Warning: Ignore short-term fluctuations, AI investment will grow 100 times
Anyone who has experienced at least one market cycle instinctively remains vigilant about price increases that far exceed historical averages. Witnessing the internet bubble, the 2008 global financial crisis, and the rise and fall of cryptocurrencies establishes a pattern recognition alert mechanism in your brain.
Many people are wary that the current AI bubble might be too large, and the prices too high?
You don’t want to rashly enter the market due to high prices, nor do you want to sell your assets because the prices are too high.
But we must recognize that we are in one of the most unique asymmetric periods in history. The only thing we should do now is to extend our investment horizon and completely abandon short-termism.
Excessive worry about bubbles is foolish. Trying to time the market is also foolish. Short-term fluctuations and adjustments will always occur, but since we are so close to the singularity, these fluctuations are entirely noise.
The fields of artificial intelligence, robotics, energy, and innovation will experience explosive growth. In the next decade, we will have billions (or even more) of AI agent workers, humanoid robots, space data centers, multi-planet colonization, significantly improved medical technologies, and a fundamental change in the speed and quantity of technological breakthroughs across all fields.
In the next twenty years, we will achieve more technological progress and economic growth than in the entire history of human civilization combined.
We have entered the steep phase of the J-curve, but it is difficult to perceive this when zooming in on daily or weekly progress.
100% of Anthropic's product code is now written by Claude. Product managers have a virtual team of software engineers that can almost change time. Companies that efficiently utilize AI see their product iteration speeds increase not by single digits, not by double digits, but by triple digits.
Moreover, the capabilities of these tools are improving at an even faster rate. It doesn’t really matter whether we officially reach the Age of Artificial Superintelligence (ASI) in 2027 or 2029. It will eventually come. By then, the asset prices you want to own will multiply several times.
The actual economic growth in the next 3-10 years is likely to reach levels of 20 standard deviations in any historical distribution. This kind of growth was previously considered almost impossible and is driven by unprecedented second and third-order changes. Traditional valuation models cannot price these changes. The potential growth space is so vast that it is difficult to capture with traditional present value calculation methods.
The speed of wealth growth will be astonishing, just like how cryptocurrencies initially created numerous billionaires and millionaires in a short time, but on a much larger scale. If not taken seriously, it is hard to grasp such rapidly rising prices, but unlike previous bubbles, the creation of actual economic value will be able to keep pace with the vertical growth of assets. In the past three years, those who understood the laws of exponential growth and invested have reaped significant benefits. If you haven’t realized this yet, it’s not too late.
While it is important to always be aware of downside risks, this is the largest upside risk in world history. Learn to endure risks for a longer time. Now is not a good time for trading. For the vast majority of people, investing usually yields higher returns than trading, but the gap between the expected returns of trading and investing will be greater than ever.
What is the geometric value of the call options embedded in the singularity event?
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