Former Chief Technology Officer of Coinbase and a prominent investor, Balaji S. Srinivasan, recently took to X (formerly Twitter) to share his vision of crypto’s future. According to Srinivasan, cryptocurrency will play a central role in an era dominated by generative AI and robotics. Moreover, Srinivasan suggested that crypto will form the backbone of AI.

Ex-Coinbase CTO On Crypto & AI’s Future

The former Coinbase exec believes that “money after AI is crypto.” In addition, he suggested a transformative shift in how we understand and use money in a technologically advanced world. Srinivasan argued that in a future where AI and robotics create abundance, crypto will be essential because of its inherent scarcity.

He stated, “Cryptocurrency is what’s provably scarce in the age of AI abundance.” This scarcity will be crucial in distinguishing human activities from those of artificial intelligence, especially when AI tools can easily mimic human actions. Moroever, one of the key points Srinivasan makes is about the economic interactions between humans and robots.

The ex-Coinbase CTO explained that while you don’t need to pay a robot you own, you will need to pay for services provided by robots owned by others. “A robot owned by another economic actor will still need money to rent,” Srinivasan noted. In this scenario, cryptocurrencies could serve as the medium of exchange to unlock and utilize these robots.

Srinivasan also highlights that although many forms of scarcity might diminish, some will persist. For instance, the infrastructure needed to build and power these advanced technologies, such as robots and AI data centers, will remain limited. The former Coinbase CTO pointed out, “The supply chains to build the robots and the nuclear power plants to run the AI datacenters will remain scarce.”

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Incorporation Of Digital Keys In AI

Moreover, the control over these advanced machines will hinge on secure digital keys. “The most important form of scarcity in the AI age are the private keys to control the robots,” Srinivasan said. The Coinbase alum added that Web3 technologies like Bitcoin and Ethereum provide the necessary security to manage these keys effectively.

Additionally, he emphasizes that while AI brings digital abundance, it doesn’t eliminate all forms of scarcity. “AI is digital abundance but it doesn’t make everything abundant. Crypto is digital scarcity and complements AI’s abundance,” he concluded.

In essence, Srinivasan’s vision presents a future where crypto is not just a financial tool but a fundamental component of economic transactions in a world dominated by AI and robotics. This perspective underscores the ongoing evolution of money and technology. It suggests that as AI continues to grow, so will the need for secure, scarce, and versatile forms of currency like crypto.

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The post Former Coinbase CTO Explains How Crypto Will Rule The AI-Driven Future appeared first on CoinGape.

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Filed under: News - @ June 15, 2024 12:17 pm