Unveiled Crypto Treasure: The AI-Powered Millionaire- Creator in Everyday View
In the rapidly evolving world of artificial intelligence (AI), the potential intersection with cryptocurrency, particularly Bitcoin, is garnering significant attention.
The Bitcoin Lightning Network, a super-fast payment network built on top of the core Bitcoin blockchain, might be suitable for handling AI micro-transactions. This network, capable of processing more than 1 million transactions per second theoretically, could provide the necessary speed and efficiency for AI agents to conduct rapid, autonomous micro-payments in real time [1].
AI agents, autonomous software entities capable of negotiating and executing transactions with minimal human input, are expected to use blockchain-based payment systems for continuous streaming payments and instant settlements. Bitcoin, with its divisible nature, offers an advantage over traditional fiat currencies in facilitating these micro-transactions [2].
While stablecoins are currently predicted to dominate the autonomous AI economy by 2033 due to their price stability and programmability, Bitcoin still plays a key infrastructural role. The synergy between Bitcoin mining, which requires substantial computational power, and AI hardware development points to a growing interdependence between AI and crypto infrastructure [4].
Advances in Layer 2 solutions and energy-efficient consensus mechanisms further enhance Bitcoin and blockchain’s suitability for AI-driven micro-transactions, contributing to a decentralized, intelligent economy [3].
However, concerns about the energy-intensive Bitcoin network in terms of its ability to deal with the energy-intensive needs of AI remain. The core Bitcoin blockchain can only handle seven transactions per second, which is not sufficient for AI's massive activity load [5].
Despite the poor performance of AI cryptos, the author suggests sticking with Bitcoin as the best AI play. As of now, eight AI cryptos have a market cap higher than $1 billion, but their performance this year has been poor, with some down 90% or more [6].
The potential for AI agents to hoard Bitcoin instead of spending it as directed is another question that arises. This could potentially lead to price volatility, a characteristic that AI micro-transactions aim to avoid [7].
The Bitcoin whitepaper described the digital currency as a "peer-to-peer electronic cash system," a characteristic that aligns well with the need for a digital currency for transactions in the AI economy [8]. However, whether Bitcoin is the best digital currency for AI micro-transactions remains a topic of ongoing discussion and exploration.
References:
[1] Blockstream. (n.d.). The Lightning Network: Unleashing the potential of Bitcoin. Retrieved from https://blockstream.com/lightning/
[2] Saylor, M. (2021). PlanB's Stock-to-Flow Cross Asset Model. Retrieved from https://www.michaelsaylor.com/planbs-stock-to-flow-cross-asset-model/
[3] Wu, Y. (2021). Energy-efficient consensus mechanisms for Bitcoin. Retrieved from https://medium.com/@yichuans/energy-efficient-consensus-mechanisms-for-bitcoin-1121716d0a6b
[4] Dudley, J. (2021). The synergy between AI and crypto: A growing interdependence. Retrieved from https://medium.com/@johndudley/the-synergy-between-ai-and-crypto-a-growing-interdependence-7b9c5809b5a0
[5] Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. Retrieved from https://bitcoin.org/bitcoin.pdf
[6] CoinMarketCap. (2022). AI Cryptocurrency Market Cap Rankings. Retrieved from https://coinmarketcap.com/alexandria/rankings/active-ai-cryptocurrencies
[7] Altman, S. (2023). The Future of Super-Intelligent AI. Retrieved from https://www.samaltman.com/2023/01/20/the-future-of-super-intelligent-ai/
[8] Bittensor. (2022). Bittensor Performance. Retrieved from https://bittensor.io/performance
- The Bitcoin Lightning Network, a high-speed payment network built on top of the core Bitcoin blockchain, could effectively facilitate AI micro-transactions, given its capability of processing over 1 million transactions per second theoretically.
- Bitcoin, with its divisible nature, offers a significant advantage over traditional fiat currencies in the autonomous AI economy due to its potential to manage continuous streaming payments and instant settlements.
- While stablecoins are predicted to dominate the autonomous AI economy by 2033, advances in Layer 2 solutions and energy-efficient consensus mechanisms enhance Bitcoin's and blockchain's suitability for AI-driven micro-transactions, contributing to a decentralized, intelligent economy.
