Hayes: AI bubbel will collapse which is good news for Bitcoin

Arthur Hayes, the best Bitcoin price forecaster of the most recent years and one of the first crypto billionaires, took a very bearish stance on the crypto market in June. In one of his essays, he stated that he had closed his positions in Hype and Near because he was convinced the crypto market would fall further.

In a new essay, published yesterday, Hayes predicts an AI crash, which could be good news for Bitcoin in the long run.

Situational Awareness

Hayes begins his latest essay (titled ‘Situationship’) with a drawing of Sam Bankman-Fried and Leopold Aschenbrenner getting married.

I wrote about Aschenbrenner just this weekend, the 24-year-old who lost around $35 billion in a matter of days with his AI investment fund and learned stock and crypto trading from Sam Bankman-Fried, the former founder of the now-defunct crypto platform FTX.

Sam is currently in prison, while Aschenbrenner continues to trade, though likely on behalf of Ken Griffin of Citadel Investments.

Arthur Hayes foresees a long-term AI bubble, although he believes it won’t materialize until 2027–2028 as investors will continue to prop up stocks. As AI will account for such a significant portion of the Chinese and US economies by then, Hayes expects those governments to fire up the printing presses; this would dilute the dollar and drive Bitcoin higher again, given that the supply of Bitcoin in circulation cannot change.

As always, a very interesting read from Arthur.