DeutschAt the latest after the launch of ChatGPT and Google Bard, everyone should have heard of artificial intelligence (AI) But also the AI and blockchain, which initially developed separately, have points of contact from which today’s cryptocurrencies with artificial intelligence (AI Coins) have emerged. In this article, we’ll show you what to expect from AI Coins (also called AI Coins) and which AI-based cryptocurrencies you should keep an eye on.
What are AI Coins?
AI Coins are cryptocurrencies that use the technology of Artificial Intelligence (AI) and blockchain connect with each other. AI makes it possible for programs to purely make data-based decisions and thereby provide human-like intelligence services.
AI Coins are each part of these ecosystems and ensure a flawless and optimized process or are used within the system.
They can be found mainly on decentralized crypto exchanges, DEX for short. Some of the best-known AI coins are SingularityNet (AGIX), Fetch.ai (FET), Worldcoin (WLD) and Ocean Protocol (OCEAN). We will go into these cryptocurrencies in more detail later in the article. You can keep your acquired tokens in your AI Coin wallet, usually directly on the exchange. Cryptocurrencies with artificial intelligence do not differ from other coins in this aspect.
Why are AI Coins Important?
With the ongoing technological development it is important to adapt to the changed conditions. With the introduction of AI in the blockchain, new ways and solutions for known problems can be found.
For example, AI can increase the efficiency of a blockchain protocol and increase its productivity. Important tasks, such as minimizing human errors, building more flexible and scalable systems, can also be the task of AI.
Depending on the intended use, artificial intelligence coins are therefore the next logical step for a project.
Potential Advantages of AI Coins
Not all AI Coins serve the same purpose or pursue the same technological approach. In some projects, AI is used to ensure smooth operation – i.e. to identify problems or adapt to changing conditions.
Other projects use AI Coins as payment or reward within AI-based platforms, for example for AI services or access to AI tools.
The former in particular have the potential to react more quickly to new, changing situations, while the source codes such as that of Bitcoin or all non-AI-based altcoins have to be manually improved and optimized.
Due to the increasing popularity of artificial intelligence, AI Coins are currently receiving and are expected to receive a lot of attention in the future, which can have a positive impact on their development.
The Best AI Coins at a Glance
New cryptocurrencies based on AI are constantly emerging and in the next bull market could experience a hype. Whether and which coins will be the case is not foreseeable at the moment. In the following, we will give you an overview of which AI coins are currently in particularly high demand.
Fetch.Ai (FET)
Fetch.ai is a platform that offers the service of automating business tasks with AI. This includes the blockchain-based data processingg taken over. The associated FET token is used within the network for paying for transactions.
Proof of Stake with Reputation is used as a consensus mechanism used. Simply put, the unique mechanism rewards users who do the best for the system as a whole.
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SingularityNet (AGIX)
SingularityNetis a platform where developers offer their AI projects can. Among them was, for example, the Robot Sophia, which completely masters the human language. The difference to other platforms is that with SingulartyNet you can test an AI project first before making a purchase.
Furthermore, SingularityNet wants to establish an ecosystem that provides the project with further AI services and increases the number of use cases of its own AGIX token.
Worldcoin (WLD)
An AI cryptocurrency that has not yet been launched, but is already causing a stir, is Worldcoin (WLD). The AI project Worldcoin has three goals:
- a global ID,
- a global currency
- and an app that enables the payment, purchase and transfer of values.
The own Worldcoin Token (WLD) is used for this. For identification, a unique code is generated based on an iris photograph.
However, the method of submitting biometric data to get the Worldcoin token also raises concerns in the scene. OpenAI CEO Sam Altman, also known for the language model ChatGPT, is co-founder of Worldcoin. This counters that the iris photography is deleted immediately after the code is created.
Ocean Protocol (OCEAN)
The Ocean Protocol platform, founded in 2017 by Bruce Pon and McConaghy, offers the possibility to exchange, monetize and provide data-based services to offer. Among other things, data can be made available to researchers with the service built on the Ethereum Blockchain without them having to leave the owner’s possession. This means that even after the data has been exchanged, the provider can determine who gets access to the data.
The OCEAN token is used for the purchase and sale of the data or the service used. It also serves as a Government Token, which entitles you to have a say in developments within the ecosystem.
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Investment Opportunities and Risks of AI Coins
An investment always involves a risk. In the following, we will show you where you can specifically invest in AI Coins and what to consider.
How Can I Invest in AI Coins?
You can find AI Coins on several crypto exchanges and at crypto brokers. These include Bitvavo, Binance, OKX and numerous others. Once you have registered and deposited money, you can purchase the desired buy cryptocurrencies.
It is important for you to choose a trustworthy exchange with good conditions to select for your AI Coin purchase. Read our crypto exchange comparison.
You should also keep your private keys (these are the access keys to your AI Coin wallet) safe after putting together your AI Coin portfolio
Potential Returns and Risks
Especially through ChatGPT and with the entry of some tech giants such as Google or Alphabet and Microsoft AI received a lot of attention at the end of 2022 and the beginning of 2023. With it also rose the interest in AI coins and their price massively.
The hype surrounding the metaverse cryptocurrencies has shown that a hype can be over quickly. After a relatively rapid increase, these have returned to a significantly lower price level. This is also due to the decreased attention for the metaverse.
Tips for a Well-Founded Investment Decision
An investment, especially in new technologies such as blockchain, should always be made with caution. Find out which real problem the cryptocurrency solves. You can also use the read the whitepaper of the respective project, which gives you a good overview of the project.
Only invest money that you are not dependent on in the future.
Invest long-term in projects whose idea and benefits you believe in. Stories of short-term and simultaneously high realized profits are circulating on the net in piles. But it is also true that most small investors make losses, especially in the short term.
An investment in a pure community token can be highly speculative. Already established projects that can already demonstrate concrete use cases significantly reduce the risk of total loss.
Make sure to use trustworthy and regulated crypto exchanges and brokers to use. And use a secure wallet as possible for storing your AI tokens.
Future Prospects of AI Coins
AI Coins, like the entire blockchain technology, are still very young. In the coming years, we will likely see many developments see which the technology goes through. So let’s briefly illuminate the Artificial Intelligence Coin future prospects.
Trends and Developments in the Field of Cryptocurrencies with Artificial Intelligence
Blockchain and AI are receiving a lot of attention on social platforms such as Twitter or TikTok. Influencers or experts, some of whom explain how cryptocurrencies work or even promote them, can be found in piles. The AI Coins also benefit from this hype. However, you should never trust blindly and also do your own research.
The market is constantly changing. Trends like the integration of AI into blockchain technology and the increasing demand for AI services are gaining momentum.
Challenges and Opportunities for AI Coins in the Future
AI and thus the AI Coins have the chance to become an integral part of many blockchain-based solutions to be. But since the technology is still very young, it still has many challenges to overcome.
As is currently the case with AI and blockchain, regulatory security or corresponding legal texts are still lacking in certain areas. The rapid development puts the relevant supervisory authorities and legislators under pressure to create legal frameworks and regulations and at the same time not to restrict AI Coin market developments too much.
AI Coins – Conclusion
With the connection of AI and blockchain technology, a new type of cryptocurrency is created, which has great potential for growth has in the coming years. It enables a further way, problems to address. For example, human errors can be minimized, the efficiency of protocols can be increased and faster adaptation to changing situations can be achieved.
However, in the future, not every coin will be AI-based. The developers decide on the most efficient solution for each problem.
Nevertheless, the demand for AI in blockchain-based solutions and the demand for AI services are increasing rapidly. The technology is still very young and it is not clear which AI Coins will prevail and which will not.
The hype is particularly driven by social media.. AI Coin price predictions by analysts should therefore be treated with caution at the moment. It remains crucial to find out about the relevant AI Coin and its intended use, trustworthiness, benefits, and regulatory security before making an investment.
