Arthur Hayes: Trillions of Dollars Wasted on Artificial Intelligence Investments
Former BitMEX CEO Arthur Hayes argued that artificial intelligence data center investments will end in a collapse, and this situation will benefit crypto assets like Bitcoin.
Former BitMEX executive Arthur Hayes stated that the artificial intelligence boom has led to billions of dollars being wasted through overinvestment in data centers, and that potential future government bailouts will bring cryptocurrencies to the forefront.
Emphasis on Excess in Artificial Intelligence Investments
Former BitMEX CEO Arthur Hayes made evaluations regarding the artificial intelligence boom at the Gamma Prime Investment Conference in Singapore.
Arguing that humanity is wasting trillions of dollars by building artificial intelligence data centers, Hayes stated that this situation will make computing power extremely cheap and abundant.
Historical Cycle and Expectation of Collapse
Stating that financial history shows every major technological transition is overbuilt, Hayes said this process will inevitably result in a collapse followed by rescue packages.
Recalling the 2008 financial crisis and similar examples over the past two decades, Hayes expressed that investors should focus on government interventions following such crises.
The Advantage of Cryptocurrencies
Emphasizing that Bitcoin and other cryptocurrencies exist to absorb the excessive liquidity created in the market, Hayes noted that they know which asset will perform best when the rescue packages arrive.
Condition of Companies and Demand
It was pointed out that key end-users driving artificial intelligence demand, such as SpaceX, OpenAI, and Anthropic, have not yet turned a profit.
It was conveyed that with the completion of data centers, infrastructure providers will demand the committed computing costs, and this situation could create new tests in the future.
Flop Project and Artificial Intelligence Agents
Building on the growing abundance of computing power, Arthur Hayes announced a new artificial intelligence agent payment project named Flop.
Expected to launch in the first quarter of 2027, the Flop project aims to create a spot market where participants can provide GPUs and perform artificial intelligence inference to earn Flop tokens.