Potential for Market Expansion Despite Decline in AI Token Prices

The analysis suggests that even if the prices of artificial intelligence (AI) tokens decline, the AI market will not shrink. Paul Bonnet, a partner at venture capital firm 20VC, illustrated this by referencing the price drop in the aluminum industry. He pointed out that between the 19th and 20th centuries, the price of aluminum fell from $1,200 per kg to $0.48, emphasizing that such a price drop did not lead to the industry's demise. Bonnet argued that AI tokens could follow a similar trajectory, with price declines potentially opening up new markets. Although there are concerns about oversupply due to increased investments in AI data centers and GPUs, it is projected that AI tokens may experience a faster decrease in costs. He mentioned the possibility of new applications emerging when token prices drop by factors of 10, 100, or even 1,000. The paradox of thrift was also referenced, suggesting that increased efficiency in the AI sector could lead to higher consumption. Currently, chatbot usage is limited, but once AI agents become active, machines could become end consumers. In the domestic market, while the decline in AI token prices could positively impact service costs, it should be analyzed separately from the price outlook of specific coins or projects.

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