[kf]

I see cryptocurrency as a harbinger of AI, which is the real revolution. Blockchain is just a tool. People get really confused trying to understand and develop pricing models for the current state of the world but I see a lot of cryptocurrency value as reflecting the adoption of AI.

The author's equation produces low valuations at high velocity and this suggests a use case for low valuation, high velocity cryptocurrency as a medium of exchange if not a deflationary store of value. I don't think this currency exists yet, though I get lots of pitches for things that want to be this while also trying to justify their own value into the future.

In the early days of crypto, libertarian economists predicted that bitcoin would go to the moon and the USD would undergo hyperinflation. This is clearly not happening. What I think could happen is a relatively stable USD under the guidance of the Federal Reserve and a simultaneous hyperdeflation of ETH and BTC as they become the reserve currency of distributed AI capital organizations.

[XR0CSWV3h3kZWg]

> I see cryptocurrency as a harbinger of AI, which is the real revolution. Blockchain is just a tool. People get really confused trying to understand and develop pricing models for the current state of the world but I see a lot of cryptocurrency value as reflecting the adoption of AI.

This seems like a strange thing to believe. Why do you believe it?

[rms]

I don't see nearly as much use case for humans and cryptocurrency as for AI and cryptocurrency.

I think in the future, the average technologically savvy person will be just as confused about what bitcoin is and does as they are today and it will mostly be used to securitize options and derivatives of unprecedented complexity.

[XR0CSWV3h3kZWg]

Bitcoin is pretty bad at offering advanced securities or derivatives.

Really bitcoin is pretty bad at everything except atomic transfers.

Bitcoin is shit at loans, it's shit at writing wills, it's shit at scheduling payments, it's shit at offering shorts, it's shit at offering options, it's shit at providing oracles etc.

[rms]

Right. I imagine a future where AI capital entities just hold bitcoin and never do anything with it other than hold it forever to secure the things they're doing on the advanced financial platforms of the future.

[XR0CSWV3h3kZWg]

If the only action your AI takes is to hold bitcoin I've been running an AI for many years.

Capital that you can not leverage is a disadvantage.