Chris Curl,
Editor
Aug. 22, 2024
In a recent episode of The Joe Rogan Experience, Peter Thiel engaged in a thought-provoking discussion about the current state of cryptocurrency, Bitcoin, and artificial intelligence (AI). While much of the conversation gravitated towards AI, Thiel’s reflections on crypto offer valuable insights into the shifting narratives within the tech landscape.
One of the most fascinating aspects of Thiel’s discussion is his comparison between cryptocurrency and artificial intelligence.
He noted that the fundamental purpose of the internet was to transcend geographical constraints, which allowed innovations like cryptocurrency to flourish outside of traditional financial systems. However, he expressed concerns that Bitcoin has been increasingly assimilated into the establishment with the emergence of ETFs, steering it away from its original intention as a decentralized currency.
This marks a stark contrast to the nature of AI, which Thiel provocatively likened to communism due to its inherent centralization in the hands of a few large tech companies.
"If we say that crypto is libertarian, can we also say that AI is communist?"
He posited that while Bitcoin’s value propositions may have peaked, we are underestimating the implications of AI advancements, particularly with technologies capable of passing the Turing test.
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The Turing Test, conceptualized by the British mathematician and computer scientist Alan Turing in 1950, is a measure of a machine's ability to exhibit intelligent behavior indistinguishable from that of a human.
"Tech stagnation is that when something does happen we don't even know how to process it. I think Bitcoin was a big invention; we debate whether it was good or bad, but it was a pretty big deal and it was systematically underestimated for at least the first 10, 11 years. You could trade it, it went up smoothly for 10, 11 years; it didn't get repriced all at once because we're in a world where nothing big ever happens.
And so we have no way of processing it when something pretty big happens. The internet was pretty big in '99; Bitcoin was moderately big. The internet was really big; Bitcoin was moderately big. And I'd say passing the Turing Test is really big; it's on the same scale as the internet."
Thiel’s observations highlight the need for ethical considerations in the development and implementation of AI. With its potential to surpass human capabilities, there are valid concerns about the impact of AI on society and humanity as a whole.
While some argue that AI could bring about positive change and advancements, others fear its potential for misuse and control by those in power. As we move forward with AI technology, it is imperative that ethical guidelines are established and followed to ensure its responsible use.
This raises important questions about the role of decentralization in driving innovation. Can truly disruptive technologies thrive in a centralized environment? And what does this mean for the future of both cryptocurrency and AI?
As we continue to see advancements in both fields, it will be crucial to monitor how these technologies are being implemented and whether decentralization or centralization is the prevailing trend.
As of right now it appears that all of the forces of the state, i.e. the corrupt bureaucracy, are behind centralization and opposed to decentralization. This has been made apparent over the last several years with the Democratic Party’s war against crypto and their collusion with Big Tech to censor and blacklist any dissenting voices. It clearly wasn’t enough for them to have the entire corporate media apparatus under their control.
And now Kamala Harris is picking up where Joe Biden left off in proposing outrageous capital gains tax hikes and even going so far as to tax unrealized capital gains.
This is simply the age-old battle of the individual against the state with Bitcoin representing the individual and Big Tech, the state. Bitcoin gives people wealth which gives them agency – the state doesn’t want that. They want serfs – preferably ones glued to their phones only consuming “approved” material.
But AI definitely has the potential to break free from this control. Elon Musk is making some progress with his LLM Grok and xAI projects. And many of Silicon Valley’s tech billionaires are pushing back against a “woke” societal trend that they realize will not end well for them.
Thiel ultimately raises questions about our understanding of technological progress.
Are we too focused on creating the next big thing, without fully considering the potential consequences and impact? As we continue to push the boundaries of innovation, it is important to also reflect on how these advancements will shape our future.
I, for one, hope we can push AI in the right direction – the one that empowers humanity rather than the one that destroys it.
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Regardless of how you feel about AI, there’s no doubt it has sparked a firestorm of debate and minted many millionaires who invested in the technology early on. The good news is it’s not too late to make a killing investing in AI.
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Keep coming back,
Chris Curl
Editor, Daily Profit Cycle