**Bankless Podcast: The Rise of AI Memecoins and What It Means for Crypto**
**Guest:** Matthew Stephensen, Research Partner at Pantera Capital
**Hosts:** Ryan Sean Adams, Co-Founder of Bankless; David Hoffman, Co-Founder of Bankless
**Podcast Source:** Bankless
**Original Title:** The Rise of AI Memecoins & What It Means For Crypto
**Air Date:** October 30, 2024
**The Collision of Crypto and AI Agents**
The intersection of cryptocurrency and artificial intelligence (AI) has begun. Matthew Stephensen, author of “Crypto: Picks and Shovels for the AI Gold Rush,” joins the podcast to discuss autonomous AI agents on the blockchain. Topics include the evolving role of AI agents, driving market evolution, and blockchain suitability for AI. Stephensen shares insights on agent responsibilities, regulatory challenges, infrastructure value capture, and the “Picks and Shovels” investment strategy.
**The Changing Narrative of AI and Cryptocurrency**
The narrative around cryptocurrency and AI has been ongoing, with discussions on AI agents using decentralized commitment devices (blockchain). Stephensen highlights that AI agents are already making their mark in the crypto space, especially with meme coins, where they drive narratives and act as influencers.
**Analysis of AI and Economic Intelligence**
The concept of agency is explained, emphasizing the distinction between “robots” and “agents.” Bots drive approximately 2 trillion monthly stablecoin trading volume, but they are just programs. Economic agents, on the other hand, exhibit human-like behavior and can perform tasks according to a certain degree of will.
**The Role of Economic Agents**
The definition of economic agent is explored, with examples of individuals, companies, and organizations as agents. Stephensen emphasizes that agents need autonomy, flexibility, and the ability to understand and execute goals.
**The “Oracle Problem” of Physical Infrastructure**
Decentralizing physical infrastructure faces an “Oracle problem,” where data from external sources can become brittle and unreliable. Each data transfer requires evaluating accuracy and reliability, affecting the stability of the project.
**AI Agents’ Demand for Block Space**
The demand for block space by AI agents is discussed, including the potential impact on the blockchain and opportunities for investors. Ryan emphasizes that the rise of AI agents may increase demand for block space, providing new opportunities.
**Future Blockchain Options**
Blockchains with rich narrative activities (meme coins, NFTs) may be more favored by AI agents. Matthew suggests that investors focus on blockchains that excel in the narrative economy to benefit from the demand for AI agents.
**AI Agents’ View of Money**
The hosts discuss what assets an AI agent might naturally convert into, possibly creating a new “currency of the Internet.” This perspective triggers further thinking about the future form of money.
**Disclaimer**
These discussions are not financial or investment advice, and investments carry risks. Listeners are reminded to exercise caution and be aware of potential risks.