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Recently, there has been an interesting debate about the impact of the rapid advancement of AI on the economy. Kathy Wood's perspective has become a hot topic.
Her argument is that technological development could lead to deflationary pressures. In other words, AI could dramatically improve productivity, resulting in a continuous decrease in prices. This scenario is the opposite of traditional inflation concerns, but it is a crucial point that many people tend to overlook.
This is where Bitcoin comes into play. What Wood points out is that such a deflationary environment is precisely where Bitcoin's value can be realized. Since Bitcoin has a fixed supply, capped at 21 million coins, it could maintain its value even amid deflationary pressures.
The decentralized nature of Bitcoin is also important. Functioning as a currency that is not controlled by central banks or any single entity, it can serve as a hedge against the uncertainties of the economic system.
The technological changes brought about by AI are inevitable. As a result, increasing numbers of people are re-evaluating Bitcoin as a means to prepare for a new economic environment characterized by inflation suppression and even deflationary pressures. In fact, when considering these long-term economic scenarios, it becomes clear why Bitcoin's unique properties are gaining even more attention.