Bitcoin and AI-Based Cryptocurrencies are Reshaping the Industry 

Since Ethereum ETFs were finally approved, the cryptocurrency sector has received much attention from investors and outside users. It seems like more regulation is on the way to favor crypto users. Cryptocurrencies based on artificial intelligence are surely breaking the news at the moment because their functionalities are overcoming even the advantages of regular crypto assets. 

However, the difference between Bitcoin and AI comes from the need for users to invest indirectly in AI projects that include certain coins. Popular options like Internet Computer (ICP) have seen significant value increases recently. Notably, if you buy Bitcoin with credit card, you can capitalize on opportunities as Bitcoin approaches an all-time high.

Let’s see AI crypto’s functionalities and how Bitcoin can help it emerge in the market. 

AI tokens and their features 

One of the most important AT cryptocurrencies, ICP, has the widest margin on the market. It’s linked to a decentralized platform that people can use to create a secure public network through language models. Its market cap is $6.8 billion and has reached considerable highs in the past 30 days. 

Bittensor is another interesting project and follows a similar purpose of a decentralized machine-learning system, but its fame is related to Vitalik Buterin, who cited the program in one of his interviews. This is the second most valuable AI token, and it still trades as significant value, but others are still in their early stages, such as:

• The Graph (GRT) that’s only 44 cents per token and is supposed to index blockchain data;
• Fetch.ai is an emerging token that brings various AI apps to blockchains;
• Singularitynet is right behind by providing a blockchain marketplace for AI products; 

But how does Bitcoin influence these tokens? 

Bitcoin is a store of value and an indispensable cryptocurrency for the market, so its massive value and outflows will immediately affect altcoins, which are spreading across various sectors and use cases. The potential for developing innovative tools facilitates the synergy between AI and Bitcoin. 

For example, the Lighting Network blended the two technologies, enhancing the network’s capacity to ensure low fees and make micropayment more efficient than before, which is a considerable development for Bitcoin, especially from a sustainable point of view. Before the Lighting Network, Bitcoin was one of the most polluting cryptocurrencies because it consumed a lot of energy. Since the contribution to climate change has lowered, Bitcoin can be further leveraged to make AI more available to the audience. 

What does Bitcoin’s prices tell us now? 

Bitcoin is entering its bullish era, in which prices are exploding due to new technological advancements and regulations. Lately, more Bitcoin ETFs were approved, and the first Ethereum ETFs as well, which encouraged investors to approach them openly as they’re approved of by a certified financial institution. 

Since Bitcoin is doing well, altcoins are performing great, too, such as Ethereum, which has had a massive bearish moment lately. Therefore, as all the other cryptocurrencies are flourishing, more financial stability and improvement will follow, as well as developing systems and networks. Artificial intelligence will be leveraged at its fullest this year since countries will settle specific laws for companies to use them, so there will be more freedom and responsibility for its usage. 

What are the risks of Bitcoin and AI? 

Of course, besides the benefits of bringing innovation, financial availability, and putting the base for the Web3 world, Bitcoin and AI are dangerous if not controlled or leveraged correctly for today’s society and technology.

For example, Bitcoin could be used as a centralized technology, especially when it comes to mining, because some pools are stronger than others, and they’re gaining more miners by the day, which can influence the path of the industry. 

At the same time, artificial intelligence could be dangerous regarding deep fakes and impersonating others, as well as executing non-ethical tasks, since it’s a simple algorithm that follows requirements and guidelines. We’ve seen what AI can do if it falls into the wrong hands, so adequate and strict regulation is needed to avoid unfortunate circumstances. 

Together, they have the power to make the financial sector more accessible and efficient, but if they go in the wrong direction, they can influence prices, alter trends, and mess up governments’ approach.

How can Bitcoin and AI be safe for users? 

Numerous ideas exist for controlling these technologies and even abolishing them, as current systems and global problems might not need them. Some countries have banned cryptocurrencies and AI entirely, while others are taking baby steps to introduce them into their systems. On the other hand, other countries, like El Salvador, are making Bitcoin legal tender. At the same time, places like the United States and China are leaders in the use of AI.

The main issue is that these new emerging sectors lack professionals and expertise, so adopting and using them efficiently is tricky. While experts from the US or China can help spread awareness of AI and crypto and offer the knowledge necessary to approach them, covering the subject on the same level for developing countries will pose several issues. 

If a rapid adoption were to happen now, there would be a massive difference between countries worldwide, which could deepen social and financial problems, leaving these places in the dark. That’s because all the investments and interest would go to countries where technology is evolving and providing accurate results, which will have to borrow technology or work very hard for adoption to happen. Therefore, a broader approach is needed for more equality and ethicality. 

What do you think about Bitcoin and AI? 

Bitcoin and AI are among the most emerging technologies of the 21st century. They’re changing the world through easier and faster transactions, solving numerous development problems, and creating facile products and services for upcoming audiences. While they are flourishing separately, they can also thrive together since Bitcoin influences the prices of AI-related cryptocurrencies. However, adopting them requires special expertise and careful consideration of the risks to the end user. 

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