Crypto or AI? Which Industry Wins The Investment Capital Race?

For the past few years, the tech scene has been taken over by crypto or AI news. Bitcoin’s bull rally to almost $70,000 tallied a sea of investors to the Web3 space, and giants like Facebook rebranded themselves as metaverse companies trying to bring the future faster.

Now, ChatGPT has entered the scene, and people are divided on whether AI will replace them at work or if they can find a way to use it and enjoy the time before robot overlords take over the world. All jokes aside, ChatGPT is the first application to get 100 million users in two months and beat the record of Google+.

Crypto Projects

Crypto projects and companies have been making small steps for years, but none were as monumental as the leap of Coinbase. When it went public, its valuation of 86 billion dollars immediately switched the investing stage, and many more companies got funding.

However, for every step forward, the crypto space takes two steps back. Companies like Celsius, FTX, and Voyager are examples of scams that can occur. Both investors and customers were fooled, and both groups must be extra careful when trusting newly emerging businesses with their money.

Of course, plenty of crypto projects have drained the wallets of their supporters or planted malware disguised as games. Having malware removal software on your device is a must if you’re interacting with Web3 apps or doing your own research.

AI Startups

There hasn’t been an internet craze like the one for ChatGPT. Most people expected that an AI program would emerge in the future that would be incredibly powerful, but no one expected it to come so soon. It took the world by storm, and hundreds of new apps emerged after it.

All it took was for OpenAI to open the doors and Microsoft and Amazon to follow the lead with the software they’ve been keeping in the closet. Now, entire countries are joining the debate on whether the use of this software is legal and ethical, and people like Elon Musk are saying that, as humanity, we need to pull the plug. Italy has banned the use of ChatGPT due to privacy concerns, but OpenAI projects it to make billions by 2024.

The Battle For Investment Capital

Because both technologies are incredibly new, the competition between investors is fierce. AI is now mentioned in everyday conversations, just like crypto was a few years ago. The Bitcoin bubble popped when the price for a single coin dropped to $16,000. But before that, hundreds of startups and companies secured funding at massive valuations.

Now, the tables have turned, and the spotlight is on the ChatGPT wave, and we see the same trend regarding valuations. In both cases, experts were hard to come by, so investors were fighting to identify the most promising places to put their money in. History repeats itself, but there’s always the potential for market conditions to turn.

The Challenges

The world is in a financial crisis, and the challenges to secure funding are rising. Investment capital is shrinking, while the competition is becoming more intense. Both sectors are innovating at almost the same pace while the spotlight changes from one to another.

This battle between niches could determine the way in which the world turns for decades. We’ve seen the bad things that can happen in the crypto space. Financial frauds, scam projects, pump-and-dump schemes, or plain hacks. We still don’t know what to expect from AI, but endless possibilities exist.

What lies in the future?

Technology continuously evolves, and companies in both sectors will keep on innovating. They could turn to crowdfunding, mergers, strategic partnerships, or other funding sources to create life-changing products and services.

One thing is for sure. The future will be very, very interesting. Will we live in a Space Odyssey with an AI companion, or in a Star Trek world where money doesn’t exist, and we’re using tokens for transactions? Time will tell.