Arthur Hayes, co-founder of BitMEX, delivered a keynote presentation titled “Money Printing, AI, and Crypto: Fueling an Epic Bull Market Mania” at TOKEN2049 Singapore 2023. In his presentation, Hayes discussed the macro-level factors driving the bull market in cryptocurrencies. He emphasized the role of debt and money printing in fueling economic growth, highlighting the global trend of decreasing population growth and increasing debt levels. Hayes also talked about the growing importance of artificial intelligence (AI) and its impact on the tech industry and society. He argued that AI is driving a significant shift in technology and investment focus, resulting in a surge in AI-related stocks such as NVIDIA. Hayes concludes by discussing the potential for decentralized storage solutions, such as Filecoin, to capitalize on the growing demand for AI data storage.

The Relationship between Fiat Liquidity, Debt, and Population Growth

• Hayes highlights the deficit of human population growth and its impact on economic growth and debt repayment.
• Central banks and governments address this issue by printing money, leading to a significant increase in global debt.
• The need for debt issuance creates an opportunity for fiat liquidity to drive the next bull market.

The Dominance of AI in the Tech Industry

• AI is the current dominant theme in the tech industry, with the potential to revolutionize various sectors of the economy.
• The rise of AI-driven companies, such as OpenAI, has fueled investor interest and led to significant stock market gains for companies like NVIDIA.
• The pervasiveness of computers and rapid technological advancements make AI a compelling investment focus.

The Intersection of AI and Crypto

• Hayes argues that AI is its own economic unit, having the potential to disrupt and decentralize traditional systems.
• He suggests that AI’s disregard for human laws and regulations makes it difficult for governments to unilaterally control or punish AI entities.
• This decentralizing effect of AI aligns with the fundamental principles of cryptocurrency and blockchain technology.
• The Bull Market Potential of Crypto
• Hayes predicts that the convergence of fiat liquidity and AI will contribute to the largest bull market in crypto and risk assets since the end of World War II.
• He believes that the current market conditions, with decreasing prices and motivated sellers, offer a favorable environment for future price increases.
• Filecoin, a decentralized storage solution, is presented as a potential investment opportunity due to its alignment with the AI data storage needs.
• The Importance of Compute Power and Data Storage for AI
• Hayes emphasizes the crucial role of compute power and data storage in supporting AI applications and development.
• Venture capital firms are expected to invest heavily in AI-focused funds, leading to increased demand for graphics processing units (GPUs) and cloud storage infrastructure.
• The potential for decentralized storage solutions arises from the need for AI entities to have secure, decentralized access to data storage.

The Investment Potential of Filecoin

• Hayes presents Filecoin as an investment opportunity within the decentralized storage market.
• Filecoin has a substantial room for growth, with its price currently trading at a significant discount from its all-time high.
• The demand for decentralized storage, especially from AI applications, creates a market opportunity for Filecoin to thrive.