Ark Invest CEO Cathie Wood sees bitcoin as a hedge against currency devaluations and wealth erosion. “I think this is an insurance policy against rogue regimes or against just horrible fiscal and monetary policies,” she explained, attributing the recent bitcoin price surge to a “flight to safety.”
‘I Think This Is a Flight to Safety’
The CEO of asset management firm Ark Invest, Cathie Wood, shared her perspective on bitcoin in an interview with CNBC last week.
Discussing why the price of bitcoin surged “dramatically,” the Ark Invest CEO highlighted that “There’s something else going on around the world” besides the impact of spot bitcoin exchange-traded funds (ETFs). “There are currency devaluations taking place that people are not talking about. The Nigerian naira is down 50%-60% in the last nine months, Egypt just devalued by 40%, Argentina continuing to devalue,” she detailed.
Wood opined:
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I think this is a flight to safety, believe it or not, taking place — a hedge against devaluation, a hedge against a loss of purchasing power and wealth. That’s very important.
“And we saw this even here last year in the United States,” she noted, adding: “Regional banks imploded, bitcoin went up 40%.”
Emphasizing that “Bitcoin does not have counterparty risk,” Wood explained that the cryptocurrency is both a risk-on and a risk-off asset.
The Ark Invest chief concluded:
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I think this is an insurance policy against rogue regimes or against just horrible fiscal and monetary policies.
Wood said earlier this year that based on her firm’s research, “the probability of the bull case has increased” for BTC with spot bitcoin ETF approvals. “Our bull case is $1.5 million by 2030,” she affirmed. Ark Invest’s February “Big Ideas 2024” report identified four key catalysts for bitcoin’s price growth this year: spot bitcoin ETFs, the upcoming Bitcoin halving, regulatory developments, and institutional acceptance.
Source: https://news.bitcoin.com/ark-ceo-cathie-wood-sees-bitcoin-as-a-hedge-against-currency-devaluations-and-rogue-regimes/