Bitcoin will be worth $500,000 in five years, according to Ark Invest's Cathie Wood. In addition to this, her confidence in Ether has increased and the firm will likely invest 40% in it, while 60% in Bitcoin.
Ark Invest CEO Cathie Wood expects Bitcoin to rise to $500,000 in five years. The investor who specializes in disruptive innovation spoke at the annual SALT conference on September 13 and was interviewed by CNBC's Andrew Ross Sorkin, making very bullish statements about Tesla, semiconductors, and cryptocurrencies.
Wood said her firm is convinced that companies will continue to diversify their money and will invest in something like Bitcoin. This will lead to a rapid rise in its price, and in five years will be ten times higher than today, reaching $500,000.
"If we're right and companies continue to diversify their cash into something like Bitcoin, and institutional investors start allocating 5% of their funds, we believe that the price will be ten-fold of where it is today. So instead of $45,000, over $500,000."
The famous investor said that if she could only own one cryptocurrency, she would choose Bitcoin by default because some countries now consider it legal tender.
In addition to Bitcoin, Wood also talked about the potential of Ether. "Ether, however, is seeing an explosion in developer activity thanks to NFTs and DeFi," she said. "I'm fascinated with what's going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now," Wood continued, referring to recent changes in the Ethereum network, and the release of update 2.0.
In this regard, Ark's confidence in Ether has grown significantly, so the company will most likely invest 40% in it, while 60% in Bitcoin. "Our confidence in Ether has gone up dramatically as we've seen the beginning of this transition—from proof of work to proof of stake. We'd still probably do 60% Bitcoin, 40% Ether."
© 2021, Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.
