Balaji Srinivasan makes a forecast about the future of cryptocurrencies and AI

General partner of the a16z investment fund Balaji Srinivasan believes that digital assets will be the basic financial instruments in the near future.

The entrepreneur made the assumption that the combination of the capabilities of cryptocurrency developments and advances related to artificial intelligence will contribute to the emergence of a new era of the industrial revolution.

Srinivasan believes that as manufacturing processes become more efficient, there will be a need for stable and universal forms of digital money. In the future, when artificial intelligence and robotics will be implemented everywhere. And the way people will treat and use money in a technologically advanced environment will change.

“Cryptocurrency is what’s provably scarce in the age of AI abundance. A robot owned by another economic actor will still need money to rent. In this scenario, cryptocurrencies could serve as the medium of exchange to unlock and utilize these robots,” Srinivasan explained.

In his opinion, the most significant type of scarcity in the era of AI will be the keys that allow controlling robotics, and the BTC and ETH blockchains will prove to be a convenient system for paying for them and ensuring security.

Additionally, he emphasizes that while AI brings digital abundance, it doesn’t eliminate all forms of scarcity. “AI is digital abundance but it doesn’t make everything abundant. Crypto is digital scarcity and complements AI’s abundance,” Srinivasan concluded.

Do you agree with the expert?