Positive Feedback Loops to Heaven
AI Will Bring Bitcoin to $1 Quadrillion Market Capitalization
AI and Bitcoin aren't just separate technologies; they are complementary forces that are amplifying each other's positive impacts, creating a virtuous cycle of innovation, efficiency, and economic expansion.
This economic expansion driven by technology-induced deflation will dramatically improve our quality of life. It’s also going to drive the value of bitcoin, including companies that hold bitcoin, into new territory.
This piece is going to touch on a subject, wealth building, that I cover at Wealth Systems. Subscribe for deep dives on building wealth engines or what I call Wealth Engineering:
Longtime readers know my thoughts on the explosive forces that AI are just starting to unleash.. but for the benefit of any newbie readers - you need to see what AI can do now. Then we’re going to focus on what this means for the intersection of technology and wealth.
AI-powered translation and communication tools break down language barriers, allowing for a truly globalized workforce. Companies can tap into talent anywhere in the world, leading to increased competition and innovation.
This means we are getting smarter faster as boundaries between thinkers and thoughts disappear. Knowledge is expanding, accelerating and refining.
We’re using that rapidly growing knowledge to execute physical and digital work for us, thanks to robotics and AI agents.
AI-driven automation goes far beyond current factory robots and self-checkout kiosks. We're talking about intelligent agents capable of handling complex, creative, and knowledge-based tasks. This includes everything from scientific research and drug discovery to legal analysis, software development, and even artistic creation. This drastically reduces labor costs, frees up human capital for higher-level work, and increases the speed of innovation.
AI is now digesting massive datasets to personalize products, services, and experiences to an unprecedented degree. This creates incredibly efficient markets, reduces waste (because production is tailored to actual demand), and boosts consumer satisfaction. Think personalized medicine, education, and entertainment, all driven by AI.
Just like the internet spawned entirely new industries (e.g., social media, e-commerce), AI will create entirely new sectors we can't even imagine yet. This will generate high-paying jobs focused on AI development, mathematics, maintenance, reinforcement modeling, and integration with existing industries. We'll also see a rise in the "human-in-the-loop" model, where humans collaborate with AI, leveraging the strengths of both.
All this technological acceleration flows more energy into the economy, and it amplifies the energy already reverberating throughout the globe. We are gaining efficiency and activating entirely new capabilities. Our global wealth engine is putting out more horsepower, and nearly all of it is reaching the wheels. In fact, the engine is roaring faster (at faster rates) while the transmission is self-upgrading constantly to ensure more and more of that power gets traction and is useful.
In short: we are in the fastest cognitive car in the world and our performance increases by larger and larger increments each day.
Where is the best place to store that energy to maximize utility?
Where should we drive this bad boy?
Bitcoin: The Ultimate Wealth Battery
Let's talk about wealth. Then we’ll connect Bitcoin to AI, and discuss their influence on each other.
When I say wealth I do not mean the fleeting kind that evaporates with inflation or gets clipped by some unforeseen financial storm, but the kind you can bury, metaphorically speaking, and dig up whenever you want, still intact, maybe even a little richer.
For centuries, we've relied on traditional stores of value – gold, mostly – to safeguard our purchasing power. But the world has changed. We live in a digital age, a globalized age, and frankly, those old methods just aren't cutting it anymore.
Enter Bitcoin: not just a cryptocurrency, but a paradigm shift in how we think about wealth, a true "wealth battery" that surpasses traditional methods in almost every conceivable way.
What exactly is a wealth battery?
Think of it like a reliable power source for your financial future. It's an asset that can consistently store purchasing power over long periods, shielding it from the constant erosion of inflation, the sticky fingers of confiscation, and the unpredictable jolts of economic turmoil.
An ideal wealth battery possesses several key characteristics:
Scarce: Supply is limited, preventing debasement and ensuring its value.
Durable: Can withstand the test of time without physical degradation.
Portable: Easily transferable across borders and jurisdictions.
Divisible: Can be broken down into smaller units for transactions.
Verifiable: Authenticity is easily confirmed, making counterfeiting difficult.
Fungible: Each unit is interchangeable with any other unit.
Secure: Resistant to theft, seizure, or censorship.
Liquid: Easily converted to other forms of wealth without loss of value.
Maintainable: Requires minimal upkeep and storage cost.
Now, let's be honest, our current system isn't exactly brimming with perfect wealth batteries.
Let's start with the elephant in the room: fiat currencies – dollars, euros, yen, you name it.
These are the opposite of a wealth battery.
They're designed to inflate – meaning they lose purchasing power over time. Central banks openly target inflation, effectively eroding the value of your savings. It's like having a battery with a hole in it – constantly leaking power. You put in a hundred dollars today, and a year from now, it might only buy you what eighty or ninety dollars would have bought you previously. That’s not a wealth battery; that’s a slow bleed.
Then there's gold. The historical heavyweight champion of wealth preservation. And while it's served us reasonably well for centuries, it has some serious drawbacks in our modern, digital world:
Portability: Try lugging around a few million dollars’ worth of gold bars. Not exactly convenient, or discreet. It's heavy, it's cumbersome, and it attracts unwanted attention.
Divisibility: Ever tried paying for a coffee with a sliver of gold? Not easy. Gold isn't readily divisible for everyday transactions.
Verifiability: Authenticating gold requires specialized equipment and expertise. Not everyone has access to that, making it vulnerable to counterfeiting.
Storage Costs: Storing large amounts of gold requires secure, and often expensive, storage solutions – vaults, security guards, the whole nine yards.
Confiscation Risk: Governments have a history of confiscating gold during times of crisis. Your "safe haven" could suddenly become a government asset.
Centralization: Most of the world's gold is held by central banks and large institutions, creating counterparty risk.
So, where does that leave us? Searching for something better. Something… digital.
The Perfect Currency and Wealth Battery
This is where Bitcoin comes in.
It's not just a digital currency; it's a fundamental reimagining of how we store and protect wealth. It addresses the shortcomings of both fiat currencies and gold, offering a truly superior "wealth battery"
Scarcity is Bitcoin’s superpower. Only 21 million bitcoins will ever exist. This hard-coded scarcity is enforced by the network’s consensus rules, making it immune to the whims of central bankers or politicians. Unlike fiat currencies, which can be printed into oblivion, and even gold, which can still be mined, Bitcoin's scarcity is absolute, unalterable. This tackles the "leaky battery" problem of fiat currencies head-on.
Bitcoin can be sent anywhere in the world with an internet connection, instantly and at low cost. Forget about armored trucks and customs declarations. You can carry billions of dollars’ worth of Bitcoin on a small hardware wallet, or even memorize a seed phrase. Try doing that with gold.
Each bitcoin is divisible into 100 million units called satoshis. This allows for micropayments, making Bitcoin suitable for transactions of any size, from buying a cup of coffee to purchasing a house. Gold? Not so much. Atomistic divisibility is required for a great currency. Bitcoin excels here.
Bitcoin's decentralized network, secured by cryptographic proof-of-work, makes it incredibly resistant to censorship, seizure, or manipulation. No single entity controls Bitcoin. This is a stark contrast to both fiat currencies (controlled by governments) and gold (often held by institutions). Your wealth is truly yours, protected by the power of cryptography and decentralization.
Bitcoin's underlying technology – blockchain, Merkle trees, hashing, cryptography, game theory – creates a system of unprecedented transparency and security. Every transaction is publicly verifiable on the blockchain, eliminating the need for trust in intermediaries. The rules are encoded in software and enforced by mathematics, not by fallible humans or institutions.
The stock-to-flow model highlights Bitcoin's decreasing issuance rate. New bitcoins are created through mining, but the rate of creation halves approximately every four years (the "halving"). This decreasing supply, combined with potentially increasing demand, suggests that Bitcoin's value is likely to appreciate over time. It's not just a static wealth battery; it's a potentially charging one. It's designed to become harder (more scarce relative to existing supply) over time.
As more users adopt the network, Bitcoin's value increases. It's a classic network effect – the more people use it, the more valuable it becomes.
Of course, no revolutionary technology comes without its share of skepticism.
Let's address some common counterarguments.
Bitcoin's price can be volatile in the short term. But this is a feature of a nascent asset finding its place in the global financial system. As adoption increases and the market matures, volatility is expected to decrease. Furthermore, the long-term holder often views volatility as an opportunity, not a risk.
Regulatory uncertainty is a valid concern, but increasing clarity and adoption by institutions are mitigating this risk. Bitcoin's decentralized nature makes it incredibly difficult to ban outright. The likelihood of banning continues to decline as Bitcoin is ruled property, considered an asset and given status by regulators, tax authorities and governments.
“But it’s just fake digital money, where’s the intrinsic value?”
Bitcoin's value is derived from its properties as a superior form of money and a secure store of value. Its "intrinsic value" is its scarcity, security, portability, divisibility, and network effects – all the qualities that make it a perfect wealth battery. This is a more robust form of value than, say, the "intrinsic value" of a fiat currency, which is based solely on government decree.
Bitcoin represents a fundamental shift in how we think about wealth storage. It's not just a digital alternative to gold; it's a technologically superior solution that addresses the inherent flaws of both fiat currencies and traditional stores of value. By acting as a "perfect wealth battery" – scarce, durable, portable, divisible, verifiable, fungible, and secure – Bitcoin offers a powerful tool for individuals to protect their purchasing power and achieve financial sovereignty in an increasingly uncertain world. It is, arguably, the most efficient and secure way to store wealth ever created, leveraging the power of mathematics and decentralization to create a truly independent and resilient monetary system. The future of wealth storage is here, and it's built on Bitcoin.
…but what about real estate as a wealth engine?
I see the future being about decentralization. That is a headwind for traditional real estate investing, never mind real estate’s maintenance problems and other surface areas for cost and liability.
Let’s explore the world of centralized and decentralized a little more.
Centralized Control vs Decentralized Freedom
Bitcoin and other cryptocurrencies lower the barriers to entry for participating in the financial system. Anyone with an internet connection can access and use Bitcoin, regardless of their location, background, or credit history. This is particularly impactful for the unbanked and underbanked populations globally.
DeFi protocols, built on blockchain technology, are creating a parallel financial system that is open, transparent, and accessible to all. This includes lending, borrowing, trading, and other financial services, all without traditional intermediaries. This opens up investment opportunities and financial services to a much wider audience.
The ability to represent real-world assets (like real estate, art, or even company shares) as digital tokens on a blockchain unlocks new forms of investment and ownership. This allows for fractional ownership, increased liquidity, and greater accessibility for smaller investors. Blockchain technology facilitates new ways for startups and projects to raise capital directly from the public, bypassing traditional venture capital and investment banks. This democratizes access to early-stage investment opportunities.
Bitcoin enables seamless micropayments, allowing creators (artists, writers, musicians, developers, etc.) to be directly compensated for their work, bypassing traditional platforms and intermediaries that often take a significant cut. This fosters a more direct and equitable relationship between creators and their audience.
NFTs provide a way to represent unique digital assets (art, collectibles, virtual real estate, etc.) on a blockchain, enabling creators to own and monetize their digital creations in new ways. This opens up new avenues for wealth creation in the digital realm. Emerging platforms built on blockchain technology are aiming to give creators more control over their content and data, allowing them to monetize their work directly without censorship or platform fees.
Smart contracts, self-executing agreements written in code and stored on the blockchain, automate complex financial transactions and processes. This reduces costs, increases efficiency, and eliminates the need for intermediaries in many areas, such as supply chain finance, insurance, and real estate transactions.
All of this means that middlemen may need another line of work — like creating, refining or remixing valuable IP that they can monetize in real-time 24/7 thanks to the blockchain and knowledge/action tools like robots and agents.
What This Means for Money
Programmable money allows for the creation of entirely new business models and economic structures. Imagine automated dividend payments, decentralized autonomous organizations (DAOs) that manage massive institutions and make decisions based on pre-defined rules, or complex financial instruments that are automatically executed based on market conditions.
The open-source nature of many blockchain projects, combined with the potential for token rewards, incentivizes developers and researchers to contribute to the ecosystem, driving rapid innovation and technological advancements. This is a self-reinforcing cycle where technological progress directly translates into wealth creation for participants.
The decentralized nature of the space fosters global collaboration among developers, researchers, and entrepreneurs, accelerating the pace of innovation and creating new opportunities for wealth creation.
The convergence of Bitcoin (and its underlying principles) with AI technology is creating a more:
Equitable: By lowering barriers to entry and empowering individuals.
Efficient: By automating processes, reducing intermediaries, and increasing transparency.
Resilient: By decentralizing control and reducing reliance on single points of failure.
Innovative: By incentivizing technological development and fostering open collaboration.
Synergies: AI + Bitcoin = Exponential Growth
Artificial Intelligence and Bitcoin are capturing a lot of attention from investors, developers and industry leaders.
Individually, they're transformative. Together? They're a catalyst for exponential growth, a force that could reshape our world in ways we can only begin to imagine.
Think about it: AI, with its ability to analyze mountains of data and identify patterns that humans can't, and Bitcoin, the decentralized, secure, and transparent monetary system. These aren't just separate innovations; they're two sides of the same coin, each amplifying the other's potential. It's not just about incremental improvements; it's about a fundamental shift in how we do things, a quantum leap forward.
Let's dive into some concrete examples of this synergy.
AI-Powered Decentralized Finance (DeFi)
DeFi is already disrupting traditional finance, but AI can take it to the next level. Imagine AI algorithms analyzing vast amounts of data – market trends, risk factors, even social sentiment – to optimize lending, borrowing, and trading within decentralized protocols. This isn't just about faster transactions; it's about creating more efficient, accessible, and intelligent financial markets. Think AI-powered hedge funds operating entirely on the blockchain, democratizing access to sophisticated investment strategies. This is about leveling the playing field, reducing risk, and unleashing unprecedented capital flow.
The core of AI-powered DeFi lies in using machine learning (ML) models – specifically, techniques like regression, classification, clustering, and reinforcement learning – to analyze on-chain and off-chain data. On-chain data includes transaction history, smart contract interactions, and liquidity pool depths. Off-chain data includes market data (price feeds, order books), news sentiment analysis, and even macroeconomic indicators. The AI doesn't just "read" the data; it builds predictive models.
How does this change the state of play? Let me show you.
A DAO could use a reinforcement learning algorithm to automatically allocate assets across different DeFi protocols (e.g., Compound, Aave, Uniswap). The AI agent would learn to maximize yield while minimizing risk, dynamically shifting allocations based on changing APYs, impermanent loss risk (for liquidity pools), and smart contract security audits. This goes beyond simple "auto-compounders" – the AI would actively discover new, potentially more profitable strategies. Think of a system like Yearn Finance, but with a much more sophisticated, adaptive strategy layer.
Instead of relying solely on collateral, a DeFi lending protocol could use AI to assess borrower risk. The AI could analyze a user's on-chain transaction history (e.g., are they a frequent trader? Have they ever been liquidated?), their activity in other DeFi protocols, and even their social media activity (if they choose to link it – privacy is key here). This could allow for undercollateralized loans in a more controlled way, opening DeFi to a wider audience. This would involve techniques like gradient boosting machines or neural networks to classify borrowers into risk categories.
AI could help manage the peg of algorithmic stablecoins. Instead of relying solely on pre-programmed rules, the AI could dynamically adjust the supply of the stablecoin, buy/sell reserve assets, and even interact with other DeFi protocols to maintain the peg. This would be a more sophisticated version of systems like FRAX or RAI, potentially using reinforcement learning to optimize the pegging mechanism.
Make no mistake, Bitcoin is the killer app of the blockchain.
I think of the “altcoin universe” as a distributed ledger / spreadsheet to store tokens… some of these have “utility”, others are just meme coins.
In either event, none of the other coins (stable, alt, or otherwise) are Bitcoin.
You could argue Bitcoin is our greatest invention or that Bitcoin is the ideal monetary base to serve as a global collateral layer.
Personally, I see bitcoin as both of those things, and collectively that makes it the perfect firewall against the “purchasing power hack” that central banks have been perpetrating on savers and wager earners for the last 70-years.
Now let’s discuss how advancements in technology are bulking up our security while giving us access to more and more valuable data.
AI-Driven Blockchain Security
Blockchain's security is one of its biggest strengths, but it's not impenetrable. AI can act as a vigilant guardian, constantly monitoring blockchain networks for suspicious activity, detecting and preventing fraud, hacks, and other security threats. This strengthens the trust and reliability of the entire system, paving the way for wider adoption.
AI can enhance blockchain security by focusing on anomaly detection, predictive security analysis, and rapid response. This involves training ML models on historical transaction data, smart contract code, and network traffic patterns. Key techniques include unsupervised learning algorithms to identify transactions or network behaviors that deviate significantly from the norm. For example, an unusually large transfer of funds from a newly created wallet would be flagged.
An AI system could monitor all transactions on a blockchain in real-time, flagging potentially fraudulent activity. For example, if it detects a series of transactions that resemble a "rug pull" (where developers abandon a project and steal investors' funds), it could automatically alert users and potentially even freeze the relevant smart contract (if the protocol allows for such intervention).
Data Marketplaces
AI thrives on data, but access to quality data is often a bottleneck. Blockchain can solve this by creating secure and transparent data marketplaces. Individuals and organizations can monetize their data securely, knowing their privacy is protected and they're being fairly compensated. This fuels AI development and innovation, creating a virtuous cycle of growth.
The key here is the intersection of blockchain's secure data storage and provenance tracking with AI's need for large, verifiable datasets.
Zero-knowledge proofs (ZKPs) and federated learning are crucial technologies - let’s unpack them:
ZKPs: Allow data providers to prove certain properties about their data (e.g., that it contains a certain number of data points, or that it meets certain quality criteria) without revealing the underlying data itself. This is essential for privacy.
Federated Learning: Allows AI models to be trained on decentralized datasets without the data ever leaving the control of its owner. Each participant trains a local model on their own data, and then only the model updates (not the raw data) are aggregated to create a global model.
Patients could securely store their medical records on a blockchain and grant access to researchers using ZKPs. Researchers could then train AI models on this data to develop new treatments, without ever seeing the individual patient records.
Self-driving car companies could share their driving data (anonymized and aggregated) to make every vehicle safer while retaining privacy.
You can even organize entire companies and organizations using this technology.
Decentralized Autonomous Organizations (DAOs) Powered by AI
DAOs, organizations run by code on the blockchain, are already changing how we think about governance. But AI can supercharge DAOs, enhancing their decision-making processes. AI algorithms can analyze data, predict trends, and optimize resource allocation, making DAOs more efficient, adaptable, and responsive to changing conditions. This could revolutionize how businesses, and even governments, are organized.
A DAO focused on funding open-source projects could use AI to analyze grant proposals, assess their feasibility, and predict their potential impact. The AI could then recommend the most promising proposals to the DAO members for voting.
A DAO could use AI to adjust the voting weights of its members based on their past contributions and expertise. Members who have consistently made valuable contributions would have a greater influence on DAO decisions. A DeFi protocol governed by a DAO could use AI to automatically adjust parameters like interest rates, collateralization ratios, or transaction fees based on market conditions and risk assessments.
AI-Managed Supply Chains
Supply chains are complex, opaque, and often inefficient. Combining AI's predictive capabilities with the transparency and traceability of blockchain creates incredibly efficient and resilient supply chains. AI can forecast demand, optimize logistics, and predict potential disruptions, while blockchain ensures the authenticity of goods and tracks their movement from origin to consumer. This reduces waste, lowers costs, and builds trust throughout the supply chain.
This technology allows us to track the movement of pharmaceuticals from manufacturer to patient, ensuring authenticity and preventing counterfeiting. AI could predict demand spikes (e.g., during flu season) and optimize inventory levels.
Back to Bitcoin. AI is going to drive down costs and increase leverage in that domain as well as well.
AI-Enhanced Bitcoin Mining
Bitcoin mining, while essential to the network's security, can be energy-intensive. AI optimizes energy consumption in mining operations, making it more sustainable and environmentally friendly. AI algorithms can predict fluctuations in energy prices, allowing miners to adjust their operations accordingly, maximizing efficiency and minimizing environmental impact.
Using machine learning to predict when mining hardware is likely to fail, allowing for proactive maintenance and minimizing downtime. This involves analyzing sensor data from the mining rigs (temperature, fan speed, hash rate).
Predicting fluctuations in electricity prices, allowing miners to adjust their operations to minimize energy costs. This could involve using time series forecasting models to predict hourly or daily price changes. Another route to maximize profits is to switching between different mining pools or cryptocurrencies based on profitability. This would require real-time analysis of network difficulty, block rewards, and transaction fees.
Now, let's talk about the big picture.
AI x Bitcoin
What does this convergence of AI and Bitcoin mean for the future?
Here’s how I see it.
We will enjoy unprecedented economic growth driven by increased productivity, efficiency, and innovation across every sector. AI automates routine tasks, freeing up human capital for more creative and strategic endeavors. Blockchain removes friction from transactions, enabling seamless global commerce.
Things move faster with less friction.
Thanks to financial inclusion, the creator economy, and the tokenization of assets - everybody becomes wealthier and some people become truly wealthy. DeFi democratizes access to financial services, allowing anyone with an internet connection to participate in the global economy. Blockchain enables creators to directly monetize their work, cutting out intermediaries and capturing more of the value they generate.
All of this creates a more robust and resilient economy due to optimized resource allocation, transparent supply chains, and decentralized decision-making. AI helps us use resources more efficiently, minimizing waste and reducing our environmental footprint. Blockchain's transparency builds trust and accountability, reducing corruption and promoting ethical practices.
As AI handles routine tasks, humans are freed to pursue higher-level goals – innovation, creativity, problem-solving. This will unleash a new wave of human potential, leading to breakthroughs in science, art, and every other field of human endeavor. Every time humanity uses machines to earn cognitive surpluses we use that time to create and innovate… which reinforces this constant effect.
We are building accelerating feedback loops on top of reinforcing feedback loops.
Driven by the borderless nature of AI and blockchain technology we enjoy a new era for innovation and exploration. These technologies transcend geographical boundaries, fostering collaboration and knowledge sharing on a global scale. This could lead to a new era of innovation, where ideas and solutions are developed and shared across borders, accelerating progress for all of humanity.
This isn't just hype; it's a realistic assessment of the potential of these technologies.
The synergies between AI and Bitcoin are undeniable, and the potential for positive change is immense.
The Symbiotic Ascent
While often discussed separately, a closer examination reveals a profound and transformative symbiotic relationship. The core of this relationship lies in AI's deflationary impact, a characteristic that, surprisingly, strengthens Bitcoin's position as a premier store of value, creating a compelling positive feedback loop that benefits both technologies.
As discussed, AI's impact on the global economy is poised to be nothing short of revolutionary. Across industries, AI-powered automation, optimization, and enhanced decision-making are driving unprecedented increases in productivity. From self-driving trucks streamlining logistics to AI-powered diagnostics revolutionizing healthcare, the common thread is a dramatic reduction in the cost of producing goods and services. This is the essence of AI's deflationary pressure: achieving more output with fewer inputs (labor, resources, time).
This phenomenon extends beyond simple automation. AI's ability to analyze impossibly large datasets and optimize complex systems leads to more efficient resource allocation, reducing waste and further lowering costs.
While the societal implications of AI-driven job displacement require careful consideration and proactive solutions, the overall economic effect is a downward pressure on prices. As the supply of goods and services increases due to AI-enhanced production, and as labor costs potentially decrease in certain sectors, the traditional inflationary pressures that have characterized modern economies begin to weaken.
This is where Bitcoin enters the picture. Unlike fiat currencies, which are intentionally designed to inflate over time (losing purchasing power), Bitcoin has a fixed supply of 21 million coins. This inherent scarcity, enforced by the network's consensus rules, makes Bitcoin inherently deflationary in the long run. This is not a flaw; it's a fundamental feature that positions Bitcoin as an ideal store of value in a world of AI-driven deflation.
In a traditional, debt-based fiat currency system, deflation can be a significant problem. It increases the real burden of debt, discourages spending (as consumers wait for lower prices), and can stifle investment.
Bitcoin operates outside this paradigm.
Because Bitcoin’s supply is fixed, a widespread decrease in the price level of goods and services increases the purchasing power of Bitcoin. Holders of Bitcoin are incentivized to save, knowing that their holdings will likely buy more in the future, a stark contrast to the "use it or lose it" dynamic of inflationary fiat currencies.
This creates a virtuous cycle: AI drives deflation, which strengthens Bitcoin, which in turn fuels further AI development, which further enhances the Bitcoin ecosystem and drives more deflation in a feedback loop. Each technology amplifies the benefits of the other.
For the reasons above Bitcoin ($2T market cap as of this writing) will reach $1 Quadrillion (500x) before any other asset class reaches $1 quadrillion in market cap.
Here is the rough score as of August 2024 when BTC was $1T:
The biggest “risk” to this prediction is if real estate asset owners become extremely forward-looking and begin adding massive amounts of BTC to their balance sheets.
I don’t think that will happen, given the recalcitrant nature of many real estate investors. They’ve always fancied themselves as smart money with real property that’s always worth something, almost always flowing cash and it comes with great tax benefits… sometimes this is even true.
But nothing is growing at 55% to 75% CAGR over a 15-year run like Bitcoin has… and none of the other asset classes have the corporate, sovereign and retail adoption story that is materializing the way Bitcoin does.
Also physical assets (real estate, gold, art) have less “surface area” exposure with AI so they will receive the fewest benefits to their enterprise values… whereas equities and of course Bitcoin have digital components and virtual interfaces that AI adds incredible power and efficiency to.
The feedback loops we keep mentioning are they key to everything. As they gain energy and build more connectivity between each other (more firms using AI, more firms and people adopting BTC, etc..) we will observe fantastic increases in capabilities and market capitalizations.
The future is a constantly accelerating platform powered by AI, with the energy and wealth ultimately stored in Bitcoin.
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I started Life in the Singularity in May 2023 to track all the accelerating changes in AI/ML, robotics, quantum computing and the rest of the technologies accelerating humanity forward into the future. I’m an investor in over a dozen technology companies and I needed a canvas to unfold and examine all the acceleration and breakthroughs across science and technology.
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Great piece Matt.Thank You.