Hayes says ETH will skyrocket sometime in the next few years as the AI revolution strengthens and DAOs begin to form.
Co-founder and former CEO of the BitMEX crypto exchange Arthur Hayes believes that Ethereum (ETH) will be the main winner and beneficiary of the AI revolution over the next decade. In a long-form blog post titled Moai, Hayes argues that the price of ETH would likely skyrocket.
Hayes states that the world relies on the limited liability company (LLC) to produce and exchange goods and services that keep the global economy running. He explains that there are several rules guiding the operations of these companies that will not apply to artificial intelligence. According to Hayes, the regular organizational structure companies use will not work with AI “who ‘thinks’ in lines of computer code and has no physical body”.
The BitMEX co-founder believes the only organizational structure that agrees with AI is a Decentralised Autonomous Organisation (DAO). According to him, the DAO structure is the best way for humans and AI to interact and collaborate because it relies on blockchain technology. Hayes also argues that it’s the only organizational structure AI will willingly follow. This is because, save for eradicating all computers in the world and destroying the internet, AI cannot be killed and will therefore have no reason to comply with human laws.
Hayes Predicts ETH Will Soar via AI DAOs
The Hayes argument for ETH is that the Ethereum Virtual Machine is the world’s “most robust decentralized computer.” He believes that ETH is the best fit for the AI revolution, and the price will spike with the growth of AI DAOs:
“Ethereum transactions will grow exponentially as DAOs proliferate. As a result, the price of ETH should skyrocket in anticipation if this AI DAO hypothesis is widely believed.”
Hayes also creates a bullish case for decentralized exchanges (DEXs) with EVM-compatible governance tokens. According to him, the DEXs will achieve “natural monopolies” and provide significant profits to people who can identify them early and purchase their governance tokens. However, he is most bullish on ETH for AI and other endeavors as he believes the original Ethereum will never lose its position for a duplicate.
“I’m a bit of an ETH maxi when it comes to needing actual utility on a Layer-1. While investors might make money trading the latest hyped Ethereum clone, none of them will ever eclipse Ethereum in terms of adoption and usefulness.”
Bullish Case for Bitcoin
In an earlier post published on July 7, Hayes argues in favor of Bitcoin (BTC) as the AI currency. His argument for Bitcoin specifies the need for a blockchain-based digital payments system but also compares the world’s largest cryptocurrency by market capitalization to other assets like gold and fiat.
As part of his comparison, Hayes highlights inherent problems with gold. He argues that gold is not digitally efficient because people have to use gold certificates. The problem here is they must trust that they can redeem the gold from the issuer at any time. Because of these issuers, gold is not censorship resistant. The argument against fiat is similar as the government controls the issuance, ensuring it is not censorship resistant.
Finally, Hayes says Bitcoin is best because it is censorship resistant, has a public network, and cannot be shut down by any one entity.
next
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Source: https://www.coinspeaker.com/eth-ai-economy/