Cathie Wood: Bitcoin Positioned to Benefit from AI-Driven Deflation
New York — Bitcoin (BTC $69,648.01) is more than an inflation hedge, according to ARK Invest CEO Cathie Wood. Speaking at Bitcoin Investor Week, she framed the cryptocurrency as a defense against deflation triggered by rapid technological advances.
In a conversation with Anthony Pompliano, Wood argued that traditional financial systems are unprepared for a “productivity shock” fueled by AI, robotics, and other exponential technologies. She said this wave of innovation will drive prices down, disrupt legacy business models, and create what she calls “deflationary chaos.”
“If these technologies are so deflationary, it’s going to be tough for the traditional world — used to 2% to 3% inflation — to adjust,” Wood said. “They’ll have to adopt these technologies faster than expected.”
She highlighted that this deflation comes from breakthroughs that cut costs and boost output, not economic collapse. AI training costs, for example, are falling 75% per year, while inference costs drop up to 98% annually, increasing productivity and lowering prices.
Wood warned the Federal Reserve, relying on backward-looking data, could misread these trends and act too late.
In that environment, bitcoin’s decentralized structure and fixed supply provide a safeguard. “Bitcoin is a hedge against inflation and deflation,” she said, contrasting it with fragile traditional finance.
ARK Invest has long focused on disruptive technologies, including blockchain, holding major stakes in Coinbase (COIN) and Robinhood (HOOD).
“Truth will win out,” Wood concluded. “We believe we’re on the right side of change.”
