AI Bubble Collapse Could Send Bitcoin Price Soaring to $1 Million

BitMEX founder Arthur Hayes recently shared his thoughts on the potential impact of an AI bubble bursting on Bitcoin's price. According to Hayes, a collapse in the AI sector around 2028 could trigger economic conditions that push the Bitcoin price above $1 million.

Hayes argued that the real risk in the AI sector lies not in the technology companies themselves, but rather in the bubbles forming in the real estate and credit markets. The rapid construction of AI data centers is largely a form of real estate development and financing activity, which could put pressure on the financial system if large-scale loans for these projects cannot be repaid.

In this scenario, banks and financial institutions would face significant credit risks associated with AI investments. In response, governments might implement large-scale monetary expansion policies to support the economy, similar to those seen during the 2008 global financial crisis.