The AI buzz is deafening. You can't open a newspaper (yes, I still read newspapers) or turn on the TV without hearing about the next AI revolution. And now, it’s bleeding into my crypto world. Tokens like FET and TAO are surging. But is this really the future, or another incarnation of tulip bulb mania in an algorithms-enabled costume?
AI Crypto Boom Or Bust?
I’ve been through a few of these booms and busts during my career. Dot-com, housing, you name it. The emerging AI landscape has some parallels to the wildly exuberant early days of the internet. So much hype, but so few true innovations hidden under a pile of rans and overinflated expectations.
Bittensor (TAO), like several other under-the-radar projects, are making a big impact, ripping well over the $300 level after a long bear market. Its RSI is currently around 65, which honestly, to me, screams “go away, you’re too early.” Just because there’s promise of recovering AI infrastructure supporting these tokens, that’s no promise of long-term prosperity.
Think of it like this: railroads were revolutionary, but not every railroad company made it. The same principle applies here. Utility is definitely important, but so is responsible utility management, clear regulatory oversight and, frankly, a whole lot of luck. Some of the specific AI tokens are interesting precisely due to that underlying utility and the vision that they give for crypto’s future outside of pure speculation. Investing in them is still extremely risky.
OpenAI’s IPO with O3 and O4 is for sure stoking the coals of the AI hype inferno.
Regulation: Friend Or Foe?
Here's where my "Boomer" sensibilities kick in. As someone who believes deeply in the principles of a mixed economy, I’m in favor. So as we let innovators innovate, we should allow room for regulators to keep a watchful eye. These Wild Wild West days of crypto must come to an end if we ever hope to see the same sustainable growth.
- Without regulation: Scams and market manipulation will run rampant.
- With smart regulation: AI-driven crypto could contribute to market stabilization by improving risk management and fraud detection.
I know, regulation is a four-letter word for many in the crypto space. But think about it. Would you be okay investing your retirement savings in something the government doesn’t oversee at all? I know I wouldn't.
Let's not forget the ethical considerations. AI is powerful. Unregulated AI paired with unregulated crypto projects. That's a recipe for potential disaster. In other words, we need to make sure these technologies aren’t applied irresponsibly or unethically and that takes oversight.
Smart Market Stabilization Strategies
AI-driven crypto is indeed a game-changer, but only if we play our cards right. That’s going to take an emphasis on long-term environmental stewardship over short-term profit. It means putting the real-world use cases ahead of the speculation and hype. It involves leaning into regulation that encourages good, responsible innovation.
Could AI actually stabilize the market? Perhaps. Picture this, AI algorithms ensuring that could flag and stop market manipulation as it’s happening in real-time. Or AI-enabled risk management tools that better allow investors to understand and operate within their risk tolerance. The potential is there.
Here's the tough pill to swallow. These benefits won't materialize overnight. It will take a combination of actions from industry leaders, regulators and investors to make it a reality. This requires moving beyond short-term "get rich quick" mindset. Together, let’s stop chasing shiny objects and instead start developing a long-term US crypto and AI industrial strategy.
Shilling done—the new AI-driven meme coin, Mind of Pepe ($MIND) with an ever-growing AI agent and tasty staking rewards of 277% APY! It’s crucial to be careful with this promise. A fixed supply at $0.0037 during its presale might sound appealing, but remember the golden rule: do your due diligence.
I'm cautiously optimistic. I’m excited about the promise of AI-driven crypto, but I’m deeply skeptical of it. As we continue down this new frontier, it is critical that we do so wisely. Let’s not repeat the mistakes of the past and work together towards a future shaped by innovation that benefits all Americans—not just the privileged. Let’s make sure that the AI revolution doesn’t end up being just the latest boomer bust.
