Bitcoin Price Could Reach $11 Million by 2036 Due to AI-Driven Deflation

A recent report from Strive strategist Joe Burnett has made headlines in the cryptocurrency community by predicting that Bitcoin's price could reach $11 million by 2036. The forecast is based on the idea that artificial intelligence-driven deflation will lead to a sustained expansion of the money supply, as central banks and fiscal authorities respond to the pressure.

Burnett's thesis centers on what he calls an 'AI deflation engine,' which he argues will drive down prices across goods and services. This, in turn, will prompt policymakers to add liquidity to the system to prevent a deflationary spiral. The report suggests that this will lead to a persistent increase in money relative to the supply of scarce assets.

The forecast assumes an aggressive growth rate for Bitcoin's market capitalization, with a compound annual growth rate (CAGR) of around 53% per annum. This is not unprecedented, given Bitcoin's average CAGR of 60% between 2015 and 2024. However, it is worth noting that the larger market capitalization may lead to a slowdown in growth.