How AI Could Make Gold Obsolete and Strengthen Bitcoin’s Role as Digital Money

Nick Szabo, the cryptographer often credited with pioneering the concept of digital scarcity, believes artificial intelligence (AI) could dramatically reshape the global economy—and redefine what we consider valuable. According to Szabo, as AI becomes more advanced and begins to dominate production, it will increase the supply of almost everything: manufactured goods, printed currency, and even mined resources. With robot miners capable of extracting vast amounts of gold and other metals, the historical perception of gold as a scarce, reliable store of value could crumble. In an age where machines make production nearly limitless, scarcity may no longer come from nature but from code.

Szabo points out that Bitcoin (BTC) is immune to this inflationary pressure. Unlike gold or fiat currencies, Bitcoin’s supply is permanently capped at 21 million coins. No matter how powerful AI or automation becomes, this limit cannot be altered. This fixed supply makes Bitcoin uniquely resistant to technological disruption, preserving its role as a true digital store of value.

While some analysts argue Bitcoin trades like a tech stock, Szabo views this as a temporary phase. Early adoption naturally brings volatility, speculation, and market noise, but over time, Bitcoin’s intrinsic value as “machine money” will prevail. He envisions a future where AI agents not only mine and trade but also transact using Bitcoin—choosing it as their preferred medium of exchange. In a fully automated world, machines won’t hoard gold bars or print money; they will rely on transparent, incorruptible digital currency.

In Szabo’s view, when technology reaches its peak, Bitcoin’s scarcity—secured by mathematics rather than machinery—will make it the ultimate form of value in the age of artificial intelligence.