Crypto vs AI: Balaji Srinivasan's Counterintuitive Take
Analysis
Price Impact
MedBalaji srinivasan's insights highlight a crucial, long-term utility for blockchain technology in an ai-dominated world by providing verifiable data against ai-generated fakes. this fundamentally strengthens the value proposition of the crypto ecosystem. however, the article also points out a severe collapse in 'ai crypto capitalization' in 2025, suggesting that tokens purely branded as 'ai crypto' may not perform well.
Trustworthiness
HighBalaji srinivasan is a highly respected figure in tech and crypto (former coinbase cto, silicon valley legend). his arguments are logical and address a significant future challenge posed by ai, backed by real-world examples (ftx hack data verification). the information is sourced from a reputable podcast (a16z) and reported by u.today.
Price Direction
BullishThe core argument that 'ai makes everything fake, and crypto makes it real again' points to a significant, long-term demand for blockchain-based verification. this enhances crypto's fundamental utility and could drive adoption over time. while specific 'ai crypto tokens' reportedly faced a capital collapse, the underlying technology's increased utility is fundamentally bullish for the broader crypto market and its long-term prospects as an essential infrastructure layer.
Time Effect
LongThe integration of crypto as a 'truth layer' to combat ai-generated misinformation and fakes is a foundational shift, not a short-term trend. the demand for verification will grow as ai advances, impacting the long-term relevance and adoption of blockchain technology. the reported market collapse of ai tokens in 2025 also indicates a medium-to-long term market adjustment for that specific niche.
Original Article:
Article Content:
Cover image via www.youtube.com Read U.TODAY on Google News "Crypto makes it real again": Silicon Valley legend Balaji Srinivasan AI crypto capitalization collapsed in 2025 Advertisement While normally, artificial intelligence is expected to cause massive layoffs, it also can create a big demand for previously unimagined professionals. Cryptocurrency and blockchain are inevitable in handling dangerous imbalances associated with AI, entrepreneur, investor and The Network State author Balaji Srinivasan says. "Crypto makes it real again": Silicon Valley legend Balaji Srinivasan Artificial intelligence (AI) will create a massive number of jobs in proctoring and verification because it is extremely good at faking things. In turn, crypto, with its strict deterministic patterns, can be helpful in mitigating the dangers here, former Coinbase CTO Balaji Srinivasan says in a new episode of the a16z podcast. Balaji Srinivasan on the coming verification gap in an AI world. “AI is going to create massive numbers of jobs in proctoring and verification because it’s so good at faking things.” “AI makes everything fake, and crypto makes it real again.” @balajis pic.twitter.com/65sKsnsCuv — a16z (@a16z) November 28, 2025 With the evolving opportunities of large language models (LLMs) and the opportunities of AI tools to create fakes — in terms of media, data, science, from routine facts to sophisticated theories — blockchain tech can remain a beacon of verification that cannot be tampered with. Advertisement Even the most powerful AI cannot create a private key that would be relevant to a real Bitcoin (BTC) address or an on-chain NFT that was not actually minted. HOT Stories How Low Will Bitcoin Price Drop in 2025? Crypto Market Prediction: Can Ethereum Surge Toward $3,500 as Momentum Rebuilds? XRP's Bullish Reversal Targets $2, Dogecoin (DOGE) Eyes Fresh Upside Push Early Uber Investor Urges Tether to Sell Its Bitcoin Holdings Morning Crypto Report: XRP Unlocks Apple and Google Pay in 40 Countries, Shiba Inu (SHIB) Aims at 32% Upside, Bitcoin Options Spike to $13.1 Billion As such, blockchain-based data actually remains the only sort of data AI cannot fake or alter thanks to its technical flaws or "hallucinations": AI makes everything fake, and crypto makes it real again To prove the theory, Srinivasan recalled the FTX hack. If you ask Perplexity, a popular content-centric LLM, to provide you with a summary of the 2022 FTX collapse, on-chain transactions is the only verifiable data it relies on. AI crypto capitalization collapsed in 2025 Diving deep into the context of the FTX hack, the reader can see exactly which transactions happened and when, and this data cannot be altered or removed. As covered by U.Today previously, a number of applications at the intersection between AI and crypto launched in 2025 with the growing popularity of the Model-Context Protocol concept. You Might Also Like Tue, 09/16/2025 - 20:22 Google and Coinbase Demonstrate How AI Can Pay for Refrigerator By Alex Dovbnya X402, an AI agent payments protocol by Coinbase and Google, showcased the opportunity to completely remove human interactions from the spending process. Meanwhile, the euphoria around AI crypto tokens seems to have ended. In 2025 alone, the capitalization of this segment dropped by 74%, shrinking from $13.5 billion to $3.5 billion, CoinGecko's AI Agents crypto tracker says. #Balaji Srinivasan #AI #AI Agents #Andreessen Horowitz