Now that AI has been hitting the mainstream news cycle fairly consistently there has been an emerging theme of people wanting to invest in AI and of people even using AI to guide their investment choices. For me it all seems a little bit premature but clearly this looks to be a trend that is probably only going to get stronger from here, so it’s not one that can be ignored.
The self proclaimed “World Leader in Artificial Intelligence Computing” is none other than NVIDIA and they have been having a spectacular run on the stock market in recent times. Not too unlike the massive share price pump they experienced when there was a run on graphics cards to mine Ethereum during the last crypto bull run. Check out the chart of their share price below – a massive pump of almost 200% from the start of 2023 and in particular the last week has shown some incredible gains. Mostly attributed to the hype around investing in AI technology. Check out the sort of stories getting mainstream exposure, like this one Nvidia crosses $1 trillion cap: How long can it ride AI hype?
Then there are already people who are prepared to let AI do their stock picking for them. For the last few decades we’ve had people using Algorithms to auto-trade markets so is this going to be a logical next step to that? It does make me wonder whether the old concept of Price Discovery is going to become completely dominated by AI in the very near future. The bankers are already onto it with JPMorgan developing a ChatGPT-like A.I. service that gives investment advice and this no doubt is going to be another arms race type of scenario where the legacy financial institutions scramble to get an edge over each other….and US retail investors in the process. AI Investing tools like this are almost certain to have significant impact on the Crypto markets too. I can already envisage the next BitConnect style scam telling investors to send money and let their AI trading bot make 365% return in a year. Watch out for that bullshit because it’s almost inevitable. BitConnect was a Top 10 Crypto worth over a Billion dollars back in the day....
As crypto investors we are no strangers to Volatility, Hype and Scams so is this AI Investing wave one that we should be trying to ride? Sure it’s risky but if you’re here on HIVE you probably already have some tolerance to risk and have ridden at least one of those crypto waves. Is AI investment just another vain chase for Fools Gold? I personally don’t think so but the fools are definitely in the game. I’ve just got to make sure that I’m not one of them. What do you think?
