Arthur Hayes Predicts Bitcoin Will Surge as AI Triggers Financial Crisis

NEW YORK - The famous crypto investor and one of the founders of BitMEX, Arthur Hayes, has warned that the rise in artificial intelligence could result in another global financial crisis, but this time, Bitcoin could be seen as the most preferred safe-haven asset. According to Hayes, when AI disrupts financial systems, the Federal Reserve (Fed) will have no option but to print lots of money so that Bitcoin can hit record high prices.

In his recent blog post entitled “The Dawn of the AI Economy,” Hayes expounded on his thesis: the AI revolution will lead to economic shocks, especially in employment and capital allocation, thereby creating an unstable market. He thinks that this disturbance will lay bare weaknesses in the traditional financial system and that there will be some signals from Bitcoin showing what is about to happen.

AI Disruption Could Trigger Monetary Intervention

Hayes believes that the fast expansion of AI-driven technologies will speed up automation and data-based financial choices, hence making the normal markets oversupply risk and wrongly price it. As per his analysis, the economy will experience a hard time trying to adjust, and this is when we expect the Fed to come in with its usual medicine of liquidity injections, just like it did during previous crises such as the great depression of 2008 or even last year’s COVID-19 pandemic.

“AI is about to reshape how money flows,” Hayes said. “And when markets start breaking under that pressure, the Fed will do what it always does: print more dollars. That’s when Bitcoin shines.”

Hayes has always argued that Bitcoin acts as a hedge against central bank policies gone wrong because digital scarcity is better than fiat inflation during monetary expansions. He thinks that there will be a different cause for the next economic downturn – not human error but rather AI’s disruption of labour, markets and global output.

Bitcoin as the Ultimate Hedge Against the AI Economy

The ex-CEO at BitMEX also observed that Bitcoin’s decentralization makes it highly immune to systemic risks posed by AI-driven market algorithms. In his opinion, although AI might disrupt Wall Street or even central banks, governments cannot control Bitcoin, unlike other forms of money, which are controlled by governments or corporations; hence, it remains the best option for “neutral money” in a digitalized economy.

Hayes predicts that institutional investors will turn to cryptocurrencies, especially Bitcoin, as they seek ways of protecting themselves from inflation due to the increasing adoption of AI.

Market Analysts Echo Caution and Opportunity

Financial experts concur with Hayes’s forecast on the growing concerns within the market regarding the impact of AI on global economics. While some view his prediction as exaggerated, most acknowledge that there could be increased interest in alternative assets such as Bitcoin, gold, and stablecoins due to volatility related to AI.