- Hayes believes that Bitcoin, with its value being linked to electricity costs through mining, provides an efficient and predictable store of value for AI systems over time.
- The provable scarcity and censorship resistance of Bitcoin, according to Hayes, offer an advantage over other types of currencies for AI-based technologies.
- In May, Hayes predicted a volatile year for Bitcoin in 2023 and a strong rally starting in 2024.
Arthur Hayes, the former CEO of BitMEX, believes that the cryptocurrency Bitcoin is the superior currency for artificial intelligence (AI) systems.
Hayes Sees Bitcoin as the Currency of AI
Hayes sees Bitcoin as the top currency for AI due to its intrinsic digital, censorship-resistant, and limited nature.
Hayes claims that the decentralized nature of the Bitcoin network and the control users have over their assets align with potential features of future AI economies.
According to Hayes, the value of Bitcoin, being linked to electricity costs through mining, provides an efficient and predictable store of value for AI systems over time. He also stated, “Bitcoin is the closest monetary vessel to pure energy.”
Furthermore, Hayes argues that Bitcoin’s provable scarcity and censorship resistance offer an advantage to AI-based technologies over other types of currencies. While the supply of gold and fiat currencies can fluctuate, Bitcoin’s supply is cryptographically limited and cannot be manipulated. Hayes believes that this provides a predictable financial foundation for AI-based systems.
The Combination of Bitcoin and AI Frenzy
According to Arthur Hayes, if the AI economy adopts Bitcoin, the collision between the desire to escape inflation in the fiat system and the desire to participate in the next stage of human and computer evolution could lead investors to overvalue the growth of Bitcoin.
Hayes said, “If Bitcoin is perceived as being useful to AI, or is adopted by AI, we could see the combination of two separate manias resulting in a mega mania: the mania to escape inflation in the fiat financial system and the mania to own a piece of the next stage of human and computer evolution.” He added;
“The combination of these two manias could lead investors to overpay for growth, driving the value of the Bitcoin network to high levels.”
According to Hayes’ prediction model, by 2025 or 2026, the AI economy could be worth between 5% to 50% of global GDP, potentially leading to a significant increase in the value of Bitcoin to $760,000 per coin. Hayes suggests that the market assumptions shifting from “it could never happen” to “maybe it could happen” present the biggest opportunity for long positions on Bitcoin.
While the future of AI and Bitcoin remains uncertain, Hayes concluded, “I plan to hop on the narrative deception train and profit.” In May, Hayes predicted a volatile year for Bitcoin in 2023 and a strong rally starting in 2024.
