As cryptocurrencies gain momentum, the rise of AI could reshape financial markets and displace traditional players.
Important points
- AI and cryptocurrencies are poised to significantly disrupt existing market structures.
- The next decade may see a restructuring of money markets with different beneficiaries.
- Stablecoins process more transaction volume than major credit card companies such as Mastercard.
- Despite stagnant job creation, profit margins are increasing, creating a unique economic situation.
- Investors are increasingly worried about the potential for AI to disrupt software companies.
- Bitcoin’s performance closely matches software ETFs, indicating a strong correlation.
- The rise of AI has shifted attention and funding away from the SaaS and crypto sectors.
- Despite the current challenges, cryptocurrencies are expected to recover, but venture capital backing is currently lacking.
- The rise in Bitcoin prices is seen as an important catalyst for changing market sentiment.
- Although the AI bubble is no longer the focus, software panic presents a buying opportunity.
- There is skepticism about the rotation of funds from gold and silver to Bitcoin and cryptocurrencies.
- AI is expected to destroy all legal assets, with tangible assets being the last to be affected.
Guest introduction
Jordi Visser leads 22V’s AI Macro Nexus Research. Prior to joining 22V, he founded and led Visser-Labs as chief strategist, advising asset managers on AI and digital asset disruption. Previously, he served as President and Chief Investment Officer of Weiss Multi-Strategy Advisers for 20 years, where he built macro strategies and developed the firm’s data analytics models for behavioral alpha.
The transformative potential of AI and cryptocurrencies
- “AI and cryptocurrencies are disrupting and changing everything that software holds back from growth. Investors are panicking.” – Jordi Visser
- There is a possibility that a deflationary shock will occur over the next 10 years, reshaping short-term financial markets.
- “Stablecoins just processed more volume in a month than Mastercard does in a year.” – Jordi Visser
- The impact of AI is expected to cause major changes in the economic structure.
- The rapid growth of stablecoins highlights their growing importance in financial markets.
- “Profit margins are expanding while job creation is stagnant.” – Jordi Visser
- We have a unique economic climate of expanding profit margins and stagnant job creation.
- “There is a movement to move software away from everything that is being disrupted by AI.” – Jordi Visser
- Investors are increasingly concerned that AI will disrupt software companies.
- “Bitcoin vs. Software ETFs…they effectively track completely.” – Jordi Visser
- We can see that Bitcoin’s performance closely tracks and correlates with software ETFs.
- “We did not expect the software panic to start so quickly.” – Jordi Visser
How AI will impact SaaS and crypto markets
- “AI has taken the attention away from SaaS and all those startups.” – Jordi Visser
- The rise of AI has shifted focus and funding away from the SaaS and crypto sectors.
- “I still believe that cryptocurrencies will come out of this situation in a different way, but there is no VC funding for now.” – Jordi Visser
- Despite the current challenges, cryptocurrencies are expected to recover, but lack venture capital backing.
- “People always ask me what will be the next trigger for Bitcoin, and I say rising prices.” – Jordi Visser
- The rise in Bitcoin prices is seen as an important catalyst for changing market sentiment.
- “Three weeks ago I wrote a paper called The AI Bubble You Will Never Hear Again.” – Jordi Visser
- Although the AI bubble is no longer the focus, software panic presents a buying opportunity.
- “I think last week may have been a low for both software and Bitcoin.” – Jordi Visser
- The recent lows in software and Bitcoin could be a turning point for the market.
- “I don’t buy into the idea that all the money from gold and silver somehow circulates into Bitcoin and cryptocurrencies.” – Jordi Visser
- There is skepticism about the rotation of funds from gold and silver to Bitcoin and cryptocurrencies.
- “All legal assets will be destroyed by AI, and hard assets will be the final stage of this destruction.” – Jordi Visser
The future of the job market and entrepreneurship
- “Within five years, advances in AI will disrupt knowledge work.” – Jordi Visser
- AI is expected to revolutionize knowledge work within five years.
- “The only way Bitcoin can raise the funds it needs is by creating a disruption that makes people question the assets that exist in the world.” – Jordi Visser
- In order for Bitcoin to be accepted as a growth asset, existing assets need to be destroyed.
- “AI gives them education, AI gives them the ability to build a business.” – Jordi Visser
- AI will democratize entrepreneurship opportunities, especially in developing countries.
- “Bitcoin will probably be a savings account and stablecoins will be for spending.” – Jordi Visser
- Bitcoin is likely to become the savings account of emerging markets, and stablecoins will serve as spending currencies.
- “Stablecoins have taken over the transaction side.” – Jordi Visser
- The trading volume of stablecoins will continue to increase and may surpass Bitcoin.
- “It is becoming accepted all over the world.” – Jordi Visser
- The increase in the volume of stablecoins indicates growing global acceptance and utility.
Stablecoins and their disruptive potential
- “Stablecoins are currently undergoing hockey stick adoption.” – Jordi Visser
- Stablecoins will disrupt traditional payment companies like Mastercard as their adoption accelerates.
- “Both AI and stablecoins have the ability to remove intermediaries.” – Jordi Visser
- Stablecoins and AI can reduce the need for intermediaries, which is a challenge for companies like Mastercard.
- “The whole world of consumption will change.” – Jordi Visser
- The rise of AI agents will fundamentally change consumption patterns, especially through stablecoins.
- “NFTs will be an important part of the next five years.” – Jordi Visser
- Over the next five years, NFTs will play an important role not only in art but also in communities and experiences.
- “By the end of this year, there will be an infinity of IQ 200s running around.” – Jordi Visser
- By the end of this year, AI will greatly enhance idea generation and lead to innovative solutions.
- “The current NFT landscape is chaotic, but it will eventually lead to real use cases.” – Jordi Visser
- Although the current NFT landscape is chaotic, there is hope that real use cases will emerge from the hype.
The role of NFTs in the digital future
- “NFTs become very important to me.” – Jordi Visser
- NFTs will become essential for proving the authenticity of real-world assets in a world increasingly filled with fakes.
- “It accelerates everything many times over.” – Jordi Visser
- The proliferation of AI will accelerate the need for tokenization of real-world assets.
- “The value of an asset is determined by the beliefs of the public.” – Jordi Visser
- The value of assets is determined by the beliefs of the masses, not just the wealthy.
- “The democratization of money and asset ownership will give equal voting rights.” – Jordi Visser
- In the future, the democratization of money and asset ownership will give individuals equal voting rights regardless of their wealth.
- “Humans want to interact with humans.” – Jordi Visser
- At work, human connections are always valued over automation.
Economic challenges and the role of AI
- “The current economic system faces serious challenges due to the unsustainable nature of systemic inflation.” – Jordi Visser
- The current economic system faces significant challenges due to the unsustainable nature of systemic inflation.
- “The world will be full of entrepreneurs who will eat up companies’ business.” – Jordi Visser
- AI will bring about a surge of entrepreneurs and disrupt traditional corporate business.
- “Governments will have a hard time controlling economic change.” – Jordi Visser
- Governments will struggle to control the economic changes brought about by AI and globalization.
- “We are heading into a dystopian future.” – Jordi Visser
- We are heading towards a dystopian future where technological progress outpaces social coordination.
- “Nominal GDP is growing so fast because we are printing so much money.” – Jordi Visser
- Large amounts of money printing from both corporate and government levels contribute to nominal GDP growth.
- “Advances in technology could make wealthy people even worse off in the job market.” – Jordi Visser
- Technological advances may make the wealthy worse off in the job market, but employment for low-income people remains stable.
Bitcoin and Commodities in the Investment Environment
- “Bitcoin should be seen as a scarce commodity, not a software asset.” – Jordi Visser
- Bitcoin should be viewed as a scarce commodity, not a software asset.
- “Commodities will continue to rise.” – Jordi Visser
- Commodities, especially silver and copper, are expected to continue to rise in value due to the need for technology and AI.
- “In my opinion, the US dollar will weaken.” – Jordi Visser
- The dollar is likely to weaken as capital flows shift to manufacturing outside the United States.
- “Brazil stands to benefit greatly from AI.” – Jordi Visser
- Brazil stands to benefit greatly from AI because it owns important minerals.
- “Investing in goods and manufacturing outside the United States is preferable.” – Jordi Visser
- Investing in goods and manufacturing outside the United States is advantageous compared to the United States’ focus on software.
