The longtime pro-crypto investor says that bitcoin is the greatest form to reclaim one’s wealth, for the developing world. ARK Invest CEO Cathie Wood says with crypto, “you’ll be able to cross a border and reclaim your wealth.”
Noted for being bullish on the crypto industry, Cathie Wood says that Bitcoin will hit the $1 million price target by 2030, and believes that coin will bring opportunities for wealth preservation for both the wealthy and the poor.
Citing hyperinflation as a result of world economies tanking, Wood says that as “currencies have fallen apart,” they need a support system. According to Wood, there’s no better “fallback” and “insurance policy” like Bitcoin.
— Yahoo Finance (@YahooFinance) February 2, 2023
Cathie Wood adds that high-net-worth individuals also should be compelled to get on the bitcoin bandwagon. According to Wood, bitcoin has the potential to be a shield against “confiscation” from countries with troubled economies through inflation.
Wood is right to some extent: as bitcoin has a supply limit of 21 million coins, the currency can’t be debased through money printing, unlike fiat currencies. However, with more explicit forms of confiscation, like in Russia and China, Wood says that bitcoin makes it easy to recover their money.
In particular, Cathie Wood highlights that crypto wallet holders can technically recover their assets from anywhere by remembering and using their unique seed phrase – a sort of passcode that is a list of 12 to 24 random words.
“Just keep that key in your head, and at some point, you’ll be able to cross a border and reclaim your wealth,” Wood added.
Founded by Wood, Ark Invest Management LLC is a US-based investment management firm that is notable for its actively managed exchange-traded funds (ETFs). Focused on investing in “disruptive technology”, it’s no wonder Wood is bullish on crypto.
Last month, Ark’s Innovation ETF had its best month ever since its launch in 2014 – experiencing nearly 28% of growth and closed off the month at $39.93. Ark’s Innovation ETF aims to “capture growth from forms of technology that can potentially change the world”, and holds millions of shares of Coinbase, which makes up 4.5% of the entire fund.
As for the future of crypto exchanges like Coinbase, Wood believes that FTX’s collapse would present a promising future for growth.
“Coinbase will become the premier regulatory compliant on-ramp for crypto and will take significant share now that one of its major competitors has gone bankrupt,” wrote Wood, in a blog post.