ARK Invest’s Cathie Wood says Bitcoin (BTC) is likely to explode in value if people’s confidence in the financial system continues to dwindle.
In a new YouTube update, Wood says that Bitcoin’s decentralized nature and scarce supply will attract capital looking for a superior store of value compared to what has historically been available to them.
“[Bitcoin is] playing the store of value role right now. And, if the global monetary systems right now, shall I say, lose the confidence of people generally, there will be a shift to more crypto from a store of value point of view, certainly.
What will happen then, is the price of Bitcoin – remember there are only two million more to be minted – the price of Bitcoin will go through the roof.”
The ARK Invest CEO also says that BTC’s recent rally amid a banking crisis and general economic uncertainty is proof that it is beginning to succeed at fulfilling the role of a store of value.
Bitcoin is a store of value and an investment. Limited to 21 million units, so right now the inflation rate is 1.8% per year, that’s how much is mined. In a couple of years that will be cut in half to less than 1% and it will keep getting cut in half until we reach that 21 million.
We’re at 19 million units right now. So, to watch [Bitcoin] go from $19,000 to [almost $29,000] in the span of a couple of weeks, is proof positive that people do believe that it is a store of value, that the developers, the coders, the programmers who have built in this mathematical metering are not going to change it.”
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