Kathy Wood declared Bitcoin as a safeguard against the “AI crisis.”, 2026/02/15 12:24:09

Bitcoin possesses characteristics that enable its use as a protective asset amid a crisis, which is deemed inevitable due to advancements in artificial intelligence, stated Cathie Wood, CEO of investment firm Ark Invest.

According to Wood, the rapid evolution of AI could trigger a deflationary shock for which traditional financial systems are currently unprepared. The swift deflation caused by increased productivity from AI poses risks primarily to economies with high debt burdens, such as the United States. The issue lies in the nature of debt: its total is fixed in nominal dollars and does not adjust for inflation or deflation. This means it remains unaffected by either the depreciation or appreciation of the national currency. 

In the event of deflation, asset prices begin to decline, wages decrease, and corporate revenues along with government budget incomes shrink, leading to widespread defaults, warns the head of the investment company. Borrowers in such scenarios encounter challenges in repaying their debts. Typically, governments address these issues through money issuance, but according to Wood, this is merely a temporary fix that creates new problems. Among these are an increasing reliance on central banks, heightened risks associated with government monetary policy, and a continuous rise in debt burdens. 

Bitcoin is not susceptible to these risks due to its inherent qualities, declared the Ark Invest CEO. It is not intended to replace traditional financial instruments but can serve as a reliable safeguard against their vulnerabilities and a means of risk hedging, believes Wood. 

Approximately 8–10% of the global population owns cryptocurrencies, although the share of such assets in global wealth is only 1%, stated Changpeng Zhao, the holder of a controlling stake in the largest cryptocurrency exchange by trading volume, Binance.