Why Bitcoin Is the Ultimate Bet on the AI-Driven, Hyper-Productive Economy... 🤖
Most economists are using outdated playbooks while the whole game is changing.
AI and automation are rapidly accelerating productivity.
The cost of producing goods and services is falling at an exponential rate.
And in a free market, entrepreneurs are rewarded for doing more with less.
Or they risk being outcompeted.
We now have access to LLMs that can code, write, analyze medical and financial reports, create graphics and websites, etc.
Pair that with robotics, human-less factories, and self-driving vehicles, our economy is being turned on its head.
Many believe this surge in productivity will give GDP a major boost.
Other, like nostr:nprofile1qyfhwue69uhkcmmrv9kxsmmnwsargwpk8yq3gamnwvaz7tmpv4nkjueww468smewdahx2qpqs05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sgjmwnq, disagree:
AI isn’t a GDP booster, it’s a drag.
Let’s break it down.
Companies now require less labour to achieve the same or better outcomes.
Shopify, Canada’s second-largest company, issued a memo requiring all employees to use AI to boost efficiency.
One section stood out:
White-collar jobs are becoming replaceable at little cost.
In January, Meta laid off 5% of its workforce, the Mag 7 company stock was up 20 days in a row before the layoffs.
When have we seen something like this before?
AI and robotics are advancing so quickly that even factories need fewer and fewer workers.
Tesla’s factories are so efficient, they've reduced the cost of vehicles even in an inflationary environment.
China’s DeepSeek released an open-source LLM that rivalled American models, for free.
It crushed U.S. tech stocks because open-source software can be improved and copied infinitely.
AI makes it harder for companies to maintain monopolies when their edge can be replicated at near-zero cost, instantly.
Jordi Visser pointed out that the average lifespan of an S&P 500 company is now just 15 years.
What happens if AI speeds that up even more?
What happens to retirement investments and pension funds tied to these companies?
Back to Jeff Booth:
The GDP framework can’t handle deflationary forces.
Deflation happens when tech increases productivity, so we can do more with less, and prices fall.
We should live in a world where goods become cheaper and more abundant over time.
But we’re stuck in a system that requires inflation to survive.
The system requires MORE dollars to be created, weakening the currency, making it easier to pay back debt.
This is where AI creates friction.
If prices of goods were to decrease, deflation would occur, increasing the value of dollars.
The real value of debt would skyrocket.
Leading to defaults, bankruptcies, and a collapse of the entire financial system.
Falling prices and a shrinking number of income earners mean less spending in the economy, leading to lower GDP and less tax revenue.
Tether (USDT) made $13.7 billion in profit last year with just 150 employees.
That’s about $91M per employee.
I believe AI will lead to more ultra-efficient, high-profit companies like this, not fewer.
The only "solution" for governments is to print.
Where do those devalued dollars go?
Into digital scarcity: Bitcoin.
Reason 1 - Protecting purchasing power.
Bitcoin’s fixed supply makes it the scarcest money in the world.
When fresh money is printed, it flows into assets like stocks and real estate because investors know holding dollars is a losing game.
Asset holders get richer.
Everyone else gets left behind.
Bitcoin flips that script.
It’s the hardest money ever created.
Durable. Divisible. Portable. Verifiable. Secure.
People reject it because they’ve forgotten what real money is.
They call it a Ponzi, or say “there’s no cash flow.”
But it’s not supposed to be an equity, it’s money.Most have forgotten what real money is... so when Bitcoin is staring at them as a solution to this debasement, they call it a "ponzi" or "not physical so it can't be trusted" or ask “where are the cash flows?”.
It’s digital, finite, sound money.
“Over a rolling 12-month period, Bitcoin had the highest average correlation with global liquidity, followed closely by gold”
Sam Callah and nostr:nprofile1qy2hwumn8ghj7mn0wd68ytndv9kxjm3wdahxcqg5waehxw309ahx7um5wfekzarkvyhxuet5qqsw4v882mfjhq9u63j08kzyhqzqxqc8tgf740p4nxnk9jdv02u37ncdhu7e3 wrote a great piece on the correlation of global liquidity and Bitcoin: https://lynalden.com/bitcoin-a-global-liquidity-barometer/
Unlike dollars, gold, stocks, or real estate, no amount of demand can increase Bitcoin’s supply.
The result? It moves the price.
An infinite amount of dollars are fighting for a finite amount of Bitcoin.
Bitcoin is insurance on fiat debasement.
With a $2 trillion market cap, Bitcoin is still tiny, finding its place in a $900 trillion global economy.
Reason 2 - The digital economy.
Owning Bitcoin is owning a piece of the emerging global financial system.
We’re moving from regional, centralized banking to global, open-source banking.
Tether is proving this.
AI agents aren’t going to be setting up traditional bank accounts and wiring funds.
They’ll transact instantly in the digital economy.
That means using Bitcoin, layer 2s built on Bitcoin, or stablecoins like Tether running on Bitcoin's rails.
It’s the bedrock of the digital economy.
Scarce money = abundance in everything else.
With a fixed supply, we finally get to reap the benefits of deflation and store that value in a system that can’t be manipulated.
Purchasing power increases over time when saving in Bitcoin.
Bitcoin is the MOAT in the age of artificial intelligence.
Jeff Booth's book The Price of Tomorrow is a must-read on this topic.
#bitcoin 🫡