Cathie Wood: Bitcoin Is a Hedge Against Both Deflation and Inflation

Cathie Wood

Instead of choosing between gold or cash, Cathie Wood, a “stock tycoon,” places her bets on Bitcoin for the next decade.

Cathie Wood, CEO of ARK Invest, believes Bitcoin (BTC) can hedge against inflation and deflation.

On an episode of Bloomberg’s Merryn Talks Money podcast, the female head of ARK Investment Management expressed her belief that Bitcoin is a secure asset due to its decentralized nature and the transparency of all transactions on the network. She contrasted this with the dubious activities that occur within the conventional banking system.

Cathie Wood strongly believes that certain banks are unable to fulfill their customers’ withdrawal demands, and as a result, they are being forced to sell securities they own or invest in. This situation is ongoing and is putting a lot of pressure on the banking industry. In order to retain their users and compete with other monetary funds, banks have no choice but to increase their interest rates. Though there is no definitive evidence, Ms. Cathie’s observations suggest that this trend will continue.

“Woman of Wall Street” connects the story with the banking crisis in the US that occurred in March 2023. At that time, Silicon Valley Bank (SVB) collapsed, bringing along a number of other banks, and causing people to begin to worry about the financial and economic health of the most powerful country in the world. From here, the cash flow temporarily shifted to Bitcoin, bringing the price of the main coin close to the 30,000 USD mark.

In the interview, Cathie Wood reiterated her past comments that the banking crisis, along with the collapse of the FTX exchange a year ago, served as evidence that reinforced the value of Bitcoin. Previous scandals have exposed the vulnerabilities of the centralized financial system.

Cathie Wood acknowledges gold’s ability to fight inflation and deflation but maintains her trust in Bitcoin as a long-term asset.

Billionaire investor Stanley Druckenmiller shares Cathie Wood’s view that not investing in Bitcoin is a missed opportunity. Additionally, Paul Tudor Jones, known as a skilled trader, has also expressed interest in Bitcoin due to the current escalating geopolitical tensions and the weakened financial position of the United States.

Cathie Wood’s company, ARK Invest, has made significant investments in Coinbase and the Grayscale Bitcoin Trust (GBTC). As the crypto industry enters the “Uptober” wave, Ark Invest has also been quick to take profits on their stocks. The company applied to open its own Bitcoin spot ETF trading with the US Securities Commission (SEC) in June, but the regulator delayed the process.

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