BitMEX founder Arthur Hayes says that the artificial intelligence (AI) revolution could enable Bitcoin (BTC) to be part of two mania phases.
In his latest essay, the crypto veteran says that AI will likely adopt Bitcoin as the currency of its economy.
[adinserter block="1"]According to Hayes, AI will be the primary beneficiary of a new age of quantitative easing as he predicts that governments around the world will have no choice but to print more money to pay for massive amounts of sovereign debt.
“This newly created money will want to invest in something that promises to give the global economy a new lease on life. In this decade, I believe that will be all things related to AI and robotics. While many other ‘boring’ sectors of the economy will face capital shortages, AI and robotics companies will be flooded with more money than they require at this point in their development.”
Hayes says that when AI begins to use Bitcoin to power its economy, the world could see the emergence of two manic phases at the same time. According to Hayes, people will have a desire to exit the traditional financial system riddled with inflation by flooding capital into the next stage of technological advancement.
“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.”
According to Hayes, he can see investors piling into AI and Bitcoin in droves within the next three years.
“I believe the peak of deranged growth investing will occur in the 2025 to 2026 timeframe.”
At time of writing, Bitcoin is trading for $30,239.
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