"The Fed Can't Print Moore's Law" - How the AI Crash Sends Bitcoin to $1M | Arthur Hayes

The AI sector faces a looming bubble driven by massive capital misallocation, where companies amortize GPU infrastructure over five to six years despite rapid two-year technological obsolescence. This infrastructure build-out, often supported by circular revenue deals, remains vulnerable to rising energy costs and potential political backlash against data center expansion. When this bubble eventually implodes, financial authorities will likely respond with massive fiat money printing to stabilize the system. This liquidity, unable to find value in AI, will flow into Bitcoin and crypto, potentially triggering a historic bull market. Meanwhile, perpetual swaps have become the dominant retail trading instrument due to their socialized loss mechanisms and 24/7 accessibility, though they remain high-risk tools that require sophisticated risk management. Arthur Hayes, a veteran crypto investor, emphasizes that capital preservation and identifying asymmetric trades remain critical in this volatile environment.