For virtual currency investors, Nvidia (NVDA -5.55%) has become one stock to watch for clues about the future direction of artificial intelligence (AI) crypto tokens. When Nvidia's stock price falls, so does the market for AI crypto tokens.
So, while NVIDIA stock is soaring after February's monster earnings report, AI crypto tokens are also soaring. Some companies are up 300% over the past month, all driven by renewed excitement about the AI market. But are these AI crypto tokens actually worth buying?
What is Fetch.ai?
I realize that artificial intelligence is still in its infancy, but here are the AI crypto tokens that I have my eye on right now: fetch eye (FET 0.44%), up nearly 400% in the past 30 days and nearly 300% for the year. As of March 7, Fetch.ai has a market capitalization of $2.2 billion, ranking it 51st among all cryptocurrencies in terms of overall market capitalization.
The purpose of the token is to build, deploy, and monetize AI by creating an open network for AI agents. This is just a mouthful, but what it really means is that Fetch.ai wants to provide a marketplace for paid AI services.
Whenever you need a task to be performed by an AI bot, you would theoretically go to the Fetch.ai marketplace and hire the right bot to do the job. Then, use your Fetch crypto tokens to pay for the service.
Fetch.ai vs. ChatGPT
What's so interesting about Fetch.ai is that it's very similar in concept to the new ChatGPT store. This allows you to hire customized AI bots to perform specific tasks. Considering that far more people know about ChatGPT than Fetch.ai, I'm not completely convinced that this cryptocurrency is worth $2.2 billion, but some You can start to see why investors are excited about its long-term prospects.
Image source: Getty Images.
What will be interesting to see is whether Fetch.ai can sell these AI bot concepts to enterprises (i.e., large corporations). One of his new partners is Deutsche Telekom, which is considering potential uses for AI bots.
This could be a great example of AI bots providing massive utility, and ties into the whole idea of investing in Nvidia in the first place. After all, it's big, blue-chip companies like Deutsche Telekom that buy Nvidia's chips and use its data centers.
Note to investors
If you want to benefit from the long-term convergence of AI and cryptocurrencies, you need to do your due diligence in this area. Otherwise, we could end up in the same situation we saw with Metaverse crypto tokens in 2021-2022.
Investors saw a huge market opportunity in Metaverse, with several large Metaverse crypto tokens eventually reaching multi-billion dollar market caps. But no one is buying Metaverse crypto tokens these days.
That's because Metaverse crypto tokens never found a way to appeal to people other than young gamers and early adopters of the technology. Big brands are setting up shop in the Metaverse to find new customers and new sources of revenue, but things don't quite go as planned.
That's one of the concerns I have with Fetch.ai. Sure, the idea of using a paid AI bot sounds great, but can it appeal to a mainstream audience? More examples of people actually using his Fetch.ai bot in their daily lives I'm so happy.
Should I buy Nvidia instead?
If I was forced to choose only one AI crypto token right now, it would be Fetch.ai. If the use case for autonomous AI agents in the enterprise market plays out as expected, at just over $2 per token, there is theoretically almost unlimited upside.
That said, for risk-averse investors, it's better to focus on blue-chip stocks in the AI market like Nvidia, rather than trying to make a speculative bet on an AI crypto token you've never heard of. maybe. Picking winners in emerging technology markets is always risky, so for now I'm sticking with his Nvidia, which is up more than 80% in a year, as the best bet for the future of AI.
Dominique Basurto has no position in any stocks mentioned. The Motley Fool has a position in and recommends Fetch and Nvidia. The Motley Fool has a disclosure policy.
