Beware of AI Hype in the Crypto World

The new artificial intelligence app, ChatGPT, has gotten a huge amount of attention for its ability to mimic human conversations, produce high quality writing, and even ace college level exams. It has also engendered a bit of concern for things like suggesting to a New York Times reporter that he leave his wife to “live with” the computer app! We look at all of this attention to AI in regard to investments in the crypto world of tokens, NFTs, DeFi, the Metaverse, and various blockchain applications. For anyone who is serious about any aspect of the blockchain world and how it might be affected by AI; the first thing is to beware of AI hype in the crypto world.

What Are Crypto AI Tokens?

Our first question when it came to crypto and AI was about crypto tokens. There are some new crypto tokens that have benefits based on the use of AI as a technology. There are others that simply have AI or artificial intelligence in the name. This reminds us of the dot com market rally during which a company that had dot com or .com in its name typically had an inflated stock price until the dot com crash at which time any company that was not finding a way to make real money from their use of the internet went out of business and took investors’ money with them.

Companies that use an advanced computing system (AI) to run their operations include the Graph (GRT), SingularityNet (AGIX), Fetch.ai (FET), Oasis Network (ROSE), and Ocean Protocol (OCEAN). Each of these has a legitimate AI or smart computing aspect to its operations.

What Distinguishes AI from Algorithms and Fast Computing?

We have had algorithms and fast computer programs for years. However, a basic algorithm follows a precise set of instructions and rigidly calculates, sorts, and spits out answers or makes basic “decisions.” On the other hand, AI or artificial intelligence learns from its experiences. In other words, is has more complex programming and is able to change its algorithms or decision trees based on the results of its efforts. Advanced AI systems interact with humans and “learn” from those interactions. It is the capacity to self-modify its internal algorithms that makes us call these systems “intelligent.”

Beware of AI Hype in the Crypto World

How Intelligent Are AI Systems Used for Crypto-related Applications?

It remains to be seen how smart, intuitive, and adaptable so-called AI systems used for crypto tokens, DeFi, the Metaverse, and other blockchain applications are or, frankly, how adaptable and nimble they need to be. ChatGPT can carry on extended conversations and appear indistinguishable from another human. It can write a college class thesis. It can also sound more than a little crazy in giving bad advice to a person who is depressed or even suicidal. This tells us that even a fast and verbally competent AI system does not necessarily exercise good judgment by human standards. They need to be watched over, modified as needed, and overruled when necessary.

Our current take on things is that even in the cases where a crypto-related business is doing its best to apply AI to its business, they are generally starting with complex algorithms and improving them step by step in order to accomplish specific goals and not working to create true human intelligence which their business already has in the form of their staff and owners.

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