On September 13th, Arthur Hayes, one of the founders and former CEOs of BitMEX, talked about the cryptocurrency world at Token2049 in Singapore.
He shared a lot of information, from big economic trends to how artificial intelligence works. At the end of his talk, he made a positive prediction about Filecoin, a decentralized storage system in the crypto world. Hayes believes Filecoin is going to do well.
Why the Bitcoin and Crypto Bull Market May Begin in Early 2024
Arthur Hayes, the co-founder of BitMEX, started by talking about the relationship between debt, artificial intelligence (AI), and the value of Bitcoin and cryptocurrencies. He pointed out that in the past, crypto bull markets were driven either by lots of regular money (fiat currency) coming into the market or by groundbreaking technological advancements.
However, what’s been missing so far is a situation where both of these factors happened at the same time. Hayes mentioned that in the last decade, either money coming in or new technology was the cause of bull markets, but not both at once.
Hayes made a bold prediction that, assuming both of these factors come into play next year, the next crypto bull market could start in early 2024. He thinks this could be a really big bull market, not just for cryptocurrencies but also for other risky investments, similar to the times after World War II and during the Great Depression.
He also talked about the increasing global debt, especially since the COVID-19 pandemic, and how it’s a big problem, especially for the United States. When governments have a lot of debt and can’t find enough people willing to lend them money at reasonable interest rates, they often resort to printing more money.
As the conversation shifted to technology’s role in crypto, Hayes focused on AI, calling it the prevailing trend. He talked about how AI is changing the crypto world, drawing comparisons to past technological revolutions. He mentioned the rapid growth of AI technologies like Chat GPT and the increasing investments in AI-focused companies like NVIDIA as proof of this trend.
Can Filecoin Make a Comeback?
Arthur Hayes then carefully explained the connection between the demands of AI and the vital role of decentralized storage in the cryptocurrency world. He argued that relying on centralized storage solutions, such as Amazon, poses significant risks, especially for emerging AI applications.
Hayes pointed out that centralized storage providers have the power to change their terms, raise prices, or even shut down services, potentially under government orders. This is why he emphasized the importance of decentralized storage.
In this context, Hayes highlighted the significance of Filecoin in the cryptocurrency landscape. Despite experiencing a significant drop in price from its peak, Hayes believes Filecoin still has untapped potential. He noted that Filecoin is not just speculative; it has real-world utility, with active users and a significant amount of data stored on its network.
Hayes also mentioned his investment in Seal Storage, a platform built on Filecoin. Seal Storage is working on a project called Atlas with CERN, the famous European particle accelerator. CERN is using Seal Storage to optimize data costs, and Seal Storage earns rewards in Filecoin for hosting this data on its network. This collaboration extends beyond CERN, as the University of California, Berkeley, and other prestigious institutions have recognized Seal Storage’s potential and are working with them. They have also partnered with NASA and various renowned U.S. universities.
FIL stuck in downtrend, 1-day chart | Source: FILUSD on TradingView.com
As of now, Filecoin (FIL) is trading at $3.11.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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