ARK Invest's CEO Cathie Wood has reiterated her belief in the decentralized digital currency, Bitcoin, as a superior hedge against both inflation and deflation. During her Bloomberg interview, she highlighted the U.S. regional bank crisis in March as a key event that showcased the strength of Bitcoin. The crisis led to the failure of several lenders and a subsequent surge in Bitcoin's price by nearly 50%, reaching $35,000.
Wood emphasized Bitcoin's decentralized nature, which eliminates counterparty risk and ensures transparency through public ledgers. She contrasted this with centralized organizations, such as banks, which lack comparable transparency making them riskier investments.
In these discussions, Wood compared the performance of Bitcoin to the US stock index benchmark, asserting that Bitcoin had demonstrated superior performance based on historical data. She also warned of the risks associated with investing in centralized financial authorities due to their lack of reliability in times of macroeconomic events.
Wood's conviction in Bitcoin's potential is reflected not only in her words but also in her actions. In 2015, she invested $100,000 in Bitcoin when it was valued at about $250 – an investment now worth over $13 million. This investment has yielded a staggering 14,000% profit despite fluctuations in her other stock investments.
ARK Invest maintains a bullish outlook on Bitcoin, predicting it could reach $1.48 million by 2030 in a bullish scenario or $682,800 in a base case. The firm emphasizes Bitcoin's strong fundamentals such as decentralization, auditability, and transparency. It has also applied for a Spot Bitcoin ETF (TSX:EBIT) currently under review by the SEC.
Finally, Wood shared her vision of an optimistic future where AI and Bitcoin intersect leading to organizational transformations, cost reductions, and increased productivity. She anticipates a new era of deflation triggered by technologies like AI, electric vehicles, robotics, genomic sequencing, and blockchain. At present, Bitcoin is valued at $34,848.11 per unit (BTC/USD), with a market cap of $680.74 billion and a 24-hour trading volume of $12.48 billion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.