Bitcoin is Replacing Gold as a Store of Value, Says ARK Invest CEO
Cathie Wood, the CEO of ARK Invest, believes that Bitcoin (BTC) is gradually replacing gold as a store of value asset. In her recent YouTube update, Wood explains that during times of economic uncertainty, Bitcoin acts as a risk-off asset and a “flight to quality.” She points out that when the regional bank crisis occurred in March last year, Bitcoin surged by 40% while the regional bank index plummeted. Wood also suggests that after a slight correction following the introduction of 11 ETFs, Bitcoin is gaining momentum again. She shares a chart showing Bitcoin’s long-term uptrend compared to gold, indicating its increasing substitution for the precious metal.
Bitcoin’s Rise Relative to Gold
Wood presents a chart illustrating Bitcoin’s rise in relation to gold. According to her analysis, Bitcoin has been steadily climbing even when compared to the traditional store of value. She attributes this trend to the growing ease and accessibility of investing in Bitcoin. Wood believes that this substitution will continue due to the reduced friction involved in accessing the cryptocurrency.
Hot Take: Gold Being Replaced by Bitcoin
Cathie Wood from ARK Invest suggests that Bitcoin is increasingly taking on the role of gold as a store of value asset. During times of economic uncertainty, Bitcoin acts as a risk-off asset and a “flight to quality.” Wood highlights the surge in Bitcoin’s price during the regional bank crisis in March 2021, indicating its potential as a safe-haven asset. She also presents a chart showing Bitcoin’s rise relative to gold, demonstrating the cryptocurrency’s growing substitution for the precious metal. Wood predicts that this trend will continue due to the ease of access and reduced friction associated with investing in Bitcoin.
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