According to former banker and BitMex co-founder Arthur Hayes, Bitcoin has a very high chance of becoming the ultimate currency of artificial intelligence.
The growth and adoption of Bitcoin (BTC) in the past few years is undeniably an excruciating pain to the bankers losing customers on a daily basis. Big investment fund managers led by BlackRock Inc (NYSE: BLK) have triggered a new phase of mainstream crypto adoption after its CEO Larry Fink referred to Bitcoin as digital gold. Valued at about half a trillion, the Bitcoin market continued to revolutionize the global financial markets with more than 420 million people around the world already using crypto.
However, there is a new tech sector that has challenged the crypto market in the recent past dubbed Artificial Intelligence (AI). The hype of AI has seen all related companies receive tremendous cash from investors, to an extent some experts believe they may only use a small portion.
For instance, Nvidia Corporation (NASDAQ: NVDA) has seen its stock market rally nearly 200 percent YTD to trade around $429 on Friday with a market cap of about $1.05 trillion following the AI hype in the past few months. However, the company has a limit to the semiconductor it can deliver, more so after China recently put in place a limitation of exporting galium and other metals used in manufacturing chips.
Hayes Spots Bitcoin Position in AI Mania
According to former banker and BitMex co-founder Arthur Hayes, Bitcoin has a very high chance of becoming the ultimate currency of artificial intelligence. According to the crypto enthusiast, if Bitcoin is adopted as an AI currency, the underlying price could outrightly rally to the moon. Moreover, the ongoing global inflation as the government prints money to pay off debts and people fleeing fiat money to digital assets will cause a significant imbalance in demand and supply.
“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 + computer evolution. The overlap of these two manias would likely drive investors to grossly overpay for growth, causing the value of the Bitcoin network to rise to silly levels,” Hayes noted.
Having computed the mathematical implications of the AI economy adopting Bitcoin, Hayes believes the top coin will rally significantly between 2025 and 2026. In this regard, Hayes concluded that Bitcoin has a high chance of trading above $760k during the next major breakout.
Meanwhile, crypto enthusiasts believe now is the best time to enter the Bitcoin market for maximum profit during the AI – blockchain hype.