The Shift from Crypto to AI

For years, crypto has been hailed as the next great technological revolution. However, with the explosive rise of artificial intelligence (AI), it’s evident that AI is the true technological revolution of our era. In this context, crypto will play a supporting role rather than be the star.

This observation isn’t meant to diminish the importance of the crypto industry or its innovations. Having pioneered institutional investment in Bitcoin and contributed to several on-chain companies, along with obtaining a Ph.D. in AI, I assert that building intelligent systems that solve real-world problems should be the ultimate mission—regardless of whether blockchain technology is involved.

Currently, DeFi stands as the key segment within crypto. It presents a superior iteration of traditional finance (TradFi) with better engineering, programmability, and composability. This notion is reflected in the meme: Internet Capital Markets. Stablecoins and tokenization have displayed exceptional product-market fit, showcasing crypto’s most tangible value to date. Institutional interest is rising, with firms like BlackRock, Robinhood, and even crypto natives such as Coinbase creating crypto products, anticipating imminent regulatory clarity. The transition of instant global payments and settlement, along with sophisticated financial instruments on-chain, appears to be a sensible progression.

In contrast, the demand for AI products and services surpasses that for crypto applications. The AI landscape is diverse, including TradAI from major labs, open-weight AI initiatives like DeepSeek and Mistral, and applications such as Cursor and Lovable. This situation prompts the meme: if you’re in crypto, pivot to AI.

While crypto has faced challenges in proving mainstream use cases beyond speculation, AI is actively redefining productivity and transforming various industries. Additionally, there’s a sobering reality for crypto: recent market fluctuations have highlighted the disconnect between token values and their actual technological utility. Although decentralized technology itself is revolutionary, the perceived value of tokens has often been driven more by memetic appeal than by genuine value creation.

This doesn’t imply that crypto is doomed; rather, blockchain protocols may become vital infrastructures within a future AI tech stack. They could facilitate intelligent solutions rather than serve as standalone entities. Consider initiatives that aim to Make AI Cheap Again: distributed computing power for training, verifiable computation, decentralized storage, and transparent rewards for contributions—all instances of technologies that can support AI-driven services without overshadowing their purposes.

Founders and teams focusing on crypto-native applications face both a challenge and an opportunity. They must extend beyond the familiar crypto ecosystem, represented primarily by Crypto Twitter and various conferences, and participate in the genuine technological revolution that AI heralds.

Practically, this means thinking bigger. Founders should ponder how AI can transform their markets and identify opportunities where crypto technology can assist this transformation. Instead of prioritizing tokenization or blockchains, the focus should be on real-world problems that AI can address. Only then should decentralized systems be incorporated where they genuinly provide value.

For instance, decentralized marketplaces could make AI more accessible and cost-effective (as demonstrated by Vast.ai for GPUs). Cryptographic verification can enhance AI agents’ effectiveness in securely managing sensitive user information.

The future belongs to those who understand the interplay between crypto and AI, building AI-first products that leverage crypto where it adds real value, or creating crypto services that enhance AI applications. Successful companies will not merely enforce blockchain solutions without recognizing their true value.

Ultimately, understanding the relationship between crypto and AI is crucial. The future framework belongs to AI, with crypto integrated thoughtfully where it benefits the overall goal.

For the crypto industry, this marks a moment of truth and essential recalibration. We can either cling to the narrative of crypto as an independent revolution with speculative tokens, or we can accept crypto’s role as a supportive technology in AI endeavors. The second option, while less glamorous, is more likely to yield lasting value and impact.

Accepting this reality will better position the crypto sector to make meaningful contributions to the ongoing technological transformation. If you’re in crypto, pivot to AI.