Update
BIS Working Paper on AI and Economic Growth
The Bank for International Settlements (BIS) published a working paper modeling how automation could shift income away from labor, making Bitcoin increasingly dependent on wealthy investors and institutional capital. The paper suggests that AI productivity gains could automate more tasks, thin out the consumer market, and make further AI innovation less profitable, potentially leading to a recession and monetary expansion that boosts demand for Bitcoin. Bitwise CIO Matt Hougan previously argued that Bitcoin could remain higher in the face of an AI-driven productivity boom, including scenarios with and without a recession and intervention.