It’s been a turbulent few years in the crypto space, with dramatic peaks and troughs in prices keeping investors and traders guessing – but in 2023, despite having logged their worst annual performances in five years in 2022, Bitcoin, Ethereum and the like have proved surprisingly resilient.
Having experienced some losses in August, Bitcoin prices are still currently up by 66.6 per cent year on year-to-date, showcasing unusual stability – and the experts are predicting that as the market continues to recover from the effects of the global pandemic, Russian invasion of Ukraine and scandals within the crypto space itself, we could be about to see the numbers surge to impressive heights before the year is out. Trading platforms like Quple Ai are reporting a dramatic uplift in the number of new sign ups in light of this promising news – but whether or not the figures will actually materialise remains to be seen.
Even so, Bitcoin’s compatibility with artificial intelligence (AI) technologies is certainly helping to boost both interest and confidence in the world’s first and largest cryptocurrency by market share. And, it’s driving major institutional investors to go all in on cryptocurrency and increase their exposure to new levels, according to Nigel Green – CEO and founder of one of the world’s largest independent financial advisory, asset management and fintech organisations, deVere.
“The buzz surrounding AI is real,” he says. “Nvidia’s shares, for example, have jumped almost 210 per cent this year on the frenzy around its uses within AI.
“The AI boom is grounded in tangible technological advancements and the potential to reshape industries across the board. The transformative capabilities of AI, coupled with its cross-industry disruption, data-driven nature, and rapid innovation, make it a compelling investment opportunity.
“This is, of course, attracting huge amounts of institutional capital.These same institutional investors are increasingly recognising Bitcoin as the currency for the AI era and, therefore, are also increasing their exposure to the world’s largest cryptocurrency.”
According to Green, there are three main reasons that Bitcoin is seen as the leading currency for artificial intelligence (AI) – as well as why this fact is encouraging investors and institutions to throw money at it.
“First, in the world of AI, data integrity is paramount,” he says.
“The ability to trust the source and history of data is crucial, whether it’s for training machine learning models or verifying the authenticity of data inputs. Bitcoin’s blockchain provides a tamper-proof record that can be used to ensure data integrity in AI applications.”
“Second, Bitcoin’s borderless nature facilitates seamless cross-border transactions, enabling AI companies to access the resources they need without the limitations of traditional financial systems, such as high fees and lengthy processing times.
“And third, AI relies heavily on data, and organisations are increasingly seeking ways to monetise their data assets.
“Bitcoin opens-up new possibilities for data marketplace platforms where AI-focused firms can access and purchase datasets with ease, creating a thriving ecosystem of data sharing and monetisation.”
It all sounds rather promising, and as AI continues to gather momentum and uptake grows even further, it seems inevitable that new uses of Bitcoin and ways of integrating it into AI applications will emerge. The crypto space has long been driven by research and innovation, and so, too, has AI – so where this, and the two, meet in the middle, we can expect to see an almost infinite number of opportunities unlocked.
Institutional investors are known for being the first to every party worth attending, spotting the potential for large returns on their investments long before the masses – and in a space that evolves as quickly as this one does, it’s essential they have their fingers on the pulse to spot emerging trends and opportunities in order to best leverage them to their advantage.
Green says: “As both Bitcoin and AI technologies continue to evolve, their integration is set to drive innovation and transformation in various industries, reshaping the way we perceive and interact with both digital currencies and artificial intelligence.
“The growing interest from institutional investors underscores the enormous potential of this partnership and further validates Bitcoin’s role in the future of AI.”
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
