Hayes Sees AI Bust as Potential Boost for Bitcoin

Arthur Hayes, co-founder of BitMEX, has expressed concerns that slowing AI development could impact Bitcoin's price. He argues in a recent essay that reduced demand for AI could lead to increased dollar liquidity, benefiting Bitcoin.

Hayes points out that top US AI labs are slowing down AGI development, which may signal decreased demand for AI technologies. This could create credit stresses, prompting the government to act as a 'compute buyer of last resort,' increasing market liquidity.

This scenario puts Bitcoin in a favorable position, as increased liquidity often translates to heightened interest in crypto assets.