ARK Invest CEO Cathie Wood sees Bitcoin’s significant rally following the collapse of US regional banks as a clear indicator that it is the future of money. In a recent interview with Barron’s, Wood outlines three reasons for her continued bullish stance on digital assets.
1. Bitcoin’s 60% surge from $19,000 to $30,000 during the collapse of US regional banks this year highlights its role as a safe store of value, according to ARK Invest CEO Cathie Wood. She believes this trend will continue as investors increasingly use Bitcoin as a secure asset for preserving wealth.
2. Wood identifies three revolutions driven by cryptocurrencies. Firstly, Bitcoin will dominate the “money revolution,” signaling a shift towards a digital, rules-based monetary system with no government oversight. Wood envisions a return to a decentralized model reminiscent of pre-Federal Reserve times.
3. The second revolution revolves around decentralized finance (DeFi), primarily based on the Ethereum network. Wood expects competition among infrastructure providers in this sector, with only the strongest surviving.
4. The third revolution involves digital property rights, particularly Non-Fungible Tokens (NFTs) and the metaverse. People are already buying virtual real estate, and this trend is likely to grow, granting individuals status within virtual worlds.
Wood remains optimistic about ARK’s holding, Coinbase (COIN), despite the recent SEC lawsuit against the exchange. She believes the courts will decide in favor of Coinbase, and the US Congress will eventually introduce favorable legislation for the crypto industry.
5. Wood points out that the legislative and executive branches’ interest in cryptocurrencies has boosted confidence in Coinbase’s ability to succeed. While other competitors have avoided the US market due to regulatory concerns, Coinbase has chosen to stay and fight, positioning itself for potential rewards.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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