„$1 trillion is nothing“ compared to where bitcoin is headed – „Ark Invest“ CEO
Bitcoin is the first truly new asset class since the 17th century, argues „Ark Invest“ CEO Cathie Wood.
Bitcoin’s (BTC) market capitalisation of over $1 trillion is just the beginning of the Bitcoin Machine cryptocurrency’s price discovery, estimates Cathie Wood, CEO of asset management firm Ark Invest. Wood on Bitcoin’s chances of success:
„If we add up all the potential demand relative to the limited supply, we come up with incredible numbers in the long run. We have only just started. A trillion dollars is nothing compared to what will come out of it in the end.“
She added that one of the most surprising recent developments – which Ark did not anticipate when it prepared its institutional report – is that large institutional firms have started buying Bitcoins to diversify their cash reserves with.
„We’ve seen Square do it, Tesla do it, MicroStrategy is putting, I mean, it’s defining its business around it now. And one of the reasons, as Tesla announced yesterday, is that it wants to do business in bitcoin in regions of the world […] where converting from one fiat to another is prohibitively expensive.“
A truly new uncorrelated asset class
And that’s because Bitcoin is the „first truly new asset class“ to emerge recently and has a low correlation with other markets, she argues. As a result, BTC is attractive because it is exactly the kind of uncorrelated asset that investors in all sectors are looking for. Wood on Bitcoin:
„We believe [Bitcoin] is the first new asset class, a really new asset class since the 1600s – since equities. So we’re pretty excited about that.“
At the same time, Wood urged American investors not to sell or transfer their BTCs until the Internal Revenue Service provides them with guidance.
In the past, Jerome Powell, chairman of the US Federal Reserve, has already stated that Bitcoin is „essentially a substitute for gold“ in his estimation.