On September thirteenth, Arthur Hayes, co-founder and former CEO of BitMEX, delivered a complete evaluation of the crypto panorama at Token2049 in Singapore. His insights, which spanned from macroeconomic tendencies to the intricate dynamics of AI, culminated in a bullish prediction for Filecoin, a decentralized storage resolution within the crypto area.
Why The Bitcoin And Crypto Bull Might Begin Early 2024
Hayes started by dissecting the symbiotic relationship between debt, AI, and the intrinsic worth of Bitcoin and cryptocurrencies. Traditionally, he famous, crypto bull markets have been propelled both by fiat foreign money liquidity or by groundbreaking technological developments.
Nonetheless, a simultaneous convergence of those two driving forces has been conspicuously absent. “Over the previous decade, considered one of these two elements has all the time been the rationale we’ve had a bull market in crypto. But, we haven’t witnessed a bull market the place each had been current on the identical time,” Hayes remarked.
Assuming that each elements may play out subsequent yr, Hayes ventured a daring prediction for the crypto sector’s trajectory. “I consider the subsequent bull market in crypto may begin in early 2024. This might probably be probably the most important bull market not just for cryptocurrencies but additionally for danger property because the eras of World Warfare II and the Nice Melancholy,” he acknowledged.
Diving deeper into world financial tendencies, Hayes highlighted the alarming acceleration of world debt, particularly within the wake of the COVID-19 pandemic. He introduced a stark image of the US public debt maturity profile, emphasizing the looming challenges. “What do governments resort to when confronted with a mountain of debt that wants issuance, however there’s a dearth of keen patrons at possible rates of interest? The reply is easy: they print cash,” Hayes elucidated.
Because the dialogue transitioned to know-how’s intersection with crypto, Hayes recognized AI because the prevailing zeitgeist. Drawing parallels with previous technological revolutions, he emphasised AI’s transformative potential inside the crypto area. He cited the meteoric adoption of AI applied sciences, comparable to Chat GPT, and the burgeoning investments in AI-centric companies like NVIDIA as testomony to this development.
Will Filecoin Rise From The Ashes?
Hayes then meticulously linked the dots between AI’s calls for and the indispensable position of decentralized storage within the crypto ecosystem. He posited that centralized storage options, whereas prevalent, pose important dangers, particularly for burgeoning AI purposes.
“Why does AI, a dominant pressure within the crypto and tech sectors, necessitate decentralized storage? Counting on centralized options like Amazon means entrusting huge swathes of information to entities that may unilaterally alter phrases, hike costs, and even shut down companies, probably below governmental directives,” Hayes defined.
This line of reasoning led Hayes to highlight Filecoin, emphasizing its significance within the crypto panorama. Regardless of its dramatic worth decline from its zenith, Hayes championed the untapped potential of Filecoin. “Filecoin’s worth within the crypto area isn’t merely speculative. It’s down practically 99% from its peak of $300 to $3 in the present day. But, its tangible utility is obvious, with actual prospects actively utilizing the community and important knowledge being saved,” he detailed.
Hayes additional highlighted his funding in Seal Storage, a Filecoin storage platform. SEAL has undertaken a mission named Atlas, related to CERN, the famend European particle accelerator. By leveraging SEAL, CERN goals to optimize knowledge prices, and in return, SEAL garners rewards in Filecoin for internet hosting this knowledge on the community. This synergy isn’t unique to CERN.
The College of California, Berkeley, recognizing the potential, has built-in SEAL for analogous functions. Moreover, SEAL’s progressive method has caught the eye of different prestigious establishments, resulting in collaborative ventures with NASA and numerous esteemed universities throughout the US.
At press time, Filecoin (FIL) traded at $3.11
Featured picture from Bloomberg, chart from TradingView.com