Crypto is going to change the world.
This is a statement based not so much on crypto itself but, rather, the changes that are taking place due to AI. I long stated that AI and crypto are linked. They cannot be separated. As we see our tools out thinking us, a new economic model is required.
Some are starting to look at the world through this lens. Capitalism is moving towards obsolescence. This does not mean, however, that socialism or any other ism is the solution.
At the foundation is the need for a new social contract. We are having to rework the framework for society.
Crypto is a part of the solution. How all of this unfolds is up to us. We are not locked into a particular pathway. That said, it will require some focused attention to the problem along with massive efforts in building out new systems.
The core of the issue is the central component to our economy, labor, is being rewritten. Capital is taking a larger portion of the economic model, pushing labor to the side.
In the future, everything will come down to compute. The Age of Abundance is based upon the ability to generate more compute, in all the forms it will take.
What happens when we see $1 robots? This is simply a matter of being able to generate enough output to instill cost reduction.
Machines that think means that money changes. It will no longer being an IOU against future labor provided as it is now. Instead, it becomes a receipt for benefit derived.
In simple terms, we are moving towards a world where more compute equates to increased economic output. Thus, to increase the later, simply grow the former.
Machines will naturally take on different forms. There are humanoid robots being designed. Computers have long being a mainstay of our society. Cars are becoming "computers on wheels".
Today, the majority of the global population has access to the portable computer called a smartphone.
Bitcoin was revolutionary for one reason: it provided a decentralized consensus mechanism where it was centralized before.
At the same time, there was a direct link between compute and money.
While Bitcoin showed us the way, there are a couple problems that are evident. It is both a technical and social problem.
The first is scaling. Bitcoin cannot scale. For that matter, most other crypto networks are facing a similar issues. This is really evident, however, with BTC.
Then we have the distribution. Bitcoin is generated by having expensive, high-powered computers solving extremely mathematical calculations. This causes the distribution to pool in only a few hands.
It is what we are seeing with Bitcoin.
Nevertheless, the bridge between compute and crypto should be obvious.
The solution to the problem that is confronting people who are looking at this is universal compute. In other words, compute much be part of the commons.
How this is achieved will likely be hotly debated. Nevertheless, the solution is to have compute available to everyone. Actually, to go a step further, to provide the token benefits, which represent a receipt for a benefit delivered.
If we look at how AI is shaping up, this becomes evident. Since most GPUs will ultimately provide exclusively AI services (everything will be AI i.e. automated), then distributing the value of the productivity vita tokens is paramount.
Some will say governments need to provide this to the population. At the same time, others will claim that an "opt-in" system is more beneficial, such as the Network-State idea. Then we have a mixture of the two.
The present challenge is we are operating in a realm where a few companies are accumulating compute. Elon Musk stated the goal of xAi is to have 50 million GPUs within 5 years. Zuckerberg is also racing ahead, amassing huge data centers.
Here is where open enters the discussion. Compute is the currency because it "funds" the evolution of intelligence. Right now it is providing this to tech behemoths that likely do not have the best interest of humanity as their focus.
In the next article we will discuss how ledger technology factors into this. Since that is what underpins crypto, it will further strengthen the link between compute and money.
