Artificial intelligence is taking over the headlines. Whether we are experiencing a bubble or not will unfold over time. What is not subject to debate is the impact this is going to make. The remaking of society is happening right before our eyes.
What we do not know is the scale and speed which this will evolve. On these points, there is great dispute.
One thing that I forecast as our future is a time when each of us has our own personal AI assistant. The announcement this week by Apple starts to lead in that direction. We can see how some of the discussion centered around taking all the data from the years of tracking on the iPhone and merging it into the AI.
While this is a rudimentary layout of the idea, you get the point.
From this base, things can get very interesting in our thought process.
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AI Getting Paid
Many are wondering what is going to happen when the "robots take all the jobs". I wrote a great deal about what I think the path is when labor income is drastically reduced. One of the biggest defenses is turning to staking income.
Here is where we see some of the developments within cryptocurrency starting to have an impact.
Another concept we can pursue, and the basis for this article, is the idea of AI getting paid for services it performs. To some this might sound absurd but we actually see it taking place.
Is there anyplace where a machine does the world and money is exchanges for the outputs it provides?
Of course, this the basis for much of the manufacturing world. Certainly, many people are still employed yet it is undeniable that machines have taken over to a large degree. The company and, in turn, the owners are making money off the output produced by non-humans.
Since this is hybrid, perhaps it is difficult to see. For that reason, let us take another example.
When we look at blockchain, nodes are required to validate the blocks. This is a prime example of machines doing the world yet humans being paid. The software provides the service requires and, in return, cryptocurrency is paid to the validator for the block produced.
Anyone involved in cryptocurrency does not find this to be odd anymore. After all, Bitcoin mining is something even the mainstream media talks about.
So the switchto AI getting paid is not unrealistic.
AI Personal Assistant
When we have a personal AI assistant, there are no limitation to what it can do.
The tendency is to think of this as a singular entity, like a person. On the surface it fits. However, what if we wanted two assistants? The logical thought process is another AI.
Actually, they are all in one. The amount of tasks that this can handle is likely larger than most can throw at it. If we consider how fast processing is these days, a computer doing hundreds of thousands of tasks per day is nothing. Just consider the calculations that a single processor can do.
Thus, we can think of this as more than just an assistant. It is full-blown workforce.
So what happens when our AI goes out into the world (digital) and conducts business? How is it paid?
This is something that many are pondering. Will this lead to a post-monetary world? Perhaps at some point but not in the near term. Thus, what is the transition that most will understand.
To me the answer is compensation.
People are accustomed to be paid. Therefore, when the AI goes out and performs a task that benefits someone else, payment is required.
This is really what AWS and cloud companies are built upon. They have data centers which others pay to utilize. The machines perform a series of tasks for which Amazon is paid. Naturally, the billing isn't done on a per transaction basis but, as we can see with cryptocurrency, micro-payments are possible on some blockchains.
Trillions In Value
Some are estimating that crypto and AI could be a $20 trillion megatrend. Viewed through the lens laid out here, that does not seem unrealistic.
Again, it could be disputed whether this will happen by 2030, but there is little doubt trillions of dollars are available.
So what does this mean for each individual?
Like most things, it is an opportunity. The question always comes back to are people going to take advantage of it? If human history is any guide, a few will while the masses will not.
That said, those already involved in cryptocurrency are ahead of the game. We are dealing with the early days of this industry. The ones who move past the green candle, price go up mindset, suddenly an entire realm unfolds. By connecting some dots, we can see where things can potentially be heading.
Exponential is a word that gets tossed around frequently and for good reason. It is the most accurate term applied to the digital world. We are no longer dealing with linear moves. The recent development of AI really drives this point home.
We have no idea how long the present pace of AI development will last. There is a point where it has to start flattening out. Nevertheless, even when it does, we will still be looking at massive growth rates as compared to what is historically experienced in other facets of human society.
For example, robotic "birth" rates will far exceed anything humans ever achieved. There will come a time when billions are made in a year. That is something that is further down the road and likely will come at a time when space activities are further developed.
How is all of this going to be paid? Who will own it? Will the machines simply "swipe their Visa cards"?
These are questions we will have to answer. To me, cryptocurrency is going to be involved in this. It was designed in and for the digital realm.
As that expands, so does crypto.