Filecoin: Fueling AI’s Rise with Decentralization
BitMEX co-founder Arthur Hayes expresses optimism about a decentralized data storage crypto project, citing the increasing demand for censorship-resistant artificial intelligence (AI) infrastructure.
Hayes argues that AI technology naturally leans towards decentralization due to its reliance on computing power and cloud storage.
He suggests that Filecoin (FIL), a decentralized file storage network, is essential for the expanding AI economy. According to Hayes, if the current price-to-capacity ratio of Filecoin were to increase, the token could be appreciated by approximately 1,730% from its current level. This ratio is determined by dividing the asset’s price by its storage capacity.
Hayes points out that investing in assets after substantial corrections is often wise. For example, if the price-to-capacity ratio were to rebound to just 25% of its April 2021 level, reaching $4.86 per exbibyte (EiB), this could drive the price up to $59.29, representing an almost 17-fold increase from its current value.
At the time of writing, FIL is valued at $3.24, down by 98.6% from its all-time high of $236.24 reached in April 2021. Hayes also notes a significant decrease in the price-to-capacity ratio of Filecoin, which has fallen from $19.45 per EiB in April 2021 to its current value of $0.27 per EiB, a decline of about 99%.
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Additionally, Hayes bases his bullish outlook on Filecoin on the anticipation that central banks will be compelled to implement looser monetary policies, potentially resulting in a “fiat liquidity boom.”
He emphasizes that AI adoption is currently experiencing substantial growth, and with an influx of trillions of dollars into the market, various stakeholders, including politicians, hedge fund managers, and tech entrepreneurs, are likely to seek investment opportunities in AI-related ventures.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
