Cathie Wood, the CEO of ARK Invest, is changing the narrative on why people should own Bitcoin (BTC-USD). Speaking at Bitcoin Investor Week in New York today, Wood explained that the biggest threat to the economy isn’t rising prices, but a massive drop in costs driven by artificial intelligence. She believes that as AI and robotics make everything cheaper and faster to produce, traditional financial systems will struggle to keep up. In her view, Bitcoin is a safe haven for a world where technology moves faster than the Federal Reserve can react.
AI Creates a Massive Productivity Shock
The project of modern finance relies on steady inflation, but Wood says the world is about to face a productivity shock that forces prices down. She pointed to data showing that the cost to train AI is falling by 75% every year, while the cost to actually use AI is dropping by as much as 98%. “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 told Anthony Pompliano during their talk. She warned that legacy banks are unprepared for this shift and will be forced to move faster than they ever expected.
Bitcoin Offers a Trustless Alternative
Traditional finance often relies on debt and complex layers of middlemen, which Wood says could crumble under the pressure of rapid price drops. She noted that while software companies and private credit markets are already feeling the pressure, Bitcoin doesn’t have those same risks. “Bitcoin is a hedge against inflation and deflation,” she argued, adding that “The chaotic part of this is… disruption all over the place.” Because Bitcoin has a fixed supply and doesn’t rely on a central bank, it acts as a strategic advantage when the old world starts to feel the “carnage” of being left behind.
Innovation Wins the Long Game
Wood made it clear that we aren’t in a tech bubble like the one seen in the late 90s. Back then, people spent money on ideas that didn’t work yet. Today, she says the tech is real and we are on the flip side of that bubble. ARK Invest is putting its money where its mouth is, holding major stakes in companies like Coinbase ($COIN) and Robinhood ($HOOD) to stay ahead of this change. “Truth will win out,” Wood said as she finished her talk. “We believe we’re on the right side of change.”
Investors can track Cathie Wood’s moves on TipRanks. Click on the image below to find out more.
