Spot Bitcoin ETFs have triggered a decade-long institutional “gold rush” for Bitcoin, which will be aided by the rise of autonomous artificial intelligence (AI), according to MicroStrategy co-founder and executive chairman Michael Saylor.
During a panel discussion at the Bitcoin Atlantis conference on March 1, Saylor argued that after the launch of spot Bitcoin (BTC) exchange-traded funds (ETFs), Bitcoin has entered a period of “high growth institutional adoption.”
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 Bitcoin that will ever be issued have been mined, according to Buy Bitcoin Worldwide.
MUST WATCH‼️ – Michael Saylor:
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— Neil Jacobs (@NeilJacobs) March 1, 2024
Saylor said the spot Bitcoin ETFs are currently only serving as a “distribution channel” to 10–20% of those interested at the moment, but he sees this rising upward to 100% once banks and institutional wirehouses start facilitating Bitcoin trades.
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,” he said, adding:
Saylor also sees Bitcoin as crucial in securing the internet as bad actors swoop in on the AI revolution.
“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.
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.
“So they will actually throw all their lobbyists at that.”
Correct.
AI is extremely dirty (energy wise) and thirsty (water demand).#Bitcoin is increasingly powered by clean renewables and doesn’t need water.— John Bottomley (@BitcoinVeritus) March 3, 2024
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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The potential of El Salvador as the global energy and #bitcoin hub is immense and at @Tether_to we’re grateful to be part of this opportunity ❤️… https://t.co/wA3dnlQyjB— Paolo Ardoino (@paoloardoino) June 5, 2023
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.