Bitcoin ETFs have sparked a frenzy among institutional investors, leading to a surge in Bitcoin’s popularity. This trend is expected to be further boosted by the advancement of autonomous artificial intelligence (AI), according to Michael Saylor, the co-founder and executive chairman of MicroStrategy.
Speaking at the Bitcoin Atlantis conference on March 1, Saylor emphasized that the launch of spot Bitcoin ETFs has ushered in a new era of institutional adoption. He predicted that by 2035, 99% of all Bitcoin will have been mined, marking the beginning of a significant growth phase.
Currently, approximately 93.5% of the total 21 million Bitcoin supply has been mined, according to Buy Bitcoin Worldwide. Saylor noted that spot Bitcoin ETFs currently serve as a distribution channel for only 10-20% of interested parties. However, he believes this figure will reach 100% once banks and institutional wirehouses facilitate Bitcoin trades.
Saylor stressed that the pressure from their biggest clients will eventually drive almost all banks to offer Bitcoin custody services. As a result, resistance towards Bitcoin adoption will diminish. He stated, “You’re going to see resistance drop.”
In addition to institutional demand, Saylor highlighted the role of autonomous AI in driving the demand for Bitcoin. He explained that as bad actors exploit the AI revolution, Bitcoin becomes crucial in securing the internet. Saylor also pointed out that Bitcoin will benefit from developments in autonomous AI, as it will require digital energy to operate.
Addressing environmental concerns, Saylor argued that Bitcoin has become increasingly energy-efficient, with attention now shifting to AI’s energy demands. He predicted that politicians and environmental lobbyists will redirect their focus and allocate resources accordingly.
During the same panel discussion, Lyn Alden, an investment strategist and Bitcoin commentator, highlighted the potential increase in demand for Bitcoin as nation-states embrace it. Alden argued that adopting Bitcoin creates more financial hubs, stimulating capital inflow into these countries in the long run. He cited examples such as Bitcoin Beach in El Salvador and emerging hubs in Africa, Asia, Latin America, and the United States.
Alden criticized countries that restrict or ban Bitcoin, stating that such actions exhibit short-term thinking and hinder investment opportunities. She advocated for embracing Bitcoin as a more beneficial approach.
Lawrence Lepard, an investment manager and Bitcoin advocate, supported this viewpoint, noting that capital controls imposed by oppressive regimes often drive adoption. Nigeria serves as an example, with the country experiencing high peer-to-peer market volumes despite previously banning Bitcoin and cryptocurrencies.
In conclusion, the rise of Bitcoin ETFs and the integration of autonomous AI are expected to fuel the institutional adoption of Bitcoin. As nation-states embrace Bitcoin and shed their skepticism, more financial hubs are likely to emerge, attracting capital over time. The resistance towards Bitcoin is predicted to decline, leading to widespread adoption by banks and institutions.