An artificial intelligence (AI) investment boom is pressuring demand for bitcoin (BTC) in the short term, but it could instead become a bullish factor in the long term, a claim said.

Blockchain media outlet U.Today reported on Aug. 13 that Bitwise adviser Jeff Park (제프 박) said the massive value created by the AI industry could eventually translate into demand for bitcoin.

Park said AI has become a leading investment destination that competes with cryptocurrencies by absorbing speculative funds in the market. As money concentrates in AI-related stocks, bitcoin’s relative appeal has weakened. He pointed to limited investment capital and said the longer an AI-led stock rally continues, the more bitcoin could be relatively sidelined.

Even so, he did not view the AI boom only as a negative factor for bitcoin. Park said, "It’s hard to believe right now, but all this AI wealth creation is positive for bitcoin." Even if AI absorbs investment funds in the short term, wealth and capital formed in the process could move to other assets over the longer term, he said.

He focused on the financial structure underpinning the AI boom. Park said AI-related investing can show mismatches in the maturities and structure of assets and liabilities, and such positions could become more unstable over time. If AI investment enthusiasm cools or cracks appear in the financial structure, funds now concentrated in AI assets could seek other investments, and bitcoin could stand out as an alternative, he said.

Park then described bitcoin as an "infinite duration asset." He said bitcoin could benefit from that shift if capital rotation gains momentum.

That view also aligns with explanations for the recent relative slump in the cryptocurrency market. As growth expectations and projected returns for AI-related companies rise in the stock market, investors have less incentive to move funds into bitcoin even if it means bearing its high volatility. That is why the AI investment boom is cited as a backdrop for cryptocurrencies failing to rise as much as expected even when risk appetite holds, the report said.

Park viewed AI as both a competitor that absorbs demand for cryptocurrency investment and a potential source that could increase demand for bitcoin in the long term. AI is acting as a headwind for bitcoin by pulling in money for now, but if wealth created in the AI industry accumulates and capital circulation gains momentum, some of it could move into bitcoin, he said.

The key question going forward is how long the concentration of funds in AI-related assets will last. Bitcoin could be relatively sidelined while an AI-led stock rally continues, but attention is on whether the bitcoin-demand expansion scenario Park presented will materialise if investment enthusiasm cools or capital reallocation gains momentum.

It’s hard to believe this right now but all this AI wealth creation is very bullish for BTC because whenever the asset liability mismatch breaks (they always do) and capital flees, the infinite duration asset that is Bitcoin will be waiting coiled in a generational indifference