Bitcoin (BTC) and Gold (XAU) Are the Two Best AI Plays, Macro Guru Luke Gromen Believes

Luke Gromen believes that Bitcoin (BTC) and gold are the two best assets to accumulate for investors looking to make a play on the potential economic

Renowned macro analyst Luke Gromen is naming the two assets that he believes will benefit the most from the economic fallout of artificial intelligence (AI).

In a new video, Gromen tells his 36,500 YouTube subscribers that he anticipates AI will spark a banking crisis as the technology gains the ability to perform tasks that are typically carried out by humans.

According to Gromen, AI will ultimately displace jobs and hinder wage growth, leading to a surge in souring consumer loans.

“Once AI makes enough progress, then, in theory, the deflationary impulses will start to weigh not just on consumer loan delinquencies but then by extension the banking system. So it’s unclear to me how fast that daisy chain of events will be processed and flow through the system.

From there, it becomes a ‘yes’ or ‘no’ question I think that’s fairly simple to answer, which is will policymakers stand aside and let the deflation on wages and jobs cause a banking crisis via consumer loans, etc., or will they step in and act to effectively start preserving the banking system by growing their balance sheets.

I think we all know the answer to that question.”

Gromen predicts that central banks will intervene and bail out the banking system once again via monetary debasement. He believes that Bitcoin and gold will soar as soon as policymakers print money to rescue banks from defaulting.

“I think gold and Bitcoin are the two best, cleanest AI plays paradoxically. Because ultimately the deflation that AI is going to bring in is going to force consumer loan defaults and then ultimately significant money printing as central banks are really going to have no choice but to fully reserve consumer debt and maybe other forms of debt in my view.”

At time of writing, Bitcoin is trading for $101,300.