Bitcoin ETFs have sparked a frenzy of institutional interest in Bitcoin, creating a “gold rush” that will be further fueled by the growth of autonomous artificial intelligence (AI), according to Michael Saylor, Chairman of MicroStrategy. Speaking at the Bitcoin Atlantis conference, Saylor argued that the launch of spot Bitcoin ETFs has ushered in a period of “high growth institutional adoption” for Bitcoin. He predicted that by 2035, 99% of all Bitcoins will have been mined, marking the start of a significant growth phase. Currently, around 93.5% of the total supply of 21 million Bitcoins has been mined, according to Buy Bitcoin Worldwide.
Saylor noted that spot Bitcoin ETFs currently serve as a “distribution channel” for only a small percentage of interested individuals, but he expects this to increase to 100% once banks and institutional wirehouses facilitate Bitcoin trades. He believes that pressure from their largest clients will eventually compel banks to offer Bitcoin custody services. Saylor also emphasized the role of AI in driving demand for Bitcoin, as it plays a crucial role in securing the internet from malicious actors. Furthermore, he highlighted the need for digital energy to power autonomous AI, which will benefit Bitcoin.
Regarding environmental concerns, Saylor argued that Bitcoin’s energy efficiency has improved, causing politicians and environmental activists to shift their focus to AI’s energy demands. He predicted that they will redirect their efforts and lobbyists towards AI instead. In addition, investment strategist Lyn Alden suggested that Bitcoin could experience increased demand as nation-states embrace it. Embracing Bitcoin has been shown to create more financial hubs, attracting capital to these countries in the long term. However, Alden cautioned against countries adopting a short-term mindset by restricting or banning Bitcoin, as it could hinder their investment opportunities.
Lawrence Lepard, an investment manager and Bitcoin advocate, added that capital controls imposed by oppressive regimes often lead to increased adoption of Bitcoin. He cited Nigeria as an example, where despite a previous ban on Bitcoin, the country now boasts the highest peer-to-peer market volumes globally. In conclusion, the introduction of Bitcoin ETFs and the rise of autonomous AI are expected to drive institutional adoption and demand for Bitcoin, while nation-states are urged to embrace Bitcoin for long-term financial benefits.