Cathie Wood, the founder and CEO of ARK Invest, is convinced that Bitcoin protects against both inflation and deflation. The flamboyant CEO of the investment fund bases her arguments on the regional banking crisis that we saw in the United States in March 2023, in which a few banks came to the end. That crisis caused Bitcoin’s price to rise by almost 50 percent, reaching a price of almost $35,000.
On the other hand, Bitcoin protects against inflation due to its absolute scarcity, which is why it is also called digital gold.
Bitcoin is the ultimate asset
If you asked Cathie Wood to choose one asset for the next ten years, the CEO of ARK Invest would always choose Bitcoin. According to Wood, Bitcoin is an asset where little can go wrong, which can protect against both deflation and inflation.
In a recent interview with Bloomberg, Wood explained why she prefers Bitcoin over gold. “Gold has already had its demand period. Bitcoin is new and major investors have not yet stepped in. Young people also prefer Bitcoin to gold,” said Cathie Wood at Bloomberg.
Furthermore, according to Wood, Bitcoin is interesting because it entails little to no risk; with which she refers to the problems at banks. If a bank collapses, your assets are not safe, while in the case of Bitcoin there is no bank that can collapse.
If you store Bitcoin in your own wallet or on a secure exchange platform, there is nothing to worry about.
Bitcoin vs gold
As for gold, Cathie Wood has more comments. According to her, the centralized nature of gold also makes it difficult for the precious metal to compete with Bitcoin in the long term.
For example, there is no one on earth who can tell you exactly how much gold is in circulation and how much gold we will find in the future.
In other words: Gold is the opposite of a transparent asset. Due to the non-transparent nature of gold, market manipulation is relatively easy, while with Bitcoin this is a very difficult issue in the more long term.
Furthermore, Bitcoin is of course much easier to store and send. Bitcoin can be on the other side of the world within 10 minutes, while for gold you have to arrange very expensive transport to achieve that.