Arthur Hayes: Bitcoin is the Ultimate Currency for AI Systems
Arthur Hayes, former CEO of Bitmex and now managing a family office named Maelstrom, believes that Bitcoin is the ultimate currency for artificial intelligence (AI) systems. In his latest blog post, Hayes explains how the decentralized nature and control over assets in the Bitcoin network align with the characteristics of future AI economies. Here are the key points:
1. Bitcoin’s Value and Energy: Hayes argues that Bitcoin’s value is tied to the cost of electricity, which he refers to as the “food of AI.” This makes Bitcoin an efficient and predictable store of value for AI systems over time.
2. Provable Scarcity and Censorship Resistance: Bitcoin’s scarcity and censorship resistance give AI-based technologies an advantage over other currencies. Unlike gold and fiat currencies, Bitcoin’s supply is cryptographically limited, providing a predictable financial foundation that cannot be manipulated.
3. The Collision of Bitcoin and AI Manias: Hayes suggests that if the AI economy adopts Bitcoin, it could lead to a mega mania, combining the desire to escape inflation within the fiat system with the excitement of participating in the next phase of human and computer evolution. This could drive investors to overvalue Bitcoin’s growth.
4. Potential Surge in Bitcoin’s Value: Hayes predicts that by 2025 or 2026, the AI economy could be worth between 5% and 50% of global GDP, potentially causing a surge in Bitcoin’s value as high as $760,000 per coin. This represents a period of great opportunity for long-term Bitcoin investors.
Hot Take: Jumping Aboard the Narrative Hype Wagon
While the future of AI and Bitcoin remains uncertain, Hayes plans to capitalize on the narrative hype and profit from the potential growth. He previously predicted a volatile year for Bitcoin in 2023, followed by a strong rally starting in 2024.
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