Bitcoin: The Chosen Currency for Artificial Intelligence’s Survival, Says Former BitMEX CEO
In an insightful essay penned by BitMEX co-founder Arthur Hayes, the proposition that Bitcoin will emerge as the preferred currency for the operational sustenance of artificial intelligence (AI) is explored. Hayes posits that as AI increasingly becomes an integral part of modern technology, it will require a form of currency akin to human needs, and Bitcoin fits the bill seamlessly.
The core argument revolves around the characteristics that Bitcoin inherently possesses, making it a logical choice for AI. Hayes highlights the attributes of permissionlessness, scarcity, and uninterrupted availability as key aspects. In essence, AI will demand a payment system that is perpetually accessible, entirely automated, and digital, to perpetuate its operations. The ability to pay for crucial necessities—data and compute power—is pivotal for AI’s continued functionality, and Bitcoin aligns perfectly with these requirements.
The traditional, fragmented banking sector is deemed unsuitable to provide the round-the-clock service that AI necessitates. Conversely, blockchain-based systems are positioned to fulfill this role with their inherent 24/7 operational capabilities.
Additionally, Hayes delves into the importance of censorship resistance and transparent rules in the context of AI’s financial transactions. AI requires a robust environment that is devoid of censorship risks and built on clear, unambiguous guidelines. This mitigates the threat of deplatforming, which could pose a grave concern for AI that lacks human comprehension of intricate legalities or opaque banking norms.
Bitcoin stands out in this regard as a censorship-resistant currency, fortified by its decentralized nature and its rule-changing mechanism that involves consensus from the majority of the network participants.
Furthermore, the essay emphasizes Bitcoin’s suitability in maintaining value over time, equating it to the “foodstuffs” of AI’s electrical sustenance. The capped supply of 21 million coins and its direct mining through electricity grant it an inherent value proposition.
While some contend that Ethereum could surpass Bitcoin due to its deflationary dynamics following the Merge, Hayes rebuts this claim, asserting that Ethereum’s multifaceted utility makes it distinct from the singular purpose of being a currency.
In essence, the essay underscores how Bitcoin’s properties align impeccably with the demands of AI, positioning it as a frontrunner for becoming the preferred currency for the evolving realm of artificial intelligence.