BitMEX co-founder Arthur Hayes is expressing bullish sentiment on a decentralized data storage crypto project on the grounds that demand for censorship-resistant artificial intelligence (AI) infrastructure is bound to grow.
Hayes says in a new blog post that AI technology “craves decentralization” for the two things that it requires – compute power and cloud storage.
According to the BitMEX co-founder, the decentralized file storage network Filecoin (FIL), which is a “must-have for the burgeoning AI economy,” could appreciate by approximately 1,730% from the current level if its current price-to-capacity ratio rises. The price-to-capacity ratio is calculated by dividing the asset’s price by the storage capacity.
Says Hayes,
“Investing after multiples take a beating is always best practice. Imagine if the price/capacity ratio rebounds only 25% of where it was in April 2021 to $4.86 per exbibyte (EiB), the price would rise to $59.29, up almost 17x from current levels.”
FIL is worth $3.24 at time of writing, down by 98.6% from its all-time high of $236.24 reached in April of 2021.
Meanwhile, the price-to-capacity ratio of Filecoin has fallen from $19.45 per EiB in April 2021 to its current value of $0.27 per EiB, a decline of about 99%, according to Hayes.
The BitMEX co-founder says that his bullish thesis on Filecoin is also resting on the idea that central banks will soon be forced to ease monetary policy resulting in a “fiat liquidity boom.”
“AI is experiencing its hockey stick moment of adoption growth…
Armed with free money in the tens of trillions, everyone from politicians, to hedge fund masters of the universes, to Venture Capital tech dudes and dudettes will be doing everything they can to funnel money into anything tangentially related to AI.”
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