Arthur Hayes, former CEO of Bitmex, views Bitcoin as the ultimate currency that will be used in artificial intelligence(AI) systems. Hayes recently discussed a future with AI and robotics, saying it would reduce the less desired duties in human work, enabling more people to concentrate on their interests and possibly igniting a new art and culture renaissance.
Hayes says bitcoin will provide a stable financial base for AI
Hayes intends to use his in-depth knowledge of the crypto sector to pinpoint any intersections between it and the changing developments in AI to foresee the impending “AI mania.” His three essays, the first of which, “Massa,” contends that Bitcoin will be the preferred currency for AIs, try to investigate how these factors interact.
Hayes explained that the Bitcoin network’s decentralized nature and the user’s ownership of their assets align with the probable incoming AI economics. In addition, bitcoin provides an effective and reliable store of value for AI systems considering its value is inextricably linked to electricity costs through mining, what Hayes describes as the “food of AI.”
AI-based solutions have an advantage over other types of currency because of Bitcoin’s verifiable scarcity and resilience to censorship. According to Hayes, Bitcoin’s supply is cryptographically limited, unlike the supply of gold and fiat money, which can vary, providing a stable financial base for such systems and hence cannot face manipulation.
Hayes asserts that if the AI economy adopts Bitcoin, investors may overpay for Bitcoin’s network growth due to the conflict between the desire to avoid fiat currency inflation and the want to take part in the next stage of human and computer advancement.
According to Hayes’s forecasting model, the AI economy may account for between 5% and 50% of global GDP by 2025 or 2026, leading to a rise in Bitcoin’s price of up to $760,000 per coin. The best time to invest in bitcoin, he says, is when market expectations change from can never happen to maybe could happen.
He continued that even though the future of AI and Bitcoin is uncertain, he plans to get aboard the narrative hype wagon and make a profit. Hayes predicted that 2023 would be volatile for bitcoin in May, followed by a strong rally next year due to the halving event. Hence, while BTC won’t cross $70,000 this year, it might cross the barrier next year.
AI’s growing potential in crypto
AI is catching up with the crypto sector already. Lightning Labs is launching tools to integrate artificial intelligence with BTC and Lightning Labs. This most recent development aligns with Arthur Hayes’ hypothesis about Bitcoin’s potential as a future medium of exchange for AIs. AI applications may easily incorporate Bitcoin, and Lightning features thanks to Lightning Labs’ tools, such as LangChainBitcoin and LLM Agent BitcoinTools.
In June, Mudrex, an India and US-based crypto investment firm, launched India’s first AI chatbot service. The chatbot, ‘SatoshiGPT,’ was created as a tribute to the anonymous founder of Bitcoin, Satoshi Nakamoto.
The market has also seen the emergence of a brand-new category of AI crypto coins, such as AGIX, Oasis, and Graph GRT. Since they have AI capabilities, these tokens offer better security, functionality, and overall performance than other traditional cryptocurrencies.
