๐ Weekly Journal: Will We Need Universal Basic Income?
[6 min read] Your weekend guide to getting ahead on the digital frontier. Today, the usual market news as well as a deep dive into how AI & robotics might necessitate a Universal Basic Income.
Welcome to this weekโs Weekly Journal ๐, your guide to the latest news & innovation in emerging technology, digital assets, and our exciting path to the Metaverse. This is week 76 of the 520 weeks of newsletters I have committed to, a decade of documenting our physical and digital lives converge.
New subscribers are encouraged to check out the history & purpose of this newsletter as well as the archive.
Enjoy your weekend! ๐
- Ryan
๐ Digital Assets Market Update
Bitcoin surged back near $66,000 on Wednesday, leading cryptocurrency prices higher. This followed the release of the US April CPI report, which showed that core inflation had moderated. Lower inflation means more likely that rates will be cut, which most think will cause โon-riskโ assets like BTC to rally.
๐ฅ๐บ๏ธ 7-day heatmap below, which shows the current share of market for the top cryptocurrencies, alongside total marketcap (USD) and the change in price over the last week.
๐ญ Crypto Fear and Greed Index is based on volatility, social media sentiments, surveys, market momentum, and a few other bits and pieces.
๐๏ธ Interesting news from this week
A customer has sued Dolce & Gabbana USA for mishandling their NFT delivery, causing a 97% loss in value. The NFTs, costing USD$6,000, were supposed to offer digital, physical, and experiential benefits via the Ethereum blockchain. However, the delivery was delayed, and the NFTs were compatible only with a scarcely populated metaverse platform. Additionally, there was an 11-day usability delay due to lack of prior approval from the platform. Luke Brown, the plaintiff, claims he lost $5,800 and has initiated a class-action lawsuit for others affected by the project's failures. The complaint criticises the brand for overpromising and underdelivering.
The Huแบฟ Monuments Conservation Centre has launched the first metaverse exhibition integrating Apple Vision Pro, showcasing ten significant artefacts from the Nguyแป n Dynasty (1802โ1945). Visitors can explore these items in 360-degree vision via www.museehue.vn. The exhibition features digital representations of objects like a king's throne and precious gemstone bonsai, equipped with NFC chips for detailed information and interactive experiences. Collaborating with Phygital Labs, this initiative aims to preserve and promote the heritage of the Nguyแป n Dynasty. The centre plans to expand the digital museum, offering immersive virtual tours with vivid visuals and historical context.
HBARโs Hashgraph Association has signed a USD$50 million partnership with Qatar to establish a Digital Assets Venture Studio, aiming to boost research and development in digital finance. This initiative aligns with Qatarโs National Vision 2030 and focuses on creating decentralised finance solutions. The partnership has led to a significant increase in new wallet creations on Hedera's blockchain, with over 133,000 new accounts in a week. The Venture Studio will last four years, supporting local businesses with resources and funding. HBARโs price saw a slight gain, and it remains a significant player despite being down from its peak.
๐ Read of the Week
This weeks read is an Op-Ed by Michael R. Strain of the American Enterprise Institute (AEI)*: โWhat the AI Pessimists Are Missingโ
Strain argues that current discussions about generative artificial intelligence (AI) are overly pessimistic. He highlights that while concerns about AI disrupting industries and processes are valid, they overlook the significant opportunities and benefits that AI can bring. Strain acknowledges fears about AI's potential misuse, such as aiding in cheating or creating deep fakes, but contends that AI also offers solutions to these issues, such as detection and prevention tools. He emphasises the positive impact of AI on education, economic productivity, cybersecurity, and national security, while cautioning against overlooking its potential to create new jobs and services.
*The AEI is a prominent conservative think tank based in Washington, D.C. It is known for its advocacy of free enterprise, limited government, and individual liberty. While AEI is not directly affiliated with a specific political party, its scholars and experts often align with conservative and libertarian perspectives. Historically, AEI has had influence within the Republican Party and has provided intellectual support for policies associated with conservatism.
๐ฅ Watch of the week
In his TED Talk, "Why Donโt We Have Better Robots Yet?", Ken Goldberg delves into the persistent gap between our expectations of advanced robots and the current reality. Highlighting Moravec's paradox and the challenges in both hardware and software, Goldberg explores why tasks simple for humans remain daunting for robots. Despite advancements in e-commerce automation, achieving the capabilities showcased in science fiction remains a complex journey (for now!)
AI ๐จ๐ค๐ตโ๐ผ
As a balance to opinion in the Read of the Week, Geoffrey Hinton, a pioneer in neural networks and dubbed the 'AI godfather', has expressed serious concerns about the impact of artificial intelligence on the job market. He believes AI will replace many mundane jobs, potentially exacerbating economic inequality. To counter this, Hinton has advocated for the adoption of a universal basic income (UBI) by the British government.
UBI involves regular cash payments to all adult members of a community, regardless of their employment status, to support basic needs. Hinton argues that without such measures, AI advancements could widen the wealth gap and harm society at large. He warns that while AI can enhance productivity and generate wealth, it could also concentrate economic benefits among the wealthy.
Personally I have been following UBI closely, including the largest UBI experiment in Kenya last year. The study found that:
Implementing a monthly universal basic income (UBI) did not lead to idleness among recipients. Instead, it empowered them to invest, become more entrepreneurial, and increase their earnings. Concerns about laziness were unfounded, as recipients did not reduce their work hours or increase their alcohol consumption.
Both a large lump sum and a long-term UBI were highly effective. The lump sum allowed for significant investments, while a guaranteed 12-year UBI encouraged savings and risk-taking. However, a short-term UBI was the least impactful, although it still had positive effects on economic measures.
The study suggests that governments should reconsider how they distribute cash aid. While short-term monthly payments are common, they are found to be less effective than other UBI designs. This finding challenges the current approach to cash assistance delivery, especially in both low- and high-income countries where UBI pilots often follow this model.
What do you think? Will UBI be needed to maintain a future society with high productivity using AI & robotics?
Thatโs all for the free version this week! If you have any organisations in mind that could benefit from learning about emerging technology, be sure to reach out. Educational workshops are one of many consulting services I offer.
DCA With Me ๐ค
Dollar Cost Averaging is an investment strategy in which an investor regularly invests a fixed amount of money into a particular asset/asset class at regular intervals, regardless of its current market cycle. By doing so, the investor can reduce the impact of market volatility and potentially earn a better return over time. Motto = time IN the market beats trying to time the market
To experiment with this, I invest $50 NZD into a Digital Asset every week. Each week I will choose an asset that seems underpriced in the short term and has positive long-term potential. My timeframe is 3-5 years. I donโt give financial advice but if you want to follow along with me you can use my easycrypto.co.nz referral link to support this newsletter. Letโs dive into this weekโs pick:
Keep reading with a 7-day free trial
Subscribe to Metaverse Field Guide to keep reading this post and get 7 days of free access to the full post archives.