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THE GROWING AI ROLE IN CRYPTO – REWIRING THE LANDSCAPE
The world is facing a new technological race, with AI development growing into a national priority. The recent launch of the Stargate project in the US is a high proof of that.
While Trump’s presidency is still in its early stages, we can already see the emergence of a trend towards tech-centricity, as he plans to pour $500 billion worth of investments into AI infrastructure.
At the same time, this technological boom is set to reshape another industry – crypto.
AI (artificial intelligence) has already been introduced into crypto in the form of AI agents, trading bots, automated risk analysis and more.
The question isn’t whether AI will change crypto – it’s doing it even now.
The real question is – what does this mean for crypto and blockchain in the long run?
Will AI’s involvement strengthen this space or undermine the decentralized principles the crypto community holds dear?
Here is my take on this.
AI and crypto today – The shift has begun
The way things are now, I’d say that AI’s presence in crypto hasn’t progressed far – it’s still in the ‘infancy’ stage, so to speak.
But this state of things won’t last – progress is happening at a rapid pace.
This industry is moving beyond simple trading bots. Artificial intelligence is now being used to drive market-making strategies and risk assessment.
We are even seeing cases of decentralized venture funding powered by AI.
Projects like Moby AI, Griffain AI and HeyAnonAI are becoming more prolific – and while these are just early iterations of AI-based financial intelligence in crypto, they are already outperforming human traders in speed and efficiency.
As AI models continue to grow in complexity and gain greater autonomy, I believe that soon they will no longer just follow market trends – they will shape them.
What’s next on the horizon
The next few years will redefine what it means to participate in crypto, and AI is going to be at the center of this transformation, bringing changes in all sectors.
Autonomous AI trading agents are already optimizing market strategies in real-time with a level of speed and precision that far exceeds human capabilities.
The more these bots advance, the greater competitive edge investors and traders will get from using them.
In the field of DeFi compliance, AI-powered tools will become essential for maintaining security.
Fraud and illicit transactions are always a point of concern, but AI-driven monitoring systems can analyze activities in blockchain networks and detect suspicious patterns in real time.
This will allow them to flag potential risks before they escalate, making this space safer.
At the same time, AI-integrated DeFi services will help streamline lending and borrowing by removing human intermediaries.
AI models can be leveraged to automatically match borrowers and lenders and adjust interest rates dynamically as market conditions change.
And all of that can be done without the need for human participation.
I can also see on-chain AI agents playing a prominent part in governance.
They can provide real-time market insights, manage portfolios and even contribute to DAO decision-making by enabling more data-driven governance choices.
Beyond financial applications, AI could also solve long-standing blockchain inefficiencies.
For example, one major issue with PoW (proof-of-work) networks is high energy use.
AI can address this by analyzing and predicting network demand, dynamically adjusting energy consumption to reduce waste and optimize performance.
Moreover, AI can facilitate ‘sharding,’ where blockchain data is divided across multiple nodes, allowing parallel processing and faster transaction times.
This can help effectively scale blockchain networks, which is a critical step if cryptocurrencies are to see broader adoption.
While AI today is still only a support tool, incapable of truly making effective decisions in place of humans, it will not always be so.
To my mind, AI has all the chances of evolving into a dominant force that will actively shape the future of DeFi.
The risks – Can AI undermine decentralization
While AI promises a great upturn in efficiency, it is admittedly not without risks. And one of the biggest threats that I can foresee now is AI-driven market manipulation.
Imagine a scenario where AI-powered trading firms control DeFi, making it that much harder for retail investors to compete.
This is already something that we’re seeing in TradFi (traditional finance), as high-frequency trading firms use AI to exploit market inefficiencies.
The same could happen in DeFi, resulting in an arms race between AI bots, while human traders remain outmatched and essentially get left behind.
That said, DeFi has a bit of an advantage in this regard. Its high spreads and transaction fees act as a natural barrier against immediate AI domination.
Since trading bots in DeFi must deal with significant costs, it creates a chicken-and-egg situation.
As long as fees and spreads remain high, AI-driven trading won’t scale easily. And on the other hand, without a large trading volume, those costs will stay high.
This may actually prevent AI-driven market manipulation, since everyone in DeFi has to operate on equal terms.
Beyond that, there’s also the issue of AI-generated smart contracts to consider. AI can write entire contracts, but what happens if those contracts contain hidden vulnerabilities?
Hackers could exploit AI-generated code, using adversarial inputs to bypass security audits.
A single compromised AI-generated contract could mean millions of dollars’ worth of losses in crypto assets.
This is a threat that DeFi developers will have to take very seriously – you absolutely should not rely on AI to write the code for you.
The future of AI and crypto
The AI race is not just a competition for dominance between nations – the real battle is between open-source and closed-source AI.
The introduction of DeepSeek R1 has already become the basis for a major shift in this regard.
It broke traditional assumptions about AI development, proving that billion-dollar budgets of BigTech companies aren’t always necessary for groundbreaking innovation to take place.
AI development is no longer centralized, and I think that open-source models could align well with crypto’s values, as opposed to a more centralized approach.
The idea that AI will take over the crypto sector is no longer a matter for debate. The only question now is how fast it will happen.
@ Newshounds News™
Source: DailyHodl
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COINBASE HIRING SPREE: 1,000 JOBS INCOMING AS CRYPTO REGULATIONS IMPROVE
Coinbase is preparing to grow. In 2025, the company intends to add 1,000 new workers in the US, according to CEO Brian Armstrong. This decision comes as the nation’s cryptocurrency laws become more defined, allowing businesses like Coinbase to function with greater assurance.
A Change In Regulations Instills Confidence
Armstrong claims that the additional hires are a direct result of US President Donald Trump’s administration’s improved crypto laws. The CEO attributed Coinbase’s expansion into the US to the government’s efforts to provide a more transparent environment for the sector.
Compared to prior years, this is a significant shift. Tough market conditions forced the exchange to lay off 1,100 workers in 2022, or around 18% of its global workforce. Now that the legal landscape is more solid, Coinbase is adopting a new strategy by investing in new manpower.
SEC Steps Back From Enforcement
Another major development is the US Securities and Exchange Commission (SEC) dropping its enforcement action against Coinbase. This means that instead of the SEC making regulatory decisions, Congress will now take charge of setting crypto laws.
For Coinbase, this change eliminates a major barrier. The company can now concentrate on business expansion rather than legal disputes as the SEC is no longer putting any legal pressure on it. Armstrong’s announcement of onboarding new staff reflects this renewed optimism.
White House Crypto Conference Affects Choices
The disclosure came after Friday’s Crypto Summit at the White House. Government representatives and business executives gathered at the summit to talk about how to regulate digital assets in a way that benefits investors and companies alike. According to Armstrong, the conversations influenced Coinbase’s employment decisions.
Crypto supporters have long pushed for clearer rules in the US. Many believe that regulation will help the industry grow while ensuring companies operate within legal boundaries. Armstrong’s remarks indicate that the government is finally moving in the right direction.
A Positive Turn For Coinbase?
According to the employment timeline, Coinbase is in a better situation than it was a few years back. The company has been through layoffs, legal battles, and market downturns. Now, though, with regulatory clarity and less SEC intervention, the company now has its sights set on expansion.
All eyes will be on the crypto exchange behemoth as it prepares to accept a new batch of workforce.
@ Newshounds News™
Source: Bitcoinist
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BRICS MAY BE IN TROUBLE AS EXPERTS PROJECT ‘TARIFF-DRIVEN’ US DOLLAR SURGE
Although we are just two months into the year, geopolitical tension has reached a fever pitch. With the United States adopting an aggressive economic policy, a host of nations are concerned over a brewing trade war. However, it could work out in their favor, as BRICS may be in trouble with experts projecting a potential tariff-driven US dollar surge.
Under the direction of US President Donald Trump, the nation is enacting a host of tariffs through new policy. Indeed, it is not only BRICS, as Mexico and Canada have suffered from the new administration’s effort to balance trade. In turn, it could have a positive effect on the US dollar.
BRICS and Global Market Could See US Dollar Enjoy Tariff-Driven Surge
Since his return to the White House, Donald Trump has sought to do away with decorum and delicacy. In an effort to balance the nation’s international standing, Trump has adopted increased import taxes on a host of countries. The question is, will it pay off?
The answer could surprise many. Indeed, BRICS may be in trouble as experts project a ‘tariff-drive’ US dollar surge in the near future. If it does take place, it could see the President rewarded for his policy and ensure the reserve status of the greenback, something that Trump has focused on since his return.
According to Goldman Sachs analysts, the US dollar could increase from protectionist trade policies. Moreover, the movement could make the asset even more attractive to currency traders, experts state.
The bank states that entities that take long positions in the US dollar will see increased profits as tariffs strengthen its appeal. This could be dangerous for the BRICS group. Not only does it reinforce increased tariffs, but it reverses the work they’ve done in the last several years to de-dollarize global markets.
@ Newshounds News™
Source: Watcher Guru
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