The next cycle will be "the most powerful in history." Bitcoin growth factors
By making it cheaper to copy digital products, AI makes Bitcoin's limited supply increasingly valuable. And the cryptocurrency's rise against gold could signal a reversal of the bullish trend.
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The development of artificial intelligence is becoming one of the main factors driving the growth of Bitcoin's value as a scarce asset. This opinion was expressed by Simon Gerovich, CEO of two major corporate Bitcoin holders: Japan's Metaplanet, and Matt Cole, CEO of Strive. Both experts believe that AI increases the value of assets that cannot be copied or replicated.
Other factors driving Bitcoin's long-term growth include the cryptocurrency's rise against gold, as well as the dollar's weakness against other currencies.
Gerovich's optimistic view of Bitcoin stems from how AI is changing the global economy as a whole: "AI significantly reduces the cost of producing and replicating software, content, analytics, and other products."
The expert calls Bitcoin an asset that cannot be copied. He believes that the more AI reduces the cost of creating digital products, the more important the 21 million BTC supply cap becomes. Furthermore, Gerovich believes that AI agents will prefer to store capital in digital assets rather than traditional currencies in the future.
Meanwhile, Cole called the development of AI a structural factor in Bitcoin's powerful bull cycle. He believes that in a world where AI becomes cheap and accessible, capital increasingly values assets that cannot be artificially replicated.
"Scarce assets like Bitcoin, gold, and silver will benefit significantly from this trend." "This is a structural macroeconomic force unlike anything Bitcoin has ever seen," Cole wrote, noting that "Bitcoin's next cycle will be the most powerful in history."
Both statements come amid Bitcoin's 23% rise last week, the largest percentage gain in years. This followed the US government's measures—doubling bond purchases—to reduce market stress. The price of Bitcoin ($BTC) rose from $63,000 to nearly $80,000 in the week ending August 23.
Factors Behind Bitcoin's Growth
In his analysis, Cole identified two more key factors that could positively impact Bitcoin. The first is the weakening dollar against other currencies, which the expert sees as a long-term downward trend.
"Bitcoin has never faced a macroeconomic environment like this before, and this will create a tailwind unlike anything in its history," he notes.
The second factor is Bitcoin's rise against gold. Cole believes this positive trend confirms that Bitcoin could overtake gold in the race for the most sought-after scarce asset.
The Bitcoin-to-gold exchange rate has risen by approximately 20% in the past week, a trend that in previous cycles signaled a reversal in the Bitcoin-to-dollar trend: "I'm convinced the Bitcoin bear market is over."