Spot Bitcoin ETFs have triggered a decade-long institutional “gold rush” for Bitcoin (BTC), which will be aided by the rise of autonomous artificial intelligence, according to MicroStrategy chairman Michael Saylor.
During a panel discussion at the Bitcoin Atlantis conference on March 1, Saylor argued that after the launch of spot Bitcoin ETFs, Bitcoin has entered a period of “high growth institutional adoption."
“I think that we’re in the Bitcoin gold rush era. It started in January of 2024 and will run until about November of 2034.”
Saylor said that by the year 2035, 99% of all Bitcoin will have been mined and that 2035 will mark the start of the “growth phase.”
Today, roughly 93.5% of the 21 million Bitcoins that will ever be issued have been mined, according to Buy Bitcoin Worldwide.
MUST WATCH‼️ - Michael Saylor:
— Neil Jacobs (@NeilJacobs) March 1, 2024
We are in the Bitcoin Gold Rush era. It started in January 2024 and will last until the end of 2034 when 99% of all Bitcoin will have been mined. #Bitcoin pic.twitter.com/LbAAaYRgMo
Saylor said the spot Bitcoin ETF’s are currently only serving as a “distribution channel” to 10-20% of those interested at the moment, but sees this rising upward to 100% once banks and institutional wirehouses start facilitating Bitcoin trades.
“When they can buy via their bank, their institutional wirehouse, their prime broker, they will make a $50 million decision in one hour.”
Saylor believes almost all banks will eventually be pressured into custodying Bitcoin because their largest clients demand it. “You’re going to see resistance drop.”
“There will be a day where Bitcoin blasts past gold [and] trade more than the S&P index ETFs.”
Autonomous AI driving demand for Bitcoin
Saylor also sees Bitcoin as crucial in securing the internet as bad actors swoop in on the AI revolution.
“If you want to actually watermark, timestamp, cryptographically sign messages and documents and content, you’re going to need Bitcoin to do that as a system of truth.”
“So I think AI will drive demand for Bitcoin in that way,” Saylor added.
Bitcoin will also benefit from developments in autonomous AI because it will need to be powered with digital energy, Saylor explained.
“If you want to create an AI version of yourself and have it live on the internet forever, you better give it some Bitcoin. So I think there's going to be an interesting demand function there.”
Saylor also sees some of the heat coming off of Bitcoin when it comes to environmental concerns in the future, if not already.
He argued that as Bitcoin has become increasingly energy-efficient, politicians and environmental lobbyists are starting to shift their attention to AI’s energy demands.
“If you look at AI a lot of these hyperscalers are looking to scale up 60 gigawatts this year and they're they're wanting to go to 600 gigawatts within a decade, so what's going to happen is they're going to inherit all of the energy FUD (fear, uncertainty, doubt) that we used to have.”
“So they will actually throw all their lobbyists at that.”
Correct.
— John Bottomley (@BitcoinVeritus) March 3, 2024
AI is extremely dirty (energy wise) and thirsty (water demand).#Bitcoin is increasingly powered by clean renewables and doesn’t need water.
In the same panel discussion, investment strategist and Bitcoin commentator Lyn Alden added that there could also be more demand for Bitcoin as nation-states start embracing BTC.
Embracing Bitcoin has been shown to create more financial hubs, which, in turn, drives capital into these countries over the long term, Alden argued.
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“Bitcoin Beach [in El Salvador] was powerful enough that it inspired a nation to get more into it, said Alden, who added that several hubs have also emerged in Africa, Asia, Latin America and the United States.
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Alden said some countries have adopted a “short-term thinking” mindset by restricting or banning Bitcoin out of fear that it may threaten their own currency, which can cost them investment opportunities in the long run.
“Those capital controls, those firewalls to try to make the frictions, we’ve seen in multiple countries now it just doesn’t work,” Alden said. “It’s just better to get in front of that and just embrace it.”
Investment manager and Bitcoin advocate Lawrence Lepard added that capital controls coming from oppressive regimes only tend to drive adoption.
Nigeria’s situation is a textbook situation of this, where the country boasts the highest peer-to-peer market volumes in the world despite the country previously imposing a ban on Bitcoin and cryptocurrencies, Alden noted.
“We're going to see new frictions and [then the] overcoming [of] frictions because the tool itself is so powerful that it just gives so many ways to route around problems when they emerge.”
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