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AI-driven productivity gains can lead to persistent deflationary pressures in the broader economy, which can allow the FED to maintain higher interest rates without slowing down the economy too much, as a result the value preposition for Bitcoin is not so attractive and hence the price can remain stagnant for few years to come. Eventually the Govts will commit blunder and spend more than what they should and as the deflationary effects fade out interest rates would have to be reduced, causing Bitcoin NgU
Bitcoin price does not depend on inflation so much. If adoption and investments keep coming, price will increase even if there is not huge inflation. I think If we have deflation in the coming years, it will be because a big crisis depression, not because AI productivity.
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