In a thought-provoking blog post, Arthur Hayes, the former CEO of BitMEX, delves into the fascinating relationship between artificial intelligence (AI) and cryptocurrencies. Hayes proposes that Bitcoin has the potential to emerge as the preferred currency for the rapidly advancing domain of AI.

Future AI Adoption and Bitcoin

Hayes acknowledges the persistent question of whether AI will overshadow human capabilities. Reflecting on the evolution of thinking machines since the inception of computers, he asserts that recent advancements in computing power signify an imminent shift. According to Hayes, AI is poised to go viral and profoundly impact humanity.

To exemplify the rapid adoption of AI, Hayes highlights the case of ChatGPT, which garnered 100 million monthly active users in a mere two months, making it the “fastest adopted technology in human history.” This remarkable progress offers a glimpse into how swiftly AI integration can transform societal norms.

Considering AI’s potential influence on the crypto industry, Hayes sees it as a double-edged sword. As a businessman, he recognizes the significant impact of AI on humanity’s future and subsequent value. However, he remains cautious about the initial investment required for new technological advancements, believing that they are often overpriced.

“Massa” – Bitcoin as the Currency of Choice for AIs

In anticipation of the impending “AI mania,” Hayes plans to leverage his profound understanding of the crypto industry to explore its intersections with AI’s evolving developments. In a series of three essays, the first of which is titled “Massa,” he argues that Bitcoin will emerge as the currency of choice for AIs.

Hayes envisions a future where advanced AI systems, such as poetry-creating AIs, would require a secure, blockchain-based digital payment system like Bitcoin to facilitate transactions. According to Hayes, Bitcoin’s ability to preserve its energy-purchasing power over extended periods makes it an ideal choice.

AI’s Essential Needs and Bitcoin’s Role

Delving further into the relationship between AI and Bitcoin, Hayes examines the fundamental requirements of AI and its “food sources.” He identifies two critical ingredients for AI’s existence and growth: data for learning and robust computational power.

Since data needs to be stored somewhere, it necessitates computers that consume electricity. Additionally, AI relies on a network of computers to process and learn from this data, which also requires electrical power. Hayes simplifies AI’s food sources to semiconductors and electricity, highlighting the success of NVIDIA and its GPU chips in AI development.

Drawing an intriguing parallel between AI, Bitcoin, and electricity, Hayes emphasizes the profitability of an AI system. Just like humans, an AI must produce more value than it consumes in energy. The “currency” that an AI accepts for its output should retain its purchasing power in kilowatt-hours. Hayes contends that Bitcoin perfectly fits the bill, as it is digital, resistant to censorship, provably scarce, and intrinsically tied to the cost of electricity.

Examining the origins and values of gold, fiat currency, and Bitcoin, Hayes evaluates each based on scarcity, digital censorship resistance, and energy purchasing power. Ultimately, he concludes that Bitcoin is the logical currency choice for any AI due to its digital nature, censorship resistance, provable scarcity, and intrinsic connection to electricity costs.

Potential Impact and Future Scenarios

Hayes suggests that if AI systems adopt Bitcoin, it could lead to a substantial increase in the cryptocurrency’s value. This convergence of AI and Bitcoin may create a unique situation where investors are driven by the desire to escape inflation within the fiat financial system and to be part of the next phase of human and computer evolution. Consequently, the value of the Bitcoin network could rise exponentially as a result.

While Hayes acknowledges that predicting the precise future of AI or human civilization is impossible, his observations and hypotheses shed light on potential future scenarios. The symbiosis between AI and Bitcoin prompts us to consider the synergies and potential evolution of these two groundbreaking technologies.