Artificial Intelligence Could Be Key to Bitcoin’s Rise, NYDIG Says – What’s in Store for Us in an Age of Technological Change?

Artificial Intelligence Could Be Key to Bitcoin’s Rise, NYDIG Says – What’s in Store for Us in an Age of Technological Change?

As artificial intelligence (AI) begins to transform everyday life and the global economy, early indications are emerging that the technology could play a key role in the future development of cryptocurrencies, especially Bitcoin. According to Greg Cipolaro, NYDIG’s chief research officer, AI could not only revolutionize the job market, but also create an economic environment that is favorable to Bitcoin.

AI as a General Purpose Technology

In his latest report, Cipolaro argues that artificial intelligence could become a “general purpose technology” – similar to electricity, for example. This means that its impacts will be fundamental in the areas of employment, economic growth, or investor risk appetite. If AI contributes to job market disruption or brings greater volatility, it could lead to fundamental changes in central bank monetary policy.

How could AI affect the value of Bitcoin?

According to Cipolar, there are two main scenarios:

1. Positive scenario: If AI leads to greater liquidity in the markets and looser monetary policy, this could create favorable conditions for Bitcoin to grow. In such an environment, the cryptocurrency could become a “safe haven” in turbulent times.

2. Negative scenario: However, if AI increases real yields or leads to tighter monetary policy, Bitcoin could face downward pressure. Higher yields and liquidity constraints could reduce its attractiveness as digital gold.

Volatility and the transition to AI

Some experts warn that the transition to AI is likely to be uneven and accompanied by increased volatility. Companies are already reporting large-scale restructuring, layoffs, and adaptation to new technologies. For example, Jack Dorsey, founder of Twitter and CEO of Block (formerly Square), announced that he plans to lay off around 40% of his employees due to AI, reflecting a rapid and sometimes uncertain transition.

Economic Impact and Labor Market

According to Goldman Sachs research, the mass adoption of AI could displace up to 7% of U.S. jobs, but it could also create new ones. Cipolaro warns, however, that the process will not be without challenges: “The transition will require retraining, investment in new skills, and adaptation of the corporate environment.”

History of technological change shows the way forward

While the transition to AI brings uncertainty, Cipolaro believes it will follow the same “historical pattern” as previous technological revolutions. Companies that can adapt effectively will be able to benefit from higher productivity and margins, while workers who adapt will maintain relevance in the market.

AI and the crypto industry: new opportunities and risks

This trend is also reflected in the crypto world. For example, in October, Coinbase Payments introduced a new platform, MCP, which allows AI agents to access financial instruments on the blockchain. While this opens up new opportunities, it also brings risks, such as increased vulnerability to cyber threats and regulatory uncertainty.

Conclusion: What lies ahead?

The future is uncertain, but one thing is clear: AI will have a major impact on the economy and the value of cryptocurrencies. If the transition is managed correctly and the potential of this technology is exploited, it could be an opportunity for Bitcoin and other digital assets. Conversely, ill-considered steps or excessive volatility could also bring negative consequences.

It is now important for investors and the entire crypto industry to monitor how the relationship between AI, monetary policy and the cryptocurrency market will develop. One thing is certain: a time of technological change is ahead, and those who can adapt quickly can benefit from new opportunities.

*This is not an investment recommendation.

The Coingarage Team