Cathie Wood: 60% growth in Bitcoin will lead to a financial revolution
Cathie Wood: 60% growth in Bitcoin will lead to a financial revolution
The strong rally of Bitcoin after the bankruptcy of the largest regional banks in the United States confirms that the major cryptocurrency is the future of the financial system.
This was stated by Cathie Wood, founder and head of ARK Invest.
Cathie Wood revealed three reasons why she believes in the growth of cryptocurrencies and digital assets.
The "crypto king" soared 60% to $30,000 after the banking crisis earlier this year, when regional banks in the U.S. failed and investors chose Bitcoin as a safe haven to preserve their capital. Cathie Wood believes the use of Bitcoin by investors is likely to increase.
"We are seeing three revolutions in the background of crypto. Bitcoin will be the cause of the first: the money revolution. The proof of this is the dramatic rise of Bitcoin from $19,000 to $30,000 in early 2023, in the midst of the crisis in the banking system. The current centralized financial system is an aberration. We can fix things the way they were before the Federal Reserve existed, without government oversight," explained Cathie Wood.
She added that two other drivers of revolutionary change are the potential of the decentralized finance (DeFi) sector and digital property rights, namely NFT and real estate in the meta-universe.
The renowned investor believes: "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".
According to Wood, the third revolution is digital property rights, i.e., NFT or the metaverse. Real estate is already being actively bought in the Metaview universe.
Katie Wood's funds invest in Coinbase (COIN) stock, which is one of ARK's core holdings. She is confident that Coinbase will come out on top among U.S. crypto exchanges and has no concerns, even after the U.S. Securities and Exchange Commission's (SEC) lawsuit against Coinbase.
Wood said that the courts will uphold the illegality of the SEC's actions, which clearly exceed its authority. Also, the U.S. Congress will soon pass legislation that will support the crypto industry.
Wood said, "Lawmakers have already recognized the fact that cryptocurrency is a new asset class and therefore requires new laws and new oversight. We are confident that Coinbase will emerge victorious from its standoff with the SEC. Coinbase was left to fight when many cryptocurrency exchanges exited the U.S., so it will be rewarded."
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