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The undiscovered value of supply-limited assets
AI agents are coming! What can econ 101 teach us about how to prepare?
So, we're all pretty clued up on AI and crypto, right? Well, buckle up, because the intersection of these two is about to take us on a wild ride. I'm talking about the burgeoning value of supply-limited assets, particularly cryptocurrencies, in a world increasingly dominated by AI.
AI Workforce: A Game-Changer
First off, let's chat about the AI workforce. It's not just coming; it's here, and it's expanding faster than a teenager's TikTok following. These AI agents aren't just playing chess or recommending your next Netflix binge. They're entering every sector – finance, healthcare, manufacturing, you name it. And they're not just employees; they're creators, thinkers, and soon-to-be economic powerhouses. We used to only have to worry about ~8 billion people competing with us, that just jumped to ~8 billion people + ~infinite AI agents all competing for the same resources.
The Ripple Effect on Economics
Now, let's connect the dots to economics. Traditional economic models are based on human labor and consumption. But what happens when a significant chunk of that labor is AI-driven? We're stepping into uncharted territory. AI doesn't eat, sleep, or demand pay raises. Their "labor" will devalue human work, leading to a paradigm shift in how we understand work, value, and compensation. The value of human labor will approach ZERO. With increasing disruption of human labor, central banks all over the world will be forced to accelerate spending on support programs.
This is where supply-limited assets like cryptocurrencies strut onto the stage. Unlike fiat currencies, which governments can print more of whenever they feel like it, many cryptos have a cap. Take Bitcoin, for instance – there will only ever be 21 million of them. Period.
In a world where AI agents are earning, spending, and perhaps even creating their own economic systems, assets with a limited supply become incredibly attractive. They're immune to the whims of government-induced inflation and are a solid hedge against the devaluation of labor.
The Crypto-AI Synergy
Imagine this: AI agents start accumulating wealth. Where do they store it? In assets that are secure, global, and not tied to any single country's economic policies. Hello, crypto! As these AI entities grow in number and economic influence, the demand for cryptocurrencies is likely to skyrocket. And thanks to their limited supply, we're talking Economics 101: increased demand plus limited supply equals higher value.
The Future is Now
We're not just speculating about a distant future. This shift is happening as we speak. AI's role in finance is growing, with automated trading and portfolio management becoming the norm. As AI becomes more sophisticated, their role in economic decision-making will only expand.
Wrapping Up
So, what's the takeaway? If you're already dabbling in crypto, you might be sitting on a goldmine. And if you're not, it might be time to start paying attention. The fusion of AI and supply-limited assets like cryptocurrency is shaping up to be one of the most exciting economic developments of our time.
Remember, we're on the cusp of a new era. The rules are changing, and the potential for growth in certain sectors – particularly those involving supply-limited assets – is enormous.
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