ARK Invest CEO Cathie Wood has said that the company’s confidence has increased that Bitcoin will reach a price of $1.5 million in the next decade.
On Bloomberg TV on July 17, Wood commented that the aftermath of the regional banking crisis in March has made ARK’s “bull case” for Bitcoin increasingly likely.
According to Wood, the banking crisis caused investors to flock to Bitcoin, even amid a general crash in the stock market. This “flight to safety” sent Bitcoin up to nearly $30,000 from $19,000, showing that the flagship crypto has become a viable safe-haven asset, just like gold.
Wood believes that Bitcoin will continue to establish itself as an “insurance policy” and that “everyone will want it at the end of the day.”
Insurance against asset confiscation
Wood argued that consumers would ultimately want Bitcoin to protect them against unfair confiscation of wealth, which can occur directly through state intervention or indirectly through inflation. Central banks cannot alter the supply of Bitcoin, making it an attractive way to store wealth and hedge against inflation, Wood argues.
Meanwhile, in a deflationary scenario, the transparent nature of Bitcoin serves as a hedge against counterparty risk, which was a primary factor behind the 2008 financial crisis.
“We won’t have 08-09 with Bitcoin, everything is decentralized, no obfuscation.”
Thoughts on Coinbase, SEC, Ripple
Wood also shared his views on the SEC’s case against Coinbase, clarifying that the case had nothing to do with ARK’s sale of its stock holdings.
She said the company is making a profit on its Coinbase bet after the stock rebounded from the plunge it took after the SEC action.
He explained that Coinbase’s share value took a significant hit when the lawsuit went public, but did not fall to new lows and ARK continues to maintain a “very positive” stance towards the asset.
Wood also expressed optimism that the exchanges could prevail against the SEC’s lawsuits, pointing to the recent court ruling in Ripple’s case against the SEC as a major factor.
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