If you’ve been with me for longer than, say, eight minutes, you’ll know I’m extremely bullish on the artificial intelligence cryptocurrency segment. Time was, these special coins made up around 10% of my crypto portfolio on any given day – that’s a big allocation in anyone’s book.
But not long ago, I put the pedal to the metal and boosted my overall AI crypto exposure to 20%. Remember, I’ve got all my liquid wealth in digital assets, so this move is saying a lot.
More conventional investors would say upping my exposure this way a big risk, but, the way I see it, if I’m absolutely convinced AI is the future of crypto this is the only move to make.
These cryptos are powering a trend that’s going to completely transform the planet, and just about everyone and everything on it.
I’m talking about the last great wealth-creation opportunity there is. This isn’t like the start of the Internet age, or the invention of the computer, or even the wheel, where something big and transformational happens and generates trillions… and then something bigger happens later to generate trillions more.
It’s much more fundamental than that – once the artificial intelligence revolution climaxes, that’s it.
That’s a big statement, I know, but I’ll show you why I think it’s going to happen.
Artificial Intelligence Is the End of the Rat Race
Right now, the biggest role cryptocurrency plays in artificial intelligence is in its machine-learning economy. People need programs to learn new skills, which takes a lot of computing power, so they go and get those resources on the open market.
This has already helped give us narrow artificial intelligences (NAIs) – Siri, or Alexa, or the chatbot that takes your complaints and schedules service calls at your cable company. These are pretty impressive accomplishments in their own right, and these and all the other NAIs already generate around $422 billion a year in economic activity right now – a number Bloomberg says is probably going to hit a compound annual growth rate of 39.4% between now and 2028.
But, at some point in the very near future – possibly in the next five years, almost certainly within the next 10 – a scientist somewhere in the world is going to midwife a general artificial intelligence.
And virtually the entire time this AI is “baking” in development, people who hold AI cryptos will watch their net worth skyrocket along a chart that looks like exactly like one-half of Mt. Everest. Demand will explode as the need for machine learning becomes greater and greater.
And within hours of that AI “waking up,” that’ll be all she wrote.
I don’t mean the AI will decide to hijack the Air Force and nuke us all, or turn us into but so many AA batteries to power some robot army… like we’ve seen in some famous dystopian movies.
When I say “that’ll be all she wrote,” I mean that’ll be the end of markets as we currently understand them. Because markets are based on competition and (let’s not kid ourselves) unequal access to information, after all, and who the hell is going to match the speed and capacity of a machine that thinks billions of times faster than we do? What fund manager could touch that?
I mean, try competing with a high-frequency trading algorithm today and see how far you get. These are algorithms that work for people. This would be a world where, quite probably, the algorithm would work for itself.
And so the fortunes made in AI cryptos, facilitating machine learning and powering artificial intelligence into existence will probably be among the last ever made.
That’s why I’m telling anyone who’ll listen that they need to get it into gear before the very meaning of wealth changes.
And I’m not really worried about this – I’m not expecting some malevolent techno-bully to run amok across the world beating – or eating – everyone up. But I’m realistic enough to know I can’t compete with it, either. It’s just as likely as not our lives will get better, not worse, in a world we share with this kind of AI. Unlike people, these intelligences are likely to be efficient, unbiased problem-solvers. Under these conditions, it’s possible we all get pushed (some of us kicking and screaming) into a post-scarcity world where basic needs are taken care of automatically, and in which we’re free to pursue almost anything we want when we want it.
But, with all that said, I don’t expect to be able to pursue making money – I wouldn’t stand a chance. And neither would you. Anything we’d try is going to pale in the face of machines so advanced that they can literally know and use every piece of knowledge collected by civilization all at the same time.
So… I’m making my peace with it. Know what helps? Knowing that I own a ton of AI tokens.