over the summer, but the top 20 AI tokens are still, for the most part, where they were in the spring.
I mean, eight of the top 10 are trading for less than $1 right now. There’s no reason to jump in and absolutely line our pockets with these. The market is sleeping on an absolute monster here, and we should fully capitalize on that.
Personally, I’m stepping on the gas. My portfolio, until recently, was about 10% AI crypto, but I’m (literally) doubling down and boosting my AI token exposure to a full 20%.