The trend is clear. AI is accelerating rapidly. At this point, you can use AI to create software, interfaces, marketing material, blogs, images, videos, and more.
Naturally, a lot of people have been thinking about how they can harness AI to make their businesses more efficient, increase profits, and save more dollars.
However, considering recent geopolitical events, perhaps we should be thinking more about what could underpin the future AI-powered economy, and replace the dollar entirely.
De-Dollarization Accelerates
As the Israel/US/Iran conflict unravels, countries have been struggling to meet their oil demand. The US, having control over the traditional financial system, has been threatening to sanction anyone who works with Iran.
In order to avoid these sanctions, India has been buying oil from Iran using the Chinese yuan to settle payments, rather than the US dollar. This is further indication that the petrodollar is on the way out.
Over the past few years, countries left and right have been reducing their dependence on the dollar in favor of alternative fiat currencies (the Yuan, mainly), gold, and/or cryptocurrencies.
Investing in the Future
If we know that most jobs are going to be made redundant due to AI, and we also know that the old financial system is on the way out, perhaps we should focus our energy on identifying the new currencies that will fuel the future AI-powered economy.
If we can make an educated guess regarding which currencies will replace the US dollar, and get our hands on them before the masses do, we can expect their values to increase in the future.
Keep in mind however, that none of this is financial advice ;)
Yuan, Gold, or Cryptocurrencies?
The future of money is still up in the air, but we have some strong contenders.
Although the Chinese yuan is gaining adoption worldwide, it is still a fairly closed system. For example, trying to find a tokenized version of the yuan on either Ethereum or Solana isn't easy, as the Chinese government continues to hold an anti-crypto stance.
When it comes to gold, the old bartering system that we used hundreds of years ago isn't coming back. More that likely, gold will be tokenized on a blockchain like Ethereum or Solana, which will create demand for their respective base tokens (ETH and SOL).
We also see the emergence of DePINs that crowdsource the roll-out of physical infrastructure using token incentives. These tokens are then used to pay for services such as wireless Internet access, energy, compute, storage, mapping data, and more.
Autonomous AI agents have also been launching, and they will need a way to pay each other for resources such as data, energy, and compute. For now, they can use USD stablecoins, but when de-dollarization is complete, their governance tokens may become the default currency.
Until next time...
People have been thinking about how they can make more dollars with AI, but perhaps we should be more focused on what currencies will be used as money when the US dollar is phased out. It could very well be a combination of the yuan, tokenized gold, DePIN and AI tokens.
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on X or InLeo for more frequent updates.
Further Reading
- DePIN (Decentralized Physical Infrastructure Network) Projects