Raoul Pal, founder of Real Vision and a recognized figure in the cryptocurrency community released is a stark warning of rapidly approaching changes in the global economy, driven by unprecedented technological progress. In his latest video, Pal, who has long advocated for an understanding of what he calls the “exponential age”, argues that the coming years will bring the greatest changes humanity has ever experienced due to the rapid development of artificial intelligence (AI) and robotics.

According to Pal, we are approaching what he calls the “economic singularity”, a point beyond which the current economic, market and business framework will no longer apply. “Until about 2030, things won’t become understandable using existing frameworks of economics, financial analysis, markets, and things like that,” Pal explains.

Pal He argues that artificial intelligence and robotics are developing at a pace that will soon outpace humans’ ability to adapt to current economic systems. Falling birth rates and an aging population in developed countries are leading to a weakening of customary economic drivers of GDP growth. Moreover, Pal notes that productivity has not kept pace with technological capabilities, and most fresh debt simply services ancient debts rather than creating fresh economic value.

The most critical aspect of Pal’s warning concerns the role of AI in the economy. He believes that artificial intelligence will reach and exceed human levels of intelligence in all areas of knowledge, fundamentally changing the landscape of work and productivity. “Artificial intelligence is now basically infinite human knowledge […] As these models scale, breakthroughs occur and the average AI IQ increases from 100 to 400 and then becomes a million times higher than human intelligence,” Pal states.

This massive augment in AI capabilities is expected to lead to what Pal describes as infinite productivity and near-zero marginal cost of electricity, largely due to advances in renewable energy technology. He argues that these factors will lead to massive deflationary pressures as goods and services become cheaper and cheaper to produce.

The key role of cryptocurrencies

Pal is particularly confident about the transformative power of blockchain and cryptocurrency technologies in this context. It describes a future economic model in which “AI agents” perform tasks and transact autonomously using cryptocurrencies, given their ability to operate independently of customary banking systems.

“Of course, we will probably need crypto payments to pay you. […] “I think we’ll use cryptocurrency for this because the last thing I checked is that AI can’t get a bank account – it will never send money via SWIFT, it will never happen,” Pal notes.

Pal urges viewers to realize the urgency of investing in cryptocurrencies. He advises that the window to exploit these technologies is closing rapidly, with only about six years left to achieve significant gains before customary economic and market structures are irreversibly transformed.

“We’re going to have to get through this together and we’re going to have to be intelligent and try to figure it out as we go, but I know that the idea of ​​6 years to make as much money as possible is really critical and I’m doing it. I think the real answer to this question is, as far as I can see there is cryptocurrency because it is the best performing asset in the world and of all time. So I think that’s the only thing we can build on. It has a huge future,” says Pal.

At the time of publication, Bitcoin’s price was $63,588.

Featured image from YouTube, chart from TradingView.com