Palantir’s Co-Founder Predicts AI Agents as Key Crypto Buyers in the Future

2024-02-08, 04:12

TL; DR

In the near future AI agents may use Bitcoin, ETH and SOL for transactions.

David Marcus, Arthur Hayes and Joe Lonsdale think that bitcoin is the best crypto for AI.

The price of bitcoin may exceed $760,000 if AI agents adopt it as a means of payment.

Introduction

The financial world is undergoing various changes which are creating new opportunities for investors and consumers. As an example, the greater adoption of artificial intelligence (AI) comes with unique ways of doing business or completing tasks.

Also, the integration of AI and digital assets like cryptocurrencies transforms the way the financial world functions. In this analysis, we look at how artificial intelligence boosts the adoption and functioning of cryptocurrencies. We shall also discuss the intersection between digital assets and artificial intelligence in the financial world.

AI Agents to Use Bitcoin, Solana tokens (SOL) and Ether for Crypto Transactions

In a recent conversation on CNBC’s “Squawk Box Joe Lonsdale, a co-founder of Palantir - a data analytics firm- gave an important hint on how artificial intelligent agents (AI agents) will be able to use cryptocurrency as a means of payment.

For context, AI agents are a special type of software that can respond to natural language and carry out several tasks such as making financial payments on behalf of humans or institutions. All an individual has to do to enable an AI agent to process certain tasks is to provide it with the right information like his/her interests and personal preferences.

During the interview Lonsdale said, “There’s one type of buyer that could be very important here: AI agents are going to start doing a lot of things in our economy. For AI agents to coordinate with incentive s, they’re probably going to use crypto.”

Lonsdale believes when AI agents start using cryptocurrencies to make transactions they will most likely adopt bitcoin, Ether (ETH) and Solana (SOL). Since the agents will perform many tasks that may increase the demand for the selected tokens which could lead to a crypto boom.

Andrew Ross Sorkin, the CNBC host, confirmed the suitability of ETH, BTC and SOL as digital currency for AI agents. He commented, “Well they are not going to be using bitcoin. They might be using Ethereum, they might be using Solana” or some other crypto. “Those are the three they might use, and they’re probably all correlated at the end of the day,”

He came to such a conclusion while discussing the next important thing that can drive the value of cryptocurrencies, now that the SEC has approved spot bitcoin ETFs.

Exploring the Intersection: The Dialogue on Artificial Intelligence and Cryptocurrency

Lonsdale is not the only renowned individual to foresee a bright integration of crypto and AI. David Marcus, the former utive at Meta, has also predicted an increased role of AI in crypto. His belief is that the pioneering crypto coins will play a big part in powering artificial intelligence projects.

Source x.com

However, AI agents may also use AI cryptocurrencies like The Graph, Render (RNDR), ICP, Theta Network (THETA) and Oasis Network (ROSE). As you are well-versed with, these AI crypto coins power various blockchains like Internet Computer.

Marcus’ perception is that sats, bitcoin’s smallest units, may become the best digital crypto for AI. As such, the AI agents would need to set them as the native value exchange asset, usable for various transactions.

Also, the fact that bitcoin is decentralized and borderless makes the sats the best feasible means of payment for AI tasks. Therefore, those willing to use AI services will need to buy crypto like bitcoin to pay for various transactions.

Similarly, Arthur Hayes, the co-founder and former CEO of Bitmex, supports the idea that bitcoin can easily support AI agents transactions. Posting on his blog, he said that bitcoin is the best crypto for AI since it is “available at all times, digital and completely automated” and enables the AI to pay for “data and compute power—in order to ‘stay alive.’”

Read guides:
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Impact of AI Adoption of Bitcoin on its Price

On a related note, Arthur Hayes, said that the adoption of crypto in AI will lead to their price rises. For example, he thinks that if AI agents adopt bitcoin its price may increase remarkably over time. In fact, he predicts the Bitcoin price may reach $760,000 within the next two to three years.

To support his notion that the price of bitcoin may rise astronomically if AI agents adopt bitcoin as crypto for AI he said, “If Bitcoin is seen as likely to be — or even starts to be — used by AIs, then we could see two separate manias combine into one mega mania: the mania of wanting to escape inflation within the fiat financial , and the mania of wanting to own a piece of the next phase of human and computer evolution.”

He continued, “The overlap of these two manias would likely drive investors to grossly overpay for growth, causing the value of the Bitcoin network to rise to silly levels. I plan to jump aboard the narrative hype wagon and profit.”

The Role of Artificial Intelligence in Cryptocurrency
Whereas the artificial intelligence industry will likely benefit from the aspect we discussed above, the intersection of AI and the blockchain sector will also assist the cryptocurrency sector in other ways.
The use of AI in the crypto sector will enable easy decision making among investors. This is because AI is able to aggregate and process large quantities of data. Thus, the buyers of crypto will use the derived information to make informed investment decisions.

Also, AI enables the automation of trading of cryptocurrencies and other digital assets which helps to optimize returns on investment. Further to this, since AI assists in detecting market risks and uncertainties it enables crypto buyers to acquire the digital assets safely.

Conclusion

Several analysts like David Marcus, Arthur Hayes and Joe Lonsdale think that bitcoin is a sutaible crypto for AI since it is decentralized and borderless. SOL and ETH are the other potential crypto coins which AI agents can use as a means of payment. Lastly, Hayes believes that if AI agents adopt bitcoin its value may surpass $760,000 in the next two to three years.

FAQs about AI Agents

Is there an AI for cryptocurrency?

There are several AI for cryptocurrency that facilitate various functions in the sector. For example, there are various AI powered trading bots which enhance return on investment.

Where to buy AI coins?

You can buy AI coins on both centralized and decentralized exchanges. The Graph, Render (RNDR), ICP, Theta Network (THETA) and Oasis Network (ROSE) are examples of AI coins you can purchase on exchanges like Gate.io, Binance and Coinbase.

Can AI replace blockchain?

AI cannot replace the blockchain but can function alongside it. The integration of AI and blockchain can transform various s such as the supply chain and trading of digital assets. Combining smart contracts and AI helps organizations to analyze data and predict trends.

What is the best AI for crypto trading?

The best AI for crypto trading depends on the needs and targets of an individual trader. However, HaasOnline, Trality, 3Commas, Cryptohopper and Gunbot are some of the leading AI for crypto trading.

Author: Mashell C., Gate.io Researcher

*This article represents only the views of the researcher and does not constitute any investment suggestions.

*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.