Web3 personalities had plenty to discuss this week, as AI companies risk trampling over copyright protections, historians are concerned about ownership of the digital record, and gold and BTC price surges fuel concerns.
AI companies skirting copyright law
“What was simply a global race for AI has now become an all-out arms race in which governments and corporations are prioritizing innovation over ethics, workers’ rights, and creators’ livelihoods.
“The UK’s proposal to allow AI training on copyrighted material without consent undermines the creative ecosystem, while the US has similarly shown a disregard for copyright protections in the context of AI development.
“Meanwhile, Big Tech firms are cutting thousands of jobs to fund AI hardware expansion, with Microsoft laying off 3% of its workforce, or over 6,000 workers, as it places shareholder value above staff welfare.
“This AI gold rush is unsustainable and potentially dangerous if we consider the implications for data breaches, theft, and loss, and not just for creators, but for average internet users, too.
“A better future is, however, possible in decentralized systems. One where technology empowers rather than exploits, data is owned, rather than allowed to be stolen, and where users are put first.
“AI development must prioritize creators, contributors, and communities. Innovation should not sacrifice equity. An open, democratic, and sovereign infrastructure for AI and cloud computing is essential. And this shift is no longer an ideal, but a growing necessity.”
– Kai Wawrzinek, co-founder of Impossible Cloud Network
It’s time to tokenize gold
“Moody’s recent downgrade of US credit means all major rating agencies have now stripped the country of its top-tier credit rating. At this point, it’s no longer a warning, but a clear sign that confidence in government debt is falling as deficits keep growing and borrowing gets more expensive.
“Subsequently, gold is now on the rise, with the yellow metal up more than 1.25% on the day (08:15 EST 19 May) to $3,224 per troy ounce as it reclaims the spotlight after a brief period of risk-on optimism saw it trend downward.
“As ever, this serves as a reminder of the enduring value of gold, the world’s oldest serving asset, as an ultimate hedge against inflation, war, and fiscal instability – all of which are on the rise.
“Smart money is already shifting. Bridgewater’s Ray Dalio just re-entered the gold market with over $300 million of new exposure, adding that most portfolios still underestimate the precious metal. Now, more than ever, investors should follow the money.
“Indeed, it is becoming increasingly clear that markets are seeking a return to investments backed by tangible assets – even in the crypto space. And there are few assets more tangible, or sturdier, than gold.
“Recent moves by BlackRock, Franklin Templeton, Apollo, and VanEck into the tokenization of Real World Assets signal that seasoned investors are increasingly looking for alternatives to traditional speculative assets.
“Now it’s time to bring in much more of the world’s shiniest, most stable, safe-haven asset into the digital asset marketplace.”
– Kevin Rusher, founder of Real World Asset (RWA) borrowing and lending ecosystem RAAC
Who controls the digital financial ledger?
“Human economies have survived every currency swap you can name. We’ve gone from seashells to silver, gold to greenbacks, and now fiat to digital currency. If Bitcoin does dethrone the dollar as the world’s reserve currency, that’s great, but it’s just the next line on a very long chart.
“The record of who we were before the swap, though, should not be interchangeable or replaceable. The Library of Congress keeps newspapers from 200 years ago, historians still quote 18th-century ledgers, but today, most of our knowledge lives on centralized clouds vulnerable to being wiped clean.
“The question Tim Draper raises — essentially ‘Which money wins?’ — isn’t as urgent as: ‘Who controls the ledger of our past when that money changes?’
“A future where dollars, yuan, or satoshis are interchangeable is livable. A future where yesterday’s news, research data, or government archives can be silently overwritten, as many are being now, is not.
“Permanent, decentralized storage turns our history into common property immune to censorship, tampering, loss, and, most importantly, political vendettas or corporate whims.
“Money always mutates, that’s evolution, but if we let our shared memory mutate simultaneously, we’ll wake up rich in Bitcoin and poor in truth. Let’s ensure the next 200 years of data are written in digital permanence, not digital sand.”
– Phil Mataras, founder of permanent cloud network AR.IO
Bitcoin suffers correction, ETF flows remain strong
“Bitcoin remained volatile and recorded a correction after approaching its all-time high on Tuesday. However, institutional demand remained strong and could support the cryptocurrency to the upside. On Monday, Bitcoin ETFs recorded net inflows of $667.4 million, extending the positive momentum seen since mid-May and reinforcing the structural demand behind the asset.
“While Bitcoin experienced a pullback after touching $107,000, it remains within close range of its January peak. Liquidation data indicated that the downside pressure could be relatively contained as short position liquidations outpaced longs over the past 24 hours.
“Meanwhile, a continued accumulation trend from large players could support the market. Large buyers like Strategy could continue to drive demand for bitcoin. Strong demand could help bitcoin reach its peak again.”
– Quasar Elizundia, expert research strategist at Pepperstone
Bitcoin value surge highlights quantum concerns
“Seeing Bitcoin hit a new all-time high shows how far this space has come, from a simple idea to a multi-trillion-dollar asset class embraced by financial giants like BlackRock, now the second biggest holder of BTC. This milestone should make us proud, but also kind of uncomfortable. Because, while we celebrate the upside and Bitcoin increases in value, one of the biggest threats to its existence is getting ever closer, and that’s the threat of quantum computing.
“Investors still dismiss this threat as theoretical, but it isn’t science fiction anymore. There are already more than 100 quantum computers operating globally, and McKinsey estimates 5,000 will be online by 2030. With Shor’s algorithm, quantum computers can break Bitcoin’s Elliptic Curve Digital Signature Algorithm (ECDSA), revealing all the private keys. And right now, 30% of Bitcoin sits in addresses vulnerable to this exact kind of attack.
“The biggest threat is not even the ability of quantum computing to break the algorithm, but the fact that almost no one ever changes their private keys, and that makes the ecosystem even more vulnerable.
“BlackRock is aware of this threat, which it has highlighted in its updated spot BTC ETF filing. So is the EU and the US National Security Agency (NSA), which is actively preparing its defence against quantum threats and targeting 2028 or 2030 as the deadline to be ready. So why aren’t investors more concerned?
“The current overconfidence in the crypto space is a vulnerability. Until now, Bitcoin has never been hacked. But if even one high-profile wallet is drained, or the algorithm has the slightest crack in its shield, trust could evaporate overnight, and the value of the asset with it.”
– David Carvalho, founder and CEO of the post-quantum cybersecurity project Naoris Protocol