AI Bubble Collapse Could Send Bitcoin Soaring
Arthur Hayes, co-founder of BitMEX, believes that the current AI investment frenzy will eventually collapse like the 2008 housing bubble.
In an essay published on August 5, Hayes argued that markets are treating AI infrastructure spending as a high-growth technology investment when it more closely resembles commercial real estate.
He thinks lenders, private credit funds and governments are financing a massive buildout of data centers and power infrastructure under the assumption that demand will keep accelerating indefinitely.
Hayes expects the pace of AI capital expenditure growth to slow in 2027 before contracting, exposing companies and investors that borrowed heavily to finance projects.
The AI boom is fundamentally a credit story similar to the housing market before the global financial crisis, Hayes said.