Stocks or Bitcoin: Who Will Survive the AI Revolution?
Artificial intelligence accelerates innovation and increases efficiency in almost all industries. This is already seen in technology, including Bitcoin, where AI can help with efficiency and scaling. But what about stocks? Is the classic concept of investing in companies outdated or is it just adapting to a new cycle? Let’s take a closer look.
Stocks
The first stock market appeared back in 1602 in Amsterdam, with the founding of the Dutch East India Company. The idea was simple: you buy a stake in the company and participate in its success. That model spread rapidly. London developed its own markets at the end of the 17th century, and New York got a stock exchange in 1792. years.
Shares represent ownership in companies. The stock market is where these shares are traded. The share price depends on the company’s operations, the state of the market and the ability to adapt to changes. Today, this largely means adapting to artificial intelligence.
Throughout history, those companies that have embraced technological changes have survived. They have survived wars, crises and technological disruptions. Without looking back, it is logical to expect the same to happen with companies that are seriously investing in AI.
In particular, companies that use AI for automation, data analysis, and new business models have a better chance of growing in the long run.
If we look at history, market indices such as the S&P 500 have brought about 7 to 10 percent annual return over decades, adjusted for inflation. This index tracks the 500 largest publicly listed US companies and is often used as an indicator of the state of the entire stock market.
Source: cointelegraph
Bitcoin
Bitcoin is a relatively new phenomenon. It was launched in 2009 by a person or group under the pseudonym Satoshi Nakamoto.
The project is presented through a whitepaper that describes a peer to peer electronic money system based on blockchain technology. The idea was to enable the transfer of value without intermediaries like banks.
The argument for Bitcoin is not just about investment or store of value. At its core, Bitcoin represents a monetary experiment that questions the role of gold and classic financial instruments.
Thanks to its decentralized design, Bitcoin is not controlled by a single institution and is resistant to the inflation we see with fiat systems. The supply is fixed and limited to 21 million coins, making it attractive to those seeking protection from dilution of the value of money.
The transparency and security of blockchain are a good fit for the world of artificial intelligence where data verifiability is increasingly important.
Over the years, Bitcoin has profiled itself as a store of value and alternative currency, while at the same time still trying to fulfill its original idea of becoming a widely accepted medium of exchange.
Source: cointelegraph
How AI Affects the Stock Market
The next 50 years could seriously test the stock market as we know it today. Analyst and investor Jordi Visser warns that artificial intelligence could accelerate innovation cycles to the point that public companies become an inefficient investment tool.
Stocks have been around for centuries, but AI doesn’t leave much room to relax. Companies that don’t adapt quickly run the risk of falling behind. This is also true for the biggest tech firms like FAANG, Facebook, Amazon, Apple, Netflix, and Google. Although they are the ones who invest the most in AI, they will have to constantly monitor the pace of development and know how to apply it in practice.
AI is already changing the way the market works. It is used to analyze vast amounts of data, predict price movements, and automate investment decisions. Trading is getting faster, algorithms are getting smarter, and the difference between retail and institutional players is becoming more visible.
For investors, this means a change of approach. Classic strategies are becoming less effective, and speed and adaptability are becoming increasingly important.
Ultimately, AI will drive innovation, but at the same time it will widen the gap between companies that know how to adapt and those that remain stuck in old models.
Source: cointelegraph
How AI Affects Bitcoin
Visser sees Bitcoin as a longer-term prospective asset and often compares it to gold, which has retained its value for thousands of years.
In addition to its role as a store of value, Bitcoin fits well into the future of finance. The combination of AI and blockchain has the potential to disrupt traditional financial systems and attract more capital and participants to the digital economy.
AI already has the potential to improve Bitcoin’s security and trading strategies. Automated tools, advanced data analysis, and market pattern recognition can make crypto trading more efficient and accurate. All this can also lead to better efficiency of the entire system.
Mining is another area where AI can have a big impact. By using AI, it is possible to optimize the operation of ASIC and GPU equipment, predict the most cost-effective periods for mining, and better manage power consumption. AI can also detect failures and problems in the system earlier, which increases reliability and reduces downtime.
On the other hand, Bitcoin still carries some risks. Regulation, scaling issues, and high volatility can put off investors looking for stability and predictability, which is why part of the market still prefers stocks.
Still, the merger of AI and blockchain could open a new phase for Bitcoin. A more intuitive, secure, and efficient system could speed up adoption and give Bitcoin an edge over companies that stagnate and fail to adapt.
Source: cointelegraph
Who will survive the next 50 years
Looking 50 years ahead is practically impossible. Both Bitcoin and stocks have their strengths and weaknesses. Their future will depend on the economy, technology and changes in society.
Stocks are likely to survive if they adapt to the AI-powered economy. The risk of individual failed companies can be reduced by investing in diversified portfolios such as index funds, which are still considered a relatively safe option. Stocks in sectors such as robotics, biotech, space and artificial intelligence have greater potential than those that do not follow technological developments.
Quantum computing and its impact on network security are often mentioned in Bitcoin. Most experts believe that this risk is theoretical and distant for the time being. When combined with AI, the effect can be positive or negative, depending on the development of technology and the speed of adaptation of the Bitcoin network. There is also a risk of centralization of mining if only a small number of actors get early access to advanced quantum and AI systems.
On the other hand, the same combination can improve Bitcoin’s security and network optimization. Faster transaction processing, better wallet protection, and more advanced blockchain analytics can increase efficiency and improve the user experience. If the community stays one step ahead and rolls out quantum resilient upgrades in time, the overall effect can be positive.
As decentralized finance gains more prominence in investments, Bitcoin is further strengthening its position against gold. This is increasingly imposing itself as a strong store of value and encourages traditional markets to transfer part of their capital to digital finance.
