BitMEX founder Arthur Hayes made a sobering statement in a recent article suggesting that Bitcoinis poised to become the currency of choice for artificial intelligence (AI).
Hayes highlighted the unique characteristics of Bitcoin, such as its digital nature, censorship resistance, store of value, scarcity and long-term viability, which make it ideal for artificial intelligence applications.
Hayes went on to speculate that it was a fusion of the two passions. The desire to escape the inflation of the traditional financial system and the desire to be part of the next phase of man-machine evolution could lead to a fusion of unprecedented enthusiasm.
If AI adopts Bitcoin as its currency, we are likely to witness a combination of these two manias, causing investors to overpay for growth and driving the value of the Bitcoin network to absurd levels.
The digital nature of Bitcoin is particularly attractive to AI systems because it integrates seamlessly with the digital environment in which these technologies operate. Its decentralized nature ensures that transactions take place without an intermediary, thereby providing a level of autonomy and efficiency that is so sought after in artificial intelligence applications.
Additionally, the anonymous nature of Bitcoin transactions enhances privacy and security, meeting the requirements of artificial intelligence systems that rely on data integrity and confidentiality.
Bitcoin’s inherent censorship resistance makes it an attractive currency for AI, especially in regions where governments exercise control over traditional financial systems.
By utilizing Bitcoin, AI systems can bypass barriers and operate freely without regulatory restrictions. This freedom of action enables the global AI community to collaborate and innovate without fear of censorship or interference.
Another significant advantage of Bitcoin for AI is its store of value property. With a limited supply of only 21 million Bitcoins, Bitcoin is deflationary in nature, which ensures that its value is preserved over time.
This stability and long-term viability makes Bitcoin an attractive option for artificial intelligence systems that need a reliable medium of exchange and store of wealth. With the continuous advancement and prominence of artificial intelligence technology, the scarcity and anti-inflation characteristics of Bitcoin may be more and more recognized and accepted.
However, while the convergence of AI and Bitcoin holds great potential, it also presents challenges. The surge in demand and the resulting exponential increase in the value of Bitcoin could lead to speculative bubbles and erratic market behavior. Such volatility could have knock-on effects on the wider financial landscape, requiring regulatory measures to maintain stability and protect investors.
Arthur Hayes envisions a future where Bitcoin will be the currency of choice for AI applications, thanks to its unique digital properties, censorship resistance, store of value properties, scarcity, and long-term viability.