AI has potential to send Bitcoin price over $750K — Arthur Hayes
2023.07.07 12:35
Bitcoin (BTC) will be the currency of artificial intelligence (AI) and could reach a price per coin of $760,000 in the process, Arthur Hayes says.
In his latest essay titled “Massa,” the former BitMEX CEO concluded that the AI revolution would naturally gravitate toward BTC.
Hayes: Bitcoin is a “logical currency choice for AI”
Despite fiat currency regimes being destined to become evermore dysfunctional in the future, Hayes said, there is one burgeoning economic sector that will only go from strength to strength: AI.
While still nascent in 2023, the coming decades will see an explosion of AI-related implementations that will make it ubiquitous and unavoidable.
“Recent advancements in computing power have brought us to the cusp of a hockey stick moment, in which AI will go viral and change the course of humanity virtually overnight,” he wrote.
“In only two months, ChatGPT reached 100 million monthly active users making it the fastest adopted technology in human history — so just imagine how quickly everything is going to change as AIs are integrated into everyday life and continue to learn and improve.”
When it comes to integration, the financial solution on the table first and foremost, Hayes said, will not be a tailor-made, AI-focused altcoin — it will be Bitcoin instead.
The reason, an accompanying theory states, is that AI will view Bitcoin’s inherent qualities — an immutable fixed supply, digital scarcity and its status as “energy money” — as the logical choice.
“An AI is unlikely to allow itself to rely on anything that a human government operates therefore only gold and Bitcoin are suitable. A tie between gold and Bitcoin,” Hayes continued.
“Bitcoin is thus the logical currency choice for any AI. It is purely digital, censorship resistant, provably scarce, and its intrinsic value is completely electricity-cost-dependent. There is nothing in existence today that comes close to challenging Bitcoin on these aspects.”
Another path toward a $1-million BTC price
Where would that leave BTC’s price?
Related: BTC price remains ‘undoubtedly bullish’ as $30K Bitcoin buyers emerge
From around $30,000 today, the real effect of AI should kick in in around three years’ time.
After that, Hayes said, it could be around another decade before the network value boost from AI alone sends BTC/USD to nearly $1 million.
“I believe the peak of deranged growth investing will occur in the 2025 to 2026 timeframe. Therefore, the goal of my predictions regarding the future price of Bitcoin is to form a narrative that takes hold before then,” he explained.
Depending on the scale of that investing, BTC price action could see up to $760,000 per coin.
“Remember — the market will overpay for Bitcoin network growth if it believes there is a possibility that my assumptions could be true in the future,” part of “Massa” concludes.
“The most money is made when the market price adjusts from ‘can never happen’ to ‘maybe could happen.’”
Bitcoin price target calculation (screenshot). Source: Arthur Hayes
Hayes is well known for his bullish long-term perspective on Bitcoin, recently championing a million-dollar price tag as a function of fiat currency disintegration.
Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
