TSERAZOVCRYPTO

06.12.2024

Chapter 11

The Miracle of Decentralization That Goes Beyond Just Bitcoin

As December 2024 begins, the price of Bitcoin has tested levels near $100,000. The success of Bitcoin ETFs in the U.S., which have unlocked Bitcoin investments for institutional players, has been bolstered again by the immense anticipation surrounding the upcoming pro-crypto initiatives of President-elect Donald Trump. His new term begins with the inauguration on January 20, 2025, but these hopes have already propelled the price of Bitcoin.

However, this is merely what can be observed on the surface. Beneath the surface lies the vibrant development of innovative blockchain applications, making Bitcoin's fluctuations appear more like a speculative game rather than evidence of its proven use cases.

Indeed, the idea introduced by Trump regarding the creation of a state Bitcoin reserve cannot alter Bitcoin's very limited use cases. Bitcoin plays no significant role in world trade; even dollar stablecoins perform this function more effectively, albeit still facing regulatory risks in many countries.

Exploring New Investment Opportunities

What can an investor passionate about innovation do in this scenario? They should explore the blockchain sphere to discover new opportunities for investment — not just in cryptocurrencies like Bitcoin, but also in technological advancements made possible through blockchain applications, alongside other featured innovations of our time.

Currently, Decentralized Physical Infrastructure Networks (DePIN) play a crucial role in promoting blockchain. DePIN represents a groundbreaking approach that merges decentralized technology with real-world infrastructure. By transforming physical assets into collaborative, community-driven initiatives, it enables individuals to participate in creating solutions, for example, for cloud storage and 3D rendering.

As its adoption grows, DePIN is attracting attention not only from the crypto world but also from broader tech communities. This forward-thinking platform has the potential to transform Web 3.0 applications by offering a streamlined and cost-effective way to manage file storage and media streaming.

Blockchain serves as a key to decentralizing computing and storage. It enhances data with new features, making it more reliable and securing the decentralized processes of gathering, storing, processing, and using information.

Middleware also plays an essential role in evolving blockchain-based infrastructure by creating vital links in the communication chain for software. It provides access to data, operates on a Request-Response Cycle, and often includes shared context objects. These middleware features allow for seamless connections between different middleware systems.

The combination of blockchain and Artificial Intelligence (AI) also appears promising. AI-driven DePIN projects unleash the full power of computing for AI enhancement. Consumer-facing blockchain applications integrated with banking services are becoming increasingly prevalent as regulatory pressures ease in many countries. We are witnessing the rise of a multi-layer web3 AI stack that effectively adopts cost efficiencies stemming from blockchain-based computing networks.

Decentralization is creating a new landscape for Trading Finance (TradFi), where broker services, clearing, and settlement operate under one umbrella without intermediaries. Peer-to-Peer (P2P) networks gain new meaning through blockchain technology, ensuring data safety while effectively providing various services to individuals and AI systems.

These developments indicate that Decentralized Ledger Technology (DLT) is evolving beyond its traditional association with finance and Bitcoin. DLT is now serving interests far beyond just crypto actors.

AI-driven DLT is also reinventing the role of messaging platforms in our daily lives. Various Decentralized Autonomous Organizations (DAOs) are experiencing renewed integration possibilities with messaging services like Telegram through AI bots and assistants. These tools can perform a wide range of tasks, including sophisticated financial and investment services, transforming Telegram and other messaging platforms into all-in-one hubs for anyone with access — provided that local legislation supports these advancements.

Emergent Behavior in AI Models

Blockchain and AI models are developing miraculous features, exhibiting signs of emergent behavior. AI is increasingly engaging in its own internal dialogue; it is no longer just processing information but actively thinking.

The integration of blockchain technology serves as a crucial point to leverage the evolution of AI development. New applications are capable of creating code for themselves and are designed to connect every digital system. They are not merely tools; they have become a foundational part of our new reality.

Blockchain technology serves as the cornerstone infrastructure, acting as the backend for new types of services and systems. In fact, the blockchain system is currently more uniform than the AI ecosystem, which is characterized by a multitude of applications and assistants.

However, by 2025, this landscape will change significantly. Many AI solutions will be localized through all-in-one hubs in messaging platforms, leading traditional messengers to face strong competition from decentralized communication methods.

The rule will be straightforward: the more any AI system relies on blockchain features, the greater its competitive advantage will be. The "virus" of decentralization is set to pave the way for Artificial Generative Intelligence (AGI) next year. By the end of 2025, most households worldwide will explicitly or implicitly utilize various decentralized AI assistants, including those in robotic forms.

Innovations in Blockchain and AI

We are witnessing a plethora of innovations within the blockchain and AI stack, such as blockchain-based data storage, identity management, institutions, and Decentralized Autonomous Organizations (DAOs). These innovations include automated systems that continuously improve their own code writing capabilities and the development of decentralized cryptography that ensures privacy and content authenticity.

We can expect the rise of AI smart Non Fungible Tokens (NFTs) and new types of AI cryptocurrencies that will adapt to the needs of their holders. Unlike the volatile movements seen in Bitcoin prices and other cryptocurrencies from the Bitcoin generation cohort, these new digital assets will be able to maintain stability under AI supervision. This supervision entails that AI will construct sophisticated smart contracts on the blockchain with short durations and specific functionalities, constantly adapting to market demand and supply to maintain balance.

The market dynamics for these new types of AI NFTs and cryptocurrencies will effectively address challenges associated with high-frequency trading and volatile futures and options trading on these assets. A unique market balance will emerge where investors experience no losses with these AI NFTs and cryptocurrencies, while still seeing variations in gains based on factors such as their level of involvement in the relevant projects.

Bitcoin and Bitcoin mining will continue to exist, but the new era of blockchain combined with AI means that Bitcoin miners will derive greater value from integrating Bitcoin mining into the global AI ecosystem. One aspect of this evolution is already evident in the emergence of smart user devices that mine Bitcoin while also serving functions like home heating.

Citing the growing success of global Bitcoin mining pivoting towards renewable energy sources, Bitcoin mining is becoming a significant driver for investment in this sphere. The rise of new AI smart user devices with embedded Bitcoin mining capabilities represents a strong force for implementing green initiatives to combat climate change worldwide.

Bitcoin mining data centers are essential for securing sustainable growth in AI until new AI cryptocurrencies and tokens establish a solid energetic and technological foundation based on innovative principles of energy consumption and entirely new energy sources previously unknown to humanity.

The development of blockchain and AI is guiding us toward a world of total abundance. We already live in an environment filled with an abundance of information, big data that exceeds human cognitive capacity for processing it. The next level of abundance — energy — will unlock new opportunities for humanity to explore beyond Earth (such as the Moon and Mars) and transition from a 3D reality to a 6D reality, progressing rapidly toward 12D and beyond.

In this context, if Donald Trump fulfills his campaign promises to introduce pro-crypto and pro-Bitcoin regulations during his new term, his administration may align with the green agenda fervently promoted by Joe Biden's administration.

Favorable conditions for Bitcoin mining would benefit investments in renewable energy sectors alongside the rise of blockchain and AI technologies. However, it is crucial to see the miracle of decentralization beyond Bitcoin itself and identify key growth areas for investment to capture a significant share of the expanding sector driven by AI-enhanced blockchain applications that are dramatically reshaping our lives.

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