Cathie Wood, the founder and CEO of Ark Investment Management, has an optimistic outlook on bitcoin’s future and she recently shared her enthusiasm on Bloomberg’s “Merryn Talks Money” podcast. In the conversation, when presented with the choice between gold, cash, or bitcoin as a ten-year investment, Wood confidently declared her preference for bitcoin, saying it would be her pick “hands down.”
Ark Invest CEO’s Contrarian Bet: Bitcoin to Triumph Over Gold as Deflation Hits the U.S.
Last week, Cathie Wood, the CEO and founder of Ark Invest, championed bitcoin (BTC) over traditional assets like cash and gold. Her confidence in bitcoin surfaced during her interview on Bloomberg’s “Merryn Talks Money” podcast. Faced with the query of which asset she’d prefer to keep over a decade, Wood’s choice was unequivocal, “Bitcoin, hands down. Bitcoin is a hedge against both inflation and deflation—so is gold—but bitcoin is digital … gold already has its demand, it’s happened, bitcoin is new.”
A long-standing proponent of bitcoin’s potential, Wood projected in September 2021, just before bitcoin soared to its peak value of $69,000, that it could hit a staggering $500,000 within five years. She also shared her anticipation of the metaverse, predicting it to burgeon into a multi-trillion-dollar arena that same year. In the podcast discourse, Wood emphasized the nascent stage of institutional investment in BTC and the generational shift in asset preference, noting:
Institutions are barely involved and young people would much prefer to hold bitcoin than to hold gold.
At Ark Invest, her team anticipates a notable deflationary occurrence on the horizon for the U.S. economy, which is riddled with uncertainties. Wood maintained her stance, asserting that “deflation” is on the economy’s forecast and evidence of such deflation is already emerging. “We think this period of time is much more like the 19-teens than the 1970s,” she said on the podcast. Wood’s viewpoint stands in stark contrast to the common belief that bitcoin is acquired as a shield against inflation.
“I don’t believe that inflation is why it’s going up. There’s no counterparty risk in Bitcoin, it’s a completely transparent, decentralized network you can see everything that’s going on on the network,” she said. You cannot see what’s going on inside regional banks, you can only surmise because they’re losing deposits and they have to fund those by selling securities,” the Ark Invest CEO added. Besides bitcoin (BTC), the CEO of Ark Invest also explored the topic of artificial intelligence (AI) and shared her insights on Tesla.
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