In a recent interview with Bloomberg, Cathie Wood expressed her strong belief in Bitcoin as the ultimate hedge asset against deflation over the next decade. Despite current market concerns about rising inflation, Wood’s confidence in Bitcoin remains unwavering.
When asked about her preferred asset class for a 10-year investment horizon, Wood didn’t hesitate to name Bitcoin. She highlighted Bitcoin’s unique characteristics as a financial instrument that can serve as a hedge against both inflation and deflation due to its lack of counterparty risk and minimal institutional involvement.
Wood often refers to Bitcoin as “digital gold” and emphasizes its versatility in various economic conditions. Her long-standing optimism regarding cryptocurrencies aligns with her vision of their symbiotic relationship with emerging technologies and innovations.
Cathie Wood has previously predicted that Bitcoin’s price could surpass $1 million within the next decade. While the current market value of Bitcoin is around $35,000, roughly half its 2021 peak, recent price surges are attributed to growing expectations of the U.S. Securities and Exchange Commission (SEC) approving Bitcoin-focused exchange-traded funds (ETFs).
Ark Investment Management, Wood’s firm, is well-positioned to benefit from potential ETF approvals, having applied for a Bitcoin ETF and invested in the Grayscale Bitcoin Trust alongside 21Shares. Ark’s Next Generation Internet ETF, which holds significant GBTC stakes, has outperformed Bitcoin, with returns of approximately 224% this year.
During her podcast appearance, Wood also discussed the potential synergy between artificial intelligence (AI) and Bitcoin, envisioning a convergence that could enable global microtasking and a division of labor in ways currently hard to imagine.