BlackRock Executive Dismisses New Tokens as ‘Nonsense’ and Predicts Industry’s Merger with AI

Investors favor Bitcoin, Ethereum, and AI over altcoins, says BlackRock's Mitchnick.

Major investors are shifting away from purchasing a wide range of altcoins in favor of Bitcoin, Ethereum, and AI technologies. This was stated by BlackRock’s Head of Digital Assets, Robbie Mitchnick, at the Digital Asset Summit in New York, reports CoinDesk.

The company representative highlighted the market’s high volatility. According to him, the rotation among top coins happens “alarmingly fast.” Only the first cryptocurrency and Ether have maintained leadership over the years. Mitchnick described most new projects as “nonsense,” lacking long-term value.

As a result, BlackRock’s clients have stopped assembling diversified portfolios from numerous tokens. Now, capital is concentrated in major assets, and interest in the rest of the market is waning.

Mitchnick sees artificial intelligence as the new industry driver, pointing to the “natural symbiosis” between the two fields.

“AI agents are unlikely to use banking systems like Fedwire or SWIFT. Cryptocurrency is native money for computers, and AI is native data and intelligence,” explained the BlackRock representative.

The market is already responding to this trend. Mining companies, including Hut 8, Core Scientific, and IREN, are repurposing data centers to create infrastructure for artificial intelligence.

In the face of technological shifts, Bitcoin retains its role as a safe-haven asset. Mitchnick is confident that the first cryptocurrency serves as an excellent diversifier during periods of uncertainty.

Earlier, Hut 8 developed a modular infrastructure model that allows for flexible switching of computing power between AI tasks and Bitcoin mining.