Investing in AI Companies: Real Opportunity? Or Pure Hype
Generative artificial intelligence, or AI that makes content (like ChatGPT, DALL-E2, etc.), is projected to add up to $7 trillion of wealth to the global economy.
So people are asking: “How can you get in on the action? How do you make money with AI?”
I saw some folks who talk about making money with AI “directly,” like posting gigs on Fiverr and giving all the work to AI, then “sitting back as the dollars come in.”
That type of content is all over the place. As if it’s so easy to use AI to make money. If it was so easy, those folks wouldn’t be on social media in the first place. They would just make their money and ride off in the sunset.
Anyway, AI is super helpful. It’s not like any other technology that got a lot of attention like crypto or blockchain. AI impacts the entire population, which is why it will boost the economy.
What hype looks like
Back in 2017, the general public began hearing about people who made a lot of money by trading crypto currencies.
People who invested $100 in Bitcoin in 2012, for example, would’ve turned their investment into more than $5,000 in 2016.
Many of us feel the itch of greed when we hear about high returns like that. This started the crypto craze in 2017, which reached the record top in 2021, where a $100 crypto investment in 2012 would’ve turned into $575,000 in less than 10 years.
The crypto market has since gone way down. From $61,837.26 per Bitcoin in October 2021, the value is now down to $28,330.89. That’s a 54.18% loss.
But that’s not the point.
The real focus is this: Crypto originally started as a medium of decentralized currency.
The legend goes that the creator of Bitcoin (the first crypto currency) made it as a response to the Great Financial Crisis of 2008.
It was decentralized so that the currency wouldn’t rely on traditional banks, which became untrustworthy after bankers lost billions of people’s money.