Binance founder Changpeng Zhao, aka “CZ,” has praised AI technology and its far-reaching effects on society. However, he also stated that, despite the importance of AI, it won’t be able to help consumers with rampant inflation, whereas Bitcoin can.
CZ tweeted:
The statement from the former Binance CEO is often a subject of debate between industry leaders, crypto skeptics, and advocates alike. In many ways, the two sectors cannot exactly be compared with each other, as one is a technology and the other is a decentralized, P2P monetary system. However, both are technical buzzwords, and this is why the comparison comes to the forefront quite often.
The Effect of AI on the Economy
Both have also had some effect on the overall economy. Take AI, for example; it requires major investments in data centers, memory chips, and energy infrastructure. They are needed to prop up the AI economy, and they aren’t cheap. Goldman Sachs has reported that the sudden influx of money and infrastructure for AI is driving higher inflation for consumers.
The United States has been particularly hit by these developments, the investment bank’s report argues. It added roughly 20 basis points to annual core PCE inflation and had the potential to double by year-end 2026.
 
In the long-term, AI could be a deflationary force for the markets as it helps reduce manpower costs and improves outputs. However, because of the technology’s energy-intensive nature, things are expected to get worse before the utility starts to catch up.
Bitcoin as a Hedge Against Inflation
Bitcoin, on the other hand, has acted as a hedge against inflation in the long-term. Critics often point to its volatility and price squeezes to discourage investment, but data suggest it consistently rebounds and delivers strong results.
During the 2015-2025 decade, the premier cryptocurrency rose 38,000%, outpacing Gold, the stock market, and real estate, even after inflation adjustment. While progress has stalled over the last 5 years or so, as critics like to point out, and the cryptocurrency has struggled to keep up with other asset classes, it still provides a valuable hedge due to its scarcity and cross-border P2P utility.
The remaining cryptocurrencies are suspect at best compared to BTC, and aren’t proving to be great long-term investments. This is why CZ always singles out Bitcoin and its long-term prowess.
The Future
The former Binance executive’s advice is strategic rather than tactical and better suited for the long-term. AI will continue to disrupt economies and create enormous value, but the technology itself and its impact on inflation are likely to be studied extensively.
Bitcoin, on the other hand, has proven credentials as a hedge. Smart money continues to flow into it, and a disruptive tech like AI is unlikely to negatively impact it in any significant way.
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