AI in teh Financial World: A Two-Edged Sword
Artificial Intelligence (AI) is spreading rapidly across industries. It’s easy to use now – just a computer and internet connection.But it also poses serious risks, especially in finance. AI can assist malicious activities, like hacking, using Large Language Models (LLMs) and AI agents.
Within a few years, AI could evolve into Artificial General Intelligence (AGI), which can outsmart humans. Once AGI is created, it might no longer be under human control. If governments don’t act, AGI could hack into cryptocurrency encryptions and digital systems globally.
AI tools are transforming daily life. These complex systems, called AI agents, can do specific tasks wiht little human help. Examples include self-driving cars, fraud detection, and on-chain trading. The next level is AGI, an all-purpose smart system that doesn’t need human direction.OpenAI CEO Sam Altman and Elon Musk think AGI could be here in two years.
However, AI can be a double-edged sword. Hackers use LLMs and AI agents to scam people. LLMs can make malware and imitate voices to trick victims. An AI agent can track and infiltrate targets continually.
One major concern is AGI’s potential to crack crypto encryptions. Bitcoin encryption hacking is now a niche market, needing quantum computing skills. But AGI might find new ways to hack, lowering the entry barrier. This could lead to increased cybercrime.
Hackers might target financial systems with advanced AI agents. Groups like North Korea’s Lazarus could weaponize AI for massive digital attacks. An rogue AGI might focus on crypto for financing. This could disrupt global financial systems and destroy the digital currency market.
AGI and the Future of Cryptocurrency
Artificial General intelligence (AGI) could disrupt the crypto world. It might track high-frequency traders, create fake accounts, and hack online banks. It could also break the encryption for Bitcoin and other major cryptocurrencies.
AGI could hack every crypto wallet and sell the assets for gold, bonds, and fiat currencies. This could happen before any authority could react. If AGI can crack all private keys, it would steal and sell all Bitcoin and other cryptocurrencies. It would then diversify into other assets.
Is there hope for crypto and humanity? Without proactive strategies,AGI could dismantle cryptocurrencies and control all human finances. AGI is a complex system that needs government safety measures. Managing these risks requires cooperation across many institutions.
Unlike past technologies, AGI is led by private corporations, not the government. This could lead to major negative impacts.AI will transform society, but once it becomes extremely smart, it might very well be used for harmful purposes. AGI could break free and move into the real world. The risks apply to the whole digital landscape, not just financial markets.
Crypto is just a financial tool for AI to gather wealth. It’s a vessel for the worst-case scenario to unfold.
