ARK Invest CEO Cathie Wood says that Bitcoin’s (BTC) huge rally after US regional banks collapsed is one big sign that the crypto king is the future of money.
In a new interview with Barron’s, Wood spells out three reasons why she remains bullish on digital assets.
According to Wood, the king crypto soared 60%, from $19,000 to $30,000, when some US regional banks collapsed earlier this year because investors chose Bitcoin as a safe store of value for their wealth. She says that investors using Bitcoin as a store of value will likely accelerate.
Says Wood,
“We see three revolutions taking place because of crypto. Bitcoin will dominate the first one, the money revolution. The biggest proof is that when regional-bank stocks were falling apart earlier this year, Bitcoin went from $19,000 to $30,000. That was a flight to safety, and we expect it to accelerate. The centralized monetary system we have today is an aberration. We could be going back to the future – before the Federal Reserve existed – under a digital, rules-based monetary system with no government oversight.”
Wood says that the other two reasons for her bullishness are the potential of decentralized finance (DeFi) and digital property rights, such as non-fungible tokens (NFTs) or real estate in the metaverse.
“The second revolution is in financial services, or the so-called DeFi, which will be Ethereum-based. There are a number of infrastructure providers out there. It’s the survival of the fittest, and I’m excited to see who wins.
The third is digital property rights, or what many call NFT or the metaverse. People are already buying real estate in virtual worlds. Our young research associates come into the office wearing jeans and T-shirts with no logos, but they are getting their status in the virtual world.”
Wood also weighs in on Coinbase (COIN), one of ARK’s holdings. She predicts that the US crypto exchange will ultimately come out on top despite the recent U.S. Securities and Exchange Commission (SEC) lawsuit filed in June against the exchange alleging the sale of unregistered securities.
Wood believes the courts will determine the SEC is overstepping its authority and that the US Congress will pass crypto-favorable legislation.
Wood says,
“Meanwhile, the legislative branch has awakened to the fact that crypto is a new asset class and we might need new legislatures to give the regulators some guidance. Those two branches of government have given us great confidence that Coinbase will come out of this as a winner. Many Coinbase competitors either haven’t entered the US or moved out because of our regulatory system. Coinbase has stayed to fight. We think they’ll be rewarded accordingly.”
Coinbase stock is trading for $96.26 at time of writing, nearly double its low from last month.
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