**[Arthur Hayes: The Burst of the AI Bubble Will Trigger "Super Printing," Driving Bitcoin Back to a Bull Market]** BlockBeats News, August 5 — Arthur Hayes published his latest article, *"Situationship,"* suggesting that the AI bubble may eventually burst, but its subsequent impact could drive global liquidity expansion and serve as the catalyst for Bitcoin's next bull market. Hayes believes that the key to determining whether AI constitutes a bubble lies in how investors define AI infrastructure development. He pointed out that the market generally views the multi-trillion-dollar scale of AI capital expenditures as "technology investment" and assigns high-growth valuations, but its essence is closer to "real estate investment." He stated that current AI infrastructure development is essentially about building data centers, power facilities, and other foundational assets that support computing power, rather than directly investing in technology companies like Apple. "Financial institutions, private credit funds, and governments may mistakenly equate investing in AI data centers with investing in tech giants, when in reality it is more akin to investing in highly leveraged infrastructure projects." Hayes believes the core reason for the AI bubble's burst is not the inability of companies to deliver profits but rather excessive credit expansion. He explained that, with support from the U.S. and Chinese governments, financial intermediaries might overbuild data centers, power facilities, and related supply chains, ultimately creating credit cycle risks similar to the 2008 financial crisis, rather than a profit valuation crisis akin to the 2000 dot-com bubble. However, Hayes maintains that AI's long-term value remains immense. He noted that the computational resources operating within data centers will drive the development of "silicon-based life," having a profound impact on human civilization comparable to the railroad era. Regarding market implications, Hayes predicts that after the AI bubble bursts, governments and central banks worldwide may adopt more aggressive monetary easing measures, using "massive money printing" to repair the financial system, driving risk assets back into an upward cycle, and ultimately benefiting Bitcoin. Hayes stated that the core variable of the current AI cycle lies in whether capital markets have mispriced AI infrastructure, and this judgment will determine the future direction of the market. [Original Link]