AI-Driven Energy Abundance Won't Create More BTC
Humanity's energy consumption is roughly 20 terawatts (TW), which is a small fraction of the sun's output to Earth, around 170 kilo-TW. This means that energy itself is not fundamentally scarce.
The issue lies in our ability to capture, store, and move energy cheaply. However, artificial intelligence (AI) is expected to solve this bottleneck by improving battery technology, reactors, grids, and materials, making energy cheaper and more abundant.
As AI advances, it will create a self-reinforcing loop where better AI leads to cheaper energy, which in turn enables even better AI. This process compounds over time, leading to an era of abundance starting in the 2030s.
Cheap energy will make almost everything else cheaper, including compute power, water, food, metals, manufacturing, and robots. However, there are still limits to what technology can create, and one such limit is Bitcoin (BTC).
The article concludes that the more scarcity technology destroys, the more valuable absolute scarcity becomes, citing the example of Bitcoin's limited supply.