Female stock goddess Cathie Wood: Bitcoin can better fight inflation and deflation than gold
FX168 Financial News Agency (North America) News on Tuesday (November 7): Inflation has been a pressing topic of discussion over the past two years, from the COVID-19 pandemic to Russia’s invasion of Ukraine, and a number of events around the world. The development has caused prices for daily items to skyrocket, squeezing the wallets of billions of people.
Although inflation has eased in recent months, it still poses a potential threat to the health of the global economy, with deflation becoming a growing concern as consumers around the world start pinching pennies and choosing not to buy non-essential items.
For Cathie Wood, CEO of ARK Investment Management, it doesn’t matter whether inflation or deflation is the issue because the ultimate response is the same: Bitcoin (BTC).
In a recent interview with Bloomberg’s Merryn Talks Money podcast, Cathie Wood reiterated her view that she sees a future in which prices will fall, supported by new technologies such as artificial intelligence, electric vehicles, robotics, genome sequencing and blockchain. era, and regards Bitcoin as the best shield against the unknowns facing humanity.
When asked whether she would rather hold gold, cash or Bitcoin for 10 years, her answer was clear and without hesitation.
“Without a doubt, it’s Bitcoin. Bitcoin is a hedge against inflation and deflation because it has no counterparty risk and institutions have little involvement. It’s digital gold.”
In holding this view, she offered several reasons, including that the banking crisis that erupted in March remains an issue that continues to cause significant concern beneath the surface.
“You can only speculate that because banks lost deposits, they had to raise those funds by selling securities. The deposit outflow problem continues and they are forced to raise interest rates to compete with money market funds,” she said.
She noted that the price of Bitcoin rose during the banking crisis in March and said that and other concerns continued to provide support for Bitcoin prices. “Now you’re seeing Bitcoin prices rising again, while the U.S. regional bank index is down below March levels.”
When asked why she chose Bitcoin over gold, Cathie Wood pointed to the preference of young investors for this “digital gold” in an increasingly digital world.
“Gold already has its demand, that’s already happened,” she said. “But Bitcoin is new and institutions are barely involved. Young people are more willing to hold Bitcoin than gold.”
Cathie Wood has long been one of Bitcoin’s most ardent supporters, previously predicting that Bitcoin would surpass a $1 million price within the next decade, and at that time she was one of the few voices from the traditional finance world to support the growth of the digital asset. .
In 2023, Bitcoin’s price has doubled due to rising geopolitical risks and devaluation of fiat currencies, reigniting discussions about Bitcoin as a potential inflation hedge. Moreover, several large asset managers, including BlackRock and ARK Invest, plan to launch spot Bitcoin exchange-traded funds (ETFs) in the next three months, and the potential inflow of billions of dollars in institutional funds may quickly boost Bitcoin. Prices exceed $100,000.
Applications for the ARK 21Shares Spot Bitcoin ETF must make a decision by January 10, 2024, providing Cathie Wood’s company with the opportunity to be one of the first to offer such an investment vehicle and cementing her position as the leader in the financial sector. One of the biggest supporters of Bitcoin.
Cathie Wood believes that artificial intelligence is another force shaping the future of mankind, and foresees a future where artificial intelligence will be combined with blockchain to lead a new era of digitalization. “This will revolutionize micro-tasks and the division of labor around the world in ways we can’t even imagine now,” she said in the podcast.
Robert Kiyosaki, author of “Rich Dad, Poor Dad,” also believes major changes are taking place in the investment world and continues to promote Bitcoin to his followers on social media as part of a diversified risk portfolio.
He tweeted last week: “Historically, financial experts have promoted that ‘smart investors’ should use a 60/40 investment strategy, which is 60% bonds and 40% stocks. In 2024, 60/40 investors Will be the biggest loser. Before going down with the ship, consider investing 75% of your money in gold, silver, and Bitcoin and 25% in real estate/oil stocks. This combination could get you somewhere in the history of the world Survived the biggest crash.”