Cathie Wood, the CEO of Ark Invest, just recently spoke about the market outlook, using the opportunity to praise Bitcoin and the ecosystem of industries that are developing around cryptocurrencies.
Speaking with Yahoo Finance, Wood believes that the future of cryptocurrencies looks promising. She disagrees with billionaire investor John Paulson’s recent criticism of Bitcoin and cryptocurrencies, claiming that Bitcoin is managing to surpass gold as a store of value in this digital age.
“What we (Ark Investment) think he’s missing about cryptocurrencies is they’re much more than a store of value or digital gold. Bitcoin is a new, global monetary system that is completely decentralized and not subject to the whims of policymakers.”
A few days ago, Paulson told Bloomberg that in his view, cryptocurrencies would eventually have to go to zero
“I’ll have a lot of people that disagree with this, but I would think you should not invest in cryptocurrencies. Ultimately I think cryptocurrencies, regardless of where they are trading today, whether it will go up from here or down, will eventually prove to be worthless.”
Cathie Wood Believes The Crypto World is Far From Being a Bubble
Wood also made mention of her investments in Coinbase and Robinhood, two of the leading regulated exchanges in the United States.
Initially, she said that Robin Hood’s shift to cryptocurrencies proved to be very positive for its business model, and although the SEC may be trying to exert more control, she does not expect any adverse changes to alarm investors in the near future.
On the other hand, Cathie Wood made emphasis how comfortable she was with her investment in Coinbase. This is the only publicly traded cryptocurrency exchange and is a global benchmark for compliance in general.
For Cathie Wood, markets are not in a price bubble. Wood believes that cryptocurrencies are a generational phenomenon, and the crypto industry is just growing up as the technology evolves. She is sure that the current bull run is far from over and cited predictions that mention at least 10 years of general growth:
“Are we in a bubble? We couldn’t be further from it. The average investor doesn’t understand how provocative these next five to 15 years are going to be, as these S curves feed one another and enter exponential growth trajectories that we have never seen before.”
Bitcoin Needs Clearer Regulations
Cathie Wood is not a cyberpunk, nor does she want to bring down the current financial system. On the contrary, she advocates for precise regulation as a fundamental factor for the growth of cryptocurrency adoption at a global level.
For Cathie Wood, regulations are a good thing. Yet, she asserts that the underlying problem lies in the lack of consensus among the various regulatory bodies on the nature of cryptocurrencies.
“If regulators get together and agree what exactly these cryptocurrencies are, how to define them, that will be a good thing. Certainty will be a good thing for this ecosystem.”
Presently, the cryptocurrency industry in the United States is in a delicate situation precisely because of the diversity of criteria among regulators. The controversial $1 Trillion Bipartisan Infrastructure Bill could entail quite substantial risks for cryptocurrency businesses looking to establish in the country. Also, the expectations surrounding the US political scene have a strong impact on the cryptocurrency markets.
Perhaps technology is traveling faster than politics right now, but eventually, they both will meet.