Bitcoin’s Superiority Over Gold
According to Ark Invest CEO Cathie Wood, when given the choice between gold, cash, and Bitcoin for a 10-year investment, she would choose Bitcoin without hesitation. Wood believes that while both Bitcoin and gold serve as hedges, gold has already had its time in the spotlight, whereas Bitcoin is still relatively new and gaining momentum. She also emphasized that institutions are only just starting to get involved in Bitcoin, and the younger generation will likely prefer it over gold. Additionally, Wood pointed out that Bitcoin has been outperforming gold in terms of hedging capabilities.
ARK Invest’s Spot Bitcoin ETF
It comes as no surprise that Wood is bullish on Bitcoin since her company, ARK Invest, has applied for a Spot Bitcoin ETF with the US Securities and Exchange Commission (SEC). In fact, ARK Invest is leading the race for approval, with the SEC expected to make a decision on their application in January 2024. However, it remains uncertain whether all funds will be approved simultaneously or separately.
Bitcoin’s Importance as an Indicator
During the interview, Wood mentioned that her company monitors Bitcoin’s price as a way to gauge inflation rates and analyze financial markets. She highlighted how Bitcoin experienced a significant price increase from $19,000 to $30,000 during a regional banking crisis earlier this year. Wood found this rise in value fascinating and saw it as evidence of Bitcoin being viewed as a safe haven asset. She also noted that Bitcoin can serve as a hedge against both inflation and deflation due to its lack of counterparty risk.
Bitcoin’s Transparency and Decentralization
Wood argued that many individuals sought refuge in Bitcoin during the banking crisis because of its transparency and decentralized nature. Unlike traditional banks, where customers lack visibility into the use and protection of their deposits, Bitcoin offers complete transparency. This quality makes it an attractive option for those seeking a safe and secure store of value.
Hot Take: Cathie Wood’s Bold Prediction
Cathie Wood’s unwavering confidence in Bitcoin’s superiority over gold and its potential as a hedge against inflation and deflation reflects her belief in the cryptocurrency’s long-term prospects. As the CEO of ARK Invest, a company at the forefront of applying for a Spot Bitcoin ETF, Wood’s bullishness aligns with her business interests. Whether or not her prediction comes true, it is clear that Bitcoin has gained significant attention and credibility within the investment community.
By
By
By