The price of Bitcoin (BTC) will perform well in 2024 while interest rates are relatively high. According to well-known investor Cathie Wood, CEO of ARK Invest, this increase is due to something that is rarely talked about at the moment.
Bitcoin (BTC) is a way out
The most obvious explanation is the approval of the first American Bitcoin exchange funds. These funds have purchased billions of dollars worth of BTC in recent months. But there’s more to it than that.
Wood explains that a lot happens outside the borders of the United States. In an interview with CNBC, she points to the devaluing fiat currency in countries like Nigeria and Argentina:
“There are currency devaluations that people don’t talk about. The Nigerian naira has fallen by 50 to 60% in the last nine months. Egypt was just devalued by 40%. Argentina continues to devalue.”
The result, according to the investor, is “a flight to safety, protection against devaluation, protection against loss of purchasing power and wealth.”
“(Bitcoin is an) insurance policy against rogue states and terrible tax and monetary policies.”
Troubles in Greece prompted Wood to invest in Bitcoin
In the interview, Wood cites other situations that would show that Bitcoin actually acts as an escape route. “We even saw it here in the United States last year. When the regional banks imploded, the BTC price rose by 40 percent.”
According to the investor, the reason why Bitcoin is seen as a way out is because there is no counterparty risk with Bitcoin. Therefore, it would neither be a risky nor a risk-free investment.
This feature led Wood to buy Bitcoin when the cryptocurrency was worth just $250, “as Greece threatened to leave the euro.”
Wood is a well-known Bitcoin advocate. She is known, among other things, for her bizarre price expectations. According to them, the price of Bitcoin could rise to over $1 million.
Recently, Wood emphasized her prediction. She assumes that BTC could even rise to $1.5 million. According to Wood, Bitcoin is the world’s “financial highway.”