Balaji Srinivasan on Bitcoin, AI: ‘Going Vertical’

by

As a seasoned tech researcher with over two decades of experience under my belt, I find the recent predictions and comparisons made by Balaji Srinivasan quite intriguing. The parallels he draws between the vertical growth of Bitcoin (BTC) and AI are captivating, to say the least.

Renowned tech visionary Balaji Srinivasan, former CTO of Coinbase and GP of Andreessen Horowitz, shows two charts to display the rocketing opportunities of AI large language models (LLMs) and Bitcoin ETFs. Both are in their “vertical” growth phases, he says.

Bitcoin, AI going vertical: Two charts by Balaji Srinivasan

According to renowned investor and entrepreneur Balaji Srinivasan, who boasts an impressive following of over a million people on his X account, Bitcoin (BTC), the leading cryptocurrency, is experiencing significant growth in tandem with artificial intelligence (AI). In simpler terms, this means that as AI continues to advance, so too does the value and popularity of Bitcoin.

AI and Bitcoin are going vertical.

— Balaji (@balajis) December 21, 2024

To demonstrate the traction of Bitcoin (BTC) and AI, Srinivasan shared two charts. The first one demonstrates the opportunities of OpenAI’s flagship models to solve various tasks. It is measured by Abstraction and Reasoning Corpus for Artificial General Intelligence (ARC–AGI) benchmarks.

On December 20, 2024, OpenAI’s highly anticipated o3 model achieved a remarkable milestone, scoring 87.5% on the ARC-AGI public dataset. As illustrated by Balaji Srinivasan, this result is ten times more potent than GPT-4o, which is currently the most robust model in ChatGPT’s mainstream lineup today.

As an analyst, I can confidently say that the performance improvement of GPT-4 over its predecessor, GPT-3, is staggering, with GPT-4 demonstrating a remarkable fivefold increase. It was GPT-3 that ignited the AI enthusiasm in 2023, but it’s clear now that we have taken a significant leap forward with the introduction of GPT-4.

The second graph created by Balaji Srinivasan illustrates the fluctuations in assets managed by U.S. Dollar (USD) for BlackRock iShares ETFs related to Gold and Bitcoin. In just under a year, BlackRock’s Bitcoin spot ETFs outperformed their gold-backed counterparts by approximately 73%.

Bitcoin (BTC) grows faster than internet: Opinion

At the current moment, the aggregate value managed by Bitcoin spot ETFs from BlackRock stands at approximately $57.8 billion, whereas gold-backed exchange-traded funds currently hold around $33 billion in assets under management (AUM).

On January 11, 2024, Bitcoin spot ETFs received approval in the United States. In the end, these funds accumulated a combined total of $113 billion in Assets Under Management (AUM) spread across 21 different products.

In response to Balaji Srinivasan’s predictions, tech veteran and ex-CEO of Phunware, Alan Knitowski, observed that Bitcoin (BTC) could potentially exceed the internet in terms of its driving force for widespread adoption.

Having witnessed the rapid expansion of the internet throughout my lifetime, I must say that the growth trajectory of Bitcoin is nothing short of awe-inspiring. Compared to the gradual increase in internet users over several waves of technological advancement, Bitcoin has already surpassed this pace and shows no signs of slowing down. The sheer speed at which it’s growing leaves me in a state of amazement. Moreover, the fact that there are fewer than one million unique Bitcoin addresses is truly mind-boggling, considering how far the digital currency has come since its inception. It’s an exciting time to be alive and observe this remarkable phenomenon unfold.

— Alan Knitowski ∞/21M (@alanknit) December 21, 2024

According to Knitowski’s graph, Bitcoin (BTC) is expanding at a pace similar to that of the internet in its early days, and its global adoption currently resembles the level seen in 1999 on the World Wide Web.

Read More

2024-12-21 15:29