Main to remember
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Actions can survive AI disturbances if they quickly adapt to changing technological and economic requirements.
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New companies stimulated by AI, such as robotics, biotechnology or space, should stimulate growth, and stocks reflecting such progress will have a better chance of surviving innovation.
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Periods of disruption should be expected because the AI reshaped the workforce and the markets; Consequently, the next few years are intended for adaptation to new technology.
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The future of Bitcoin is based on proving a real value store but also to go to a means of exchange. AI can facilitate this, mainly by impacting the processes of scalability and transaction.
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As a decentralized system, Bitcoin is not affected by internal policy, whose human element could disrupt its operations. He just has to stay up to date with the new technology to remain relevant.
No one has the means to predict what will happen over the next 50 years, especially not on a financial market influenced by so many external factors.
However, the analysis of the current state of AI and its impact on the Fintech sectors such as Bitcoin and actions, it is possible to understand what would be the best choice of investment between these financial tools.
The purpose of this article is to help you make more informed decisions and understand if bitcoin or actions is a better choice for you in the future.
Stocks or Bitcoin: Who will survive the AI revolution?
AI will accelerate innovation and efficiency in several industries, sectors and aspects of our lives, which surely advances improvements in technology such as Bitcoin in terms of efficiency and, hopefully, on a scale. But what about actions? Is their investment concept something in the past? Let’s discover a little more.
What is the case for actions?
The leading world stock market took shape in Amsterdam in 1602 with the foundation of the Dutch company of East India. This started as a market for the shares of the commercial company quickly became a model for capital collection and investment. At the end of the 17th century, London had developed its own commercial hubs, while the exchange of New York would only emerge in 1792, spreading the model through the Atlantic.
The shares represent the property of companies, and the stock market is the place where investors buy and sell them. The stock market values fluctuate according to the performance of the company and market conditions, including the ability to adapt to technological changes such as AI.
Business stocks that have adopted technological progress over the centuries have survived the economic cycles, wars and disturbances that technology has brought. Without the advantage of hindsight, the same goes for companies that bet on AI.
More specifically, companies applying AI by automation, data analysis and new commercial models should succeed.
Historically, market indices like the S&P 500 have delivered approximately 7% to 10% of returns annualized over the decades, adjusted for inflation. The index follows the performance of 500 of the largest American companies listed on the stock market and is widely used as a reference for the global stock market.
Compared to the S&P 500, the Bitcoin (BTC) performance has been exceptionally higher, as shown in the table below:
What is the case for Bitcoin?
Bitcoin is a relatively new invention, created in 2009 by the pseudonym Satoshi Nakamoto.
The project was introduced into a white paper detailing an electronic cash system between peers using blockchain technology.
The case of Bitcoin goes beyond the investment tool or the value design reserve. His proposal includes a real monetary revolution, which questions gold and other financial tools.
Its decentralized design resists central control and common inflation in Fiat systems. With a fixed offer capped at 21 million pieces, Bitcoin’s shortage calls on those who require protection against monetary discharge.
In addition, the transparency and the security of the blockchain align well with the need of verifiable data of the AI.
Over the years, Bitcoin has established itself both as a value store and an alternative currency, while pursuing its initial objective of becoming a widely used means of exchange.
How AI affects shares and the stock market
The next 50 years could contest the survival of the stock market as an institution due to “artificial intelligence accelerating innovation cycles, which makes public companies ineffective investment vehicles”, as planned by analyst and investor Jordi Visse.
Actions have existed for a long time, but disturbances focused on AI have given little room for complacency, and companies that fail to adjust late risks. This is particularly true for technology giants such as FAANG (Facebook, Amazon, Apple, Netflix and Google) actions. Although they are among the largest investors in AI, these companies will always have to keep the pace of rapid developments and adopt them effectively.
The AI will also have an impact on the stock market, by quickly analyzing enormous amounts of data to forecasting market movements and the automation of decision -making processes, for faster and more effective operations. The AI will have a huge impact on how investors are approaching negotiation and investment strategies.
Overall, AI will probably stimulate business innovation, but will also expand the gap between adaptable and stagnant companies.
How AI affects bitcoin
Visse considers Bitcoin as a better future investment and compares it to gold, which has endured for thousands of years.
Beyond its role of reserve of value, Bitcoin is well placed in the future of finance. The combination of AI and Blockchain can disrupt traditional financial systems, bringing more capital and participants in the digital economy.
The AI should improve safety and negotiation strategies for Bitcoin, improving cryptographic trading via automated tools, improved data analysis and a prediction of market models. All of these changes can also trigger better system efficiency.
Bitcoin exploitation will also benefit from AI in terms of efficiency and better allocation of resources by predicting optimal times for mining in order to reduce costs and maximize production. System maintenance will improve because AI can detect existing or future failures, thus increasing its global reliability.
However, Bitcoin faces regulatory risks, scalability and volatility problems, which can dissuade investors opposed to risk which generally prefer more predictable and stable investment tools such as shares.
The convergence of AI and blockchain could trigger a new era for bitcoin, nourishing a wider adoption by creating a more intuitive and secure ecosystem, which gives it an advantage over stagnant actions.
Which one will survive the next 50 years?
Looking 50 years in advance is practically impossible. Bitcoin and actions both have unique strengths and weaknesses, and their future ultimately depends on economic, technological and societal changes.
The actions will probably last if they adapt to the savings focused on AI. Investors can mitigate the risk of individual failures by putting money in diversified portfolios, such as index funds, which seem safer. Actions in robotics, biotechnology, space and AI can work better than less technological assets.
The advent of quantum IT is often discussed compared to the Bitcoin security model, although most experts agree that the risk is always theoretical and distant. Combined with AI, its impact could be positive or negative depending on the evolution of technology and the way the Bitcoin network adapts. Centralization of mines can also be a concern if only a few entities have early access to advanced quantum systems.
On the other hand, the combination could advance bitcoin safety and network optimization by improving transactions treatment, portfolio security or blockchain analysis, improving the efficiency and user experience of Bitcoin. As long as the Bitcoin community remains ahead of the curve with quantum resistant upgrades, the net impact could be positive.
While decentralized finance is gaining ground in investments, Bitcoin also improves its competitive advantage over gold. In doing so, it emerges as a higher value store and encourages traditional markets to transfer funds to digital finance.
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.