Messari Annual Theses 2025 | AI x Crypto | Seth Bloomberg, Dustin Teander & Sunny Shi
Dec 16, 2024
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Seth Bloomberg, a former research analyst at Messari now at Crucible Labs, and Dustin Teander, who focuses on AI agents, discuss the fascinating intersection of AI and crypto. They explore how AI benefits from crypto infrastructure, envision the future of AI agents in the market, and delve into the innovative BitTensor platform that connects AI and blockchain. The duo also shares their predictions for 2025, highlighting the transformation of financial systems as crypto integrates into AI frameworks and the evolving landscape of AI tokenization.
AI is set to significantly influence market dynamics by driving substantial growth, fueled by both market fears and income potential.
The cryptocurrency and AI sectors are intersecting, exemplified by a market cap surge from $5 billion to over $50 billion for AI protocols.
AI agents are evolving to address real-world challenges, enhancing productivity and optimizing industry processes while fostering economic interaction.
Deep dives
The Bull Market Potential of AI
AI is poised to drive a significant bull market, with expectations of massive growth influenced by both fear and greed. The sense of threat from AI, as it may replace jobs, fuels investor interest, alongside the potential for AI to generate income. Historical comparisons to previous market surges highlight the possible emergence of a robust market dynamic similar to the significant market shifts seen in 2021 and 2022. The anticipated valuation of AI-driven entities reaching hundreds of billions is considered feasible, branding AI as a crucial sector to watch.
Crypto and AI: A Growing Intersection
The intersection of cryptocurrency and artificial intelligence is rapidly emerging as a new sector, illustrating the significant increase in market cap for AI protocols from approximately $5 billion to over $50 billion. Investments flowing into the AI and crypto sphere are driving innovations, particularly in decentralized compute, which enhances model training's practicality. Notable players, such as BitTensor, are becoming benchmarks for AI's potential in a decentralized framework, gaining traction in the broader crypto narrative. The emergence of AI agents is also influencing market dynamics, drawing attention to various platforms and frameworks within crypto.
The Role of Incentives in BitTensor's Ecosystem
The BitTensor platform operates as a decentralized coordination mechanism tailored to incentivize the development of AI models. The structure of tokenomics, where emissions are linked to network participation, encourages contribution from miners and enhances the overall stability of the system. However, concerns about the separation of application revenue and miner incentives point to challenges in aligning interests within the platform. The introduction of Dynamic Tau aims to rectify these issues by facilitating a more market-driven allocation of resources, promoting better engagement from subnet owners and miners.
Opportunities for Innovation in AI Agents
The potential for AI agents to tackle real-world problems extends beyond mere novelty, presenting opportunities for substantial productivity enhancements. The focus on how these agents can be harnessed for effective work, such as automating tasks and optimizing current processes in various industries, is a core area of interest. Facilitating connections between agents and decentralized financial (DeFi) models may allow for an unprecedented level of economic interaction, pushing the boundaries of productivity. By fostering an environment where these agents can autonomously handle tasks and services, significant efficiencies and innovations could materialize.
Predictions for the Future of AI and Crypto
Looking towards 2025 and beyond, the anticipation of transformative announcements from established AI companies that integrate with crypto networks is likely to reshape the landscape. As decentralized training methods mature and showcase practical applications, the demand for AI solutions within blockchain frameworks may increase significantly. The capacity for iterating and launching AI models at unprecedented speeds contributes to the excitement surrounding this evolution. Overall, a synergistic relationship between AI advancements and crypto infrastructure is expected to yield innovative applications that redefine productivity and economic interaction.
Read Messari's Annual Crypto Theses for FREE!: https://messari.io/report/the-crypto-theses-2025
Over 100 pages of everything you need to know in crypto for 2025.
00:00 Intro & Summary of AI Section of Theses
13:48 Why Does AI Benefit From Crypto Infrastructure?
22:31 AI Agents
36:21 Bittensor
46:06 Dynamic TAO
53:38 Most Interesting Subnets
56:40 Predictions for 2025
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This episode and its contents do not necessarily reflect the opinions of Messari, Inc. Hosts and guests may hold cryptocurrencies discussed in this content. This content is meant for informational purposes only. It is not meant to serve as investment advice. You should conduct your own research, and consult an independent financial, tax, or legal advisor before making any investment decisions. Nothing contained in this content is a recommendation or suggestion, directly or indirectly, to buy, sell, make, or hold any investment, loan, commodity, or security, or to undertake any investment or trading strategy with respect to any investment, loan, commodity, security, or any issuer. This content should not be construed as an offer to sell or the solicitation of an offer to buy any security or commodity. Messari does not guarantee the sequence, accuracy, completeness, or timeliness of any information provided in this content.
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