When Bitcoin becomes a transmitter of valuable information

Bitcoin is not for speculation. Bitcoin is about the transmission and exchange of valuable information attached to a digital currency that measures the value of the information. The volatility we are seeing in the market for Bitcoin is based on the fear of missing out on a pop in value.

I think in the near future what will eventually drive the value of Bitcoin is the underlying value of the information that the individual sovereign either possesses or can produce. It is likely that person A holding Bitcoin may look at person B who allegedly has some information, x, and determine that the person B’s information or ability to generate useful information has no value. Think of someone in London approached by someone from Somalia who wishes to trade in Somalian currency. The Londoner wouldn’t touch it.

You may argue that scenario already occurs in the real world, that trader A is not required to transact with trader B. In a centralized world, trader B would bring a discrimination grievance against trader A for refusing to trade. In a decentralized, voluntaryist cyber world, no matter how much cryptocurrency you hold, the value of your true currency, the information that you possess or can produce, will determine your digital currency’s value.

As for the speculators, the error they make is using valuation methods created in a centralized, coercive political economy to assess the value of a currency designed for a decentralized cyber society. A speculators are enjoying the upside of Bitcoin’s market appreciation, but as the currency becomes more expensive and reaches its 21 million digital currency cap, will these speculators be able to purchase any more of the currency? Or, will they be able to ride out the inflationary characteristic the coin takes on should it become a matter of two few Bitcoin chasing too many goods? Will lower income individuals who may have made their first purchases with their credit cards be able to recover the dollar value of the coin in order to pay off increasing interest rates?

Not to mention the competing currencies that will eventually knock off Bitcoin from its perch. As technology improves such that “information rich” individuals create their own cryptocurrency, individual sovereignty will be complete. Just like western nations trade with each other based primarily on similar values and culture, the information rich will do the same. As the value of their currency increases so to will the demand from vendors who will likely prefer hold in reserve the currency of the information rich versus the “information poor.”

I believe that the information poor or “information losers” who were lucky to get a few pieces of a coin in the early days will not be able to participate on either side of a cyber trade in the future. Their focus should be on building their information gathering tools versus pursuing a quick fix, get rich path.

Cyber space will remain decentralized by the silos created by the information rich will prove daunting for the information poor.

Senator Markey conflates net neutrality and artificial intelligence

The U.S. Senate’s commerce committee held a hearing on how artificial intelligence and machine learning could impact economic growth and American consumers. The panel did their best to assure the committee that Kristanna Loken would not be busting through walls terminating humans on her way to activating Skynet.

Senator Brian Schatz, Democrat of Hawaii, made the audience aware that he was sponsoring a bill that would create a commission that would ask the tough questions about AI (excluding Texas senator Ted Cruz‘s reference to the aforementioned Skynet.)

The committee’s walk through geek and nerd park was pretty much uneventful. From a regulatory perspective, the panelists did not seem gung-ho about the introduction of burdensome regulations at this stage of AI’s development. While the concept of AI has been around since the mid 1950s, the advent of machine learning has raised the level of awareness and in some cases concern about AI. Instead of new rules, it was suggested that current rules we adjusted to address concerns about AI. Also, government could afford to do some learning on its own, gathering the expertise necessary for how best to integrate AI into society.

Also, the panel seemed to downplay concerns about AI displacing workers. It was argued that the technology would create other jobs directly needed by the technology sector, and work spawned by the demand the newly employed in the technology industry would create.

One panelist also tried to mitigate the “Skynet” concern by informing the committee about where actual AI work was being focused. AI is not concerned at this time with creating a general intelligence, that super, global brain depicted in movies. Rather, AI currently has a narrow focus on developing something more akin to an alien intelligence, creating a need for humans to communicate with AI-based technology on another level.

Unfortunately for my eardrums I had to suffer through Senator Ed Markey’s near enthusiastic willingness to conflate net neutrality and artificial intelligence. The Massachusetts Democrat asked one of the panelist, Dr Edward Felten, whether the expected vote by the Republican membership of the Federal Communications Commission to repeal net neutrality rules would negatively impact the development of artificial intelligence. To summarize Dr Felten’s answer: No, repeal of the rules would not.

How Markey or any of his net neutrality posse could confuse equal and transparent exchange of data between networks with the ability of computers to perform tasks usually performed by humans is a leap. Besides, given the billions of dollars invested in AI, would you really want any data generated by machines using artificial intelligence to have its traffic exchanged at an equal or lower priority than a cat video that took two hours and a couple hundred dollars to make?