Thanks to the release of cutting-edge language models such as ChatGPT, artificial intelligence has quickly become one of the most trending topics over the past few years. While some tout the benefits that these systems can provide, others have taken a more wary stance. Either way, the fact of the matter is that AI is here to stay. Alongside cryptocurrencies such as Bitcoin, artificial intelligence could very well open up a brave new world in terms of decentralised technology.
We turned to British technologist Byron Chad; a computer scientist regularly active across various social media circles devoted to late-breaking Bitcoin news.
How will the role of Bitcoin change as artificial intelligence becomes even more ingrained throughout the digital community? Readers are likely to be surprised to learn about how Mr. Chad feels.
An Anchor in Rough Digital Seas?
It is first crucial to mention that artificial intelligence continues to evolve at a frenetic pace. From generative AI chatbots to predictive text models employed by major corporations such as Google, there is little doubt that this technology will exert an even greater influence on the lives of nearly every consumer connected to the digital domain.
AI has also forced businesses to reevaluate their current strategic models; requiring them to keep abreast of the latest digital advancements while maintaining a loyal customer base. In this case, Bitcoin has begun to act as a relatively safe haven from an investment perspective. Mr. Chad elaborates on this observation.
“Unlike memecoins, and even some NFTs, Bitcoin is seen as a source of tangible value. Investors seeking to mitigate much of the volatility associated with the traditional marketplace may view Bitcoin as a welcome port in unpredictable waters.”
The Future Currency of Choice?
Byron Chad also points out how the inherent nature of Bitcoin may soon evolve thanks to the growing presence of AI-based concepts such as Large Language Models (LLMs). This is a direct result of the architecture behind Bitcoin. This coin is based on core concepts such as digital signatures, private keys, and blockchain-based transactions. All three principles are ideally suited for artificial intelligence algorithms.
“What we might begin to see is Bitcoin being adopted as a universal means to transfer wealth between parties,” Mr. Chad explains. “In fact, some examples have already emerged. Companies such as SegWit and Taproot made it a point to perform recent upgrades intended to accommodate the increasing complexity attributed to cryptocurrency transactions.”
Assuming that Bitcoin remains the most recognised asset within the larger cryptocurrency ecosystem, it stands to reason that it could take centre stage in terms of autonomous transactions.
Real-World Applications
Readers may have already begun to feel that the presence of AI is ultimately slated to remove humans from the loop. Most computer science experts, including Byron Chad, do not believe that this will be the case.
“AI was created by humans, and for humans. It is not meant to replace our presence within the digital community, or to take control of organic decisions. The goal is to provide a more user-friendly interface, to automatically perform tasks that would have needed to be carried out manually, and to aid in the development of even more robust financial networks.”
He moves on to highlight how artificial intelligence can be used to enhance security across the blockchain.
“Not only can extremely complex strings of data be transmitted at lightning-fast speeds, but specific algorithms may also be employed to detect potential errors within the network itself; yet another way to thwart vulnerabilities, and to reduce the chances of fraud.”
This will likely cause mainstream consumers to develop confidence in Bitcoin, and other prominent stablecoins. If they are aware that their personal details remain behind closed doors, they are more likely to become actively involved with the cryptocurrency community. This could ultimately cause a massive surge in the popularity of Bitcoin.
Bucking the Status Quo
A final point to mention is associated with the vulnerabilities associated with traditional financial networks. Security breaches, errors in top-down governance, and regulatory disparities across different regions of the world are now signs of the times. As AI becomes even more embedded within the DeFi community, these concerns could become distant memories.
Adopting a journalistic tone that has become one of his hallmarks, Mr. Chad provides more clarity.
“The autonomous and secure nature of the blockchain provides massive opportunities for well-recognised tokens such as Bitcoin. I’m not only talking about a means of investment, but these benefits should trickle down to everyday consumers. Not only will Bitcoin remains one of the fundamental pillars of the cryptocurrency ecosystem, but it could soon emerge as a standard form of digital payment. This also signifies that its long-term value may surge to unprecedented heights.”
A Waiting Game
Artificial intelligence is unique in the fact that there is a degree of uncertainty in terms of how these systems may evolve over time. However, experts agree that the role of Bitcoin will become inextricably linked to AI, the systems that choose to adopt this software, and a consumer base that (willingly or not) becomes increasingly dependent on the solutions artificial intelligence is capable of providing.
