Cathie Wood, the founder and CEO of American investment management firm ARK Invest, is optimistic about the convergence between Bitcoin and artificial intelligence and predicts the event could revolutionize the traditional financial system.
In her recent X (formerly Twitter) post, Wood said the merging of AI and digital assets could fundamentally transform the way companies operate, causing a major collapse in operational costs and an explosion in productivity.
The ARK Invest executive added that she was blown away by the new possibilities modern-day entrepreneurs are creating.
Research Says AI Systems Have The Potential To Displace Apple And Google
Her thoughts come as a follow-up to a report on artificial intelligence published by ARK Invest last month titled “Investing in Artificial Intelligence: Where Will Equity Values Surface?”.
In its study, the investment firm found out that artificial intelligence technologies could disrupt the “once-reliable, cash-cow” businesses of marquee online marketplaces.
The company says OpenAI’s ChatGPT will become efficient enough to threaten tech giants such as Apple and Alphabet by disrupting their major online services – App Store and Google Search.
The ARK Invest report further states that product plugins released by OpenAI for ChatGPT allow chatbots to interact with external data and services where they can perform human-like activities such as searching for real-time information on the web, ordering groceries from online stores, and book flights, hotels, or rental cars at the lowest available prices from anywhere in the world.
The research concludes by declaring that artificial intelligence software could boost the productivity of global knowledge workers roughly four-fold by 2030. With a knowledge worker wage base of $32 trillion, productivity in any sector that employs AI programs could lower costs by nearly half, read the report.
ARK Is Focused On Investing In AI Stocks And Crypto-Powered Technologies
The document also highlights both ARK Invest’s and Cathie Wood’s assessment of the significance of AI within various investment strategies. The company’s ARK Disruptive Innovation ETF, which is dedicated to AI and other upcoming technologies, has reaped rewards from investing in tech stocks that are focused on artificial intelligence.
The exchange-traded fund (ETF) is a clear indicator of her strong belief in the rising technology. The fund even outperformed the Nasdaq 100 Index by achieving a mid-year profit of 41.2%.
Cathie Wood Predicts AI And Bitcoin Convergence Could Transform The Global Financial System
In a video update, Wood noted that one of the biggest opportunities for AI and Bitcoin convergence could be making traditional financial systems more efficient by eliminating unnecessary taxes that are procured by card-based transactions.
Normally, the tax on purchases done via card is somewhere between 2.5% and 4% per transaction, which the ARK Invest CEO says is pretty big in terms of using intermediaries other than physical cash. She added that these intermediaries will be “disintermediated” by the convergence between Bitcoin and artificial intelligence.
ARK Among Major Asset Managers That Filed Spot Bitcoin ETF Applications In The U.S.
ARK is currently awaiting approval from the U.S. Securities and Exchange Commission (SEC) regarding its spot Bitcoin ETF application.
The company partnered with Swiss-based institutional crypto investor 21Shares to release a Bitcoin exchange-traded product (ETP) that will allow mainstream investors to get exposure to the cryptocurrency without having to worry about storing or trading the digital asset.
If approved, the ARK 21Shares Bitcoin ETF will become one of the first spot market-traded BTC funds to be launched in the U.S. Wall Street giants including BlackRock and Fidelity have also filed spot Bitcoin ETF applications with the SEC.
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