ARK Invest CEO Cathie Wood say that the large price explosion of Bitcoin after the start of the banking crisis in the United States (in March) is a sign that Bitcoin is the money of the future. In a new interview with Barron’s, Wood gives three reasons why she remains bullish on digital assets.
During the banking crisis, some investors shifted from the traditional financial system to Bitcoin. During that period, the Bitcoin price shot up from $19,000 to $30,000 as some regional US banks ran into trouble.
“We see three revolutions taking place because of crypto. Bitcoin will dominate the first, the money revolution. The biggest proof of this was the banking crisis earlier this year,” said Wood.
According to Wood, this happened because these investors saw Bitcoin as a safe store of value for their wealth. The use of Bitcoin as a store of value will only increase, according to Wood.
Store of value, for those who don’t know, means that Bitcoin is a means of storing value. For example, gold has served the same function for thousands of years and Bitcoin is now competing with gold in that regard.
The second and third revolution
The second revolution, according to Wood, is in financial services, which we call DeFi for crypto. “This will mainly take place on Ethereum. There are a number of competitors for Ethereum. It’s a matter of survival of the fittest and I’m curious who will win,” said Wood.
Finally, the CEO of ARK Invest points to digital property rights either non-fungible tokens (NFTs) or the Metaverse. “People are already buying digital real estate in virtual worlds. Our young research staff come to the office wearing clothes without logos, they have their status in the virtual world,” she continues.
Furthermore, Wood strongly believes in Coinbase (COIN), the American listed crypto exchange, which is one of ARK’s largest investments. She predicts that the crypto exchange will eventually become the largest, despite the problems it is currently experiencing at the legislative level.
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