Arthur Hayes Predicts Bitcoin Price Up To $760,000 In AI Era

Arthur Hayes has made a bold, visionary claim in a statement that argues for a massive Bitcoin price increase during the age of artificial intelligence. Hayes recently shared insights in his blog post, titled “Massa,” on the interaction between Bitcoin and AI. He asserted that BTC would become the currency of AI-powered economies.

Hayes describes AI’s profound impact on humanity, and imagines a world where AI will allow individuals to follow their passions and lead to a revival of art and culture. Hayes says, “To that end, I hope that artificial intelligence (AI), and robotics, will be used to eliminate the boring, bullshite work that most people currently do, so that they can follow their passions.”

BitMEX’s founder, Michael Bitmex, acknowledges that AI is growing exponentially. He cites ChatGPT, which has reached 100 million active monthly users in only two months. Hayes believes that the rapid growth of AI will lead us to a turning point where AI becomes viral and transforms our lives.

Hayes’ Bold Bitcoin Forecast

Hayes describes the possible interplay between Bicoin, AI and his blog. Hayes discusses the need for a digital payment system that is censorship resistant, operates continuously and has clear rules. According to him, BTC’s attributes as a purely digital, censorship-resistant, and provably scarce currency are making it the most suitable choice for AIs.

Hayes writes that Bitcoin is the logical choice of currency for any AI. It is purely digital, censorship-resistant, provably scarce, and its intrinsic value is completely electricity-cost-dependent.’ His persuasive argument states that Bitcoin’s characteristics are in perfect alignment with AIs’ requirements, making it the obvious frontrunner for the currency they use.

Hayes also considers future implications of BTC dominance in the AI age. He speculates about the possible surge in on-chain transactions and considers the staggering heights Bitcoin could reach if AI + Bitcoin is mainstream.

Hayes, however, emphasizes the importance and power of narrative. He states, “The most money is earned when the market price adjusts, from ‘can’t happen’ to a ‘could happen’.

To get an idea of what’s possible, I looked back at past multiples beginning in 2015. I calculated the daily value for BTC transfers, excluding the change that was returned to the sender. I looked at the median of the last 365 days to find a value not influenced by high or low values. Hayes explained that he divided the Bitcoin market cap of the day by the daily median to get the multiple.

He created an estimate for the low (8x), the median (23x), and the mania (172x), and assumed that the speed of Bitcoin transactions would match the GDP. Hayes said that this intuitively makes sense because GDP is a measure for economic activity. It follows that at least the same amount of payments must be going between economic actors.

Hayes’ calculations predict the following: If the AI economy grows to 5% of its current size, the median estimate suggests that the BTC price will be $47,260. In a mania scenario the Bitcoin price could reach $152,589.

The median estimate projects that the BTC price will be $63,520 if the AI Economy is 10%. A mania scenario could push the price up to $274197. If the AI Economy size reaches 30% the median estimate is $128.561 per BTC. In a mania scenario, the Bitcoin price can reach $760.591.

Bitcoin’s price was $30,141 at the time of publication, after it had fallen to a new low yesterday.