Sam Altman, CEO of OpenAI, already researched Bitcoin in 2013. An old post on his blog reveals the vision of the man behind ChatGPT’s success on Bitcoin when the cryptocurrency was only used by a few enthusiasts and criminals.
“Maybe bitcoin will become the world’s reserve currency, maybe it will fail completely or maybe it will survive in some niche”Altman began in his text. “I don’t know how to weigh the odds (although I think they’ll probably decline immediately), but I have an idea about the metric to watch: the growth of legitimate transactions.”
“A coin without its primary use being legitimate transactions will fail. Currently, the dominant use case for bitcoin appears to be speculation, with a secondary use case for illegal transactions.”
On the date of posting, December 1st 2013Bitcoin had recently surpassed $1,000, attracting a lot of attention. Earlier that year, the price was as low as $13 and BTC was often associated with illegal marketplaces such as Silk Road.
Sam Altman was interested in other people’s opinions about Bitcoin
Based on his text, Sam Altman analyzes the good, bad and ugly sides of Bitcoin. While Bitcoin is compared to gold and the dollar in some respects, it is also analyzed whether cryptocurrency is not just a big bubble like the Tulip Mania in the 17th century.
“When friends ask me how to buy bitcoin, I always ask why they want to buy it before I help.”
As an example he mentions that the most important answer is desire to get rich quick. However, he notes that a sharp fall could shake the conviction of the greatest enthusiast. After Altman’s post, BTC plummeted from $1,150 to $169, losing 85% of its value in just over a year.
The second reason would be minimal chance of Bitcoin becoming a global reserve currency, replacing the role of the all-powerful dollar in international trade. In other words: a risky gamble, but with enormous profit potential.
“Even if the chance is small, it can make sense to buy a few [bitcoins] as a hedge (that’s why I bought the small amount I have)”Altman revealed in 2013.
Then, the CEO of OpenAI also emphasizes that some people do not consider Bitcoin as a currency, but as a store of value like gold. Since he doesn’t see gold as a good investment, Altman notes that this could be a blind spot in his analysis.
Elsewhere, the director notes that few merchants accept Bitcoin. This would be a problem because the processing time for withdrawals, after conversion to dollars, was very slow at the time.
“That said, there is clearly something very interesting going on. And the positive argument is exciting: a world where we all trade bitcoin would be much more transparent, and financial transparency is excellent. It is perhaps what would reduce corruption the most.”
Last week, Aaron Brown, former research director at AQR Capital Management, stated that “it is safer to have a small allocation to Bitcoin than to ignore it.” Ten years ago, Sam Altman thought the same thing. To conclude his text, the CEO of OpenAI does not sound like a maximalist, but he does not show any naivety either.
“Just as it would be stupid to convert all your dollars into bitcoin, it would be stupid not to pay attention.”
Ten years later, Bitcoin is trading at $42,000 and the main names in the traditional financial market are interested in satisfying their customers’ desire for this asset, either through ETFs or direct sales.
Finally, Altman continued his adventure into the world of cryptocurrencies by creating his own Worldcoin (WLD). The controversial project involves giving cryptocurrencies in exchange for a scan of the eye’s retina, which the team believes would be a fair way to distribute a new currency. Another use case would be to distinguish humans from artificial intelligence.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
