AI Spending Downturn Could Spark Money Printing and Boost Bitcoin
Arthur Hayes, co-founder of BitMEX, has argued that an AI spending downturn could pressure AI debt and trigger money printing in the US, potentially increasing liquidity for Bitcoin and other cryptocurrencies.
In his latest essay, Safety First, Hayes questioned whether moves by major US AI companies to slow AGI development on safety grounds reflect weaker-than-expected demand for AI at current prices.
Hayes estimates that a slowdown in AI training expenditure could put pressure on more than $1 trillion of investment-grade debt and hundreds of billions of dollars in lower-rated loans linked to AI infrastructure.
The former BitMEX executive connects possible government interventions to broader monetary conditions, suggesting that government support in response to financial stress could increase dollar liquidity and create a favorable environment for Bitcoin and other cryptocurrencies.