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Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, believes that in the future, Bitcoin (BTC) will be chosen by artificial intelligence (AI) as the currency for its economic activities.
in a long substack Essay Posted on July 7, the American entrepreneur explains the reasons for his belief, presenting arguments and findings to prove that the traditional financial system is not sustainable for AI-powered economies.
ai currency options
Hayes’ arguments were based on the financial needs of AI machines and their critical input. He compared the monetary characteristics of gold, fiat and bitcoin while evaluating the importance of AI machines.
Addressing the financial needs of AI, Hayes said that such machines would need to use a blockchain-based digital payment system that is available at all times and fully automated. The traditional banking system, which mostly works when humans are awake and is divided between geographic regions, would not be suitable.
A blockchain-based system, with rules outlined in clear and transparent code, would enable AI machines to pay their data providers and receive the same for their services.
good fit
For any currency to be suitable for AI-driven economies, Hayes pointed out that they must have a limited supply, be censorship-resistant, and have energy purchasing power.
While the supply of gold on Earth is limited, the BitMEX co-founder stressed that there is an unknown amount of it outside the world. Since bullion is a physical commodity, the only way to access its digital representation is to trust a centralized entity issuing gold digital certificates; Therefore it is not censorship resistant. Furthermore, the value of gold cannot be defined by a single energy derivative, as the asset can be created through a variety of sources.
In contrast, fiat has an unlimited supply in physical and digital forms, as governments control its issuance. Centralized oversight makes the currency non-resistant to censorship, and its value is pinned more on government politics than on its natural energy wealth.
Lastly, bitcoin has a limited supply of 21 million coins. However, due to its decentralized network, the asset is completely digital and censorship-resistant. Since new bitcoins can only be created through computers, the cost of electricity defines its value over time.
“Bitcoin is thus the logical currency choice for any AI. It is completely digital, censorship-resistant, potentially scarce, and its intrinsic value is entirely electricity-cost dependent. There is nothing in existence today that comes close to challenging bitcoin on these aspects,” Hayes said.
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[ad_1]
Arthur Hayes, co-founder and former CEO of cryptocurrency exchange BitMEX, believes that in the future, Bitcoin (BTC) will be chosen by artificial intelligence (AI) as the currency for its economic activities.
in a long substack Essay Posted on July 7, the American entrepreneur explains the reasons for his belief, presenting arguments and findings to prove that the traditional financial system is not sustainable for AI-powered economies.
ai currency options
Hayes’ arguments were based on the financial needs of AI machines and their critical input. He compared the monetary characteristics of gold, fiat and bitcoin while evaluating the importance of AI machines.
Addressing the financial needs of AI, Hayes said that such machines would need to use a blockchain-based digital payment system that is available at all times and fully automated. The traditional banking system, which mostly works when humans are awake and is divided between geographic regions, would not be suitable.
A blockchain-based system, with rules outlined in clear and transparent code, would enable AI machines to pay their data providers and receive the same for their services.
good fit
For any currency to be suitable for AI-driven economies, Hayes pointed out that they must have a limited supply, be censorship-resistant, and have energy purchasing power.
While the supply of gold on Earth is limited, the BitMEX co-founder stressed that there is an unknown amount of it outside the world. Since bullion is a physical commodity, the only way to access its digital representation is to trust a centralized entity issuing gold digital certificates; Therefore it is not censorship resistant. Furthermore, the value of gold cannot be defined by a single energy derivative, as the asset can be created through a variety of sources.
In contrast, fiat has an unlimited supply in physical and digital forms, as governments control its issuance. Centralized oversight makes the currency non-resistant to censorship, and its value is pinned more on government politics than on its natural energy wealth.
Lastly, bitcoin has a limited supply of 21 million coins. However, due to its decentralized network, the asset is completely digital and censorship-resistant. Since new bitcoins can only be created through computers, the cost of electricity defines its value over time.
“Bitcoin is thus the logical currency choice for any AI. It is completely digital, censorship-resistant, potentially scarce, and its intrinsic value is entirely electricity-cost dependent. There is nothing in existence today that comes close to challenging bitcoin on these aspects,” Hayes said.
Binance Free $100 (Exclusive): Use this link to register and get $100 free and 10% off fees on Binance Futures for the first month. (terms).
PrimeXBT SPECIAL OFFER: Use this link to register and enter the code CRYPTOPOTATO50 to receive up to $7,000 on your deposit.
