In a recently published research report by Coinbase, bitcoin’s (a href=/?s=btc>BTC) investment potential is painted in an intriguing light, especially in light of current global economic uncertainties. The changing structural factors that govern inflation, such as the emergence of transformative technologies like generative artificial intelligence (AI), suggest a possible shift towards more lenient monetary policies. It is observed that the increasing government spending, mostly in the U.S., allows for steady economic growth. However, the cost of servicing national debt is projected to rise in the coming years.
The report anticipates that the potential convergence of expansionist fiscal policies and monetary measures would endorse bitcoin’s position long term. Such an environment would provide a solid backdrop for bitcoin as a safeguard against devaluation of fiat currency and imprudent expenditure, as articulated by David Duong, a key figure in institutional research.
What’s more, the profound influence of AI on the world economy cannot be underestimated. According to a recent report by investment titan Morgan Stanley, the path-breaking strides in AI technology are predicted to revolutionise industries across the spectrum, accounting for a paramount secular investment theme in the next decade. A similar sentiment is echoed by the competitor investment bank Goldman Sachs, as they predict the United States economy will begin to feel the significant effects of AI between 2025 and 2030.
More than just a technological novelty, bitcoin holds a unique position as a financial innovation as well. Bitcoin’s defining characteristics include its accessibility at a global scale, the decentralization of its supranational assets, and its inflexible supply. The Coinbase report suggests that the inclusion of cryptocurrency in a fund manager’s portfolio might also offer a diversified exposure to unusual sources of risk, typically associated with traditional balances.
The report concludes by reaffirming the unwavering long-term case for both Bitcoin and crypto adoption, a trend that seems to be immune from regular market cycles. This is a key sentiment reverberating across the crypto markets. Bitcoin, and by extension the entire cryptocurrency landscape, is becoming less of a speculative gamble and more of a strategic placement in an increasingly digitised economic future.
Source: Coindesk
