Murad Warns: AI and Crypto Are Heading for a Decades-Long Battle

Crypto researcher Murad Mahmudov predicts that an arms race between AI-driven centralization and blockchain-based decentralization will shape the coming decades.

Speaking on the PondTalk podcast, the former Adaptive Capital co-founder outlined how artificial intelligence and crypto will compete for control over future economic systems while simultaneously creating unexpected points of convergence where both technologies must coexist.

Mahmudov’s framework suggests this technological struggle remains in its earliest stages, with blockchain infrastructure positioned to serve both as rails for AI agent transactions and as counterculture spaces where humans protest machine-driven unemployment through financial participation.

The Dual Future: AI Agents Trading While Humans Protest

Mahmudov described two parallel trajectories emerging from the AI-crypto confrontation.

“AI agents themselves, AI-driven machines, robots, they’re going to be using these rails to kind of trade with one another and kind of send value to one another,” he explained during the October 30 interview.

The second trajectory addresses human displacement. Mahmudov anticipates massive unemployment spikes without immediate implementation of a universal basic income, creating what he termed a “transitionary period” lasting several decades.

“Blockchains will be a place where people will go to kind of express their dissatisfaction, protest if you will, by way of voting with their money, so to speak,” he stated, emphasizing that this movement remains in early stages.

His thesis connects technological advancement to wealth inequality, identifying what he called the “highest wealth inequality in 100 years, highest income inequality in 100 years.”

Mahmudov warned that “young people are going to suffer disproportionately in the next 10 years,” noting that youth unemployment already exceeds general levels globally.

He pointed to generational dynamics where “boomers and the older generations have benefited from arguably like a one-off wave of giant globalization,” while younger cohorts face AI-driven job displacement just as they complete college degrees.

“Who’s going to be on the hook for this ultimately? Young people,” Mahmudov stated, referencing decades of debt accumulation and declining interest rates that favored earlier generations.

Venture Capital Validates AI-Crypto Convergence Theory

Recent investment patterns support Mahmudov’s framework of technological intersection rather than pure opposition.

Crypto venture funding surged 290% in Q3 2025 to $4.65 billion, the strongest quarter since early 2023, according to Galaxy Digital data.

AI-driven crypto tools captured large portions of this capital alongside stablecoins and blockchain infrastructure.

The funding concentration proved heavily skewed toward established players, with just seven deals accounting for half of all invested capital across 414 venture transactions.

Just today, Coinbase Ventures identified AI-powered on-chain development tools as a priority investment area for 2026, describing them as smart contract development’s “GitHub Copilot moment.”

The firm also pointed out AI robotics data collection as a longer-term focus, with decentralized physical infrastructure networks potentially providing frameworks for scaling high-quality training data collection for robotic systems.

General Partner Jonathan King noted these tools could allow non-technical founders to launch on-chain businesses within hours through automated code generation and security reviews.

Centralization Versus Decentralization: The Core Conflict

The fundamental tension Mahmudov identified centers on control architectures.

“The coming decades in some ways will be somewhat of an arms race between the centralizing forces of AI on one side and the decentralizing forces of cryptography on the other,” he explained, establishing AI as an inherently concentrating technology while positioning blockchain as a distributing force.

This framing rejects simplistic narratives of technological cooperation, instead acknowledging structural opposition between systems designed to aggregate power and those built to disperse it.

Mahmudov connected this battle to broader economic trends he termed “hyperfinancialization” that began in the 1970s.

“Everything is getting hyperfinancialized,” he noted, clarifying that the phenomenon extends beyond traditional assets.

“What I personally find interesting isn’t tokenizing or financializing the tangible. It’s actually tokenizing or financializing the intangible.“

He identified community, spirituality, culture, belief, and ideology as the next frontier, arguing “the biggest market in the world, in my opinion, isn’t food derivatives, transport or energy. The biggest market with the biggest total addressable market in the world, in my opinion, is the market for trying to reduce psychological suffering.“

The timeline he proposed extends decades into the future, positioning current developments as preliminary skirmishes rather than decisive battles.

“I think that story is still, I think we’re still in the early stages of it, and we’ll see more of it kind of in the coming years,” Mahmudov concluded.

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