Hayes Sees Bitcoin Benefiting After an AI Investment Bust
The BitMEX co-founder expects an AI overbuild and government support to send excess liquidity toward Bitcoin and other cryptocurrencies.
Key takeaways
- Arthur Hayes expects excessive AI investment to lead to overcapacity and a government bailout.
- He says Bitcoin and other cryptocurrencies could absorb excess liquidity after that support.
Arthur Hayes, co-founder of BitMEX, says an AI investment bust followed by government support could send Bitcoin and other cryptocurrencies higher. He told CNBC that he expects the assets to absorb excess liquidity after a bailout.
Hayes said heavy spending on AI data centers could first create abundant, inexpensive computing power, then lead to overcapacity and a downturn. He expects pressure to emerge in late 2027 or 2028, when new capacity comes online and infrastructure providers seek payment from AI companies.
Hayes said Bitcoin and other cryptocurrencies could become the strongest-performing assets in that scenario, adding, “You just have to be patient.”
This article was produced with the help of AI technology. Source: Yahoo Finance
