Coinbase’s research report released Thursday suggests that the investment case for Bitcoin (BTC) could be compelling as investors seek to navigate the current macroeconomic uncertainties. The report notes that the introduction of new technologies such as generative artificial intelligence (AI) is changing the structural factors affecting inflation, which could lead to a new era of loose monetary policy.
We believe the combined effect of expansionary fiscal and monetary policies should support Bitcoin long-term as a hedge against fiat debasement and profligate spending, said David Duong, head of institutional research.
Wall Street giants Morgan Stanley (MS) and Goldman Sachs (GS) both predict that AI adoption will have a major impact on the global economy, with Goldman Sachs estimating that AI will start to have a meaningful impact on the U.S. economy between 2025 and 2023.
The Coinbase report further explains that Bitcoin is a globally accessible, decentralized supranational asset with a fixed supply, making it a financially innovative instrument. Additionally, cryptocurrency allocations can diversify fund managers’ exposure to unusual sources of risk in a traditional balanced portfolio.
The secular case for Bitcoin and crypto adoption remains intact, the report concluded, referring to a long-term trend that isn’t tied to market cycles.