Crypto-Like Bubble Possible In AI Says Nobel Laureate Romer, AI Coins To Suffer?

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Crypto-Like Bubble Possible In AI Says Nobel Laureate Romer, AI Coins To Suffer? – Crypto News

Published

2 years ago

May 29, 2024

Dripp

Nobel laureate Paul Romer’s recent comments on AI’s future have served as a wake-up call for the global AI-crypto community. Speaking at the UBS Asian Investment Conference in Hong Kong on Wednesday, May 29, Romer, an American economist, urged for a careful evaluation of the current state of artificial intelligence, drawing parallels to the crypto hype bubble of two years ago.

The economist said to Bloomberg TV, “When people project this forward (pointing towards the burgeoining confidence in AI globally), I think they’re at risk of making a very serious mistake.” In context, the sudden rise of AI, further accompanied by exaggerated market confidence in the tech’s future, may be short-lived.

A Closer Look Into The Report

While recent advancements like OpenAI’s ChatGPT and xAI’s Grok, among many others, have sparked excitement and massive investment in AI infrastructure, Romer highlights the danger of assuming that the current rate of improvement will continue indefinitely. The economist also draws attention to the rise of tech giants Microsoft Corp., Alibaba Group Holding Ltd, and Nvidia Corp, which became multitrillion-dollar companies as AI demand spiked globally.

However, the former World Bank economist stressed, “We’ve benefited from scaling up compute and ingesting a whole lot of data. Scaling up computing is pretty easy. It’s just more machines, and more chips. But what’s going to happen is we’re not going to have enough data.”

This statement has raised eyebrows across the global AI landscape, with investors exercising caution when scoping in on AI coins as well. Should optimism, growth, and investment in AI, a tech said to have infinite capabilities, encounter a hurdle that is itself finite in nature, as Romer stated, the market could witness a bustle.

Also Read: Top Reasons Why PEPE Price Rally Might Flip Polygon (Matic) Soon?

AI Coins To Bore The Brunt?

Meanwhile, the market cap of AI and Big Data cryptos fell 0.58% today, May 29, to $40.63 billion. Further, the trading volume saw a 4% decline from yesterday, resting at $2.67 billion.

A recent report by CoinGape Media spotlighted that despite AI’s recent growth and popularity, meme coins have surpassed investor expectations by offering better ROIs.

Moreover, in tandem with this, Romer predicts that in two years, people may realize they overestimated the newly emerged tech’s progress, likening the present enthusiasm to a bubble. However, the broader industry sentiments remain optimistic on AI coins‘ potential ahead.

Also Read: Ripple CTO Defends Joe Biden’s Gag Order Plea In Trump Trial

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