Decentralized AI Could Capture $1.8 Trillion Market, Says Analyst Miles Deutscher

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As a seasoned crypto investor with a knack for spotting promising trends, I find Miles Deutscher’s analysis of AI-integrated crypto projects intriguing. My journey in the crypto sphere began during its early days when miners were still using CPUs instead of specialized hardware. Back then, identifying the next big thing was like finding a needle in a haystack.

Based on insights from analyst Miles Deutscher, it’s clear that Artificial Intelligence (AI) is increasingly becoming a significant driver of change within the world of cryptocurrencies.

In a recent thread on X (formerly Twitter), Deutscher laid out his bullish thesis on AI-integrated crypto projects. He highlighted their massive growth potential as the sector gains traction within decentralized ecosystems and broader financial markets.

Why AI-Driven Crypto is Poised for Growth

German expert highlighted a massive potential in the field of Artificial Intelligence, pointing out that experts predict the entire global AI market’s value could hit a staggering $12 trillion within the next six to seven years. If decentralized AI manages to secure even 5% of this market, its worth could skyrocket to an astounding $600 billion – representing a 15-fold increase from its current valuation.

By factoring in hypothetical gains, the analyst calculated a possible worth of $1.8 trillion for the sector, equating to a 45-fold opportunity. Although AI has been widely discussed, Deutscher pointed out that AI-centric cryptocurrency projects are less prevalent, holding the 34th position in terms of market capitalization among crypto categories. With increasing popularity, he anticipates AI could break into the top 10 crypto sectors within the next year.

Deutscher’s thesis focuses on four primary factors propelling the acceptance of AI in cryptocurrencies. Initially, the growing awareness and curiosity about AI among the general public due to its potential societal influence serves to spark widespread enthusiasm.

The continuous rollout of AI products keeps driving innovation, which helps maintain the industry’s prominence. This is consistent with the attention-based economy in the crypto world. (Paraphrased)

Thirdly, third-party barriers are minimal when it comes to cryptocurrencies, making them an inviting and affordable avenue for individual investors to capitalize on AI advancements, contrasting the hurdles associated with conventional stock investments. Last but not least, the relationship between AI and cryptocurrencies is becoming increasingly evident as we witness the emergence of autonomous artificial intelligence entities that can execute transactions and manage portfolios directly within blockchain networks. This phenomenon, as Deutscher points out, underscores the practical fusion of AI with blockchain technology.

The fusion of artificial intelligence (AI) and blockchain technology is set to revolutionize both sectors, opening up fresh avenues for creativity and financial investment. From automated trading bots to distributed data management systems, AI-powered cryptocurrency initiatives are paving the way.

Deutscher’s Top AI Crypto Picks for 2025

German highlighted his preferred AI-centric cryptocurrencies, stressing the importance of infrastructure and versatile opportunities in different AI sectors.

Bittensor (TAO): This entity is a pioneer in the field of decentralized artificial intelligence research. It has found acceptance within scientific communities. The recent addition of Ethereum Virtual Machine (EVM) compatibility sets it up for potential growth and broader application.

Near Protocol (NEAR): A well-established layer-1 blockchain that incorporates artificial intelligence features, Near consistently demonstrates a blend of dependability and forward-thinking, boasting a 100% operational record since its inception.

GRASS (GRASS): GRASS links real-world data with AI-powered cryptocurrency applications, benefiting from a robust community backing after a successful airdrop event.

Spectral (SPEC): Spectral is primarily concerned with building the underlying infrastructure for AI agents. These agents can function independently, displaying unique personalities while they trade and interact within the blockchain ecosystem.

German highlighted that a significant number of his selections are considered “shovel-ready” plays – essential protocols facilitating the creation and application of AI tools. These involve computational infrastructure, decentralized Language Models (LLMs), and blockchains specifically designed for AI. He believes these fundamental layers will serve as the backbone for future advancements and widespread adoption in both AI technology and cryptocurrency.

Essentially, there are AI Agents, the underlying infrastructure for them, computational resources, DePIN – decentralized Language Learning Models, and AI-related blockchain systems for developing AI applications. I am putting my investment into each of these areas, with a special emphasis on AI and agent infrastructure, stated Deutscher.

Although Deutscher remains hopeful, he conceded that the risk levels differ among the projects he spotlighted. He strongly advised thorough investigation, particularly for smaller-cap tokens that offer greater profitability but also higher volatility. For investors, it’s crucial to strike a balance between investing in large-cap and smaller-cap initiatives.

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2024-11-29 14:37