Debt-Fueled AI Boom Triggers Credit Crisis Warning for Bitcoin

Arthur Hayes, co-founder of BitMEX, has warned that the debt-fueled artificial intelligence infrastructure boom could end in a credit crisis similar to 2008.

This could force governments to unleash liquidity, driving Bitcoin beyond $1 million.

Hayes argues that investors are misclassifying data centers and power projects as high-growth technology rather than leveraged real estate.

He expects lenders to overfinance construction before weaker borrowers are exposed by a slowdown in capital spending, creating the conditions for defaults, bailouts, and renewed currency debasement.