Joe Lonsdale Envisions AI as a Driving Force in Crypto

Joe Lonsdale, a key figure behind 8VC and co-founder of the data analysis firm Palantir Technologies, Inc., provided insights on CNBC's "Squawk Box" this Monday related to the interplay between artificial intelligence (AI) and cryptocurrency markets. With his experience in both tech and investments, Lonsdale discussed how AI could potentially become a significant influence on cryptocurrency growth and valuations.

AI's Impact on Crypto

Lonsdale believes that the widespread integration and adoption of AI technology could lead to a massive increase in productivity, positively affecting various sectors in society. His perspective indicates that as AI becomes more deeply integrated in certain consumer segments, these advanced technologies might actively engage with cryptocurrencies, possibly serving as a trigger for market movements.

According to Lonsdale, "AI agents are going to start doing a lot of things in our economy and for AI agents to coordinate with incentive systems, they are probably going to use crypto." This collaboration could see major cryptocurrencies like Bitcoin, Ethereum, and Solana becoming increasingly favored by AI systems for transactions and coordination.

Cryptocurrency as a Safe Asset

Lonsdale also reasoned that cryptocurrencies might present a reliable safeguard against inflation, suggesting that in times of significant budget deficits and the return of high inflation rates, cryptocurrencies could perform well as an alternative investment. He stressed that different cryptocurrencies could serve as a solid store of value in an economy battered by inflation.

Despite a strong surge in crypto prices towards the latter part of 2023 and a cooling off at the beginning of 2024, Lonsdale's arguments shed light on the potential relationship between AI and crypto that might catalyze future market directions.

AI, Crypto, Economy