As if ETFs and Halvings weren’t Enough, AI Could Render Bitcoin an Even More No-Brainer Choice
When discussing massive catalysts able to send the current Bitcoin price to unequaled heights, it’s usually rollouts of financial products such as those offered with the approval of Bitcoin exchange-traded funds (ETFs), the asset’s prospects of entering pension funds portfolios, quadrennial reward slashings, or heightened activity on crypto exchange sites.
Few are isolated cases when one realizes the magnitude of the potential that artificial intelligence (AI) has to catapult the primary crypto to unexplored stratospheric highs.
The convergence of cryptocurrencies such as Bitcoin and AI is an often-overlooked phenomenon, but for sure, they’re making quite strides to become the norm at some point in the future. What would years ago sound like science is now concretizing into a rising trend that has robust cryptos like Bitcoin and AI as primary propellants.
Thus, we suggest diving deeper into the implications and intricacies of such a feature to gain insight into what such a fusion could be cooking in the oven for us.
Bitcoin – a Better Feat for The AI-Fueled Economy
It’s no longer a shock to anyone that tomorrow’s economy is destined to be supported and fueled by AI, all the more since the world is seeing over half of jobs being fine-tuned through the technology’s integration.
AI is replacing manual tasks and physical labor, which in the larger economic ecosystem translates to enhanced usage of digital and decentralized currencies as medium exchanges and stores of value.
Bitcoin’s well-known decentralized nature and its underlying technology’s robust infrastructure enhance numerous aspects, ranging from data analysis to transaction speed to individual security, paving the way for the optimal development and use of AI apps.
This synergy of the future economy is underscored by many analysts and experts, such as Cathie Wood, CEO and CIO of ARK Invest, in her personally hosted podcast released in October of last year. According to the founder and investor, Bitcoin could be a way better fit for the budding AI-backed economy compared to the U.S. dollar or other fiat money. Still, is it?
Satoshis versus Cents – a Battle that Inclines to Bitcoin
Making transactions amounting to less than a dollar is a common practice, yet many people are often tempted to add some extras to exceed that value. Here, we’re not talking about payments in cash, but about the mere perception of a dollar’s worth versus quantity.
To put more control into the average purchaser’s hands, Bitcoin’s creator has built the asset on the premise of divisibility. That is, Bitcoin is numerous times more divisible than a dollar, and there are calculations to prove this theory.
One whole Bitcoin is made of one million satoshis, also used as the smallest denomination of the asset. Bitcoin can, therefore, be split into these smaller fractions to make smaller transactions possible. Conversely, a dollar consists of one hundred cents, which equates to an amount of more or less than 40 satoshis for one to buy the same product or service a dollar would get them.
Bitcoin’s power to encapsulate more subdivisions makes it an ideal choice for micropayments, which are becoming increasingly common. Whether you’re looking into royalties, tips, freelance gigs, or PPC advertising, these minor transactions have a bright future ahead, whose light ultimately shines down on Bitcoin.
Bitcoin is all the more suitable when it comes to AI bots that replace human work and their payments. Add that Bitcoin’s peer-to-peer system cuts off the involvement of any third party, and there’s likely no need for further indications on why Bitcoin is the missing piece in the AI puzzle.
ChatGPT’s Push and The Opportunities Unlocked
Not long ago, any discussion involving AI and Bitcoin would seem irrational, but now we’re witnessing the dawn of this fusion. With ChatGPT’s emergence and traction that trained bots to carry out numerous complex tasks, the need for a new payment arose as somewhat consequential.
This is where Bitcoin, the groundbreaking payment method facilitating transactions without the need for approval from banks or governmental bodies, steps in to serve as the currency for AI.
Completing specific actions, such as product order submissions or accommodation booking, could grow increasingly reliant on AI bots. In a similar context involving AI bots’ duty of paying for computing power, data, and other intangible resources, what could facilitate their settlements better than the top cryptocurrency?
While Bitcoin may not be the first and most favorite payment form for human purchasers, it has what it takes to make a perfect match with AI bot economies. Microscopically tiny payments in this currency will not only be possible but also acceptable and encouraged. These groundbreaking payment possibilities may give way to new niches for retailers and merchandisers across numerous industries, creating more jobs and services, to name a few of the prosperous outcomes.
AI and Investments? Why Not!
For some things in crypto come down to profits and lucrative money-making opportunities, it’s safe to say that many were looking to discover how AI benefits their hustling ambitions. Bitcoin’s price has wildly fluctuated ever since its creation, experiencing gains and losses as tremendous as 20% that built its recognition as an unstable and risky investment vehicle.
Only this year, Bitcoin grew by over 40%, powered by the hype around the election of a crypto-friendly president. Even more, it rose by around 140% on the YTD basis. Day trading, HODL-ing, scalping, position trading, and more styles of transitioning the asset have emerged, giving birth to all sorts of classifications. The question now comes down to what these groups may have in common.
Besides the clearly obvious answers, one may find a correlation between AI and prediction-making perplexing. Yet AR is gaining plenty of ground in this industry, helping curious or confident investors gain better insight into what a certain crypto could offer days or months ahead of the inserted inquiries.
Plus, investors can find numerous AI-infused products and tools aimed at facilitating their decision-making and portfolio management. There are zero obstacles when it comes to preventing individuals from approaching and employing crypto, and the same works for AI.
