AI Opens New Crypto Opportunities

Crypto Rand

7 min readMay 13, 2024

Let’s Dive Into It!

Happy Monday dear subscribers! In today’s Newsletter, AI opens a lot of opportunities!

In today’s bulletin, we are covering:

Surfing the Market, with analysis about Bitcoin and Ethereum
Don’t miss the News about AI opportunities, and Sam Altman’s Take on Socioeconomics
Privasea is under the spotlight.
Short article about Why do we remember losses more than gains
Our selection of the best Gems on X

Range consolidation for Bitcoin which is managing to defend the confluence of horizontal support and the previous downtrend channel. Tiny bounce so far but pointing in the right direction. Still missing more volume to fully trust a possible reversal:

BNB consolidating like a titan respecting the main uptrend and pushing…on my radar:

Franklin Templeton CEO Jenny Johnson Affirms Pro-Blockchain Stance, Discusses Tokenization and AI Opportunities

Jenny Johnson, CEO of Franklin Templeton, reiterated her pro-blockchain stance during an interview, focusing on tokenization and generative artificial intelligence (AI).

She highlighted the efficiency and cost-saving benefits of blockchain technology for financial operations, envisioning a future where ETFs and mutual funds are all on blockchain.

Johnson emphasizes blockchain’s efficiency and cost-saving benefits, citing a side-by-side experiment conducted by Franklin Templeton.
She predicts a future where ETFs and mutual funds will operate on blockchain due to its ability to provide a single source of truth and streamline data verification.
Johnson highlights the investment opportunities enabled by blockchain, citing the example of Rhianna’s NFT release that granted royalties to token owners.
On generative AI, Johnson acknowledges its usefulness but cautions about its limitations, likening it to a student excelling in one subject but failing in another.
Franklin Templeton’s partnership with Microsoft to develop an AI-powered sales assistant demonstrates the firm’s interest in leveraging AI technology for business operations.
Johnson sees potential in AI-powered translation services to overcome language barriers in finance.

Johnson also discussed the potential of generative AI in finance, recognizing its usefulness while cautioning about its limitations.

Sam Altman’s Vision: Transforming Socioeconomics with Universal Basic Compute

Sam Altman, CEO of OpenAI and chair of Tools for Humanity, envisions a future where advancements in artificial intelligence (AI) could reshape socioeconomic structures.

He proposes treating “compute” as a resource, potentially replacing monetary income with universal basic income (UBI). Altman advocates for global oversight of powerful AI systems to ensure safety, while promoting startups’ freedom from stifling regulations.

Altman suggests that advancements in AI could lead to significant changes in socioeconomics, with “compute” potentially becoming a valuable resource.
He proposes treating “compute” as an asset that could provide a universal basic income (UBI) to individuals.
Altman advocates for global oversight to regulate powerful AI systems and ensure safety while allowing startups to innovate freely.
Regarding UBI, he criticizes existing government poverty assistance programs and emphasizes the importance of simple, respectful approaches to distributing income.
Altman believes that while UBI may not solve all problems, it can provide individuals with greater autonomy and opportunities to improve their lives.
He suggests that the concept of UBI could evolve into “universal basic compute,” where individuals have access to computational resources for various purposes.

He discusses the role of UBI in addressing AI-related challenges and emphasizes the potential of UBI to empower individuals.

PRIVASEA AI NETWORK

Today we bring under the spotlight, PRIVASEA AI NETWORK.

This project is mixing DePIN (Decentralized Physical Infraestructura Network) with AI. The purpose for it is to optimize the management and predict maintenance looking to enhance the efficiency and effectiveness of the systems.

AI-driven DePIN should be able to save resources and reduce costs.

The two key technologies the project relies on are Fully Homomorphic Encryption (FHE) and blockchain. FHE allows computations to be performed on encrypted data without revealing the plaintext (privacy), while blockchain provides a secure and transparent platform for managing the network and distributing computing resources.

The Privasea AI network divides the FHE into 4 distinct layers (application, optimization, arithmetic, and primitive) while having 4 main components:

HESea Library
Privasea API
Privanetix
Privasea Smart Contract Kit

In theory that division should allow the network to operate with increased privacy for user data, secure and transparent management and also efficiency and scalability.

The potential use cases for this technology include privacy-preserving medical research, financial fraud detection, secure data sharing, and personalised AI services.

In the seed rounds, it has raised 5 million with partners like Binance Labs, OKX Ventures and Zephyrus Capital among others.

See you next week!

Why do we Remember Losses More Than Gains?

The market has become increasingly automated, but not our emotions with the results obtained. Today we’re going to talk about how a loss and a gain impact our memory and consequently our trading.

One might think that a win in the market would bring us much greater happiness than a loss, as is often the case in other aspects of life such as sports, work, or relationships. Well, in the market, things don’t seem to work the same way.

We’re all going to have good and bad trades, but for some reason, our minds retain those losses that have hurt our account (and our feelings) for much longer and tend to forget the gains, even when they are much larger than the losses. Why?

The first approach has to do with investor psychology and accepting a mistake, admitting that we misread the chart or the numbers and messed up.

This is compounded by the fact that often denying this fact sinks us much deeper into the losing position, which, with hope, we hold onto to see if it reverses, and where most of the time it deepens the fall.

A gain of $10K will generate much less joy than the sadness of a $10K loss. It sounds illogical because it’s the same amount, but the emotional factor is much more ingrained in defeat than in victory when it comes to investing.

Let me give you a test, what memory is more vivid for you, your biggest gain or your biggest loss while trading? Yes, in most cases, the first thing that comes to mind is that enormous loss that we haven’t been able to forget.

This is in the nature of the investor, and the best way to deal with it is to learn to live with it, knowing that it will happen but that it shouldn’t affect us.

The ideal is to reach a stage where neither a gain makes us excessively happy nor a loss makes us excessively sad. Achieving that emotional neutrality will make us trade with greater rationality and therefore get better results.

Calm in downturns begins with calm in upturns is a phrase I like to apply.

And this is key because these experiences and emotions are not free for our trading and can strongly influence the future, for example, by not taking a very clear trade out of fear of losing.

The best advice to avoid reaching these situations is to use stop losses so that our losses never reach the same level as our gains.