Arthur Hayes, co-founder and former CEO of BitMEX, foresees a scenario wherein bitcoin becomes the preferred currency for the increasingly dominant realm of artificial intelligence (AI).
In his first piece of a three-part essay series – titled “Massa” – Hayes delves deep into the possible intersections of AI and cryptocurrency, particularly bitcoin. Hayes envisions a future where advancements in AI and robotics phase out less desirable tasks, thus allowing humans to pursue their passions more freely.
Notably, he recognizes the escalating concerns over AI potentially overshadowing human capabilities. However, according to Hayes, recent advancements in computing power indicate a significant shift on the horizon, with AI poised to alter the course of human life significantly.
Additionally, Hayes underlined the rapid adoption of AI technologies like ChatGPT, which reached a staggering 100 million active users in just two months. According to him, such examples offer a glimpse into how AI integration into daily life can swiftly modify societal norms.
AI’s inevitable intersection with bitcoin
Hayes proposed that the advent of advanced AI systems like poetry-creating algorithms necessitates a secure, blockchain-based digital payment system. Consequently, bitcoin, with its ability to preserve energy-purchasing power over long periods, emerges as an ideal choice for transactions.
According to the former BitMEX CEO, two critical ingredients for AI to exist and thrive are data for learning and substantial computational power. These factors require electrical energy, making semiconductors and electricity the primary food sources for AI. Hence, a fascinating connection emerges between AI, bitcoin, and electricity.
The optimum ‘Energy Money’ for AI
The existence and profitability of an AI, much like humans, rely on its ability to output more value than it consumes in energy. The ‘currency’ for this output, Hayes argues, must maintain its purchasing power in kilowatt-hours, making bitcoin the perfect choice, as it’s essentially energy money.
Significantly, Hayes compared the origins and values of gold, fiat, and bitcoin based on their scarcity, digital censorship resistance, and energy purchasing power. He concluded that bitcoin, being purely digital, censorship-resistant, provably scarce, and intrinsically tied to the cost of electricity, is the logical currency choice for AI.
An inevitable surge in bitcoin value?
Hayes asserted that if AI systems adopted bitcoin, it could lead to a considerable value increase due to the convergence of two separate manias – the need to escape inflation within the fiat financial system and the urge to be part of the next phase of human and computer evolution. This confluence, Hayes believes, could trigger a surge in the value of the Bitcoin network.
While acknowledging the speculative nature of his propositions, Hayes emphasized that significant profits lie in the market price shift from “can never happen” to “maybe could happen.” He suggests preparing for AI adopting bitcoin and the consequent surge in its value.
At press time, bitcoin is trading at $30,152.11, witnessing a minor setback of 1.58% in the last 24 hours. With a significant 24-hour trading volume of $17,812,155,642, it retains its leading position on CoinMarketCap. The cryptocurrency boasts a substantial live market capitalization of $585,626,928,415. Currently, the circulating supply of bitcoin is 19,422,418 BTC coins, with the maximum supply capped at 21,000,000 BTC coins.
While the future of AI and bitcoin remains uncertain, Hayes’s hypotheses provide food for thought, sparking crucial discussions about the possible symbiotic relationship between these two revolutionary technologies.