Cathie Wood believes that Bitcoin is “digital gold” as a defense against the risks of deflation. Speaking to Bloomberg this weekend, she said she would rather own Bitcoin than gold or cash for the next 10 years.
The star manager believes we are entering an era of falling prices, supported by new technologies such as artificial intelligence, electric vehicles, robotics and blockchains.
– Digital gold
During an interview with the news agency, Wood responded that she prefers to hold the cryptocurrency for the next ten years as a hedge against inflation.
Bitcoin is a hedge against both inflation and deflation because there is no counterparty risk, and institutions are hardly involved, says Wood.
– It’s digital gold!
Wood has been among the most optimistic voices regarding cryptocurrency, and expects it to be able to benefit from the growth of new technologies and innovations.
Invested in Bitcoin funds
Ark’s CEO previously predicted that Bitcoin’s price would exceed $1 million within the next decade. It currently stands at $35,000, about half of its peak in 2021. However, it has doubled this year, after falling 64 percent in 2022.
The value of the cryptocurrency has risen, among other things, because investors see Bitcoin as a potential protection against inflation. In addition, speculation has also begun to emerge that the US financial supervisory authority SEC (Securities and Exchange Commission) may approve wire transfer funds that invest directly in cryptocurrency.
The person who could ultimately benefit from the EFT fund is Wood. According to Bloomberg, her company has filed to create a Bitcoin ETF with 21Shares, and in addition, one of its funds, ARK Next Generation Internet, has invested approximately $132 million in Grayscale Bitcoin Trust — which invests solely in Bitcoin. An investment that supposedly delivered a 224 per cent return last year for the star manager. In comparison, Bitcoin rose 114% in the same period.
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