Bitwise Asset Management, a leading asset management firm and a heavy investor in Bitcoin Exchange Traded Funds (ETF) has predicted that the cryptocurrency industry and the Artificial intelligence industry could add a whopping $20 trillion to global Gross Domestic Products (GDP) by 2030.
The Asset Management firm stated this in its latest report on the two industries citing the massive potential that lies within the two sectors and how big they are going to become in the coming years.
The report was written by Juan Leon, Bitwise’s Senior Crypto Research Analyst and it hampered on the integration of both industries and the potential boost it will have in global GDP.
“The intersection of AI and crypto is going to be even bigger than people imagine,” “two industries could add a collective $20 trillion to global gross domestic product (GDP) by 2030.”
“The race for AI supremacy is creating an unprecedented shortage of data centers, AI chips, and access to electricity,”
Speaking further, Leon stated that the four largest data companies are preparing to spend about $200 billion on data centers in 2025. This is to meet up with growing demand for AI companies as the modern world turns fully to it.
The report highlighted that the intersection of the AI and Crypto industries is heavily represented in Crypto mining. Bitcoin miners have all the resources AI firms need including powerful chips, High-tech cooling systems, and necessary infrastructure.
A perfect example of this partnership between AI firms and Bitcoin miners played out in CoreWeave’s takeover offer last week for miner Core Scientific (CORZ). Core Scientific also announced the largest miner/AI partnership to date, with a $3.5 billion deal to host CoreWeaves’s AI-related services.
The Bitwise reports noted that Hut 8 (HUT), Iris Energy (IREN), and other miners have also announced AI-hosting initiatives this year. These three examples reflect the growing demand for partnerships between the two fledgling sectors.
The intersection of Crypto and AI is not reflected only in Bitcoin mining but in other areas as well. Such areas include information validation and Virtual assistants.
Leon argued in the report that Blockchain-based validations are seen as a viable tool to checkmate the abuse of AI. AI has fast been associated with duplicitous content such as AI generated contents and deep fakes. Leon argued that this menace can be checkmate using the power of decentralized public blockchains.
Artificial intelligence and Cryptocurrencies are two industries in the forefront of the fourth industrial revolution and a synergy between these two sectors can be harnessed to yield many positive returns.
What to know
Some projects aiming to exploit the intersection of AI and crypto have successfully raised funds to further their goals. For example, Bagel Network, a decentralized data platform aiming to support machine learning models, recently raised $3.1 million in a pre-seed round led by CoinFund.
Bitwise asset management are also among the eight Ethereum ETF issuers to gain the United States Securities and Exchange approval recently.