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Author: Jose Antonio Lanz, Decrypt; Compilation: Songxue, Bitchain Vision
Cathie Wood, founder and CEO of ARK Investment Management, said she believes Bitcoin may be worth $1 million one day, but not soon.
Wood, who spoke on topics ranging from interest rates to emerging artificial intelligence (AI), said she was as optimistic as ever to Bitcoin in a recent interview with Infomoney, a Brazilian financial news portal.
“Gold is a multi-trillion dollar asset and we do believe Bitcoin will benefit a lot from it.”She said while explaining how Bitcoin reaches $1 million per coin.Wood saidThis comparison not only involves value, but also the basic role Bitcoin can play as a decentralized, private alternative to traditional currencies.
Wood said she also believesBitcoin plays a crucial role in emerging markets, which can hedge against unstable monetary and fiscal policies of individuals and institutions.
“Most emerging markets will use things like Bitcoin as insurance,” she elaborates, pointing out the broad applicability of Bitcoin.
According to Wood, Bitcoin represents a new era in the financial field—the world’s first digital and decentralized monetary system.Especially considering that the United States closed its golden window in 1971, it was a groundbreaking development.She said her conclusions are based on the scarcity, security and growing acceptance in the investment community.
“So, as institutions step in, the value of scarcity will increase, and we think that will drive prices up quite dramatically,” she said. She added that the road to reaching a million dollar token only requires more trust.“Currently, our prices are in the range of $40,000 to $43,000. As long as the institution invests 2% to 5% of [bitcoin] in its asset allocation, we can easily reach that level.”
She believes that if institutions incorporate some bitcoins into their portfolios directly or through ETFs, the widespread adoption of bitcoins can be achieved, so that the bad reputation of bitcoins as a venture capital will be brought about by its positive characteristics.The benefits fade gradually.
If cryptocurrencies prove to be a new asset class, it will reduce its correlation with other alternative assets, thereby increasing their attractiveness among investors,Wood said.
“Institutions know that if a new asset class appears, its return will be less relevant to other asset classes, which usually means that when you include Bitcoin in your portfolio, the return per unit of risk will beup, and institutional investors “know that they can’t miss this kind of opportunity,” she said.
The conversation with Wood quickly turned to artificial intelligence and its far-reaching impact on productivity and innovation.She expressed strong confidence in the continued growth and importance of artificial intelligence, emphasizing rapid progress in the field.In particular, Wood mentioned that Tesla is an important artificial intelligence project, highlighting the intersection between technology and industry.
“The convergence of robotics, energy storage and artificial intelligence into the automated taxi platform creates 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 and Tesla has greater appreciation potential.
Wood admits she values software more than hardware.She highlighted a key shift, noting that future spending in the software sector could dwarf the hardware sector, with the expected increase in the proportion of software spending 10 to 20 times.
For those who want to imitate her investment, Wood shares her choices.
“Coinbase, Tesla, Roku UiPath, Zoom, Block and CRISPR Therapeutics are the top seven stocks in the portfolio,” she revealed.“The other three out of the top 10 are Roblox, Twilio and Unity Software.”
Wood’s final insights return to the potential of artificial intelligence:“Artificial intelligence will remain the biggest catalyst for other types of innovation,”She said.
