BitMEX Founder Sees Potential Upside for Bitcoin in AI Slowdown
BitMEX co-founder Arthur Hayes has weighed in on the potential impact of a slowdown in AI growth on Bitcoin's price. According to Hayes, a weakening demand for AI computing power could make debt risks associated with data centers more visible.
This, in turn, could lead to developments that result in an expansion of the money supply in the US. Specifically, Hayes noted that debt used to finance investments in AI infrastructure could create new risks if growth in the sector slows.
He argued that if this scenario plays out, the US government might consider providing liquidity to support the AI sector or to bail out insurance companies exposed to distressed assets. Either way, this would involve injecting more money into the economy and increasing the money supply.
In Hayes' view, an expansion of the money supply could positively affect Bitcoin's price, as well as that of some altcoins. However, he emphasizes that potential policy actions or their impact on the Bitcoin price are not considered certain developments.