Speaking at Bitcoin Investor Week in New York, the ARK Invest CEO said Bitcoin is not only a hedge against rising prices but also against a technology-led deflationary shock. According to Wood, AI, robotics and other exponential innovations are set to reshape economic dynamics through a powerful productivity surge.
She highlighted the dramatic decline in AI costs, noting that training expenses have been falling by roughly 75 percent annually, while inference costs have dropped by as much as 98 percent per year. This sharp cost compression enables companies to produce more with fewer resources, putting downward pressure on prices. However, Wood warned that institutions such as the Federal Reserve may struggle to interpret this shift in time due to their reliance on backward-looking data.
In such an environment, Wood believes Bitcoin’s decentralized structure and fixed supply become key differentiators. While traditional finance could face mounting counterparty risks and stress in debt-driven growth models, she argued that Bitcoin is structurally insulated from these vulnerabilities. As the economic narrative shifts from inflation to productivity-led deflation, Wood sees Bitcoin emerging as a strategic portfolio hedge in the years ahead.
