The renowned stock picker and founder of the active management giant Ark Invest, Cathie Woodconsidered the breakup by Bitcoin (CRYPTO:BTC) of the $100,000 barrier this Sunday as a “relevant fact,” praising the growing importance of the leading Cryptocurrency in the world of finance and investments.
What happened
In a video shared on X, Wood recalled how Ark Invest published a whitepaper on Bitcoin in 2015, when the asset was valued at around $250.
Wood recalled his first lessons from the renowned economist Arthur Lafferwith whom Ark published the whitepaper.
“I told Arthur I thought it was a great idea. To what extent could it be? And he said to me at that time, ‘Well, how much is the US monetary base? That is the reserve currency of the world. This seems to be the world’s new reserve currency.’”
Bitcoin hit $100K this week. Its emergence signals a shift in the foundation of financial technology. @CathieDWood explores its rise and how tech-driven deflation could transform the economy in “In The Know.”
Past performance does not guarantee future results.https://t.co/Qqcnc7AyFl
— ARK Invest (@ARKInvest) December 9, 2024
Wood highlighted that in addition to being perceived as the next reserve currency, Bitcoin could be seen in several different ways.
“It is a substitute for gold, a store of value,” Wood said. He also called the asset an “insurance policy” in emerging markets for populations accustomed to corruption, currency collapses and wealth confiscation or capital controls.
Wood considered Bitcoin to be an ideal hedge against any form of uncertainty that could affect high net worth individuals.
“All fiduciaries should take a look at this new asset class, and that’s why we think it could be, you know, 2 to 5 or 6% of portfolios,” added the experienced investor.
Why is it important
CEO Wood has already expressed bullish sentiments about Bitcoin, predicting a possible rally to $3.8 million per unit of asset by 2030. While not impossible, it is unlikely that BTC will reach these numbers in the near future.
Wood has also joined the call for a strategic reserve of Bitcoin, which US president-elect. donald trump defended during his election campaign.
Ark Invest was one of the few players to launch a spot Bitcoin exchange-traded fund, the ARK 21Shares Bitcoin ETF (BATS:ARKB), earlier this year. According to SoSo Value, it was the fourth largest Bitcoin fund at the time of writing.
Bitcoin price movement
At the time of writing, Bitcoin was trading at $99,237.58, down 0.29% over the past 24 hours, according to data from Benzinga Pro.
Photo courtesy of Shutterstock
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