You’ll Have a Once in a Century Investment Opportunity if You Can Stomach Bitcoins Volatility. (Cathie Wood)
You’ll see why Wood thinks investing in Bitcoin now is like buying Amazon stock in 2000.
Source — Cathie Wood — YouTube
Cathie Wood is a self-made millionaire who has made a name for herself in finance.
At 59, Wood founded ARK Invest, a $60 Billion investment fund.
Her net worth is not publicly known, but estimates place it at around $250 million.
Cathie Wood received criticism in 2007 and 2008 for her bullish stance on housing prices and faith in the housing market’s stability.
Many argued her optimism was misplaced and that she failed to anticipate the housing market crash that occurred later in the year.
In 2014 Wood made headlines for her bold prediction that Tesla’s stock price would reach $700 within five years. At the time, Tesla’s stock was trading at around $200. Wood’s prediction ultimately came true, as Tesla’s stock price hit $700 in 2019.
Wood recently made headlines for her bullish outlook on the stock market, even as many investors were concerned about the economic impact of the COVID-19 pandemic.
As you know, the markets have been crashing, and she got it woefully wrong this time, proving that a broken clock is right twice a day.
She’s now predicting the bottom of the market cycle and has said that the rebound will be “pretty powerful”.
Wood compares Bitcoin to Amazon in the 1990s, saying that Bitcoin has the potential to become a household name like Amazon has become today.
She believes that bitcoin is currently undervalued and misunderstood but that it has the potential to recover and thrive in the long run, despite experiencing ups and downs in the short term.
Cathie Wood:
“I believe bitcoin has the potential to be like Amazon in the 1990s, an undervalued and misunderstood asset that eventually becomes a household name.
While it may experience ups and downs in the short term, in the long run, I have high conviction in its ability to recover and thrive.”
Wood Doesn’t Hold Back on Her Bitcoin Prediction.
Wood says Bitcoin has the potential to become a significant player in the financial industry and could even surpass the market capitalisation of Gold.
Her prediction looks like another shot in the dark.
But she says Bitcoin is still a relatively new and volatile asset, and its adoption and regulation are uncertain.
Wood points to the strong performance of Bitcoin in recent years as evidence of its potential.
Since 2009, the price of Bitcoin has experienced significant growth, reaching an all-time high of over $64,000 in 2021 before experiencing colossal volatility.
In addition to its strong financial performance, Wood says the underlying technology of Bitcoin, Blockchain, is a critical factor in her prediction.
She says that Blockchain is a decentralised and secure way of recording and verifying transactions, and it has the potential to revolutionise industries beyond just finance.
Wood believes that the adoption of blockchain technology will continue to grow, driving demand for Bitcoin and other cryptocurrencies.
It’s hard to predict the future of Bitcoin and other cryptocurrencies with certainty.
Wood is optimistic and says her strong belief in the underlying technology’s potential and the growing adoption of cryptocurrencies by both individuals and institutions.
She believes Bitcoin will reach a price of $1 million by 2030.
She says a crisis can help “battle-test” an asset and that bitcoin has emerged “smelling like a rose” after the recent enormous correction.
Wood also thinks that institutions may need to be faster to adopt Bitcoin, but once they fully understand it, they may become more comfortable investing.
Only time will tell if her prediction comes to fruition, but it is clear Bitcoin, and other cryptocurrencies are here to stay and will continue to be a disruptive force in the financial industry.
Cathie Wood:
“I’m still holding to my Bitcoin prediction of $1 million by 2030, and sometimes you need to battle test.
It would be best if you went through a crisis to see the survivors and battle-test the infrastructure and the thesis.
And Bitcoin is coming out of this smelling like a rose.
The one thing that will be delayed is institutions stepping back and saying do we understand this?
Once they do the homework and see what we’ve done here, I think they may be more comfortable — coming into Bitcoin and perhaps Ethereum as a first step.”
Final Thoughts
I’m often sceptical of so-called expert predictions.
No one can predict the future or could know what the price will be.
Wood’s prediction is based on her belief Bitcoin will become increasingly mainstream and widely adopted as a store of value and means of exchange.
The adoption curve of retail investors backs up her claims.
Wood sees Bitcoin as a hedge against traditional monetary systems and says its limited supply will drive the value higher over time.
While the price of Bitcoin can reach $1 Million, it’s crucial for you to carefully consider the risks and uncertainties involved before making any investment decisions.
You could see governments ban Bitcoin.