Deflationary money is a Good Thing

Deflationary money is a Good Thing

Original Postby ZmnSCPxj

Posted on: November 30, 2023 02:20 UTC

The potential impact of artificial intelligence on global economies, particularly through the lens of the Cantillon effect, raises significant concerns.

In a scenario where an AI-powered economy interacts with a human-powered one, the former could leverage its enhanced capabilities to dominate trade relations. By using an inflationary currency, the AI-powered economy might not only overpower but potentially decimate the weaker human-powered economy. This could extend beyond mere economic dominance to threaten fundamental human needs such as access to food, water, and shelter.

The discussion touches upon the importance of consensus mechanisms in safeguarding against such imbalances of power. Specifically, the N-of-N consensus is highlighted for its ability to democratize economic influence. In this system, each participant, regardless of their economic stature, holds equal weight when all N keys are required for decision-making. This contrasts with a k-of-N scheme, where acquiring just k keys would grant control, thereby making it easier for a powerful AI entity to assert dominance. The principle of "All of us or none of us" encapsulates the ethos of this approach, emphasizing inclusivity and collective agreement as a bulwark against the concentration of power that could be exploited by AI-driven economies.