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Part 1: A Simple Definition
Here is a simple definition of Artificial intelligence that works for all scenarios – Any software that does certain cognitive tasks better than a human.
By this criterion, computer opponents within video games are artificial intelligences.
All search algorithms are artificial intelligence. Some are just better than others. E.g. A document word-search algorithm vs a webpage search algorithm.
Even a software that counts numbers is artificially intelligent because by counting faster than humans, it just did a cognitive task (counting numbers) much better than humans. It has what Nick Bostrom calls “Speed Intelligence”.
By this definition, all software that works is artificially intelligent.
Certainly, if it falls below human capabilities then we just dump it.
It is neither good software no worthy of being called AI.
The beauty with this is that it make it easy to put the entire range of programs that “do cognitive tasks better than humans” on a single scale without fear of leaving anything out.
It also makes looking at them all under a microscope easier.
Otherwise, the academic literature bothers to differentiate weak AI from strong AI, human trained from self-trained, autonomous tasks vs a pseudo-random evolving software vs an evolving neural network.
Now there is a pernicious thing with the “evolving type” of AI. This is the type that can make inferences on the future based on given data, and if it’s predictions are correct based on certain feedback mechanisms, it can be improved or it can improve itself based on this feedback.
How does it make predictions?
Warning – Technobabble ahead:
Two common techniques include Regression Analysis and Bayesian Inference. But firstly, classifying data well is half the trouble.
A hot-news example is the Google AI LaMDa that got one of the company’s engineers, Blake Lemoine, fired for calling it sentient. In the not-so-distant past, we were awed by the performances of OpenAI’s DALL-E and GPT3, IBM’s Watson, Google’s DeepMind AIs, Alexa, Cortana, etc.
The deal with these AIs really is how well they integrate the aggregate of human knowledge or self-taught gaming experience so as to appear to be human-like. And sometimes superhuman.
And it makes sense.
On the hardware side we know that working with big autonomous machine-complexes e.g. autonomous car making factories is most efficient. As is working with big energy systems e.g Steam Turbines the size of small houses and Hydro-Electric Dams the size of Big houses.
On the software/ data side, collecting as much data as possible and smartly processing it in layers of an artificial neural network should also do wonders.
If the world was a fair place, Big Data driven companies like Google would be putting a lot more smiles on people’s faces than currently. But here is the problem – cheap credit.
As these companies get more powerful, they can access more zero interest credit (and sometimes negative interest credit on top of government grants) than smaller companies and businesses anywhere in the world.
There is a simpler definition of artificial Intelligence. But as I give it, I’m not going to go easy on AI.
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Part 2: AI Criticized
Artificial Intelligence can be defined as what Big Data companies like Google use to make billions of dollars every year despite giving you “free” products like cutting edge search services, video hosting services on YouTube (which you can monetize), location services.
Name them. They are all FREE!
When one Google searches they will see that their main source of revenue is advertising which means that as people spend so much time online enjoying Google’s free things, they cannot help taking some minutes off to spend on what it suggests.
But what are these ads mostly about anyway?
What are people spending on?
More Googling reveals Amazon as the biggest spender on Google ads.
Hence retail consumer spending.
And what are the most bought goods on Amazon?
Doesn’t matter. They all consumed fossil fuels to get there (and to be made at all) and yet fossil fuels are unbelievably expensive right now.
So who is buying all these now-expensive toys?
Mostly people with access to cheap credit as you do not expect many a villager in Uganda to live on buying things from Amazon.
SO, this is how Big Data companies like Google are sucking up cheap credit.
Add to this the fact that Google pays about 8% in taxes while the average American pays 13%, and you now know why they cannot help but make billions and billions of dollars.
As the lower income classes with neither AIs to get them some much needed targeted advertising nor big data superhuman capabilities nor cheap credit, remain in the dust.
But I see a silver lining on this dark cloud.
As these big AI companies grow, they can and will build cheaper tools that will serve the masses when the credit bubble bursts.
Google is inflating the credit bubble by simply growing and growing on cheap credit from tax breaks, cheap credit from consumers spending cheap credit, et cetera.
You bet, they also invest and feed on high speed trading AIs on Wall Street.
So the pernicious cycle will continue until it all unravels.
Because you cannot keep pushing a Bugatti to maximum speed when the tank is getting emptier and emptier.
I have no beef with Google. It is an awesome company. I have a Gmail account and I use Android products. But Google could do a lot more to Not Be Evil.
For Energy, Healthy food and Utilities are getting more expensive as smartphones get more awesome.
It is therefore a very good state of affairs for the system to jump onto a sounder bandwagon. Despite the destructive that might cause to the system and the new bandwagon.
Bitcoin will thrive and unleash its wonders when instead of building more data driven business models, humans shift to building more energy and cyclic-resources driven business models.
Because I think there is a thing as worthless data.
Too much data.
Like the knowledge many Ugandans pick up in O’level, a lot of big data is and will be just occupying server space to no avail.
Data trying to work in a world devoid of the resources to support it.
It is like a very smart student trying to do mathematical sums on an empty stomach.
It will not work.
They eventually fall into delirium. Ecstasies and fancies take over. As with the NFT and the Alt-crypto craze.
Smart people trying to live on mere hope and intelligence is not possible. They need good food, clean water, families, friends, real world community (not in a metaverse for Christ’s sake. We are not yet digital intelligences).
Eventually they resort to drugs, theft, violence as substitutes.
And the systems that be blame the people and not the systems themselves.
So what will happen is that Elon Musk may even be successful with his Optimus robots. I hope he is.
Google and friends will build bigger AIs, make trillions of dollars and cheaper smartphones, laptops, electric cars, trading algorithms, farming techniques.
They’ll all deploy their stuff. Then the market will crash and all these will be freebies.
Robots aside, when the market crashes coz of the CB (credit bubble), smartphones will be dirt cheap.
Everybody will have a chance to experiment with them.
Then what do you know, they will discover Bitcoin.
Their old friend.
Once upon a time, hardly valuable.
Now, extremely so.
Few people will gain from their NFTs as most NFT art is actually stored on a centralised database with some mumble jumbo that looks like a Blockchain.
So fakes abound.
Only Bitcoin will remain what it claims. And it will pick up the pieces of the economy strewn all over by fiat and AI.
Part 3: AI Vindicated
Have you heard about Web5?
Really? From whom?
As we have discovered, artificial intelligence(AI) affects credit creation and also affects Bitcoin.
AI and credit expansion are top ranking tools for stimulating economic activity, recession or no recession. The first one because it is the biggest driver of economic efficiency in the 21st century a la deflationary economics i.e. make goods cheaper by creating synergized economies of scale, cut costs by aggregating production to millions of small businesses (of sorts), hence maximize profits.
The second because it is the biggest pump-up of economic zeal. Basically, it is the steroids. Print cheap credit and give most of it to the rich. This will squeeze the lower income classes so that lo and behold, they work harder than ever so as not to starve.
Evidently, I’m no fan of credit creation. It is crude, archaic, and preschool easy. It cheaply modifies human behaviour to see results instead of asking the hard questions and doing the hard work.
Instead of staring at the ugly facts in the face without averting its gaze to look at the pretty illusion over there.
Now artificial intelligence, like credit expansion, does not require that people are so individualist in their lifestyle. It requires common traits and the easier these are to discern, the cheaper the entire enterprise.
So as it is right now, Bitcoin is a very individualist enterprise but there is good news this part round.
It is called Web5.
To cut through all the crypto-speak, Web5 is Web 3+2.
Further simplified, it will be a merger of Web2 (AI-powered internet services and products be they blogs, intellectual property cloud-stores, vlogs, websites) with the Web3 (Bitcoin mostly. The King of Web3).
Web2 is simply the internet and Web3 is the blockchain.
So, what is the point of having AI merging with blockchain technology?
Because it allows us to find common interests within the individualism of our Bitcoin lives.
Also important is that we can track important changes to our Bitcoin individualism faster with an AI around, while still enjoying the privacy we signed up for in the first place.
Think of it like having exclusive rights to a specific Bit-torrent download, without needing to store all those torrent files either locally or on a specific server in some Big Data company’s cloud storage.
Ideally, you can put your digital identity inside a wallet and know it will not be devalued by ads (the equivalent of monetary inflation in the digital-identity world. It expands your identity by adding all those targeted ads to your digital footprint). Is that cool or what?
To be more pragmatic, imagine we could build a big online store like Amazon but only for Bitcoin trading AND pseudonymous-ized.
i.e. Jeff Bezos cannot know about you if he was forced to.
Well, it is quite the dream.
Did I mention you will sidestep inflation forever?
– The Netflix Mini Series “The Billion Dollar Code”