Cathie Wood is the CEO of ARK Invest, a large investment fund that has also launched a Bitcoin ETF. She has been extremely bullish on Bitcoin (BTC) and the crypto sector in general for some time. She emphasized this again. She says that Bitcoin will reach astronomical heights in the future.
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In an interview with Infomoney, a Brazilian financial news outlet, Wood says Bitcoin could be worth $1 million in the future. However, this will take years. She compares Bitcoin to gold and believes Bitcoin can achieve a similar market capitalization to the valuable metal.
“Gold is a trillion-dollar asset, and we believe Bitcoin can be a big part of that.”
Wood said. The reason for this is the fundamental power of Bitcoin. For example, she points out the decentralized value of Bitcoin. She also points to Bitcoin's power as a hedge against inflation. According to Wood, in times of increasing currency instability, more and more individuals as well as institutions will use Bitcoin as a kind of “insurance policy”.
Bitcoin to $1 million?
Although the path to $1 million per Bitcoin may seem long and difficult, it is certainly not unattainable, according to Wood. This has everything to do with the scarcity of Bitcoin.
“Once institutions start getting involved, the scarcity aspect (of Bitcoin) will drive the price higher. We are currently in the $40,000 to $43,000 range. If institutions invest 2 to 5 percent of their asset allocation in Bitcoin, we will achieve this goal very quickly.”
According to Wood, referring to the astronomical amount of $1 million per Bitcoin. She also says crypto will increasingly manifest itself as a unique asset class. An example of this is the introduction of Bitcoin ETFs. It ensures the legitimacy and recognition of crypto as a separate asset class. This, in turn, will reduce the correlation between crypto and other sectors and make crypto more attractive to investors.
Wood does not comment on how long it will take for Bitcoin to actually reach $1 million. But she seems to suggest that it's a matter of years rather than decades.
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