Violet Vallaya
Bitwise Asset Management, a leading investor in Bitcoin exchange-traded funds (ETFs), forecasts a staggering $20 trillion boost to global GDP by 2030, fueled by the combined forces of artificial intelligence (AI) and cryptocurrency industries.
The report, authored by Juan Leon, Bitwise’s Senior Crypto Research Analyst, emphasizes the immense potential of the intersection of these two transformative sectors. “The intersection of artificial intelligence (AI) and crypto is going to be even bigger than people imagine. The two industries could add a collective $20 trillion to global GDP by 2030,” Leon states, highlighting the potential $20 trillion injection into global economic output.
Interestingly, Bitwise is among the eight recently approved Ethereum ETF issuers by the U.S. Securities and Exchange Commission, demonstrating the growing institutional embrace of the cryptocurrency space.
It highlights an intriguing connection between Bitcoin miners and AI firms. Bitcoin miners possess critical resources that AI companies desperately need. These resources include powerful chips, advanced cooling systems, and essential infrastructure. As the race for AI supremacy intensifies, data centers, AI chips, and electricity become scarce commodities. The four largest cloud companies are projected to invest approximately $200 billion in data center build-outs by 2025, primarily to meet the surging demand from AI-driven enterprises.
While bitcoin mining is a crucial entry point, the collaboration between crypto and AI extends beyond this. Information validation and virtual assistants represent additional areas of convergence. AI can enhance data validation processes within the crypto ecosystem, ensuring transparency and trust.
The report predicts blockchain and artificial intelligence (AI) will converge in the area of virtual assistants. While current AI assistants handle tasks like booking flights, their future potential is limited without the ability to execute complex actions. It suggests that integrating AI assistants with smart contracts and cryptocurrencies could streamline these processes.
Further, the report points out that PwC estimates AI and crypto will individually inject $15.7 trillion and $1.8 trillion into the global economy by 2030. But that’s just the beginning. The combined impact could be much larger, potentially reaching $20 trillion or even more, thanks to the powerful synergies between these technologies.
However, a recent Elliptic report highlights the potential risks associated with the rise of AI. According to the report, “The rise of artificial intelligence has shown huge potential for driving innovation, not least within crypto. However, as with any emerging technology, there remains a risk of threat actors seeking to exploit new developments for illicit purposes.”
Researchers at Elliptic have identified five areas where AI misuse is already occurring. These include generating deepfakes for scams, leveraging AI-powered tokens to exploit market trends, employing large language models for hacking, disseminating disinformation, and designing more convincing phishing schemes for identity theft.
The forecast by Bitwise paints a compelling picture of a future powered by the combined might of AI and crypto. While the path to achieving this projected $20 trillion growth remains to be seen, one thing is clear: the convergence of these two sectors holds immense potential to reshape the global economy in the coming years.
