Faced with the concern of many investors that cryptocurrencies will become a real drag, Sebastien Galy, senior strategist at Nordea Investment, suggests that the question to ask is not whether bitcoin or other cryptocurrencies are going to fall to zero. The question to ask, he underlines in MarketWatch , is what comes after them.
"In theory, any good that can be replicated at infinity equals zero or its marginal cost from a supply perspective. However, the demand is clearly there with the product progressing in the mainstream and we postulate that it will no longer have an uptrend in a few years to follow a trend with inflation. The question is what will replace this product, "explains the Nordea analyst.
Faced with the prospect of lower growth and below target inflation a decade from now in many developed and aging markets besides China, Galy believes the answer to his initial question is artificial intelligence.
"Everything related to higher productivity, such as artificial intelligence and automation, is likely to be in vogue. Every year, artificial intelligence creation gradually becomes more capable following a very slow uptrend compared to development. microchip, but the potential benefits for those who keep up the flow are likely to be incredible, "he says.
"If you can buy the right company that does AI research, that will be the one that develops better generations of AI in the coming decades in a slow development process. Ultimately, AI will take over an ever-growing swath. expands of our economies in a slow accumulation process over decades, "he adds.
Nordea's own Global Disruption fund invests in Alphabet , parent company of Google, Amazon and Chinese tech giant Tencent . The list of funds exposed to artificial intelligence is long, including the ARK Autonomous Technology & Robotics ETF and the iShares Robotics and Artificial Intelligence ETF as the best known.
Going back to the 'old' cryptocurrencies, Galy believes that as they mature, the growing demand will likely fade and "stability enhanced by options trading" will be seen. "The question is whether excessively lax monetary policies will continue to push these assets higher or will they start to move with inflation for longer periods. Over a period of a decade or so, more orthodox monetary policies suggest that cryptocurrencies will start trading. with inflation in the longer term ", concludes the analyst.
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