Woldcoin is the latest! Cryptocurrency

August 5, 2023

Beat B. Süess

Note: General Advice Warning for Finance Blogs!
It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of relevant financial products’ nature regarding your objectives, financial situation and needs.

Cryptocurrency's latest ego

Cryptocurrency’s Ambitious Endeavor: Worldcoin’s Vision and Founder’s Preparations

Cryptocurrencies have always evoked strong opinions; the latest entrant, Worldcoin, is no exception. Spearheaded by Sam Altman, a serial entrepreneur known for co-founding OpenAI and ChatGPT, this project bears a grandiose ambition. At its core lies the belief that artificial intelligence (AI) will soon surpass human intelligence, a notion deeply unsettling to Altman. He fears that this development may blur the lines between humans and robots, eroding confidence and trust in cryptocurrencies and many other aspects of society.

To address this concern, Altman, along with Alex Blania, CEO and co-founder of Tools For Humanity, the private company behind Worldcoin, has devised an intriguing solution. They propose a unique identification system called ‘World ID,’ which requires an eye scan to verify a person’s humanity. For participating in this identification process, individuals are awarded digital tokens by Worldcoin, valued at around $0.0142 per token. This incentive aims to encourage people to embrace the platform. Additionally, Worldcoin envisions providing a universal basic income (UBI) to counter the anticipated decline in job opportunities due to AI’s widespread adoption.

Altman’s beliefs extend beyond the realm of cryptocurrencies and AI. He is known as a ‘prepper,’ an individual who prepares for potential societal collapses. In a 2016 interview with the New Yorker magazine, he candidly revealed his preparations, which included stockpiling essentials like guns, gold, potassium iodide, antibiotics, batteries, and gas masks from the Israeli Defense Force. Altman also owns a vast piece of land in Big Sur, which he considers a haven.

Despite differing opinions on cryptocurrencies, Worldcoin stands as an innovative and ambitious project with the potential to reshape how we perceive identity and the impact of AI on our lives. Whether one agrees with Altman’s prepper mindset, his drive and vision for Worldcoin cannot be denied.

As Worldcoin progresses, the debate surrounding AI’s advancements and its implications on society will undoubtedly intensify. Only time will tell if Altman’s foresight will guide us towards a more equitable and secure future or if the concerns surrounding AI’s potential repercussions will be addressed through novel solutions like the ‘World ID.’

Mr Altman, who founded Open AI, which built chat bot ChatGPT, says he hopes the initiative for eye scanning will help confirm if someone is a human or a robot. He also says this could lead to everyone being paid a universal basic income, but it is unclear how.

In conclusion, Worldcoin’s mission to tackle the challenges posed by AI and its aim to provide a universal basic income is commendable. Regardless of one’s stance on cryptocurrencies and the founder’s prepper inclinations, Worldcoin’s potential impact on shaping the future deserves close observation and evaluation.

"I have guns, gold, potassium iodide, antiobiotics, batteries, water, gas masks from the Israeli Defense Force, and a big patch of land in Big Sur that I can fly to."
Sam Altman Tweet

Worldcoin vs. Bitcoin

Worldcoin: An Enigmatic Cryptocurrency Venture with Controversial Objectives

Worldcoin’s emergence into cryptocurrency has sparked intense debate, with some questioning its relevance and purpose in the rapidly evolving digital currency realm. While Bitcoin, the dominant cryptocurrency, addressed real-world problems during its launch in 2009, Worldcoin seems to be attempting to challenge Bitcoin belatedly without a clearly defined problem to solve.

Bitcoin’s inception came amidst a global financial crisis, offering a promising alternative to traditional government-issued currencies. The blockchain technology underlying Bitcoin enabled decentralized and anonymous transactions, appealing to those seeking financial autonomy and privacy. However, despite its popularity, Bitcoin is yet to achieve universal acceptance as a mainstream currency.

In contrast, Worldcoin appears more akin to a Central Bank Digital Currency (CBDC) rather than a decentralized cryptocurrency like Bitcoin. Its lack of a defined problem to address raises questions about its purpose and relevance. Furthermore, Worldcoin’s emulation of Bitcoin, evident in its white paper and concepts, adds to skepticism surrounding its originality and unique value proposition.

One of the most contentious aspects of Worldcoin is its collection of personal data through iris scans. Although Worldcoin claims to delete the data after verification, this practice contradicts the core principles of cryptocurrency, which prioritize user privacy and limit government control. Such data harvesting has raised concerns about potential threats to fundamental beliefs that underpin the cryptocurrency movement.

Worldcoin’s objective remains ambiguous. Is it an attempt to create a global digital currency or a mechanism for verifying humanity? The combination of these objectives leaves some uncertain about its true purpose and potential impact on the broader cryptocurrency ecosystem.

The founders of Worldcoin, Altman and Blania, have set an ambitious goal of amassing eight billion users for their platform. While such aspirations may signify optimism, some perceive this ambition as bordering on megalomania, considering the challenges associated with achieving mass adoption in the cryptocurrency space.

In conclusion, Worldcoin’s entrance into the cryptocurrency market has raised considerable doubt and scrutiny. Its lack of a distinct problem to solve, coupled with its data collection practices, has led to apprehension about its alignment with core cryptocurrency values. As Worldcoin seeks to establish itself alongside well-established counterparts like Bitcoin, it faces the daunting task of proving its value and winning over a sceptical audience. Whether Worldcoin can overcome these challenges and make a lasting impact on the cryptocurrency landscape remains to be seen.

Should it work?

The Enigmatic Worldcoin: A Critical Examination by MIT Review

In April 2022, the Massachusetts Institute of Technology (MIT) Review published a scathing open-access assessment of Worldcoin, raising significant concerns about the project’s claims of “fairness” and its potential impact on privacy and anonymity. Among the criticisms, MIT highlighted that 20% of Worldcoin’s tokens had already been allocated, with 10% going to full-time employees and the remaining 10% to investors. According to MIT, this allocation seemed incongruent with Worldcoin’s purported commitment to fairness.

MIT’s review further questioned the fundamental premise of Worldcoin, which aims to create a unified identity for individuals. Such an approach appears to contradict the core principles of cryptocurrencies, which emphasize privacy and anonymity. By seeking to establish a singular identity, Worldcoin appears to be departing from the raison d’etre of digital currencies, eliciting discomfort among critics.

The review also raised concerns about the overlap between Worldcoin’s founder, Sam Altman, and his involvement in creating the problem (OpenAI) and offering a solution (Worldcoin). This intersection raised questions about the project’s underlying motivations and intentions.

As of now, the definition of success for Worldcoin remains elusive. It is uncertain how the project will transition from an ambitious experiment in its early stages to a profit-generating enterprise, a likely objective of Altman’s. Additionally, Worldcoin’s potential to provide a Universal Basic Income (UBI) remains uncertain. However, if its technology proves successful, it could potentially be deployed in association with Central Bank Digital Currencies (CBDCs).

Despite Worldcoin’s ambitions, there are too many unanswered questions. The lack of clarity surrounding its long-term vision raises scepticism among observers. A recent comment by the Financial Times encapsulated a significant concern: Should individuals feel comfortable providing their biometric data to a Silicon Valley startup led by a founder working towards achieving robot super intelligence?

In conclusion, MIT’s critical review of Worldcoin has shed light on several troubling aspects of the project. Questions about fairness, privacy, and the project’s ultimate objectives persist, casting doubt on its potential success. As the cryptocurrency space evolves, stakeholders must carefully consider the implications of supporting a project that challenges core principles while seeking to tackle complex and uncharted territory. The fate of Worldcoin remains uncertain, as it continues to navigate a landscape filled with both ambition and skepticism.

Disclaimer
PWD Media Owners or its employees are not registered investment advisors and do not provide financial advice. Comments on this page are only an expression of opinion. While we attempt to illustrate the potential benefits of investing in precious metals, remarks, links, or advertising on this website should not be interpreted as advice to purchase or sell a commodity at any time. While PWD Media makes every effort to ensure that all of our comments are genuine and correct, we employ third-party data and rely on our reputable sources’ credibility. Before making any investment decisions, PWD Media suggests you contact a knowledgeable investment advisor.

Securities disclosure.: I, Beat Süess, have no direct investment interests in any of the companies mentioned in this article.

What are your opinions on this? Please leave your thoughts in the comments below.

Your comment is welcomed. Off-topic comments might be removed.

Please read our Comment Policy before commenting.