Crypto is “losing its allure” among investors in riskier assets as market FOMO shifts to AI-related stocks, economists say.
According to Youwei Yang, Chief Economist of BIT Mining, the stock marketsectionThis views every piece of AI news as bull news. And considering the effects of FOMO, “cryptocurrencies have lost their allure.”
“Market capital is flowing to AI right now, while crypto is trading sideways waiting for big market changes,” Yang wrote in a blog post.
However, Juan Leon, Senior Crypto Research Analyst at Bitwise, sees the intersection between AI and Crypto creating a major trend that could add as much as $20 trillion to the global economy.
This prediction is consistent with PricewaterhouseCoopers (PwC) atestimatethat AI and crypto could add $15.7 trillion and $1.8 trillion, respectively, to the global economy by 2030, even though the total is worth $17.5 trillion But it could drive the total value to $20 trillion or more.
Bitcoin miners diversify into AI
The race for AI supremacy has created an unprecedented shortage of data centers, AI chips, and electricity. Bitcoin mining is specially designed to process and store enormous amounts of data. It has many resources such as powerful chips. State-of-the-art cooling system and the necessary infrastructure that AI companies sorely need.
Artificial intelligence cloud provider CoreWeave offered to buy Bitcoin mining machines from Core Scientific for $1.6 billion earlier this month. This was 55% higher than the market price, although the bid was rejected. This comes after a 12-year, $3.5 billion cooperation agreement. Between the two companies, CoreWeave will be able to host AI-related services in Core Scientific’s data centers.
Other mining companies such as Hut 8 and IREN have also implemented similar AI initiatives in recent months. It is trying to expand its revenue following the bitcoin halving in April.
refer : theblock.co
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