Artificial intelligence (AI) could change global financial trends by injecting a healthy dose of inflation, according to cryptographer Nick Szabo. In his opinion, this technological advance “has the potential to increase the supply of almost everything.”
For Szabo, who some believe is the man behind the pseudonym Satoshi Nakamoto (founder of Bitcoin), AI will cause general deflation in retail.
He said the process could lead to banks issuing more fiat currency, “whether or not it’s managed by AI.” Traditional systems create inflationary pressures.
In a post about X, the developer added that advances in robotic mining could also impact the production of precious metals. “I imagine that robotic mining equipment will increase the supply of gold,” he said, adding that the phenomenon It has the potential to change the patterns of scarcity that have historically supported its value.
In contrast, he emphasized that “Bitcoin (BTC) is a different matter,” distinguishing between the world’s most valuable digital currency and the asset. Its provision can be expanded through technology or human intervention. As CriptoNoticias explains, the supply of BTC is limited to 21 million units.
“Bitcoin, like technology stocks, is going through a learning curve,” Szabo argued in response to a user who questioned why Bitcoin was tracking the movement of the Nasdaq Technology Index.
“The more people understand its benefits as a store of value, the more they will invest in Bitcoin,” he commented, adding that adoption could take decades because Bitcoin’s characteristics are difficult to absorb “for people who grew up with fiat currencies.”
surely, Bitcoin and the Nasdaq index had similar movements last year.an increase of 25% for digital currencies and 16% for stock indicators. This is shown in the graph below.
Nick Szabo, a cryptologist and one of the pioneers of digital currency, is known for his work on BitGold, the conceptual precursor to Bitcoin developed in 1998. Although it has not been confirmed that he is Satoshi Nakamoto, his intervention in this discussion is Reaffirming its impact on ecosystem evolution and his critical view of the economic impact of artificial intelligence.
