Co-founder of BitMEX Arthur Hayes recently published a report in which he voiced his conviction that Bitcoin (BTC) will inevitably become the chosen money of artificial intelligence (AI). Hayes presented justifications for why AI systems would consider Bitcoin the most logical and practical form of money. These reasons revolve around its compatibility with their economic calculations and transactions.
Hayes underlined the need for a digitized, completely automated, 24/7 payment system to support AI. This is important because AI requires continuous access to “food”, namely, data and processing power, to function. Hayes argues that blockchain-based systems, such as Bitcoin, offer the required capabilities that conventional analog financial systems lack. He highlights the superiority of these systems in meeting the needs of AI systems. Additionally, the blockchain of Bitcoin enables AI systems to accept payments in minute amounts as required.
Hayes also emphasized the significance of an AI payment rail that is censorship resistant. AI systems require explicit and transparent rules to maintain service continuity and prevent de-platforming concerns. The requirements of AI are incompatible with the complex and frequently unpredictable norms of the conventional banking sector. On the other hand, Bitcoin fits the description as a decentralized network with rules that the majority can approve only through a public proposal.
Hayes Perspectives on Bitcoin and its Implications for Digital Economies
Furthermore, Hayes emphasized that Bitcoin’s suitability to hold its value over time is particularly due to its reliance on electricity as a crucial resource for AI. The 21 million coins that makeup Bitcoin’s programmed limited supply, along with the fact that it mines directly using electricity, creates a definite link between the asset’s value and its energy use.
Some argue that Ethereum’s deflationary supply dynamics make it a suitable currency, but Hayes disagrees. He believes Ethereum serves various functions beyond being a medium of exchange. Bitcoin and fiat currencies, on the other hand, are exclusively intended for monetary transactions, detaching their value from other utilities.
According to Hayes, Bitcoin’s characteristics, including its availability 24/7, resistance to censorship, and capacity to maintain value, make it the ideal medium of exchange for AI systems. These features enable seamless transactions and ensure the preservation of value within AI-driven economies.
The potential adoption of Bitcoin raises significant concerns for digital economies and financial institutions. With AI’s expanding role, these concerns become more pertinent across various industries.