A bold claim on X – “Crypto is the currency of AI” – has ignited a fiery debate within the crypto community. The statement has drawn strong reactions, pitting supporters of fiat and crypto against each other in a discussion about the future of payments in the AI industry.
Crypto is the currency of the AI.
— Naval (@naval) August 27, 2024
The spark was lit by a crypto user known as Naval, whose post quickly went viral. While some argue that fiat currencies like the US dollar remain dominant in AI transactions, others, including prominent figures in the crypto space, believe that the digital and decentralized nature of crypto makes it the ideal payment solution for AI technologies.
Fiat supporters, on their part, argue that most AI users prefer fiat currencies over crypto for their transactions. One proponent noted that AI solutions make money by trading stocks and running SaaS websites that bill via Stripe. This user believes 99% of AI users see Stripe as a useful AI application and would choose to transact in fiat.
Defending crypto, Him Gajria, founder of the crypto-asset investment fund Equation, referenced a post he made last November highlighting crypto’s importance to AI development. Gajria believes that crypto implementation in AI will happen as long as humans continue interacting with the new technology. He sees AI and crypto as more compatible because both are digital.
Last year, BitMEX co-founder Arthur Hayes wrote an essay highlighting how AIs would choose Bitcoin as the logical money to calculate their economic decisions. Hayes thought that would be the case, considering how AI solutions would require ever-present, digital, and automated payment solutions to function efficiently.
In his essay, Hayes pointed out that the “balkanized” analog banking sector cannot provide the constant service AIs need. However, he believes blockchain developers design their systems with these needs in mind. He also noted that blockchain-based payment systems would allow AI solutions to receive payments electronically in extremely small increments if necessary.
The AI industry has been gaining traction as one of the revolutionary tech sectors in recent years. Adopting an ideal payment rail could go a long way in determining the speed and extent of the sector’s expansion. Hence, the interest among tech participants in what becomes of the industry’s new child.
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