Nvidia CTO Claims Cryptocurrencies are Useless: AI Chatbots a Better Use of Processing Power

Technology behemoths frequently have strong ideas about cutting-edge technologies, and Nvidia CTO Michael Kagan is no exception.

Kagan recently said in an interview with The Guardian that AI chatbots like ChatGPT are a better use of the company’s resources than cryptocurrencies because they don’t actually add anything to society.

Kagan’s arguments need to be examined more closely, though, as they might not hold up to scrutiny in their totality.

Kagan’s analogy of AI chatbots and cryptocurrency is fundamentally incorrect, to start.

While there are unquestionable advantages to AI chatbots, their use case and function are different from those of cryptocurrency.

Initially, cryptocurrencies like Bitcoin were intended to function as a decentralised, secure, and private method of carrying out transactions.

These two technologies are simply too diverse for a direct comparison to be valid, similar to comparing apples and oranges.

Kagan’s Dismissal: Oversimplification of Multifaceted Issue

Second, Kagan oversimplifies a complex topic when she characterises cryptocurrencies as a “craze” that “doesn’t contribute anything good for society.”

Moreover, the banking sector has been changed by cryptocurrencies, which now make international transactions quicker and more effective.

Additionally, as shown in nations like Venezuela and Zimbabwe, they have enabled people in nations with unstable currencies to secure their capital and access international markets.

Kagan’s contemptuous attitude ignores these significant societal advantages.

Additionally, blockchain, the technology that powers cryptocurrencies, has potential uses that go far beyond the world of money.

A few examples of how blockchain technology might transform many industries include smart contracts, supply chain management, and secure data sharing.

Kagan unwittingly undermines the potential of blockchain by ignoring the value of cryptocurrencies.

Nvidia’s Crypto Analysis is Misleading

Kagan is mistaken when she claims that high-frequency trading and crypto mining/validation are identical.

Despite the fact that both industries demand a lot of computing power, their effects on society are not the same.

Cryptocurrencies have the power to democratise finance and offer prospects for financial inclusion, in contrast to high-frequency trading, which has come under fire for its potential to destabilise financial markets.

Equivalenting the two is a distortion of the fundamental goals and ideals of cryptocurrencies.

Nvidia’s Anti-Crypto Stance Risks Stifling Innovation

Last but not least, Kagan’s opinions on Nvidia’s contribution to the creation of AI systems and its choice to restrict the mining capabilities of its graphics cards are dubious.

Although it makes sense that the company would want to focus on its gaming and AI research clients, it is crucial to understand the wider effects of such a choice.

Nvidia may be inhibiting innovation and helping to centralise mining/validator power by restricting access to their gear for cryptocurrency mining, which goes against the fundamental ideas behind cryptocurrencies.

Kagan’s arguments against cryptocurrencies are, at best, an oversimplification of a complex topic and, at worst, a disdain for the potential advantages they may have for society.

Kagan is doing a disservice to the complex discussions surrounding both technologies by limiting the discussion to a binary choice between cryptocurrency and AI chatbots.

AI chatbots and cryptocurrencies can coexist, therefore it would be foolish to ignore one at the expense of the other.