The global economy is facing threats from Artificial Intelligence’s (AI) potential of replacing human jobs. On the other hand, this will pave the way for Bitcoin to reach a new all-time high.
This is the situation imagined by Arthur Hayes, Chief Investment Officer of the investment fund Maelstrom, in an essay he wrote and posted on Medium yesterday. In his essay, Hayes argues that Large Language Model (LLM) technology from companies such as OpenAI and Anthropic may lead to office workers losing their jobs.
Employees who lose their jobs will find it difficult to pay their bills, causing the economy to decline. In the worst-case scenario, if many people default on their loans, banks in the United States could suffer losses of up to $527 billion.
As the crisis unfolds, traders will likely sell their shares to avoid being affected by the banking crisis. As a result, the stock market will collapse.
If this continues, the US Federal Reserve will have to print more money to prevent uncontrollable deflation.
This is when Bitcoin will reach a new all-time high. “Deflation is bad, but ultimately good for fiat credit-sensitive assets like Bitcoin,” wrote Hayes.
The co-founder of BitMEX did not say when this would happen. However, he is quite confident in his prediction.
Investors need to remember that Arthur Hayes is just one of many investors and analysts who make predictions about the value of Bitcoin. In practice, the price of Bitcoin is influenced by more than just one major event. The price of a cryptocurrency is influenced by macroeconomic conditions, market sentiment, and even geopolitical conflicts.
Reading the opinions of important figures in the investment world is insightful, but the most important thing investors must do is conduct their own research. Learn how in the article What is DYOR: Definition, Why It’s Important, and How to Apply It in Cryptocurrency.
