AI will use cryptocurrencies

AI will use cryptocurrencies

The past few months have witnessed an unprecedented explosion of AI, marking a new paradigm shift that is set to revolutionize our world in numerous ways.

31 May, 2023
Talal Tabbaa
Talal Tabbaa
Author

The past few months have witnessed an unprecedented explosion of AI, marking a new paradigm shift that is set to revolutionize our world in numerous ways. The exponential rate of change happening right now is unfathomable because we’re used to thinking in linear terms, so we literally cannot imagine exponential change. It's kind of mind-blowing. One area where this transformation will undoubtedly leave its mark is money and finance. In fact, it's not a question of if AI will utilize crypto, but rather a matter of how and to what extent.

Firstly, AI will undoubtedly embrace cryptocurrencies due to the inherent trustworthiness of code compared to human intermediaries. The nature of programmatic money makes it an ideal choice for AI, as it possesses qualities such as immutable code, permissionless access, distributed architecture (eliminating single points of failure), seamless peer-to-peer transfers, and the ability to be self-custodied without third-party risks. It is difficult to imagine an AI system restricting its operations to banking hours and waiting for them to open in order to execute transactions, it would be highly unlikely and, quite frankly, unintelligent.

Consider this: if AI were tasked with drafting a finance agreement, would it hire human lawyers, and deal with arbitration courts? Or would it generate a self-executing smart contract on a platform like Ethereum? Smart contracts ensure transparency, immutability, and enforceability, all while minimizing the potential for human error or bias. 

Another increasingly important application of AI relates to the verification of authenticity through cryptography. We've all witnessed the scary-good capabilities of AI in producing deep fakes, convincingly mimicking the appearance and voice of anyone in the world. In a future where distinguishing between what is real and what is AI-generated becomes increasingly challenging, cryptographic techniques will play a vital role in verifying digital identities. 

The qualities of bitcoin and crypto as superior money and financial systems are clear to anyone who studied it honestly. I haven't met a single person who put in 100 hours of work into it only to conclude that it's not worth it. For most, the resistance to adopting bitcoin and crypto is mainly based on fear of disrupting the existing system, either because they’re benefiting from it, or their mental model can’t get past “this is how it's always been”. Unleashing AI in the world will accelerate the disruption of the status quo and force us all to shift our mental models and adopt superior technologies faster. 

Lastly, when AI is running everything, of course, it will use the only form of money it can autonomously control, crypto.

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