Bitcoin instead of gold
Is Bitcoin Instead of Gold Really the Right Option?? Bloomberg asked Cathie Wood, CEO and largest shareholder of Ark Invest, this question. The American sometimes positions herself clearly in favor of Bitcoin and gives concrete reasons for this. In the future, the BTC price will develop better than its physical counterpart.
Bitcoin instead of gold: This is how Ark Invests Cathie Wood positions herself
Bitcoin instead of gold – is that really a valid option? Cathie Wood, managing director of the well-known US asset manager, takes a clear position on this question.
The 67-year-old told Bloomberg that she clearly prefers Bitcoin to gold. When asked “Bitcoin, gold or cash?” Wood responded without delay.
Bitcoin, of course. Bitcoin is a hedge against inflation and deflation – so is gold, but the cryptocurrency is digital.
Due to its digital nature, BTC is easier to send around the globe than gold and is therefore more suitable as a means of payment due to its easier use. In addition, Bitcoin has much more potential than gold.
“Gold already has its market capitalization. Bitcoin is new. Institutions have hardly been involved so far. Young people are much more interested in BTC than in gold,” explains Wood.
Bitcoin has also performed better than gold recently. Wood expects this development to continue for the foreseeable future.
Wood experienced realization through bank crash
Wood also explained in the Bloomberg Podcast that he had gained important insight from a bank crash. In March 2023, the United States experienced a banking crisis, first triggered by Silicon Valley Bank .
The fascinating thing was that the Bitcoin price rose from $19,000 to $30,000 during this time. The digital system was simply a safe haven.
According to the Ark Invest managing director, inflation is not the central point that leads to rising prices. Instead, the largest cryptocurrency is increasingly establishing itself as a safe haven. Due to its technical functionality, the system is considered uncritical and difficult to manipulate. As a means of payment, BTC can be used virtually anywhere in the world.
Unlike most other investments and means of payment, users do not have to have trust in central administration, but only in a decentralized network. The fact that Bitcoin is transparent also promotes trust, as no hidden transactions can take place.
However, investors face this problem if they use a regional bank instead of Bitcoin. Simple users cannot see how liquid the company is and what implications could arise from an investment.
Ark Investment is one of the US asset managers currently racing to create the first Bitcoin Spot ETF in the USA. In recent years, the company has been notable for its poor results.
As a result, assets under management fell from a high of $50 billion in February 2021 to just $6.70 billion. Wood is the largest shareholder in Ark Invest with a 50 percent stake.