AI & The Story Cryptocurrency
Hi there, ✋
I’m Miguel, living in Barcelona, nice to meet you! That’s a wrap for 2022 and what a year has been for Artificial Intelligence (aka AI). We’ve seen a bunch of advancements released publicly; text-to-3d, text-to-speech, Whisper, ChatGPT, DALLE + API, Stable Diffusion, Midjourney and much more cool stuff. 🤖🧠
One can only imagine what the future holds… and in the meantime, play around with all the mind blowing tools that are now available to everyone in a very accessible, user-friendly way.
Btw: Maybe you like to read weird stuff too. I have other small, quick to read, and curious posts on my profile that may interest you ➡️ Miguel Parente
However, one community that had —to put it lightly— a not so positive year, was the cryptocurrency world. Between, huge market volatility with more downs than ups, massive public scrutiny due to deceiving, malicious players (e.g. FTX as the head of the biggest fraud in history, and Terra Luna just behind), the constant protocol hacks, and continuous lack of clear regulation framework. Plus, the brutal collapse of the CeDefi scope (e.g. Block-Fi, Celsius, FTX, Genesis, Gemini, etc), which will only delay the adoption of the real deal that is DeFi.
We can say, that the crypto world is happy to close 2022, and looking forward for what lies ahead. 💎🙌
Btw: if you are interested in cryptocurrency, most likely you will appreciate a free, easy to set up Crypto Dashboard. You can find all the details, and step-by-step guide, in my previous medium post ➡️ “How to build a free Crypto Dashboard?”
Quick disclosure: please bare in mind, that I’m no expert on AI topics, and that these exercises are just for fun & game’s purpose.
⚠️ It goes without saying — but, one never knows — that this is not investment advice! I am no expert in neither AI related topics, or Cryptocurrency ones. This is an exploration exercise only, with no financial advice intents.
Furthermore, I will not bother you with all the details & logistics upon the AI Stories exercises — you can find the full extent of it in the first medium post (here).
So… Let’s play
TL;DR: I’m leveraging two different AI generative tools, both from OpenAI, one to generate the cool looking pictures (DALL·E — here), and the other one to immerse ourselves in a new story and/or theme (GPT-3 — here).
📏 Guidelines & Rules — on how to differentiate “me” from “AI”:
Paragraph style ➡ it’s written by yours truly
Normal text ➡ it’s the AI magic
Asking AI about Cryptocurrency
What is the Cryptocurrency?
Cryptocurrencies are digital or virtual currencies that use cryptography for secure financial transactions. They are decentralized systems that allow for the creation and transfer of tokens, which represent a particular asset or utility. The most well-known cryptocurrency is Bitcoin, but there are thousands of other cryptocurrencies that have been created since Bitcoin’s inception in 2009.
One of the main benefits of cryptocurrencies is that they operate on a decentralized network, which means that they are not controlled by any government or financial institution. This gives users more control over their own assets and allows for greater financial privacy. Cryptocurrencies also offer the potential for lower transaction fees compared to traditional financial institutions, as the decentralized nature of the network allows for peer-to-peer transactions without the need for intermediaries.
Another advantage of cryptocurrencies is that they are based on blockchain technology, which is a secure and transparent way to store and transfer data. A blockchain is essentially a decentralized database that is maintained by a network of computers. Each block in the chain contains a record of multiple transactions, and once a block is added to the chain it cannot be altered. This means that cryptocurrencies based on blockchain technology offer a high level of security and transparency, as it is virtually impossible for anyone to alter the record of transactions on the blockchain.
Despite the many benefits of cryptocurrencies, there are also some risks to consider. One of the main risks is that cryptocurrencies are highly volatile, meaning their value can fluctuate significantly in a short period of time. This can make it difficult for investors to predict the value of their assets and makes cryptocurrencies a risky investment. There is also the risk of fraud or hacking, as the decentralized nature of cryptocurrencies makes it difficult to track and prosecute those who engage in illegal activities on the network.
In conclusion, cryptocurrencies are digital or virtual currencies that offer many potential benefits, including decentralized control, lower transaction fees, and increased financial privacy. However, they also come with risks such as volatility and the potential for fraud or hacking. Despite these risks, the use of cryptocurrencies is growing and they have the potential to disrupt traditional financial systems in the future.
Like every new tech there are some limitations and hurdles to overcome, and crypto is no exception. One known intriguing puzzle is the Blockchain Trilemma.
The Blockchain Trilemma is a term used to describe the trade-off between three key features that are important for a blockchain network: decentralization, security, and scalability.
Decentralization refers to the fact that a blockchain network is not controlled by any single entity, but rather is maintained by a network of computers that work together to validate transactions and add new blocks to the chain. This decentralized structure is one of the key features of blockchain technology and is what allows it to offer increased security and transparency compared to traditional systems that are controlled by a single entity.
Security is also a critical feature of a blockchain network, as it ensures that transactions are secure and cannot be altered once they have been added to the chain. This is achieved through the use of cryptography and the decentralized nature of the network, which makes it difficult for any single entity to gain control over the network.
Scalability refers to the ability of a blockchain network to handle a large number of transactions in a short period of time. This is important for the widespread adoption of a blockchain, as a network that cannot handle a large number of transactions will not be able to support the needs of a large user base.
The Blockchain Trilemma refers to the fact that it is difficult to achieve all three of these features simultaneously. For example, a blockchain network that is highly decentralized may be less secure and less scalable, as there are more nodes that need to reach consensus in order to validate transactions. Similarly, a blockchain network that is highly secure and scalable may be less decentralized, as it may require more centralized control in order to achieve these goals. Finding the right balance between these three features is a key challenge in the development of any blockchain network.
What are the challenges for the future of cryptocurrency and mass adoption?
There are several challenges that cryptocurrencies face in achieving mass adoption:
- Volatility: Cryptocurrencies are known for their price volatility, which can be off-putting to potential users. This makes it difficult for people to use cryptocurrencies as a store of value or as a means of exchange.
- Complexity: Cryptocurrencies and their underlying technology, the blockchain, can be difficult for the average person to understand. This can make it challenging to educate people about the benefits of cryptocurrencies and how to use them.
- Lack of regulation: The lack of regulation in the cryptocurrency space has been a double-edged sword. On one hand, it allows for innovation and experimentation. On the other hand, it can lead to fraud and scamming, which can turn people off from using cryptocurrencies.
- Limited use cases: While cryptocurrencies have the potential to disrupt many industries, their current use cases are largely limited to speculation and buying and selling goods and services online. This limits their potential for widespread adoption.
- Competition from traditional financial institutions: Cryptocurrencies face competition from traditional financial institutions, which have the advantage of being well-established and trusted by the public. These institutions are also starting to adopt blockchain technology and offer their own digital currencies, which could potentially cut into the market share of cryptocurrencies.
What part in the future of Humankind will both AI and Cryptocurrency play?
AI and cryptocurrency are both emerging technologies that have the potential to shape the future of humankind in significant ways.
AI has the potential to revolutionize many industries, including healthcare, transportation, and finance, by automating tasks and making them more efficient. It also has the potential to improve people’s lives in various ways, such as by assisting with day-to-day tasks or helping to diagnose and treat medical conditions.
Cryptocurrency, on the other hand, has the potential to disrupt the traditional financial system by offering a decentralized and secure means of exchange. It could also make it easier for people to conduct financial transactions across borders and reduce the need for intermediaries like banks.
Both AI and cryptocurrency are still in their early stages of development, and it is difficult to predict exactly how they will shape the future of humankind. However, it is clear that they both have the potential to have a significant impact on society and the way we live our lives.
Can you write me a verse about the cryptocurrency?
Sure! Here is a verse about cryptocurrency:
Verse:
Cryptocurrency, a digital marvel
A decentralized way to exchange value
No need for banks or intermediaries
Secure and fast, it’s the way to go
From the blockchain, it’s derived
A technology that’s revolutionized
The way we think about money and trade
Cryptocurrency, a new paradigm.
…THE END 📖
Happily ever after?
Although no one has a crystal ball that can accurately predict the future, it’s easy to foresee that both Artificial intelligence and Cryptocurrency will play a significant role in humanity’s future breakthroughs.
One thing is certain, I’m excited by what lies ahead. 🤯
Please, let me know down in the comments, what are your favorite tokens and NFTs.
Thanks! ❤
Carve-out (acquired.fm style): if you read this far, for sure you are interested in all things Crypto, therefore you will love Mario Gabriele post “The Casino and the Genie”.
The analogy it’s spot on, and even though it’s not as optimistic as I would like, I still think that the reasoning is very valid- enjoy!
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