Cardano Founder: "Cryptocurrency Will Devour AI"

▲ Bitcoin (BTC), Artificial Intelligence (AI)/AI Generated Image

A radical prediction has emerged that the data center expansion boom triggered by the artificial intelligence (AI) craze will eventually collapse into a bubble, and decentralized blockchain infrastructure will absorb AI computation and governance.

According to the cryptocurrency specialized media CryptoPotato on September 18 (local time), Charles Hoskinson, founder of Cardano and CEO of Input Output (IOHK), stated in an interview with the German financial media DER AKTIONÄR, "Virtual assets will eventually devour AI," and "the current explosive data center boom will face catastrophe due to power shortages and cost limitations." CEO Hoskinson directly criticized that the massive centralized data center model, which requires astronomical capital investment, cannot guarantee long-term sustainability.

His argument is not limited to mere computational cost reduction. CEO Hoskinson pointed out that centralized big tech companies cannot monopolize the value alignment and control of AI models. He emphasized that blockchain will play the role of a reliable common norm by providing decentralized rules and verifiable on-chain governance. The concept is that Decentralized Physical Infrastructure Networks (DePIN), which combine idle computing resources worldwide, and cryptocurrency payment rails will replace the limitations of centralized servers.

He also expressed strong confidence in the speed of on-chain migration in the global asset market. CEO Hoskinson predicted that at least $10 trillion worth of real-world and financial assets would flow onto blockchain networks by 2030. On the other hand, he sharply criticized the U.S. political establishment in Washington for rejecting cryptocurrency market structure bills and obstructing regulatory clarity, thereby kicking away opportunities for future financial hegemony and innovation.

Industry experts evaluate that CEO Hoskinson's claims offer significant implications at a time when the instability of power supply and the enormous chip procurement costs of large big tech companies have come to the forefront. The analysis suggests that even if centralized infrastructure dominates the market in the short term, a combination with decentralized technology, equipped with data verification and governance transparency, is inevitable in the mid to long term.

[Article Key Summary]

-CEO Hoskinson predicted that the data center boom would collapse due to power and cost limitations, and virtual assets would absorb AI.

-He diagnosed that blockchain would counteract big tech's AI monopoly by presenting decentralized computation and common governance norms.

-He criticized the U.S. political establishment for squandering opportunities while $10 trillion in assets flow on-chain by 2030.

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