Discover more from Risky Reads
Will AI Turn All Money Into Dogecoin?
Read how digital super-intelligence is changing work, the economy, and money itself
The rise of Artificial Intelligence is arguably the biggest story of the year.
Not a week goes by that we don’t see multiple new technological breakthroughs.
We’re still in the early stages of the AI revolution, but it’s quickly becoming clear that digital super-intelligence will transform the nature of work, the economy, and money itself.
Let’s take a look at how AI is upending the meaning of labor, and, in the process, making money more like Dogecoin.
Last week, the entrepreneur Peter Diamandis tweeted that AI will make some people wealthier than ever before in human history.
Elon wrote back that AI will change our relationship to money itself.
Diamandis retweeted Elon’s statement with a Doge cash tag. Elon liked the tweet.
Money will be of low relevance…Dogecoin…what are they talking about?
Digital super-intelligence puts unprecedented productive power in the hands of the individual.
With AI, a single person at a computer can marshal a level of brainpower comparable to the world’s elite companies.
Some tasks—resource mining, complex manufacturing, logistics—are probably best done by large corporations.
But many jobs could be better achieved by a combination of AI and entrepreneurial individuals with a clear vision for what they want to achieve.
White collar intellectual work is already being transformed before our eyes, but even manual labor stands to be disrupted.
Here’s how, in three steps, AI might overturn our most fundamental ideas about work, and make money irrelevant in the process.
1 Intellectual labor
White collar intellectual labor is the first type of work being transformed by AI.
With AI, everyone will have unlimited access to a top-tier lawyer, doctor, scientist, financial advisor, therapist, historian, engineer, coder, artist, life coach, etc, for pennies an hour.
The point was driven home this weekend in two viral threads—one about how someone used GPT to diagnose a life-threatening medical condition for his dog, another demonstrating a voice AI program that can sing in the style of any artist.
In modern societies, one of the most reliable ways to attain wealth is by building expertise through education, and then using that wealth to access other peoples’ expertise.
Soon, the highest level of expertise in any subject will essentially be free to anyone with an internet connection.
Beneficiaries of the current system will probably see this as a problem.
They’ve invested years of effort earning professional credentials that assure them a certain level of income. Now, their skills are being replicated by a computer for free.
Zoom out, though, and it’s hard not to see the opportunity for progress.
AI allows expertise to be evenly distributed throughout the entire world.
Everyone will have access to an Einstein-level digital assistant to brainstorm, solve problems, and execute their personal vision.
Digital super-intelligence will have a seismic impact on the professional economy.
This transformation is already underway, but it’s not even the biggest change on the horizon.
2 Manual labor
At some point in the future, digital super-intelligence will move into physically capable machines
The first frontier is already happening with Tesla’s Full Self-Driving cars.
The latest data from Tesla’s FSD program showed AI was six times safter than the average human driver.
The next step is to plug AI into the Tesla Bot, which will be capable of doing anything a human can do, including building other robots.
It’s hard to overestimate the impact of the Optimus robot on the cost of labor, and on money itself.
Elon estimated Tesla Bots will sell for $20k.
From a corporate perspective, why pay a human $40k per year when you can buy a 24/7/365 all purpose robot laborer for half the cost?
Overnight, Optimus could make most manual labor jobs obsolete.
A common fear is that robots will cause mass unemployment and social chaos by rendering human labor unnecesarrry
These doomsday scenarios assume that access to AI will be concentrated among a few giant institutions, who will use superior technology to keep the rest of humanity in a state of penury.
An alternate scenario is worth considering: what happens if everyone has equal access to AI?
If AI is democratized, it will put unparalleled productive power in the hands of the people.
An individual with an all-purpose robot laborer at his disposal is potentially twice as productive as he’d be without it.
Were each American to be put in charge of, say, five robots, it’s possible the entire economy could quintuple its productive output.
The truth is that a lot of corporate and government work already lacks human meaning.
If individual citizens can harness the power of AI-powered robots to replace human laborers, each individual will be freed to decide how to use their time to best serve humanity.
Tasks that aren’t easily replicated by robots will trade at a premium, opening up a new economy in which people spend their time on creative and community-oriented work.
It’s worth thinking hard about what role money plays in this kind of economy.
Our current economic system enforces scarcity and financial insecurity.
People are incentivized to spend their entire lives stockpiling cash in preparation for an anticipated economic disaster—a giant medical bill, a lawsuit, a market crash—that will allow some other entity to swoop in and capture their wealth.
Add to this central bank manipulation of the money supply, and even the wealth one does manage to squirrel away is constantly being eroded through inflation.
A fortunate few are able to escape, but most folks spend their entire lives under an economic Sword-of-Damocles.
This debt-based fiat system has persisted for so long that it has come to assume the status of a given. In fact, current economic arrangements are highly arbitrary, engineered to benefit a privileged few at the expense of everyone else.
Like no innovation before it, AI holds the promise of multiplying the productive capacity of every person on Earth by an order of magnitude and leveling the economic playing field.
In the AI economy, every household could become its own productive unit, capable of growing food, generating electricity, building housing, and loaning out labor to others. People set the vision, robots do the work.
In an optimistic scenario, AI will usher in an era of hyper-abundance, where goods and services become so plentiful and cheap that everyone on Earth can meet bottom-of-the-Maslow-pyramid physiological needs at negligible cost.
Some governments fear an economically empowered population, and are fighting technological utopia through central bank policy.
Others, however, are encouraging it. The countries that embrace progress will stand as testament to what’s possible for the rest.
In a hyper-abundant economy, money will probably be less important than it is today.
If everyone already has everything they need, money could take on a more symbolic and less urgent role in people’s lives.
Past a certain point of wealth, time, not money, becomes the most valuable resource a person has.
One possibility is that money becomes a symbolic way of saying “Thank You” for providing a useful service.
In other words, money will be more like Dogecoin.
Since it was created, Dogecoin has circulated freely on the Internet as a tipping and gifting currency.
Mainly because it was so cheap, people didn’t think twice about giving it away.
This carefree, generous vibe has stuck with Doge even after its price exploded in 2021.
Today, people still send Dogecoin tips to strangers over Twitter to express appreciation for insightful tweets and funny memes.
Even though Doge looks primed to keep gaining value, the idea is less to hoard every last Dogecoin than to participate in a community with an optimistic vision for the future of money.
The monetary reform offered by Dogecoin is an important complement to the productivity gains promised by AI.
In the current system, banks can manipulate money supply to capture a disproportionate share of gains from new technology.
Any time there’s a big technological leap forward, central banks can print a bunch of money, distribute it to smaller banks, and collectively buy up equity in the newly created innovation.
This only works because control of money has been delegated to banks, allowing wealth to be systematically concentrated in the hands of the few.
Dogecoin’s programmatic, transparent monetary policy makes it difficult for banks to manipulate money for their own ends
Neither the Fed, nor Treasury, nor anyone else can steal wealth from current holders by inflating the supply of Doge.
A digital monetary system based on scarcity will help ensure that whatever wealth created by AI remains equally distributed.
Whatever you think of AI or Dogecoin, it’s worth watching how these new technologies influence the economy.
We’re already at a moment of global financial transformation, with the current system looking shakier than at any point in recent history.
Wouldn’t it be something if new tech saves the day, helping people transition to more efficient forms of work and fairer modes of compensation?
The future of work and money could be unfolding before our eyes, and the best place to watch it play out is on Twitter. Don’t look away!
Dogey Treats: News Bites
Dogecoin developers released a big update for libdogecoin v0.1.2
Burger King’s UK Twitter handle tweeted “DOGE.”
Coinbase CEO Brian Armstrong tweeted that his company was expecting a lawsuit from the SEC over staking.
Thanks for reading! Consider sending a tip or Subscribing on Substack or Twitter to help keep the newsletter going!
Memes of the Week
It's ALL Risky!
Thank you, kind reader, for reading and subscribing to this newsletter. I really appreciate it!
If you haven’t already, please sign up to this email newsletter for more weekly articles like this one. Also, please share it with a friend or on twitter if you enjoyed this article.
What do you think? Will AI make all money like Dogecoin? Let me know!
Remember, Dogecoin is risky. But then again, it’s all risky!
Follow on twitter at @itsALLrisky
Send an email to itsALLrisky@gmail.com
Send a Doge tip: DJ2zTEdHBD3guHLfVaNBaypr6bHFG5Nwfw
This article was written in collaboration with @CryptoDogDivine, give them a follow!
Don't forget to subscribe to this newsletter!
Disclaimer: This is not financial advice and I am not a financial advisor. The article above references an opinion for entertainment purposes only and it is not investment advice. Always assume that the author of the article is actively trading and that the opinions expressed may be biased towards the author’s holdings. Do your own research and consult with a licensed financial adviser before making any investment decision. Do not treat any opinion expressed in this newsletter as a specific inducement to make a particular investment. Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or cryptocurrency or to engage in any particular investment strategy. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, cryptocurrency, or financial product does not guarantee future results or returns. Dogecoin is a speculative and highly volatile asset susceptible to pump-and-dump schemes.
At the time of publication, Dogecoin is around $0.07 per coin.