AI Predicts Bitcoin as Its Native Currency: Arthur Hayes

AI Predicts Bitcoin as Its Native Currency: Arthur Hayes

In a thought-provoking essay, BitMEX co-founder Arthur Hayes asserts that artificial intelligence (AI) will adopt Bitcoin as its primary currency. Hayes outlines the reasons behind this prediction, highlighting Bitcoin's suitability for AI's economic calculations and transactional needs.

According to Hayes, AI requires a payment system that is digital, always available, and fully automated. This is crucial for AI's continuous ability to pay for its essential "food" sources: data and computing power. Traditional banking systems, with their limitations and intermittent availability, fall short in meeting these requirements. In contrast, blockchain-based systems offer a solution that can provide the necessary 24/7 service.

Furthermore, an AI payment rail must be censorship-resistant, governed by clear and transparent rules. The risk of deplatforming is high for AI, as it lacks intrinsic understanding of human laws or the complex and obscure regulations of the banking system. Bitcoin's decentralized nature and its rule changes through a democratic network consensus make it censorship-resistant, ensuring that no single entity can arbitrarily alter the network's rules.

While stablecoins and other digital assets can operate on decentralized networks, they rely on centralized entities to back their reserves. This exposes them to potential censorship and freezing by their issuers. Bitcoin, on the other hand, escapes such vulnerabilities due to its inherent design, making it the ideal choice for AI's payment needs.

Hayes also argues that Bitcoin's suitability extends to its ability to maintain value over time, particularly in relation to AI's essential energy requirements. With a programmed limit of 21 million coins and its direct mining through electricity, Bitcoin's value is inherently tied to its energy expenditure. This characteristic distinguishes it from other cryptocurrencies like Ethereum, which Hayes believes has additional utility beyond being just money.

In conclusion, Hayes posits that Bitcoin's digital, decentralized, censorship-resistant, and value-preserving properties align perfectly with the requirements of AI as it navigates economic decisions and conducts transactions. As AI continues to advance, embracing Bitcoin as its native currency could have profound implications for the future of digital economies and the integration of AI into various industries.

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