Bitcoin could surge as an AI currency, according to BitMex co-founder Arthur Hayes.
The growth and adoption of Bitcoin (BTC) in the past few years have undoubtedly caused significant pain for bankers who are losing customers on a daily basis. Big investment fund managers, led by BlackRock Inc (NYSE: BLK), have sparked a new phase of mainstream crypto adoption after CEO Larry Fink referred to Bitcoin as digital gold. With a market value of about half a trillion, the Bitcoin market continues to revolutionize the global financial markets, with over 420 million people around the world already using cryptocurrencies.
However, there is a new tech sector that has recently challenged the crypto market, called Artificial Intelligence (AI). The hype surrounding AI has resulted in these related companies receiving massive amounts of investment, to the point where some experts believe they may only utilize a small portion of it.
For example, Nvidia Corporation (NASDAQ: NVDA) has seen its stock market rally by nearly 200 percent year-to-date, trading at around $429 on Friday, with a market cap of about $1.05 trillion, following the recent AI hype. However, the company has limitations on the semiconductor it can deliver, especially after China implemented restrictions on exporting gallium and other metals used in chip manufacturing.
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. As per this crypto enthusiast, if Bitcoin is adopted as an AI currency, its price could skyrocket. Furthermore, the ongoing global inflation, as governments print money to pay off debts and people turn to digital assets, will create a significant demand-supply imbalance.
“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,” noted Hayes.
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After calculating the mathematical implications of the AI economy adopting Bitcoin, Hayes believes that the leading cryptocurrency will experience a significant rally between 2025 and 2026. In conclusion, Hayes states that Bitcoin has a high chance of trading above $760k during the next major breakout.
Meanwhile, crypto enthusiasts believe that now is the best time to enter the Bitcoin market for maximum profit during the AI-blockchain hype.