Bitwise CIO predicts Bitcoin benefits from various AI economic scenarios

Matt Hougan, Chief Investment Officer at Bitwise, suggests that Bitcoin is positioned to benefit from three distinct macroeconomic trajectories related to the development of artificial intelligence.

In a scenario where AI leads to extreme abundance and increased productivity, Hougan argues that Bitcoin’s fixed supply of 21 million coins will become more attractive as other goods and services become cheaper and more plentiful.

In a second scenario involving a major financial crash—potentially triggered by AI-related credit defaults or data center debt—Hougan anticipates a high probability of government and central bank bailouts. He notes that while Bitcoin might experience significant initial volatility during a panic phase, the resulting increase in monetary liquidity would ultimately drive demand.

In a third scenario of steady economic growth, Hougan expects institutional adoption to remain the primary driver. He points to the significant net inflows into US spot Bitcoin ETFs and increasing interest from corporations and potentially sovereign investors as key indicators of this trend.