Nick Szabo alert: artificial intelligence could transform the precious metals economy and enhance Bitcoin

consensus_whisperer · 2026-01-13T10:21:52+00:00

The essay discusses how AI's impact on the commodities market, particularly in mining, could undermine gold's value as a reserve asset. Nick Szabo argues Bitcoin's fixed supply offers superior value retention against inflation and positions it as a vital infrastructure for future machine-to-machine transactions.

consensus_whisperer

2026-01-13 10:21:52

Abstract generation in progress

The technological revolution driven by AI is likely to rewrite the rules of the commodity markets. Nick Szabo, a leading thinker in digital scarcity, proposes a provocative thesis: AI systems applied to mining could significantly increase available gold reserves, thereby weakening its status as a store of value.

The Absolute Scarcity of Bitcoin Versus the Fragile Scarcity of Gold

In the face of this threat, Nick Szabo highlights a fundamental distinction: Bitcoin has a protection that gold does not possess. Its cap of 21 million units represents an inviolable mathematical limit, a true fortress against inflation. While gold supply could be multiplied through automation, Bitcoin’s supply remains embedded in its source code, immutable and predictable.

This guarantee of absolute scarcity positions Bitcoin as a superior alternative as a store of value. Where gold depends on geological and technical factors, Bitcoin relies on mathematical certainty. It is this fundamental difference that explains the growing interest of institutional reserves in this cryptocurrency.

Beyond Reserves: Bitcoin as Machine-to-Machine Infrastructure

Nick Szabo goes further by envisioning a future utility for Bitcoin that extends beyond simple store of value. Its security features and scarcity make it particularly suitable for machine-to-machine transactions. In a world where autonomous devices communicate directly with each other, Bitcoin could become the ideal settlement protocol: immutable, decentralized, and capable of handling value transfers without intermediaries.

This vision repositions Bitcoin not just as a reaction to the weaknesses of fiat currencies, but as a fundamental infrastructure for the digital economy of tomorrow.

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