Predictions from Greg Cipolaro, head of research at NYDIG, indicate that Bitcoin could benefit from artificial intelligence disrupting labor markets and leading to shifts in monetary policy. In a research note released Friday, he highlighted how AI might act as a transformative technology, similar to electricity, influencing employment, economic growth, and investor sentiment towards Bitcoin.
Cipolaro noted that an AI-driven economic environment with increased liquidity and steady real interest rates could support Bitcoin's value. However, he cautioned that if economic growth leads to higher yields and tighter monetary policy, Bitcoin might struggle. He emphasized that if AI-induced labor disruptions trigger fiscal expansion and easier monetary conditions, it would likely create a liquidity boost favorable to Bitcoin.
As companies increasingly adopt AI technologies, significant workforce reductions are already underway. For instance, Block, the payment company founded by Jack Dorsey, announced on Friday plans to cut around 40% of its workforce due to AI developments. Research from Goldman Sachs suggested that up to 7% of the US workforce could be displaced by AI, although new job opportunities may arise as well.
Cipolaro acknowledged that the transition to AI will require a redesign of workflows and investment in new skills. He believes that, historically, society tends to integrate new technologies rather than resist them, which could provide opportunities for those who adapt effectively.