Former Coinbase executive Balaji Srinivasan believes that cryptocurrency will play a crucial role as the currency of the artificial intelligence (AI) age.
Digital Scarcity and Abundance
Srinivasan argues that crypto represents “digital scarcity” while AI represents “digital abundance.” AI will not make everything abundant, however. In fact, Srinivasan believes that cryptocurrency will become even more valuable in the AI age due to its provable scarcity.
Money as a Bridge
Money serves as a bridge between economically distinct actors. While you don’t need to pay your own hand or robot to move, you may need to pay a robot owned by another entity. This is where cryptocurrency comes in, allowing for transactions between different economic actors.
Superior Security
Srinivasan also highlights the superior security of web3 backends like Bitcoin and Ethereum compared to web2 systems. He believes that crypto private keys will be the most important form of scarcity in the AI age, as they will be used to control robots.
Conclusion
Srinivasan’s insights suggest that cryptocurrency will play a vital role in the AI era, providing a means of exchange, proving scarcity, and facilitating transactions between economically distinct actors.
