In a daring and visionary assertion, Arthur Hayes, the founding father of BitMEX, has laid out his compelling argument for a monumental Bitcoin worth surge within the period of synthetic intelligence (AI). In his lately revealed weblog put up titled “Massa,” Hayes shares his insights on the interaction between Bitcoin and AI, asserting that BTC will change into the forex of selection for AI-powered economies.
Hayes passionately describes the profound affect of AI on humanity and envisions a future the place AI frees people to pursue their passions, resulting in a renaissance of artwork and tradition. Hayes states, “To that end, my hope is that artificial intelligence (AI) and robotics will be used primarily to eliminate the tedious, bullshit work in which most of humanity currently toils, so that more and more people can pursue their passions in a similar fashion.”
The BitMEX founder acknowledges the exponential progress of AI, exemplified by the ChatGPT’s fast adoption, which reached an astounding 100 million month-to-month lively customers in simply two months. Hayes posits that this technological development will carry us to the brink of a big turning level, the place AI goes viral and revolutionizes our lives in unprecedented methods.
Hayes’ Bold Bitcoin Prediction
In his weblog put up, Hayes outlines the potential interaction between Bicoin and AI. He delves into the need of a censorship-resistant digital funds system that operates repeatedly, with clear and clear guidelines. According to him, BTC’s attributes as a purely digital, censorship-resistant, and provably scarce forex are making it probably the most appropriate selection for AIs.
Hayes writes, “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.” His compelling argument asserts that Bitcoin’s properties align completely with the necessities of AIs, making it the clear frontrunner because the forex of their financial actions.
Moreover, Hayes considers the long run implications of BTC’s dominance within the AI period. He speculates on the potential surge in on-chain transaction volumes and ponders the staggering heights Bitcoin’s worth might attain if the narrative of AI + Bitcoin turns into mainstream.
Nonetheless, Hayes emphasizes the significance of market sentiment and the ability of narrative, stating, “The most money is made when the market price adjusts from ‘can never happen’ to ‘maybe could happen”, including that worth of the Bitcoin community is a guess on the long run quantity of transactions that may happen.
“To get a sense of what is possible, I looked at the past multiples starting in 2015. I took the daily value of BTC transfers on the network excluding change returned to the sender. I then looked back at the past 365-day median to get a value that isn’t influenced by very high or low daily values. Finally, I divided the current day’s Bitcoin market cap by the daily median value to arrive at the forward multiple,” defined Hayes.
He then created a low (8x), median (23x) and mania (172x) estimation and assumes that the speed of Bitcoin transactions will match the full quantity of GDP. “That intuitively makes sense, because GDP is just a measure of economic activity – so it follows that there must be at least that amount of payments going back and forth between economic actors,” Hayes added.
With these calculations, Hayes predicts the next outcomes: If the dimensions of the AI financial system reaches 5%, the median estimation suggests a BTC worth of $47,260, whereas in a mania situation, the Bitcoin worth would surge to $152,589.
If the dimensions of the AI Economy reaches 10%, the median estimation initiatives a BTC worth of $63,520, with a mania situation doubtlessly pushing the value to $274,197. If the dimensions of AI Economy reaches 30%, the median estimation is $128,561 per BTC, in a mania situation the Bitcoin worth might attain a whopping worth of $760,591.
At press time, the Bitcoin worth stood at $30,141 after sweeping the vary low as soon as once more yesterday.
Featured picture from Forbes, chart from TradingView.com