Can Bitcoin take over AI as the new engine of economic growth in the United States in the new cycle?

Recently, the cryptocurrency market has experienced severe fluctuations, with Bitcoin prices swinging between $94,000 and $101,000. The main reasons for the market volatility are twofold:

First, Microsoft officially rejected the "Bitcoin Financial Proposal" presented by a conservative think tank at its annual shareholders' meeting. The proposal suggested that Microsoft invest 1% of its total assets in Bitcoin to hedge against inflation. Although the board had previously expressed opposition, the market still had expectations. After the proposal was rejected, the price of Bitcoin briefly fell to $94,000, before quickly rebounding.

Secondly, the market is anxious about the source of the rise after Bitcoin breaks its historical high. Some leaders in the crypto industry are promoting the financial strategy of allocating Bitcoin on the balance sheets of more listed companies, using the success case of a certain company, to achieve the effects of combating inflation and performance growth.

However, it is not easy for Bitcoin to completely replace gold as the mainstream store of value globally in the short term. The main reasons are two:

1. The value proposition of Bitcoin is top-down, with a high barrier to entry, which is not conducive to spreading in underdeveloped areas.

2. The slowdown of globalization and the challenges to the dollar's hegemony may affect the demand for Bitcoin priced in dollars.

These factors lead to significant fluctuations in Bitcoin prices in the short term, which is not conducive to its function as a store of value. Therefore, promoting Bitcoin as a hedge against inflation has limited appeal for large publicly traded companies.

In contrast, some companies with weak growth may find it easier to gain recognition by allocating Bitcoin to improve performance. As a new government may come to power, its economic policies will have a significant impact on the structure of the U.S. economy. Currently, U.S. stock valuations are at historically high levels and may face pressure in the future.

In this case, Bitcoin is expected to take over AI and become a new driving force for the growth of the US economy. For the government, encouraging companies to allocate Bitcoin can achieve the effect of stabilizing the stock market without relying on monetary policy. For many small and medium-sized enterprises, this is also a good option.

Therefore, paying attention to whether Bitcoin can play a greater role in the new political and economic cycle will be key to assessing its future value rise. This process is worth ongoing attention.