Cathie Wood: AI-driven deflation makes Bitcoin a hedge

Ark Invest CEO Cathie Wood has stated that Bitcoin could serve as a hedge amid the deflationary disruption caused by artificial intelligence (AI) and other technological innovations, CoinDesk reported. Speaking at Bitcoin Investor Week in New York, Wood argued that the traditional financial system is unprepared for the productivity shock from AI, robotics, and other exponential technologies. She explained that this shock will lead to a sharp drop in prices, upend existing business models, and create deflationary chaos. Wood noted that the current economic system, which is accustomed to 2-3% inflation, will struggle to adapt to this new environment. She emphasized that Bitcoin is a hedge against both inflation and deflation, as it is free from the vulnerabilities of traditional finance. Wood highlighted Bitcoin's decentralized structure and fixed supply as key strategic advantages.