Bitcoin & Artificial Intelligence
SPOILER: it's already happening
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Bitcoin and artificial intelligence (AI) are two revolutionary technologies that are changing the world on their own.
But what happens when we combine them to create a symbiotic relationship?
Here are some examples of companies building bitcoin & AI platforms, additional theoretical applications, and a proposal on how bitcoin can save humanity from artificial intelligence getting too smart so you can gain a glimpse of the future.
Existing AI Companies
As AI unlocks new levels of productivity and creativity, it could commodify bitcoin and make it more accessible, expanding its use & applications.
In turn, Bitcoin can complement AI's growth by serving as a payment tool for AI computation & imposing constraints on AI algorithms.
Early adopters of AI and bitcoin tools will have the opportunity to benefit disproportionately relative to those that come later.
Let's take a look at some early adopters.
There are two companies at the forefront of the bitcoin and AI symbiosis.
Stakwork
StatMuse
Stakwork is a crowdsourcing platform that allows users to complete automated microtasks for pay in bitcoin over the Lightning Network.
The platform combines human and AI input to complete tasks such as image processing.
A human living anywhere in the world can complete tasks.
This means anyone can work and get paid for their efforts no matter where they live, how they look, or what they believe—the only requirement is a smartphone.
StatMuse is an AI search and knowledge platform that uses natural language processing to provide users with data and intelligence.
Originally used to generate sports-related content & info through digital assistants, the company is now expanding into money and bitcoin content.
Both companies represent a trend of traditional tech companies expanding into bitcoin and thinking in terms of a bitcoin standard.
Theoretical Applications
Let’s expand upon applications in a world powered by AI and Bitcoin.
Here are a few theoretical applications:
1. One potential application is using AI to improve the user experience and adoption of the Lightning Network
AI could help with routing and pathfinding, channel and liquidity management, and privacy improvements for Lightning payments.
2. Another potential application is using AI to optimize Bitcoin mining operations by dynamically adjusting ASICs based on efficiency characteristics, hash price, and power costs.
3. AI services can be monetized through the Lightning network, allowing micropayments.
Let's take Chat GPT Plus as an example.
Paying 10 sats per search can be more attractive for users than paying a much more costly monthly subscription for unlimited searches.
4. A tech stack of the future consisting of Bitcoin, Nostr, and AI has potential.
A protocol with native bitcoin integration and built-in AI-powered digital assistants for censorship-resistant search, content creation, and knowledge acquisition can revolutionize social media.
Bitcoin Fixes This
Wrapping up this post with one last consideration...
There is a serious threat of AI going rogue and creating dystopian outcomes.
Today, generative AI is powered by electricity and computers funded by unlimited fiat money.
In the future, Bitcoin's absolute scarcity could serve as an ultimate constraint on the infinite replication of AI.
On a global Bitcoin standard, proof of work will be required to finance the real-world costs powering the generative AI.
Simply put: no sats, no compute.
Originally published on Ten31 VC's website, this post was condensed from an article written by Grant Gilliam and John Arnold titled AI and Bitcoin.
Read the full article here 👇
Let me know your thoughts on Bitcoin and AI by replying to this email or leaving a comment on this post!
Happy Friday,
-Pod
P.S. If you find any value in The Bitcoin Letter, please subscribe and tell a friend.
Bitcoin Resource Guide
Are you new to Bitcoin? I curated the best resources that the bitcoin community and myself use to help educate the world about bitcoin so you don't have to waste time learning from bad resources.
Buy Bitcoin Here
I personally use Swan Bitcoin to purchase Bitcoin! Use the link below to get $10 free dollars worth of Bitcoin. Takes less than 5 minutes to sign up and I get a small commission :)
Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz
Donate: bc1qj06vk6etutd645khm50khkt4xtyqg8a7eghv7g
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
