Web3 or IA: What should you invest in?

Web3 and artificial intelligence (AI) offer promising investment opportunities. Web3 offers decentralization and tokenization, while AI has the potential for transformation. But what to choose as an investment?

Invest in Web3

The Web3 is the next generation of the Internet that gives users ultimate control over their data and assets through blockchain technology. It is characterized by:

• decentralization,
• interoperability,
• data ownership.

The Web3 thus opens up new investment opportunities. Here are a few :

1. Cryptocurrencies

Cryptocurrencies are a the easiest ways to invest in Web3. You can buy popular cryptocurrencies (like Bitcoin and Ethereum) or other blockchain-based projects that power the Web3. Precisely, exchanges allow you to buy, sell and keep your cryptocurrencies in complete safety.

2. Cryptocurrency mining

Cryptocurrency mining is based on a simple concept: using powerful computers to solve complex mathematical puzzles and secure the blockchain network. As a reward for your efforts, you can earn cryptocurrency.

Important clarification: Mining requires a large initial investment. However, it pays off in the long run.

3. Tokenization of real assets

Web3 also makes it possible to tokenize real assets such as:

• real estate,
• art,
• collectible cars.

These assets can be represented as tokens on the blockchain, allowing greater accessibility and ease of transaction. You can thus invest in these real asset tokens and potentially benefit from the growth in their value.

4. Decentralized applications (dApps)

dApps are applications built on the blockchain. They offer decentralized functionalities and innovative services.

You can invest in projects that develop promising dApps in various fields:

• decentralized finance (DeFi),
• Games,
• the governance…

Advice : Do some research to understand the potential as well as the risks associated with each project.

5. NFT (Non-Fungible Tokens)

NFTs are unique tokens which represent the digital ownership of assets. You can invest in NFTs by:

• buying artists’ creations;
• participating in digital art auction platforms.

Lately, there has been a strong craze for NFTs. It is therefore important to choose quality projects.

Invest in AI

According to many experts, artificial intelligence today has considerable growth potential. It can be defined as the construction of computer programs able to perform tasks that require high-level mental processes. Perceptual learning, memory organization and critical reasoning are among them. In other words, these are technologies that can understand their environment and act accordingly.

AI is gradually occupying a place in our daily lives with various applications. This includes :

• virtual assistants,
• autonomous driving,
• medical diagnosis,
• instant translation.

According PwCthe AI ​​should add 13.5 trillion euros to the global economy by 2030. This is equivalent to the economy of the European Union. A study by Accenture estimates that AI could increase global productivity by 40% by 2035.

There currently exists different approaches to investing in AI. The main high-tech giants (like Alphabet, the parent company of Google, and Amazon) are investing heavily in the research and development of these technologies. AI start-ups are also attracting interest from venture capitalists.

Do you want to invest in AI? You can buy shares directly large technology companies or companies specialized in AI. However, this requires expertise as well as regular monitoring that few savers can afford.

Another option: invest in thematic funds specialized in artificial intelligence offered by management companies. These funds provide access to a diversified portfolio of companies using, developing or marketing AI solutions. Some of these funds are accessible via life insurance contracts.

Invest in Web3 or AI?

The choice between Web3 and AI depends on:

• your risk tolerance,
• your knowledge,
• your personal preferences.

Are you comfortable with the volatility of cryptocurrencies and interested in decentralized innovation? Web 3 can be an attractive option.

Are you more interested in the practical applications of artificial intelligence? Do you believe in its transformative potential? AI might be a better choice.

Important note: Web 3 and AI are not “mutually exclusive”. There are projects that combine the two areas. They use AI to improve the capabilities of decentralized applications or decentralized concepts to enhance the transparency and accountability of AI systems.

You can also consider diversify your investment portfolio by allocating funds to both areas. You will then have to take into account your risk profile and your long-term objectives.

Consider your risk profile and interests when choosing between Web3 and AI. Consider the possibility of diversifying your investments. The two domains can also coexist.