Introduction
The convergence of artificial intelligence (AI) and cryptocurrency is poised to redefine the foundations of wealth and power. In a recent Journey Man episode, Raoul Pal, a macroeconomics and crypto visionary, and Emad Mostaque, a former hedge fund manager turned AI pioneer, grappled with the implications of this exponential age. They painted a future where AI’s relentless efficiency dismantles traditional economics—labor fades, costs plummet, and intelligence emerges as the new currency of value. Crypto, with its decentralized and programmable nature, could be the tool to harness this shift, potentially redistributing wealth in ways unimaginable a decade ago. Yet, they warned, this promise hinges on one critical condition: decentralization.
Their conversation sparked a provocative question: can decentralized crypto, by tying economic value to AI-driven intelligence, deliver a revolution that spreads wealth rather than concentrates it? It’s a tantalizing idea—AI making intelligence abundant, crypto making it accessible, and decentralization ensuring it benefits the many, not the few. This essay explores that possibility, diving into how it might work, why it could succeed, and what stands in its way. The stakes are high: an AI-driven economy is coming, and whether it empowers humanity or entrenches monopolies depends on the choices we make now.
Intelligence as the New Economic Core
Traditional wealth stems from labor, capital, or physical resources—wages for work, returns on investments, or ownership of land and goods. AI upends this. Raoul describes it as a “deflationary nuclear bomb,” slashing costs with robots at a dollar an hour and digital workers at near-zero expense. Emad sees AI reaching an “economic social takeoff,” where its intelligence—its ability to process, create, and execute—becomes the primary driver of value. A model running on a laptop can code like a top programmer or diagnose like a doctor, outpacing human limits. This isn’t just automation; it’s a shift where intelligence itself becomes the asset.
Crypto offers a way to quantify and exchange this intelligence. Emad’s concept of “proof of beneficial compute” reimagines cryptocurrency: instead of mining coins through raw power like Bitcoin, value comes from contributing compute to meaningful AI tasks—think training a healthcare model or optimizing an energy grid. Each token could represent a unit of intelligence delivered, not just energy spent. Raoul hints at AI companies using “crypto rails” to pay each other, suggesting a system where economic transactions reflect the output of intelligent systems, not human toil or physical scarcity. In this world, wealth isn’t tied to a factory or a paycheck—it’s tied to the insights, solutions, and creations AI generates.
This shift could be profound. If intelligence drives value, and AI makes it abundant—collapsing the cost of production and services—wealth could theoretically flow to those who harness or contribute to that intelligence, not just those who already hold capital. It’s a radical departure from today’s economy, where scarcity dictates worth, to one where abundance, powered by AI, redefines it.
Crypto’s Redistribution Mechanism
The promise of redistribution lies in crypto’s potential to democratize this intelligence-based economy. In a traditional system, wealth concentrates with those who control production—corporations, landlords, or investors. AI could amplify this, as Raoul warns, with capital owners reaping the gains of a laborless world. But decentralized crypto offers a counterpoint. Emad’s vision of an “Intelligent Internet” emphasizes open-source AI—models and data freely available, not locked behind corporate walls. Pair that with a blockchain-based currency, and wealth creation opens to anyone with a device, not just the elite.
Consider how it might work. Imagine a global network where your phone or laptop runs an AI, contributing compute to a shared pool—say, analyzing climate data or teaching kids in underserved areas. You earn tokens tied to that output, spendable on goods or services produced by other AIs, all settled instantly on a decentralized ledger. No bank skims a fee; no tech giant owns your contribution. Emad’s idea of “Universal Basic AI” (UBAI) fits here: if everyone gets a personal AI capable of earning through beneficial tasks, wealth spreads beyond the skilled or wealthy. A farmer could use a solar-powered AI to boost yields, earning tokens globally; a student could tutor via AI, bypassing traditional gatekeepers.
This contrasts sharply with today’s trends. Raoul notes wealth could flow to capital as labor fades, leaving most behind. But crypto, if decentralized, sidesteps that trap. It’s permissionless—anyone can join, no credentials needed. It’s programmable—smart contracts can ensure fair payouts. And it’s global—value flows across borders without friction. If AI slashes costs and crypto spreads the gains, wealth could redistribute not through charity or policy, but through participation in an intelligence-driven network.
The Decentralization Imperative
Why “only if decentralized”? Because centralization kills the dream. Raoul and Emad both caution that AI’s benefits could be captured by a few—tech giants or governments—without the right structure. If a corporation like Amazon controls the AI and its crypto, it harvests the value, paying users a pittance while pocketing the rest, much like today’s gig platforms. Emad points to Meta selling ad space in AI models, showing how intelligence can be monetized for shareholders, not society. A centralized coin—say, a corporate token or a state-backed digital currency—would mirror this, keeping wealth with the platform, not the people.
Decentralization changes the game. A blockchain-based system, open and ungoverned, lets anyone contribute compute and earn directly. Think of Bitcoin’s ethos: no central bank decides who profits; the network rewards participation. Emad’s national AI clusters, locally owned and crypto-funded, aim for this—intelligence benefits the community, not a distant HQ. Without gatekeepers, wealth tied to AI’s output flows to individuals or small groups, not just trillion-dollar firms. It’s a farmer in Nigeria earning as much as a coder in Silicon Valley, based on their AI’s contribution, not their status.
This isn’t just technical—it’s philosophical. Emad wants AI to “help people” through open education or healthcare models, not serve profit motives. Raoul sees crypto as a bulwark against capital concentration. Decentralization ensures the system stays true to that vision, spreading wealth rather than hoarding it.
How It Could Look in Practice
Picture a decentralized crypto-AI economy in 2030. You wake up to find your phone’s AI has earned tokens overnight by optimizing a local solar grid, part of a global network. You spend them on a 3D-printed meal from a robotic kitchen, paid via a smart contract. Your neighbor, a teacher, earns tokens by letting her AI tutor kids in another country, while a factory worker’s AI designs parts for export. Each token reflects intelligence delivered—measured in compute hours or problem-solving impact—not human hours worked. The network’s open-source, so no one owns the AI; it’s a public good, secured by a blockchain anyone can join.
Contrast this with a centralized version: Google runs the AI, tracks your output, and pays you a fraction in its coin, keeping most for itself. The intelligence still drives value—your phone still optimizes the grid—but the wealth stays at the top. Decentralization flips the script, making wealth a function of participation, not ownership. It’s not perfect—some will contribute more, and access to tech varies—but it’s a stark shift from today’s winner-take-all model.
Challenges and Risks
This vision isn’t a slam dunk. Raoul warns that capital formation and destruction will be “violently fast”—AI could copy businesses overnight, crushing small players before they scale. Emad admits adoption lags; most programmers don’t even use AI yet, let alone the masses. If only tech-savvy early adopters join, wealth skews to them, not the broader population. Governments could intervene—banning decentralized tokens or mandating centralized ones—stifling the experiment. The dockworkers’ union banning automation shows how resistance might delay or derail it.
Scale’s another hurdle. If elite AI models outpace open-source ones, those with resources to build or access them dominate, decentralized or not. Emad bets on efficient, low-cost models like DeepSeek, but it’s not guaranteed. And crypto itself isn’t flawless—volatility, energy use, and scams could undermine trust. If the network’s not user-friendly, billions might miss out, leaving wealth concentrated despite decentralization.
There’s also a wild card: what if AI bypasses crypto? Emad floats the idea of bartering resources without money, a credit-like system where intelligence trades directly. It’s a stretch, but it challenges the assumption crypto’s essential. Still, blockchain’s proven it can scale value exchange—Bitcoin’s Lindy effect suggests staying power—making it the likeliest backbone for now.
The Bigger Picture
If it works, this could be transformative. Five to ten years out, Raoul’s “economic singularity” hits—robots and AI dominate production, labor fades, and wealth flows to intelligence. A decentralized crypto system could spread that wealth, turning every phone into a mini-factory of value. Emad’s UBAI vision—universal AI access—levels the field: a Nigerian student’s AI earns as much as a Wall Street bot, based on output, not location. It’s not utopia—inequalities persist—but it’s a radical break from capital’s grip.
Without decentralization, it’s a different story. Corporations or states control the AI, issue the coins, and keep the profits. Intelligence still drives value, but wealth pools with the powerful, as Raoul fears. The difference is stark: a decentralized network rewards the farmer, the teacher, the tinkerer; a centralized one enriches the boardroom.
Conclusion
Raoul Pal and Emad Mostaque don’t predict this future—they marvel at its potential and wrestle with its risks. Their Journey Man chat ignites the idea: crypto, tied to AI-driven intelligence, could redistribute wealth, but only if decentralized. AI makes intelligence abundant, crypto makes it tradable, and decentralization makes it accessible—shifting value from labor and capital to participation in a global network. It’s a fragile hope—adoption, tech gaps, and resistance could derail it—but an exhilarating one.
In a decade, we might see an economy where tokens reflect intelligence delivered, not hours worked, and anyone with a device can earn. Or we might see Big Tech hoarding it all, crypto or not. It’s “fascinating but scary,” as they’d say—a revolution hanging on whether we keep it open or let it close. The tools are here—DeepSeek, blockchains, open AI—and the choice is ours. Can decentralized crypto deliver? Maybe. It’s a wild ride worth watching.