Arthur Hayes, founder of BitMEX, predicted that Bitcoin would surge to over $1 million when the AI bubble bursts. The gist of his argument is as follows:
-The essence of the AI bubble is a real estate and credit bubble. The construction of AI data centers is essentially nothing more than a real estate development business.
-The upcoming AI bubble in 2026-2028 will be a 2008-style credit crunch story, where financial institutions will be shaken as data center and power grid loans become non-performing.
-The reason Bitcoin has fallen so far is because liquidity has been concentrated in the AI sector. It is currently bottoming out at the $60,000-$70,000 level, and even if extreme downside risks occur, it will only drop to the $50,000 level.
-Since the US government will print more dollars than during the 2008 financial crisis to bail out AI companies and banks to prevent the AI bubble from collapsing, Bitcoin will act as a 'fire alarm for the capital market,' detecting currency devaluation and capital waste first, and will surge to over $1 million.
