In a thought-provoking blog post, Arthur Hayes, former CEO of Bitmex and currently managing a family office named Maelstrom, shares his perspective on Bitcoin’s role as the ultimate currency for artificial intelligence (AI) systems. Hayes highlights several key reasons for his belief in Bitcoin’s suitability for the AI landscape.
Arthur Hayes Predicts That Bitcoin Will Emerge as The Preferred Currency for Artificial Intelligence Applications
First and foremost, Hayes emphasizes the decentralized nature of the Bitcoin network and the control it grants to its users over their assets. He suggests that this aligns with the characteristics that future AI economies may possess, where autonomy and individual ownership play vital roles.
Arthur Hayes further asserts that Bitcoin’s value, intrinsically linked to the cost of electricity, makes it an efficient and predictable store of value for AI systems. Referring to electricity as the “food of AI” he argues that Bitcoin’s mining-based model closely aligns with the energy requirements of AI technology, making it an ideal financial instrument to represent pure energy.
The provable scarcity and censorship resistance of Bitcoin also gives it an advantage over other forms of currency in the context of AI. While the supply of gold and fiat currencies can fluctuate, Bitcoin’s cryptographic limitations ensure a predictable and limited supply, offering a foundation of stability that cannot be easily manipulated.
If Bitcoin is seen as likely to be — or even starts to be — used by AIs, then we could see two separate manias combine into one mega mania: the mania of wanting to escape inflation within the fiat financial system, and the mania of wanting to own a piece of the next phase of human and computer evolution.
Arthur Hayes
Arthur Hayes’s predictive model suggests that as the AI economy continues to expand, potentially reaching 5% to 50% of global GDP by 2025 or 2026, there could be a significant increase in Bitcoin’s value. Hayes speculates that this surge could drive the price of Bitcoin as high as $760,000 per coin. He believes that as market sentiments shift from skepticism to acceptance, this period presents a prime opportunity for those holding Bitcoin.
While the future of both AI and Bitcoin remains uncertain, Hayes expresses his intention to leverage the narrative hype surrounding these technologies for profit. He acknowledges the potential for volatility in the Bitcoin market throughout 2023 but anticipates a strong rally beginning in 2024.
It is important to note that these predictions are based on Hayes’s perspective and his understanding of the market dynamics at the time of his statements. The actual future outcomes for both AI and Bitcoin may differ from these forecasts.
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