This content originally appeared on DEV Community and was authored by Vladislav Hryniv
Artificial intelligence and blockchain have become key players in the transformation of various spheres of life. In particular, the intersection of these two technologies has long been discussed by leading opinion leaders in the crypto industry. Recently, Anthony Pompliano, a well-known investor and founder of Pomp Investments, said that he expects the next decade to be marked by the synergy of these two technologies. In his opinion, artificial intelligence will create significant wealth, and bitcoin will play an important role in preserving this new state.
The Role of AI and Bitcoin in Wealth Creation
Pompliano noted that many people used to focus on Bitcoin and the crypto sector in general. Today, the focus has shifted to artificial intelligence, and in his opinion, this is not a bad thing.
“But I think people are kind of missing that these are actually part of the same trend.” he said.
The investor points out that the world is moving towards an era of automation, when artificial intelligence will create enormous wealth. And when this era becomes a reality, bitcoin's responsibility will be to protect it from AI.
“When you see these technologies coming together, an easy way to see the intersection is what money are these machines going to use?” Pompliano stated during the interview.
Pompliano believes that as artificial intelligence develops and grows through investment, investors will return to Bitcoin. When this happens, he is convinced that the United States will experience a GDP growth thanks to the productivity of AI. Bitcoin's ability to participate in this potential massive artificial intelligence development could lead to a recovery in the coin's price.
In his opinion, the recent drop in bitcoin is the result of investors' decision to invest in artificial intelligence. But Pompliano isn't worried about the current 15% price drop, pointing out that bull markets typically see several price pullbacks of 30% or more.
“A lot of people in public markets say “invest in until May and go away” and as a result, the second and third quarters tend to trade sideways — particularly in halving years” he explained.
Pompliano believes that a similar situation is observed now, but expects another price rally to take place in the last quarter or early 2025, which is also a historical trend in halving years.
Combination of Artificial Intelligence and Blockchain
The combination of blockchain and artificial intelligence opens up broad prospects for the development of technologies and applications in various industries. One of the key aspects of this intersection is to increase the efficiency of the blockchain network by using machine learning algorithms. AI algorithms can help improve consensus-building processes, provide fast transaction verification, and optimize distributed data processing.
In addition, the introduction of artificial intelligence can improve the security of blockchain systems by detecting and preventing fraud and cyberattacks. Analyzing large amounts of data in real time allows detecting unusual or suspicious activity, which contributes to a high level of security and reliability.
Equally important is the use of machine learning technologies to manage and analyze large amounts of data in blockchain networks. They allow for efficient processing of transaction and user information, providing a better understanding of demand, predicting user behavior, and improving the operational efficiency of the system as a whole.
A number of influential people are optimistic about the intersection of these two technologies. In particular, Vitalik Buterin, co-founder of Ethereum, wrote a thorough article on the prospects and problems of using AI and cryptocurrencies. In it, he highlighted the points of intersection between blockchain and artificial intelligence technologies: data management, transparency, monetization, and cost reduction. He also categorized AI into several types in the context of decentralized technologies and added all the pros and cons of each of these areas. In addition, the expert spoke about the successful experience of integrating AI into Ethereum to detect and fix code errors in the network.
“Now that both blockchains and AIs are becoming more powerful, there is a growing number of use cases in the intersection of the two areas. However, some of these use cases make much more sense and are much more robust than others. I look forward to seeing more attempts at constructive use cases of AI in all of these areas, so we can see which of them are truly viable at scale.” he wrote.
Volodymyr Nosov, CEO of WhiteBIT, is also positive about the integration of artificial intelligence, noting that AI is a must-have for the crypto industry. In addition, according to Nosov, artificial intelligence has already shown itself at WhiteBIT in design, writing, translation, and text adaptation. He emphasizes the potential of the AI and suggests that one day it will be able to help ease the months-long onboarding of developers.
Marcello Mari, founder of SingularityDAO, a decentralized portfolio management protocol, also emphasized the transformative impact of artificial intelligence and blockchain.
He said that AI enhances blockchain technology by optimizing computing resources and improving data privacy through innovative methods such as homomorphic encryption. On the other hand, blockchain makes it easier to receive fair compensation for content created with artificial intelligence and ensures the security of transactions through distributed ledger technology, mitigating issues such as copyright infringement.
“Any company in the world will eventually use artificial intelligence and will have to use artificial intelligence and is already using artificial intelligence,” he remarked.
Summary
Anthony Pompliano emphasizes that artificial intelligence has the potential to create significant wealth, and bitcoin can provide protection for this future wealth. In his opinion, the combination of these technologies will bring great benefits, in particular, in increasing the productivity and efficiency of systems. The combined use of artificial intelligence and blockchain can improve security, optimize data processing, and provide fast transaction verification.
This content originally appeared on DEV Community and was authored by Vladislav Hryniv
Vladislav Hryniv | Sciencx (2024-07-02T14:13:59+00:00) Anthony Pompliano on AI and Bitcoin: Catalysts for Wealth Creation. Retrieved from https://www.scien.cx/2024/07/02/anthony-pompliano-on-ai-and-bitcoin-catalysts-for-wealth-creation/
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