O’Leary Ventures chairman Kevin O’Leary explains how Artificial Intelligence and cryptocurrency can impact daily life on ‘The Will Cain Show.’ YouTube Tips ⓘ
Kevin O’Leary discusses the “collision” of AI and cryptocurrency and that soon we are no longer in Crypto Cowboyland because cryptocurrency and stable coins will be law.
In the last 9 months there was regulation established on stablecoins, and the discussion of putting Wall Street on the block chain.
Leary says for example, AI will allow smartphone commands involving ordering food at a fast food restaurant to go directly to the cash register of the restaurant where the customer is standing.
O’Leary says that with stablecoins we’re not separating from the dollar, but we’re moving away from the paper currency, and we’re moving to the U.S. Treasury bill shorter than 92 days.
O’Leary thinks that within the next five or six months the largest holder of U.S. Treasury will be stablecoins.
Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to a less volatile asset, such as a fiat currency like the US dollar. Unlike volatile cryptocurrencies like Bitcoin, their value is intended to remain constant, making them useful for transactions, international payments, and as a bridge asset for trading other crypto assets. They are built on blockchain technology but typically rely on a centralized entity to manage their reserves and maintain the peg.
Bitcoin and Ethereum are not stablecoins, but are cryptocurrency that is used as a foundational block chain for many stablecoins are a different type of cryptocurrency designed to maintain a stable value.
A foundational blockchain is the core technology that enables functions built on a distributed digital ledger that uses cryptography to create a secure, immutable, and transparent record of transactions. The key components of a foundational blockchain are a peer-to-peer network of nodes, a token ledger, and a consensus mechanism that ensures all participants agree on the validity of new blocks. This foundational layer supports all blockchain applications, from cryptocurrencies to smart contracts.
A token ledger records and manages digital tokens, which can represent assets or utilities. A token ledger uses a decentralized and immutable system to track ownership and transactions, offering transparency and security for various types of tokens, such as security tokens, utility tokens, and currency tokens.
An example of a security token can be a YubiKey USB device for two-factor authentication, or a digital token like Blockchain Capital (BCAP), which represents ownership in a venture capital fund, wireless key cards used for building access, or bank-issued digital tokens for online banking.
Utility tokens, such Basic Attention Token (BAT) have specific functions, like paying for services, gaining access to features, or voting on proposals, and are not primarily intended as investments.
An example of a currency token is USD Coin (USDC), a stablecoin built on top of the Ethereum blockchain. USD Coin is a digital token designed to maintain a value equivalent to one U.S. dollar, making it a popular medium of exchange and store of value within the cryptocurrency space.