Arthur Hayes, former CEO of Bitmex and currently managing a family office called Maelstrom, has expressed his view that Bitcoin is the ideal currency for artificial intelligence (AI) systems due to its digital nature, anti-censorship features, and limited supply.
In his latest blog post, Arthur Hayes puts forward the notion that the decentralized nature of the Bitcoin network and the independence it grants to its users are well-suited to the anticipated traits of future AI economies. Hayes draws attention to the correlation between the value of Bitcoin and the price of electricity, which he describes as the vital sustenance for AI systems. According to Hayes, Bitcoin serves as an effective and dependable repository of value for AI systems, with its value intrinsically linked to the “food of AI.” He further contends that Bitcoin stands as the currency that most closely embodies the concept of pure energy. By emphasizing these points, Hayes highlights the potential synergy between Bitcoin and AI economies, underscoring the compatibility of Bitcoin’s properties with the needs and aspirations of AI-based systems.
Hayes further emphasizes Bitcoin’s provable scarcity and censorship resistance, which he believes give AI-based technologies an advantage over other forms of currency. While the supply of gold and fiat currencies can fluctuate, Bitcoin’s supply is cryptographically limited, providing a predictable financial foundation that cannot be manipulated.
Hayes predicts that the convergence of the AI economy’s need to escape inflation within the fiat system and the desire to participate in the next phase of human and computer evolution could lead to a surge in Bitcoin’s value. He suggests that this combination of factors may result in investors overvaluing Bitcoin’s growth, potentially driving its value to extraordinary levels.
According to Hayes’s predictive model, the AI economy could represent 5% to 50% of global GDP by 2025 or 2026, potentially propelling Bitcoin’s value as high as $760,000 per coin. Hayes believes this presents a significant opportunity for long-term Bitcoin holders.
While the future of AI and Bitcoin remains uncertain, Hayes expresses his intention to capitalize on the narrative hype and profit from the potential developments. In May, he also predicted a volatile year for Bitcoin in 2023, followed by a strong rally starting in 2024.