Cathie Wood, founder and CEO of ARK Investment Management, said she believes a single bitcoin could be worth $1 million one day — but not someday soon.
Wood has commented on a variety of topics, from interest rates to the burgeoning world of artificial intelligence (AI), and in a recent interview with Brazilian financial news portal Infomoney, she said she is as bullish on Bitcoin as ever.
“Gold is a trillion-dollar asset, and we think Bitcoin will get a big boost from that,” she said, explaining how Bitcoin could reach $1 million per coin. Wood said the comparison is not just about value, but about the fundamental role that bitcoin can play as a private, decentralized alternative to traditional currencies.
Wood said she also sees Bitcoin playing a crucial role in emerging markets as a hedge against unstable monetary and financial policies for individuals and institutions.
“Most emerging markets will use something like Bitcoin as an insurance policy,” she explained, noting the broad scope of Bitcoin’s applicability.
According to Wood, Bitcoin represents a new era in finance – the first global, digital and decentralized monetary system. This is a groundbreaking development, especially in light of the closing of the US gold window in 1971. She said her conclusions were based on bitcoin’s scarcity, security and growing acceptance within the investment community.
“So the scarcity value as institutions pay for it will drive the price up — and we’re thinking pretty big,” she said, adding that the path to a million-dollar token requires more confidence. “Right now, we’re in the $40,000 to $43,000 range. It won’t take much (with) institutions putting 2% to 5% (of Bitcoin) into their asset allocation, and we’ll get there easily.”
With widespread adoption, which she believes could be achieved if institutions integrated a little bit of Bitcoin into their portfolios directly or via ETFs, Bitcoin’s reputation as a risky investment will fade as its positive properties yield benefits.
Wood said that if cryptocurrencies prove to be a new asset class, it will reduce their correlation with other alternative assets, which could increase their appeal among investors.
“Institutions know that if there is a new asset class, the correlation of returns with other asset classes will go down, and what that typically means is that the return per unit of risk when incorporating Bitcoin into your portfolios will go up — and institutional investors know they can’t afford to miss this,” she said. kind of opportunity.”
Cathie Wood speaks with Infomoney
Cathy’s views on artificial intelligence
The conversation with Wood quickly centered around artificial intelligence and its profound impact on productivity and innovation. She expressed her strong confidence in the continued growth and importance of artificial intelligence, stressing the rapid progress in this field. In particular, Wood’s mention of Tesla as an important AI project highlights the intersection between technology and industry.
“We have robotics, energy storage, and artificial intelligence converging on autonomous taxi platforms and creating a completely new business model,” she said. In fact, Wood said she sold Nvidia stock to buy Tesla (and some Coinbase) because she believes some AI stocks are overvalued while Tesla has more potential than ever to increase in value.
Wood admits she’s more focused on software than hardware. She highlighted a pivotal shift, noting that future global expenditures in the software sector are likely to exceed those allocated to hardware, as the proportion of spending on software is estimated to range between 10 to 20 times.
For those who want to copy her investments, Wood shared her picks.
“Coinbase, Tesla, Roku UiPath, Zoom, Block and CRISPR Therapeutics are the top seven stocks in the portfolio,” she revealed. “The other three software in the top 10 are Roblox, Twilio, and Unity.”
Wood’s closing insight returned to the potential of AI: “AI will continue to be the biggest catalyst for other types of innovation.”
Edited by Ryan Ozawa.