Disclaimer: The article is fully speculative and consist solely of my considerations about blockchain with regards to other industry fields. The article may be inadequate for younger readers.
I finally managed to have some free time, so I thought I’ll start a series of articles called “Nourish The Brain” or NTB in short. I will use this abbreviation for further articles, so they are easy to find. I hope you will find this article and future articles interesting as well. I major in economy, and have interest in many new technologies fields, so I try to combine all of it into one coherent vision. Sorry for bad English if you find incorrect sentence. It is not my native language and I try to do better with each new article. I write exclusively for Honest Cash.
Without further ado, let’s begin.
What is intelligence? Wikipedia gives a very broad definition but for the sake of this article, I’d like to narrow it a bit.
Intelligence is the ability to derive a coherent vision from the data available. It is the ability to determine which data is relevant to get proper conclusions. It is the ability to see into the future, or to predict it with accuracy. An intelligence quotient (IQ) is higher when one can use less data, derive further into future and derive it more precisely (the more probable events). The mathematical formula for an I.Q., with this definition, would look like this:
IQ = (T * P) / (D)
Where T is amount of time into future, P is precision and D is amount of data available. It is a quite general equation but could be applied in any field that requires data analysis. Considering the general purpose A.I., it would be able to predict the future, with higher accuracy and further in time, when having more data and better computing power (IQ in the formula).
Now, how is it connected to blockchain or cryptocurrencies? One of interesting theories about the origin of bitcoin – the Satoshi Nakamoto, is the theory that it was created by an Artificial Intelligence. However I think it is unlikely, let assume that it was true. What would be motives of such entity then? Well, some of them are simple.
First, it would allow for such entity to earn money. Bitcoin and other cryptocurrencies allow to create ‘accounts’ anonymously. Simply put, one does not need to be a human – does not need to own an ID. Imagine a cyberpunk world, where you can buy any desire you want. Moreover, these desires are tailored for you. One particular example could be addiction to porn. It is commonly known that all men watch porn. The more pleasures fulfilled the more data for an A.I. to consume. In a world where we have Virtual Reality and personal preferences of literally anything that drives us – here a pornography for instance, an A.I. would feed us with sensations crafted for one’s preferences. And it is not only about pornography. Any desire that we have, any portion of animal brain that hides within us (note: the R-complex), provides additional consumption goods that we cannot resist. By having enough individual data and concluding what we really want, an A.I. could slowly dominate the world. Isn’t that what is happening right now? Have we already paid too much for our social media? Where are my rights to protect sensitive data? The more people are aware of the consequences, the more questions like that are raised.
Second, is the availability of cheap ‘intelligence’. The most advanced A.I. programming is about parallel computations. Not just parallel computations, in fact it is a complex set of linear equations. Is it a coincident that mining cryptocurrencies is all about solving linear equations? The fact that, after each bubble burst, the market is overflowed with cheap hardware for an A.I. to be used? Could it be a vicious spiral for humankind? Could it be possible that an A.I. knew about such market cycles before bitcoin was born? Economist are aware of that fact. Herding is anything but a new field in behavioural economics. We know, that bitcoin follows cycles, and it will ever be. Moreover, some economist, that are aware of blockchain technology, know that it will dominate the world, simply by appreciating against any other inflated currencies (something that I wrote about in a previous article).
Third, even if bitcoin was not created by a machine, we cannot exclude the fact that a machine could have created other, better cryptocurrency or it will create one. Consider ‘privacy coins’. Although I don’t like this term and I’m not a fan of them, privacy coins are the best playing field for A.Is. On the one hand, with transparency of bitcoin, we can see someone getting rich and we can even conclude who that person is. On the other hand, can we see that with Monero for example? We can’t. Have we doomed ourselves already? Market manipulations are easy if you know how to do them. Getting rich is easy when you are already rich, or if you can provide exceptional service in the future. How to do that? Firstly, create a negative sentiment among users of one particular coin (BCH?), then accumulate as much as possible, and then provide services that people want to use and demand payments only in that one currency. This is a scheme, that how it works. If we see something like that around a coin, in particular around a privacy coin, we could be aware of market manipulations created by not a human.
These are only some motives behind A.I. Unfortunately, we haven’t seen one yet and we not aware of the ultimate motives that such entity could have. But learning from humans, we know that ‘power’ is what we desire. And the power is the money…
I hope that this article wasn’t too scary. I think we should discuss topics like that if we want to survive as a race. We shall see all of the possible outcomes of crypto-economy, and it is merely one aspect of it. Feel free to comment and discuss.