Renowned investor Cathie Wood gave a presentation at the Bitcoin 2022 event being held at the Miami Beach Convention Center. There she said that the company she runs, Ark Invest, projects a target price for Bitcoin of US$1 million by 2030.
“Bitcoin is the first open-source, global private digital rules-based monetary system in the history of the world. It’s a very big idea,” the entrepreneur noted and expanded, “If inflation is an issue, Bitcoin is a great hedge against inflation…it is a hedge against counterparty risk.”
These statements were made during her conference The future is bright, together with the CEO of MicroStrategy, Michael Taylor. The investor thus ratified her recommendation on the cryptocurrency as a refuge from the current price pressures at the global level.
In fact, the entrepreneur indicated that 70% of Bitcoin investors hold their position for the long term: “Approximately 13.5 million units out of 19 are in long-term hands. The community understands that.”
The investor also said that Bitcoin, which has a market capitalization of US$830 billion, has increased its liquidity tenfold. “That’s just a taste of what’s to come,” she stated.
For the businesswoman, volatility is still a negative factor that she attributed to the newness of the crypto world in the market. According to her, the institutionality “has improved, but it’s still a long way from being fully accepted.” She was referring to the position of traditional investment banks and large companies regarding Bitcoin.
“Traditional institutional investors are seeing that it’s very volatile, and that scares investors. They think it’s risky. But it’s a new asset class, and we’ll see how it will build,” he said, and assured that Bitcoin could surpass the $1 million estimate after 2030. The investor estimates that in eight years 2.5% of institutional assets will be allocated to Bitcoin.
According to Ark’s CEO, the U.S. view on Bitcoin and the sector in general changed in favor of cryptocurrencies, so she is positive about the regulation planned in this country and its effects.
“Treasury Secretary Janet Yellen has changed her tune. It’s a positive thing. A year ago, her first comments on Bitcoin were about money laundering and environmental damage, and now it’s different,” Wood noted. And closed with “I’m seeing the politics around Bitcoin changing dramatically, and this is bipartisan.”