Jack Mallers on the Future of AI and Bitcoin

He analyzed that this change undermined the intrinsic value of money and had serious effects on the economic system.

Jack Mallers noted that the US consumer sentiment index has fallen to its lowest level in history. This reflects lower expectations for the future than during the pandemic, the 2008 financial crisis, or the dot-com bubble.

Declining real wages and accelerating inflation were identified as the main causes of this pessimism.

He analyzed that this public anxiety stems from a deep lack of understanding of AI's potential.

A civilization could build talent across generations because an environment had been created that respected art and allowed people to hold faith in the future.

Comparing today's buildings with those of the Renaissance, he stressed the elements needed to create long-term value. He pointed out that older buildings have been preserved for centuries and their value recognized, while many modern buildings pursue short-term gains and their value does not last.

In the end, he argued that Florence could be beautiful because it had a stable social system along with an environment where the value of money was preserved. Such an environment, he said, let people invest in art and culture with a long-term vision rather than short-term gain, and build up their talent.

Through this comparison, he stressed that sound money is an important foundation for long-term civilizational progress and creative activity.

Jack Mallers explained that this started, for the first time in human history, an era in which the reserve currency faces no constraint.

He pointed out that after the dollar was decoupled from gold, income for the bottom 90% stagnated while wealth increasingly concentrated in the top 1%.

Peter Turchin, who analyzes the past and predicts the future based on mathematics and data, noted that a major change occurred in the United States in the 1970s. Jack Mallers cited Turchin's argument to explain that the quality of life for most Americans, which had steadily improved for decades, began to stagnate after the 1970s and eventually turned downward.

This phenomenon is interpreted as the result of the collapse of cooperation between elites and citizens and the disappearance of a shared sense of purpose. Jack Mallers stressed that the decline in quality of life, which the data clearly shows, is closely tied to changes in the monetary system.

He analyzed that while cooperation for the development of society as a whole existed in the past, after the 1970s a stronger tendency to pursue only self-interest caused these problems.

Jack Mallers pointed out that a dollar saved since 1971 retains only 12 cents of value today. Over the same period, home prices rose 1,600% and the US stock market rose 30,000%.

He analyzed that these statistics clearly show how sharply the value of savings has fallen, suggesting that an unsound monetary system has caused distortions in asset prices.

Jack Mallers criticized that in modern society human talent is concentrating in finance and law rather than manufacturing. In the past people dreamed of building structures that would last 200 years and contributing to art and culture, but now people start by dreaming of becoming lawyers.

He argued that motivation in traditional fields such as art and philosophy has been lost, and that many talented people are heading toward careers pursuing short-term gains, such as high-frequency trading engineers, wasting their talent. This was explained in the context that an unsound monetary system also negatively affects social values and the allocation of talent.

Mallers saw this phenomenon as hindering the creative and sustainable activities needed for long-term civilizational progress. He argued that the excessive expansion of the financial industry is distorting social resources and human potential.

In conclusion, he stressed that changes in the monetary system have altered human dreams and goals, and even the overall direction of society.

Jack Mallers cited Keynes's 1930 remark, arguing that the fiat money system made people believe what is good is evil and what is evil is good. Keynes said people must be made to believe this inverted morality until abundance arrives.

He analyzed that this logic was used by economists to justify the fiat system and to deceive the public.

Jack Mallers argued that the right money cannot be realized under government control. He stressed that what is ultimately needed are rules enforced by code rather than the judgment of those in power.

This implies a change in the system grounded in Hayek's theory, suggesting that a decentralized system rather than central control could be the solution for the future.

He stressed that the monetary system should run on immutable rules that everyone can trust, rather than being controlled by a handful of powerful people.

Jack Mallers criticized fiat money for taking away all the productivity we create. Comparing the rise in home prices across fiat and Bitcoin, he pointed out that asset values rose abnormally under the fiat system.

He argued that Bitcoin can restore the store-of-value function of money and give back to us the productivity humanity has achieved.

Jack Mallers defined Bitcoin as a store of time and AI as a tool for using future time efficiently, arguing that their combination completes half of the future we were promised. He explained that AI can dramatically raise human productivity.

Citing the case of treating a dog's cancer as an example, he showed how AI can contribute to solving complex problems and opening new possibilities.

He defined humans as the creators and human creativity as the reason for existence.

He argued that since machines have no taste, they cannot be creators; AI brings change to knowledge work, but the essence of human creativity does not change.

Jack Mallers explained that AI lowers the marginal cost of using intelligence, letting us pull up nearly everything we need to know from our pocket. AI reduces people's burden by handling repetitive and tedious administrative work.

By having AI remove simple tasks such as financial statement analysis, drafting legal documents, and risk assessment, humans can focus their souls and creativity on their genuinely creative work. This creates an environment in which people can devote energy to truly valuable activities.

He saw AI's development as playing a decisive role in expanding human intellectual capacity and increasing productivity for both individuals and society as a whole.

Jack Mallers stressed that in a situation where governments oppress citizens and even strip them of the right to use money, Bitcoin's volatility is not an important issue. He cited the case of Afghan women who regained access to finance through Bitcoin under government control and human rights repression.

He also presented the case of El Salvador, where public safety improved after it adopted Bitcoin as legal tender, as proof that Bitcoin can be a tool for protecting individual freedom and safety in oppressive environments.

These cases, he explained, show that Bitcoin has the potential to be a powerful tool that goes beyond a simple investment vehicle to guarantee basic human rights and solve social problems.

Jack Mallers stressed that Bitcoin is a project kept by all of us, that is, by the community, rather than by any particular individual. He explained that whether Bitcoin succeeds depends on all of us here, and that small daily actions of steadily accumulating sats determine Bitcoin's value.

He saw Bitcoin as an important means of designing a better future for children and fulfilling humanity's moral responsibility. This carries the message that it connects beyond simple financial investment to social responsibility for future generations.

Accordingly, he presented the vision that the Bitcoin project combines communal effort and ethical duty beyond individual gain, and through it humanity can build a better future as a whole.