Former BitMEX CEO Arthur Hayes suggests Bitcoin could be the preferred currency for AI in a blog post exploring the potential interaction between artificial intelligence and cryptocurrencies.
Hayes, the co-founder and former CEO of BitMEX, discussed a future where AI and robotics eliminate undesirable tasks in human work, allowing more individuals to focus on their passions and potentially initiating a new renaissance in art and culture.
The Acceptance of AI in the Future and Its Relationship with Bitcoin
Hayes addressed the daunting question of AI potentially overshadowing human capabilities. He stated:
“Ever since the first computers came online during WW2, scientists and philosophers have debated how thinking machines will evolve and their impact on the human experience.”
Hayes believes that recent advancements in computer power indicate that we are on the verge of a significant change that will alter the destiny of humanity, driven by the widespread adoption of AI.
As a rapid example of AI adoption, he pointed out the ChatGPT’s achievement of reaching 100 million monthly active users in just two months, providing a glimpse into how quickly AI can integrate into daily life.
From a business perspective, Hayes finds himself grappling with the paradoxical implications of AI’s rising influence on the crypto industry. He is influenced by the significant impact AI has on the future of humanity and the associated value. However, he approaches initial investment in a new technological advancement with caution, as he believes it is often overpriced.
Anticipating the upcoming “AI Craze,” Hayes plans to identify intersections between developments in the field of AI and the crypto industry, drawing on his deep understanding of the crypto industry. In his article titled “Massa,” he argues that Bitcoin will become the preferred currency for AI.
Hayes envisions advanced systems, such as an AI capable of writing poetry, requiring a secure blockchain-based digital payment system like Bitcoin for transactions. According to Hayes, Bitcoin effectively meets these requirements because it has maintained its purchasing power for an extended period.
Will AI Consume Bitcoin?
Arthur Hayes later explored the basic needs and “food sources” of AI in a section titled “AI Must Eat.” He drew an analogy between Bitcoin and AI, suggesting that Bitcoin is an ideal “currency” for AI operations.
According to Hayes, AI requires two essential components to exist and thrive: data for learning and powerful computational capabilities.
This data needs to be stored somewhere, which requires computers that consume electricity. Additionally, AI requires a robust computer network to process and learn from this data, which also demands electrical power. Hayes pointed out that NVIDIA has succeeded due to its fundamental role in AI development, simplifying the “food sources” of AI to semiconductors and electricity.
Hayes also drew an intriguing connection between AI, Bitcoin, and electricity. He stated that just like humans, AI must produce more value than the energy it consumes to be profitable. In this regard, AI is similar to humans, who must produce sufficient value to meet their food and fuel needs. However, the form of “currency” that an AI would deem acceptable in exchange for its output must retain purchasing power relative to kilowatt-hours. Hayes claims that Bitcoin is an excellent choice due to its status as an energy currency.
According to Hayes, if AI embraces Bitcoin, it could lead to a significant increase in the value of the cryptocurrency. This convergence of escaping inflation in the fiat financial system and the frenzy of being part of the next stage of human and computer evolution could potentially drive investors to overpay, resulting in a potentially exponential increase in the value of the Bitcoin network.
A Glimpse into the Future
While this is a more speculative work, Hayes emphasizes that the point at which market prices shift from “impossible” to “maybe” presents the greatest opportunity for financial gains. This suggests that the adoption of Bitcoin by AI and the subsequent increase in its value could be an inevitable probability.
Hayes acknowledges that he cannot predict the definite future of AI or human civilization, but his observations and hypotheses present potential future scenarios.
The discovery of this symbiosis between AI and Bitcoin encourages us to contemplate the synergies and possible evolutions of these two revolutionary technologies.