AI can be turbulent, but it can also boost Bitcoin and NYDIG

Bitcoin could benefit if artificial intelligence disrupts labor markets or creates volatility that prompts central banks to ease monetary policy, said Greg Cipolaro, research leader at crypto services firm NYDIG.

Cipolaro said in a research note on Friday that AI could prove to be a “general purpose technology” like electricity, and that the macroeconomic effects it would have on employment, economic growth and risk appetite will impact Bitcoin (BTC).

“If AI-driven growth happens alongside increasing liquidity and keeping real interest rates in check, that backdrop could be supportive for Bitcoin,” Cipolaro said. “But if stronger growth raises real interest rates, tightens policy and reduces the need for monetary easing, Bitcoin could face headwinds.”

“Conversely, if AI generates labor disruption or volatility that leads to fiscal expansion and easier monetary policy, the resulting liquidity boost would likely be in Bitcoin’s favor,” he added.

The economy is already seeing the impact of the technology, as companies have cited AI adoption as part of broader restructuring efforts

Jack Dorsey said Friday that his payments company Block would cut about 40% of its workforce due to AI, and predicted that many more companies would soon follow suit.

The AI ​​transition can be volatile and uneven

The research department of Goldman Sachs claimed an August report stated that widespread AI adoption could displace up to 7% of the US workforce, but would also likely create new jobs.

Related: Crypto VC Paradigm expands into AI and robotics with $1.5 billion fund: WSJ

Cipolaro acknowledged that the transition will “bring challenges,” requiring workflow redesign, new skills and additional investment. Still, he predicts that AI will follow the same “historical pattern” as previous technological developments.

“The implication is not that disruption will be painless, but that the equilibrium response to new technology has historically been integration, not obsolescence. Society’s response to AI will likely follow the same pattern,” he said.

“Companies that integrate this effectively will widen margins and the productivity gap. Employees who adapt will increase their relevance. Those who resist could be left behind,” Cipolaro added.