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Crypto-Like Bubble Is Possible in AI, Says Nobel Laureate Romer, AI Coins To Suffer?
Nobel laureate Paul Romer’s recent comments on AI future served as a wake-up call to the global crypto AI community. Speaking at the UBS Asian Investment Conference in Hong Kong on Wednesday, May 29, Romer, an American economist, called for a careful assessment of the current state of artificial intelligence, drawing parallels to the crypto bubble of two years ago.
The economist told Bloomberg TV: “When people project this into the future (pointing to the growing trust in AI globally), I think they run the risk of making a very serious mistake.” In this context, the sudden rise of AI, accompanied by an exaggerated market confidence in the future of technology, may be short-lived.
A closer look at the report
While recent advances like OpenAI’s ChatGPT and xAI’s Grok, among many others, have generated excitement and massive investment in AI infrastructure, Romer highlights the danger of assuming that the current rate of improvement will continue indefinitely. The economist also draws attention to the rise of technology giants Microsoft Corp., Alibaba Group Holding Ltd and Nvidia Corp.which have become multi-trillion dollar companies as the demand for AI has increased globally.
However, the former World Bank economist stressed: “We have benefited from increased computing and the ingestion of large amounts of data. Increasing computing is very easy. It’s just more machines and more chips. But what will happen is we won’t have enough data.”
This statement raised eyebrows across the global AI scene, with investors exercising caution when looking into AI coins as well. If optimism, growth and investment in AI, a technology that is said to have infinite capabilities, encounters an obstacle that is finite in nature, as Romer stated, the market could witness a shake-up.
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AI coins to take the hit?
Meanwhile, the market capitalization of AI and Big Data cryptocurrencies fell 0.58% today, May 29, to $40.63 billion. Furthermore, trading volume declined by 4% compared to yesterday, reaching US$2.67 billion.
A recent report from CoinGape Media highlighted that despite the recent growth and popularity of AI, meme coins exceeded investors’ expectations, offering better ROIs.
Furthermore, in parallel with this, Romer predicts that, in two years, people may realize that they have overestimated the progress of the newly emerging technology, comparing the current enthusiasm to a bubble. However, broader industry sentiments remain optimistic regarding AI Coins‘ potential ahead.
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