Today Bitcoin tries to hold its ground Amid a broad sell-off on Wall Street Driven by slowing us job growth Montenegro says terraform Labs Co-founder dwan will be extradited to South Korea and we take a deep dive into The integration of two popular Technologies blockchain and AI welcome to cnbc's crypto world I'm Jordan Smith crypto markets mixed this Morning amid a broad selloff on Wall Street following a weak jobs report Which stoked recession fears this Morning's report revealed the US Workforce grew much less than expected Last month as the unemployment rate Ticked up to 4.3% as of new Eastern Bitcoin climbed To the $63,000 level ether however Dropped 2.5% to around $ 33,36 and salana fell more than 3.5% now Today's prices come on the heels of a Slide on the first day of the new month After another batch of economic data Increased investor concerns about the Economy driving them out of risk assets Including crypto manufacturing activity Fell 1.7 percentage points in July Compared to the month before and Firsttime filings for unemployment Insurance increased this data came a day After the FED voted to keep interest Rates unchanged for the week Bitcoin is Down more than 65% ether is down more
Than 7% and salana sank 14% as of noon Bitcoin is poised for choppy trading in August which is a seasonably sluggish Month for the cryptocurrency as well as Risk assets more broadly taking a look At crypto focused stocks today coinbase Galaxy digital and micro strategy are in The red as of around noon after all Reported earnings yesterday coinbase Beat Revenue estimates while Galaxy Reported a net loss of $177 million for The quarter the company says that was Driven primarily by net losses on crypto And Investments as a result of a decline In digital asset markets and micro Strategy also reported a second quarter Loss as the firm took an impairment Charge on its Bitcoin Holdings of more Than $180 million that's compared to More than $24 million in Q2 of last year Taking a look at miners performance Today all are lower with Marathon Narrowing its loss as of around noon to 1 and a 12% after the Bitcoin miners Q2 Revenue missed wall Street's Expectations Marathon CEO said the minor Sales took a hit because Bitcoin Production was impacted by unexpected Equipment failures and transmission line Maintenance at one of its sites The Increased Global hash rate and April's Having Event okay we also wanted to give you an Update on a story we've been watching
For months now dwan the co-founder of The collapsed terraform labs and Algorithmic stablecoin Tera USD will Finally be extradited from Montenegro More than a year after he was first Arrested in the country for carrying Falsified documents but he's not headed To the US like prosecutors in the states Had hoped dwan will head to South Korea Where he faces charges tied to the Collapse of us and the associated token Luna Quan was already found liable for Fraud here in the United States as part Of a Civil Trial in federal court the Jury agreed with the SEC that terraform Labs and Quan misled investors ahead of The stable coin's Collapse all right jumping to our main Story the intersection of crypto and Artificial intelligence has been getting A lot of Buzz recently in fact some Asset managers have been forecasting That the merging of the two technologies Could generate billions by the end of The decade crypto world's Talia Kaplan Explores how Ai and blockchain Technology have been working together And talks to experts about what we can Expect in the Future it's no secret that artificial Intelligence is all the rage right now And according to crypto advisory firm Architect Partners AI is pulling some in Investment dollars away from other
Technologies including blockchain take a Look at this chart showing total private Financings across Ai fintech and crypto Since the second quarter of last year AI Has attracted the most investment in Q2 Of this year AI private Investments Totaled more than $40 billion far Surpassing the other two technologies But Ai and blockchain don't have to be At odds there is likely uh early stage Capital funding that is being allocated To AI versus allocated to crypto uh Ultimately one of the things about Blockchain as a technology is it plays Pretty well with other Technologies and When you think about the combination of What AI plus blockchain and plus other Emerging technologies will be because All of this will eventually merge Together uh it's going to be it's going To lead to a much stronger environment I Expect the combination of AI plus block Blockchain and crypto to be a powerful Go forward investable theme in fact in June bitwise Asset Management forecasted That crypto and AI could add a Collective 20 trillion to the global Economy by 2030 we're at the beginning Of an AI boom that's already made ninia One of the largest companies in the World due to the demand for its GPU Chips now the race for this AI Supremacy Is also creating an unprecedented Shortage of HPC high performance
Computing data centers and that's where Miners come in crypto miners Traditionally mine Bitcoin uh but with The Advanced Data Centers that they have They are seeing the opportunity to Partner with AI companies in order to House them for their AI services that Are developing and that is giving crypto Miners a new Revenue stream that Diversifies their revenue opportunities And is creating huge growth for these Miners revenue from crypto mining has Been sinking following the Bitcoin Having in April which caused the Business of generating new tokens to Become much less profitable many Bitcoin Mining firms are turning to other Sources of revenue with some Retrofitting existing facilities to Service AI clients mining facilities are In high demand given their access to Fiber lines and large amounts of power Across the US in June Bitcoin miner core Scientific announced an expanded deal With cor weave an Nvidia back startup That is one of the main providers of the Chipmakers technology for running AI Models core Scientifics said in total The partnership will generate nearly $5 Billion in Revenue over 12 Years also in June Bitcoin miner HUD 8 said it raised $150 million in debt from private Equity From kotu to help it build out its data Center portfolio for AI I think we will
See more deals I think it's you know Certainly positive for the industry it's Positive for the miners if you think About you know Bitcoin miners their kind Of sole job has been to acquire cheap Electricity and computing power to mine Bitcoin and they were you know early to That game and so all of a sudden when You know AI emerged as you know a very Compelling use case with rapid adoption That we haven't seen since the internet Of the late 90s frankly now all of a Sudden the supply and demand overlap Between what the Bitcoin miners have Which is power contracts and big Footprints and now the new demand coming From these Ai and HPC these kind of high Processing Computing centers is a Perfect match in its note bitwise Asset Management also points to other Opportunities for AI and crypto one of The longer term opportunities Information validation another virtual Assistance today we have SIMPLE agents Like Siri or Alexa that can can help us Do very simple things you know you can It can help you make a call it can help Pull up directions but they can't really Do very complex things yet so we think The opportunity with these AI agents is That crypto through smart contracts and Through cryptocurrencies can help them Become much more efficient at doing more Complex tasks we think that opportunity
Is really exciting not only for Individuals but for bus businesses in Enhancing productivity and allowing them To operate with smart contracts that can Unlock functionality vek also sees the Potential of the merging of AI and Crypto in February the global investment Manager released its crypto AI Revenue Predictions forecasting Revenue will Reach $10.2 billion doar by the end of The decade in its base case Matthew Seagull head of digital assets research At benx says he thinks there will be a Quote flourishing Market to establish Identity on the internet in order to Establish that you are a person crypto Can help with that without revealing who You are and that can be a killer app for This ecosystem the most famous project That is attacking this problem is Sam Alman's World coin uh which literally Asks you to scan your eye into an orb uh And then you get aird dropped some World Coin tokens and perhaps that that can Generate a a circular economy where all The participants are known to be human That project has attracted negative Attention when in reality when you Compare it to the alternative which is Perhaps only the government knowing all Of our Biometrics and what happens if The government data is hacked there are Plenty of willing participants for the Private sector alternative The open-
Source alternative and we think that Establishing identity could be one of The killer apps that combines crypto and AI then there are some who have concerns Tied to the convergence of AI and crypto Ari jwes Chief scientist at chain link Labs argues that there are misleading Narratives tied to the integration of The Technologies including that Blockchain can combat misinformation Caused by generative AI blockchains are Not magically going to enable us to Distinguish deep fakes from real content They can help but they're they're simply Not a full-blown solution what they can Provide are timestamps and audit Trails For Content so if you for instance see a Photo of a UFO hovering over the Washington Monument say uh blockchain May help you determine that the content I won't even say photo because it could Have been generated by an AI tool but That this content was created before a Certain time and it might also help you Determine that it was created by a Particular entity but what you don't get Is a direct assurance That this thing is an actual photograph And that it wasn't doctored or produced By an AI tool and the other thing that a Blockchain isn't going to give you is The full context in which the image was Produced my concern with the kind of Merger of these two technologies is more
So like I guess narratively that there's A lot of people who are building things That they claim to be you know useful Applications of these two things and uh It's very rare to see you know real real Innovation in this space I think that There's been this wave of kind of you Know quasi Builders who have seen the AI Hype and think that okay if I slap on AI To my crypto project Suddenly It's a Legit legitimate project um I think There's those are a dime a dozen but There are very real companies that are Building I think important use cases in AI both in data authentication and in Privacy San ragati is the co-founder of The dii protocol vaa which plans to Incorporate AI my view is that within The next two years we will see AI agents That are capable of entirely Autonomously managing portfolios on Behalf of people and will be the best at Doing so meaning from a risk management Perspective from an optimization Perspective uh we will see fully Autonomous systems as of today we don't Have that uh but what we do have is AI Playing a role alongside humans in these Operations I think we initially will see Humans and AIS working together that's What we have in production today Actually but we're definitely building For an fully AI Future all right that's all for crypto
World this week we're back on Monday and We'll see you then
