Bitcoin is a Better Deflation Hedge than Gold or Cash, Says Cathie Wood
According to Cathie Wood, the CEO of ARK Investment Management, Bitcoin (BTC) is a superior hedge against deflation compared to gold or cash. She made this statement during an episode of Bloomberg’s “Merryn Talks Money” podcast. Wood believes that Bitcoin acts as a hedge against both inflation and deflation due to its lack of counterparty risk and minimal institutional involvement. She refers to Bitcoin as “digital gold.” Furthermore, Wood predicts that the convergence of artificial intelligence (AI) and Bitcoin will lead to the global enablement of micro-tasks and a division of labor beyond our current imagination.
Cathie Wood’s Bold Prediction for Bitcoin
Despite Bitcoin’s failure to serve as a hedge against the recent consumer-price surges, Wood remains optimistic about its long-term prospects. In fact, she has even predicted that the price of BTC will surpass $1 million within the next ten years.
Poised to Profit from Spot Bitcoin ETF Approval
ARK Investment Management is well-positioned to benefit from the approval of a Spot Bitcoin ETF. The firm has submitted its own application for a spot Bitcoin ETF and has also invested in the Grayscale Bitcoin Trust (GBTC). Last year, ARK purchased a significant amount of GBTC shares at a 40% discount, making them the largest holder in the fund. This investment has yielded a return of approximately 224% for the firm.
Hot Take: Cathie Wood Bullish on Bitcoin as Deflation Hedge
Cathie Wood believes that Bitcoin is an excellent hedge against deflation due to its lack of counterparty risk and limited institutional involvement. She sees it as digital gold and predicts that AI and Bitcoin will enable global micro-tasks and a division of labor beyond our current imagination. Despite Bitcoin’s recent performance, Wood remains optimistic about its long-term prospects and even foresees its price surpassing $1 million in the next decade. ARK Investment Management is well-positioned to benefit from the approval of a Spot Bitcoin ETF, having submitted their own application and invested in the Grayscale Bitcoin Trust.
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