Analyst: Crypto and AI could add $20 trillion to global GDP

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As a seasoned analyst with a background in both the crypto and AI industries, I am convinced that the intersection of these two fields will significantly surpass expectations in terms of their collective impact on the global economy by 2030. The estimated $17.5 trillion contribution from AI and crypto is an impressive figure, but I believe the synergies between the two industries could potentially drive this combined value even further – perhaps to an astounding $20 trillion or more.

According to Juan Leon, a seasoned crypto research analyst at Bitwise, the convergence of artificial intelligence (AI) and cryptocurrencies could have a greater influence on the global economy than many people currently anticipate.

Anyone keeping an eye on the crypto market or Wall Street would have observed that the use of artificial intelligence (AI) technology has been gradually gaining prominence in discussions.

At the Consensus 2024 conference, I had the opportunity to engage in one of the buzzing debates. During this discussion, Juan Leon made a compelling point about the significant influence of artificial intelligence (AI) and cryptocurrencies on the global economy. He suggested that the projected impact on GDP might even be underestimated.

According to PwC’s estimates, AI and crypto are expected to add approximately $15.7 trillion and $1.8 trillion to the global economy by 2030. Leon posits that the intersection of these technologies might result in a synergistic effect, potentially leading the total economic impact to surpass $20 trillion.

According to Leon’s perspective, these two sectors have the potential to contribute approximately $20 trillion collectively to the world economy by the year 2030, primarily driven by the shortage of data centers and the emerging opportunities in blockchain entrepreneurship.

Datacenter scarcity  

As a researcher studying the advancements in artificial intelligence (AI), I’ve noticed an increasing requirement for resources such as data centers, electricity, and specialized chips due to the AI gold rush. In this context, Bitcoin (BTC) mining companies and their technologies are proving to be valuable players. The world’s top four cloud service providers – Amazon, Google, Meta, and Microsoft – anticipate investing approximately $200 billion in data center expansions by 2025 to cater to the escalating demand for AI services.

The need for data centers is surging, as approximately 83% of their current construction projects have already been pre-leased by AI firms and cloud services. According to a report from CBRE Group released in March, this trend is being fueled by the burgeoning AI industry and the increasing requirements of cloud service providers. Data centers are struggling to keep pace with the rapid expansion of AI technology.

Bitco Mining Operations Possess Essential Assets for AI Firms, Including High-Performance Chips and Advanced Cooling Systems, Resulting in a Surge of Interest from AI Companies to Set Up Shop in Cryptocurrency Data Centers.

A Russian company specializing in crypto mining equipment, Intelion, intends to allocate approximately $130 million for the construction of advanced AI data centers.

Core Scientific Inc., a prominent player in the Bitcoin mining industry, has spurned a $1 billion buyout proposal from CoreWeave Inc., which came unsolicited. This turn of events brings added significance to miners and the broader Bitcoin community, generating fresh income streams and reinforcing network security.

Blockchain entrepreneurship

As a crypto investor, I believe that the transparency and immutability of blockchains make them powerful tools in combating AI abuses. These publicly accessible ledgers ensure that all transactions are recorded and cannot be altered, providing trust and security. Entrepreneurs are harnessing this technology to develop innovative solutions to counteract harmful uses of AI. For instance, some companies employ the use of blockchain to create unique digital identities for multimedia content, such as videos. By detecting any manipulations or alterations, they ensure the authenticity and integrity of the media.

The fields of cryptocurrency and artificial intelligence (AI) overlap in the creation of virtual assistants such as Siri and Alexa. By integrating AI technology with intelligent contracts and digital money like Bitcoin, the functionalities of bots are expanded, ultimately leading to increased productivity.

Combining artificial intelligence (AI) assistants with smart contracts and digital currencies such as bitcoin or stablecoins, which operate autonomously without the need for intermediaries, may provide innovative methods to boost productivity, proposes Leon.

“These technologies have the ability to verify various aspects of research and government communications, showcasing how blockchain technology contributes to AI supervision, and conversely, how AI enhances blockchain’s verification capabilities.”

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2024-06-12 20:19