Miles Deutscher, a cryptocurrency analyst with a following of 452,000 on X (formerly Twitter), confidently predicts that artificial intelligence (AI) crypto tokens are poised for significant gains in the forthcoming anticipated bull run.
While acknowledging the varied performance of numerous AI crypto tokens, Deutscher highlights a specific category that has captured his attention.
One Key AI Beneficiary in the Crypto Bull Market: DePIN
In a series of posts on X (formerly Twitter), Deutscher outlines that he has honed his focus on one particular category called DePIN, which stands for Decentralized Physical Infrastructure.
“AI will be one of crypto’s top performing sectors this bull run. But instead of buying random AI coins, I’m focused on one key beneficiary: DePIN.”
This comes as crypto analyst Lark Davis told his 1.1 million followers that DePIN could add $10 trillion to the world’s GDP. Furthermore, Deutscher highlighted Messari’s prediction that DePIN could bring in $100 trillion in the next decade after next.
For the short term, Messari predicts that the DePIN sector will hit $3.5 trillion in the next four years. Deutscher believes the prediction is slightly too conservative, anticipating a much higher prediction:
“Longer term, I’m anticipating that number to go much higher, due to the strong aforementioned flywheel mechanics involved.”
DePIN sector is anticipated to significantly add to global GDP. Source: Miles Deutscher
Deutscher explains that physical infrastructure has always held a monopoly over the economy. However, it has significant maintenance costs and is “out of reach for small players.”
“It has significant capital & maintenance costs, out of reach for small players. Giants like AWS capitalise on this by selling their services at a premium.”
DePIN Characteristics Could Shine in Bull Market
However, he contends that DePIN enables cost reduction, horizontal scaling, and rewarding network contributors.
Deutscher explains this occurs as the supply side commits resources for token rewards, incentivizing more infrastructure deployment.