Regulatory Priorities: Crypto or AI?

During a recent conference, Mike Novogratz, the head honcho at Galaxy Digital, expressed his bewilderment over the U.S. government’s disproportionate focus on regulating cryptocurrency while seemingly ignoring the rapidly evolving field of artificial intelligence (AI). He commented, “When I think about AI, it shocks me that we’re talking so much about crypto regulation and nothing about AI regulation. I mean, I think the government’s got it completely upside-down.”

The Deep Fake Dilemma

Novogratz’s concerns don’t just stop at regulations. He raised the alarming prospect of a ‘deep fake’ identity crisis, where convincing AI-generated likenesses could complicate personal identification. “Pretty soon you’re going to get a fake Mike Novogratz, hopefully with hair […] how do you prove identity in a world like that?” he mused, highlighting a juicy intersection where blockchain could be the superhero in this narrative.

Blockchain: The Identity Savior?

While wringing his hands about deep fakes, Novogratz optimistically pointed out that blockchain technology might just provide the solutions we need to verify identities and combat manipulation often associated with AI. “Crypto and blockchain is going to have a huge role in that,” he declared fervently. His view? We shouldn’t be throwing the baby out with the bathwater just because of questionable characters like Sam Bankman-Fried.

The Market: From Panic to Potential

Segueing into market dynamics, Novogratz weighed in on the crypto climate. According to him, 2023 has been fairly bright so far, largely due to “seller exhaustion” and renewed activity from China following an easing of strict regulations. “All the selling that needed to get done got done,” he noted, reflecting on last year’s panic selling that rocked the market.

The Future Looks Bright

On a more optimistic note, Novogratz speculated that the crypto market could continue to ascend in 2023. With a confident tone, he remarked, “It would not surprise if we were substantially higher three months, six months, nine months from now.” This positive sentiment was bolstered by Galaxy’s impressive turnaround, swinging back into profit after a challenging $1 billion loss in 2022. As they say, what doesn’t kill you makes you stronger!