13th February 2024 > > Supply shock & AI.

tl;dr

BTC supply shock incoming. Cryptos are a natural bed-fellow for AI.

Market Snap

Market Wrap

That’s a lovely number for the price of BTC in today’s Market Snap. The last time we saw $50k was in December 2021. Eleven months later BTC had dropped almost to $15k and now after another fourteen months we are back. That’s the crypto ride for you.

One day – and I know you have heard this before – we will breach $50k to the upside for the very last time, never to return to the 40s. That day is probably not today, but it may not be as far away as you might think. Yesterday the ten ETFs including GBTC sales took out over 10,000 BTC which likely will not be for sale again anytime soon. Meanwhile new supply was just 10% of that amount, which itself will be cut in half in April.

With 80% of BTC not having moved for six months and considered to be in the custody of diamond hands, the nine new-borns now own a meaty 5% of the remaining liquid coins. If this continues much longer, the world is about to find out what a supply shock really looks like.

Curious Cryptos’ Commentary – Crypto and AI

Fetch.ai is a project that aims to build AI services, integrations, and marketplaces in a decentralised manner.

Its website has a short example video of one potential application – an AI driven process for booking some carpet-cleaning (https://fetch.ai/). This may sound trivial to you, and I would be minded to agree, except that I suspect that initially the idea of buying books and only books from a clunky and slow website sounded trivial to most, and look what happened to that idea.

Deutsche Telekom and Fetch.ai Foundation have announced a partnership. I will let Dirk Röder, Head of the Web3 Infrastructure & Solutions Team at Deutsche Telekom MMS, explain:

“The collaboration between Deutsche Telekom, Fetch.ai and Bosch is groundbreaking and combines industrial applications with the Internet of Things. Autonomous agents will automate industrial services, simplify processes and make them secure and scalable thanks to blockchain technology.”

The development of AI will increasingly happen in the decentralised world, for that is the natural home for it. What we are seeing with collaborations like this is the application of cryptos to real-world uses, driving global adoption of blockchain technology, and embedding cryptos into our daily lives.