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

Summary of the Article:

  • Nvidia CTO Michael Kagan has recently dismissed cryptocurrencies as providing no real value to society.
  • Kagan’s comparison between AI chatbots and cryptocurrencies is flawed, as they have distinct use cases and purposes.
  • Kagan’s dismissal of cryptocurrencies overlooks its potential societal benefits, as well as the potential of blockchain technology for industries beyond finance.

Comparison Between AI Chatbots & Cryptocurrencies

Nvidia CTO Michael Kagan recently dismissed cryptocurrencies in an interview with The Guardian, suggesting AI chatbots like ChatGPT are a better use of the company’s resources. This comparison between these two technologies is inherently flawed, however, as their utilities are too different to warrant a direct comparison. While AI chatbots offer undeniable benefits, their use case and purpose are distinct from that of cryptocurrencies – such as Bitcoin – which were initially designed to operate as a decentralized, secure, and private means of conducting transactions.

Dismissal of Cryptocurrencies

Kagan’s dismissal of cryptocurrencies overlooks its potential societal benefits, such as enabling faster and more efficient transactions across borders or empowering individuals in countries with unstable currencies to protect their wealth and access global markets. By disregarding the value of cryptocurrencies, Kagan is inadvertently undermining the potential of blockchain itself- which has applications far beyond the realm of finance including smart contracts, supply chain management, and secure data sharing.

Crypto Mining/Validation Compared To High Frequency Trading

Kagan’s assertion that crypto mining/validation is similar to high-frequency trading is misleading. While both industries require vast computational power, their impacts on society are not comparable. High-frequency trading has been criticized for its potential to destabilize financial markets whereas cryptocurrencies have the capacity to democratize finance and provide opportunities for all users regardless of nationality or wealth status.


In conclusion it can be argued that while Nvidia CTO Michael Kagan may have valid points about AI chatbots being a better use for processing power than cryptocurrency mining/validation; his oversimplification on this subject ignores its various uses cases and potential societal benefits while also discrediting blockchain technology’s capabilities beyond just cryptocurrency transactions.