Cathie Wood, CEO of ARK Invest, predicts that Bitcoin will thrive amid a deflationary environment driven by technological advancements such as AI and robotics. Speaking at Bitcoin Investor Week in New York, Wood highlighted that traditional financial systems are unprepared for the "productivity shock" these technologies will bring, leading to rapid price declines and disruption of legacy business models. She emphasized that Bitcoin offers a trustless alternative, insulated from the fragility of traditional finance, and serves as a hedge against both inflation and deflation. Wood pointed out that AI training costs are falling by 75% annually, while inference costs drop by up to 98%, making businesses more productive with fewer inputs. This innovation-led deflation, she argued, is being misread by the Federal Reserve, which could lead to a delayed response. As traditional financial institutions face pressure, Bitcoin's decentralized architecture and fixed supply become strategic advantages, offering stability in a rapidly changing economic landscape.