In a bold prediction, former Coinbase executive Balaji Srinivasan envisions a future where cryptocurrency will play a crucial role in the era of artificial intelligence (AI).

Srinivasan, addressing his 1 million followers on X, a popular social media platform, emphasizes that crypto symbolizes “digital scarcity” while AI embodies “digital abundance.” Despite the rise of AI, he points out that not everything will become abundant.

He ponders on the concept of money in a world dominated by generative AI and robotics, suggesting that money itself will transform into cryptocurrency, akin to how intelligence has transformed into electricity.

Srinivasan elaborates on his views:
1) Cryptocurrency emerges as the element of scarcity in a world of AI abundance. This scarcity is essential for verifying human identity in a world where AI can effortlessly mimic human behavior.
2) Money acts as a bridge connecting various economic entities. While you may not need to pay your own robot to function, renting a robot from another economic actor will require monetary transactions. Money becomes the key to unlocking economic exchanges.
3) Despite advancements in AI, certain forms of scarcity remain. The example of stationary washing machines being replaced by mobile household robots showcases how scarcity evolves in the AI age.

He highlights the security advantages of web3 backends like Bitcoin (BTC) and Ethereum (ETH) over traditional web2 systems. According to Srinivasan, the primary form of scarcity in the AI era will revolve around crypto private keys for controlling robots.

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