The world of technology continues to present fascinating opportunities as we head into 2025, with two key areas — cryptocurrencies and personal artificial intelligence — gaining significant momentum. Both sectors, despite their respective challenges, are poised to reshape industries and create intriguing possibilities for growth and investment.
The cryptocurrency sector, in particular, is experiencing a resurgence of optimism. After the fallout from the FTX collapse in late 2022, which left an $8 billion (£6.3 billion) black hole in customer funds and its co-founder Sam Bankman-Fried sentenced to 25 years for fraud, the industry’s future seemed bleak. Confidence plummeted, and many questioned whether cryptocurrencies could ever transcend their niche appeal. Yet, the narrative took a dramatic turn with Donald Trump’s victory in the November 2024 U.S. presidential election. Investors quickly rallied behind the belief that his administration would usher in a more favourable regulatory landscape for digital assets.
Trump’s decision to nominate Paul Atkins, a known cryptocurrency advocate, to lead the Securities and Exchange Commission (SEC) sparked further enthusiasm. This shift in leadership contrasts starkly with the more sceptical stance of outgoing SEC chair Gary Gensler. The market responded decisively, with Bitcoin surging past the $100,000 mark. Geoffrey Kendrick of Standard Chartered forecasts that 2025 could see proactive regulation that dismantles restrictive measures, such as the SEC’s SAB 121 guidance, and paves the way for institutional participation. If Trump succeeds in positioning the U.S. as a global cryptocurrency hub, it could catalyse unprecedented growth in the sector, marking a stark reversal from his earlier criticisms of Bitcoin as a “scam.”
Simultaneously, personal artificial intelligence is emerging as a transformative force. The integration of AI into daily life, spearheaded by tech giants like Apple, Google, and Samsung, signals a new era where digital companions could become as essential as smartphones. These tools are evolving rapidly, capable of editing photos, translating languages, and even managing complex schedules. However, the increasing reliance on AI raises profound questions about privacy and trust. For these systems to be genuinely effective, users must grant them access to deeply personal information, such as relationship details or health records—a daunting prospect for many.
Microsoft’s ambitious AI project, Recall, which aimed to capture snapshots of users’ screens to aid memory, exemplifies both the potential and perils of these advancements. Although the tool was shelved due to privacy concerns, it reflects the tech industry’s unrelenting drive to personalise AI. Mustafa Suleyman, Microsoft’s AI chief, envisions a future where “ever-present, persistent, very capable co-pilot companions” redefine our relationship with technology. Yet, as Ben Wood of CCS Insight warns, the success of these innovations hinges on fostering user trust, an essential but elusive ingredient in the digital age.
The surging demand for AI technologies also underscores the need for infrastructure investment. Training sophisticated AI models requires enormous computing power, driving a projected $1 trillion investment in data centres by 2028. Europe alone anticipates an annual 9% growth in capacity, with the UK likely to see new facilities emerge in cities like Cambridge and Manchester, where costs and electricity supply are more favourable than in established hubs like London. Nvidia’s cutting-edge Blackwell chip, set to debut in 2025, promises to supercharge AI capabilities, enabling faster training and deployment. However, limited supply might restrict access to this game-changing technology, with major players like Microsoft and Amazon first in line.
The intertwining evolution of cryptocurrencies and personal AI represents not only technological progress but also a profound shift in global business dynamics. As these innovations unfold, they offer fertile ground for those prepared to navigate their complexities and seize the opportunities they present.
(Source: BBC)