Bitcoin’s recent rise in value may be due to its reputation as a safe haven against devaluing fiat currencies, according to Cathie Wood, CEO of ARK Invest. In an interview with CNBC, Wood described Bitcoin as an investment with both potential gains and losses. While many have focused on the involvement of institutional investors in the Bitcoin market, Wood believes that the opportunity for ordinary individuals is even more significant.
Wood pointed out that people are overlooking the fact that currency devaluations are occurring worldwide. She cited examples such as the Egyptian pound and the Nigerian naira, both of which have lost half of their value compared to the dollar in recent months. These devaluations were not caused by market forces, but rather intentional government actions. Wood also noted that events like the Greek financial crisis in 2013 and the U.S. regional banking crisis last year contributed to the increase in Bitcoin’s price.
Wood concluded that Bitcoin provides protection against governments with questionable policies and fiscal practices. Despite competing with major asset managers, ARK’s ETF product, backed by Wood, continues to support Bitcoin. Wood’s prediction in March, based on the influx of institutional money, is that Bitcoin could reach $1 million by 2030.
In other news, popular cryptocurrency exchange Coinbase is set to integrate the Bitcoin Lightning Network, a scaling solution that aims to improve the speed and efficiency of Bitcoin transactions. This development is expected to enhance the overall user experience and expand the adoption of Bitcoin as a payment method.
