In a recent tweet, Nassim Taleb, known for his book “The Black Swan,” pointed out a technology shift: that cryptocurrencies, once the talk of the town, are rapidly losing traction while the appeal of artificial intelligence (AI) is growing. Taleb observed that tech-savvy young adults are becoming enamored with the potential of AI, replacing their former infatuation with cryptocurrencies.
This shifting trend is supported by recent market movements. While Bitcoin saw an uptick in value earlier this year, it also experienced a 5% decline in the past week of July 17, 2023, according to CoinMarketCap data. Other tokens, such as Ether, Cardano’s ADA, and Solana’s SOL, initially rebounded in 2023, but have recently declined by an average of 8 percent. These numbers indicate a clear decrease in interest towards cryptocurrencies.
On the other hand, AI has become a subject of great interest among investors. They are driven by the expectation that AI technology will lead to significant productivity gains and boost the profits of technology companies. For example, Nvidia shares have tripled in value, propelling the graphics-chip manufacturer’s market capitalization to an impressive $1.2 trillion. Microsoft has also experienced a 45% surge in its stock price, reaching a record high. That surge is largely due to the company’s $10 billion investment in OpenAI, the parent company of ChatGPT.
Taleb, a cryptocurrency skeptic and a former hedge fund manager, has criticized Bitcoin as a “cult” and argued that it fails to fulfill the roles of a safe-haven asset or a practical method of exchange. (Humorously, he states that Bitcoin’s traceable nature makes it unsuitable for money laundering.) In February, Taleb issued a warning about the potential for a widespread cryptocurrency price collapse.
Overall, Nassim Taleb’s remarks shed light on shifting interests within the financial and technology sectors. Cryptocurrencies are losing their previous allure, while AI is taking center stage, attracting both investors and the younger generation in search of the next technological advances.
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