Arthur Hayes Warns of a Financial Crisis Driven by AI, Labels Bitcoin as 'Liquidity Smoke Detector'

On the 19th, Arthur Hayes, co-founder of BitMEX, warned in his blog that the rapid adoption of Artificial Intelligence (AI) could lead to massive layoffs in the white-collar sector, bringing a severe crisis to the U.S. banking system.

Furthermore, he described Bitcoin (BTC) as a 'smoke detector' for fluctuations in market liquidity.

According to Hayes' predictive model, if 20% of U.S. knowledge workers are replaced by AI, the banking sector could see losses of $330 billion in consumer credit and $227 billion in mortgages. This would significantly impact the equity of commercial banks in the U.S...