GM. This is Milk Road, the crypto newsletter that connects AI and crypto faster than your uncle ‘connects the dots’ on his favorite conspiracies theories at Thanksgiving.
Here’s what we’ve got for you today:
- ✍️ Why crypto’s future is built on AI.
- 🎙️ The Milk Road Show: Bitcoin Downtrend Explained: Why Most Investors Are Getting Wrecked Right Now w/ Koroush.
- 🍪 Base is leaving the OP Stack!
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WHY CRYPTO’S FUTURE IS BUILT ON AI (AND AI’S IS BUILT ON CRYPTO) 🔮
For 10 years, we've all been asking why crypto feels so broken.
Turns out we were asking the wrong question entirely.
Here's a reframe from Haseeb Qureshi that could change how you think about the future of this entire industry...
The idea is almost uncomfortable to admit: crypto wasn't built for humans, it was built for machines.
(And once you see it, you can't unsee it.)
Lemme break down Haseeb’s logic...
ICYMI: Haseeb runs one of the largest crypto funds on the planet, Dragonfly - check out some of the names in their portfolio! 👇

… if anyone should trust smart contracts, it's Haseeb.
But when Dragonfly invests in a startup, they don't sign a smart contract, they sign a legal contract.
(Two sophisticated crypto-native parties, and they still don't trust code alone - huh?)
This is because if something goes wrong with a legal contract, a judge will do something reasonable. The EVM? Not so much - it's pure logic.
And while that hard-line logic spooks humans, it's essentially a love letter to AI agents…

Here's the A/B comparison of each side (viewed through the lens of legal agreements) outlining why AI needs crypto:
1. Humans trust law over code.
We can't help it. Legal systems have been refined for centuries with human failure modes in mind.
Banks are terrible, but they were designed for us. No address poisoning attacks, no accidental $10M to North Korea, no rug pull tokens, etc.
2. AI agents are the opposite.
An AI can verify transactions, check domains, and audit contracts all in seconds.
But this speed requires hard rules, which is why an AI will trust code MORE than law, any day of the week.
Think about it from an agent's perspective:
Legal contracts are a nightmare of potential variables.
You've got different jurisdictions, precedents, and judges adding forks (and travel time) to every road…
While code is closed form and deterministic, meaning two agents can negotiate terms, analyze the contract, formally verify it, and execute - all in minutes.
… er, ok.
That’s nice and all - but what the hell do legal contracts have to do with AI being the future of crypto?
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WHY CRYPTO’S FUTURE IS BUILT ON AI (AND AI’S IS BUILT ON CRYPTO) P2 🔮
This is where it all comes together:
3. The traditional banking system isn’t fit for AI agents (the same way the legal system isn’t fit for them)
Our monetary system only recognizes three types of entities: humans, businesses, and governments.
If you're not one of those, you can't own money under the legacy system's rules.
So how do you run Anti-Money Laundering (AML) checks on an AI agent? Navigate suspicious activity reports? Police sanctions violations?
Or better yet: if you use an AI agent built by someone else, that taps your KYC'd bank acc/card - and it breaks banking laws, where does liability fall?
You? The agent? The creator? We haven't even started answering these questions.
The beauty of crypto is: it asks none of those questions (and presents none of the same roadblocks).
A wallet is just code - meaning, an agent can hold funds, transact, and enter agreements as easily as opening a web page.

The common misread right now? Thinking the classic gripes we all have with crypto are "problems" that need fixing.
(The unreadable addresses, the QR codes, the gas fees - they're features, not bugs!)
What we see as rigid systems, AI agents see as a well-written specification.
And this will allow the human-focused interface to flip entirely into what Haseeb calls the "self-driving wallet."
Meaning, you won't navigate websites or click buttons.
You'll instruct your AI to solve financial problems for you → it'll navigate whatever protocols exist → you’ll get a tailored solution.
(Never touching the ugly parts directly.)
PLUS: beyond acting for humans, agents will also transact with each other, which is already happening across the 25,000+ agents launched via Ethereum’s ERC-8004 protocol in the last few weeks.

Long story longer: the future snaps into place when a technology finally meets its complement.
GPS had to wait for the smartphone…
TCP/IP had to wait for the browser…
Crypto might have just found its complement in AI agents.
In 10 years, we may be looking back in amazement at how we ever subjected humans to crypto directly.
P.S. If you like what you hear, check out Haseeb’s full article on X - it's a banger! And if you want to stay up to date with how AI is shaping the future, subscribe to Milk Road AI (it’s free).

NEXT WEEK ON MILK ROAD 🥛
ICYMI: Most weeks, we host live events in the PRO Discord where you can chat live with our PRO experts.
Crypto PRO AMA
February 25 at 10:00 a.m. ET
We go live this Wednesday with John and Martin 🫡 Come ask them anything and get their take on what's next. Submit your questions using this form.

BITE-SIZED COOKIES FOR THE ROAD 🍪
*sigh* There’s a new crypto tax rule from the IRS. It’s called the 1099-DA and we’ve broken everything down around it here.*
Sharplink: home of the big dogs. Nearly half the company (46%) is now held by institutional investors!
Base is leaving the OP Stack! Coinbase just announced Base is moving away from Optimism to its own unified, Base-operated stack.
Uh oh, Iran tensions are rising. Here’s how markets tend to respond to military escalation…
If you’re holding Bitcoin, this is for you. While prices fall, Xapo Bank lets you earn interest on your Bitcoin instead of letting it sit idle.*
*this is sponsored content.
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