Star investor in crypto: Cathie Wood: The crypto world around Bitcoin, Ethereum & Co. threatens the banking system | news

Bitcoin will exceed $ 1 million by 2030
Talent and business migrate to the crypto industry
Transformation of financial transactions on blockchain

Bitcoin started the revolution for DeFi (decentralized finance) and is also crucial for Web 3.0, she wrote in a post on the public trading app. Wood remains convinced of the success of both Bitcoin and Ethereum as an integral part of her investment strategy.
In the Public Trading App Town Hall Forum (02/01/2022), when asked about the recent losses of the ARK Innovation ETF, she replied that she was interested in long-term investments, that volatility in the market was equated with the risk that she invested in the future and not in the short term gain. Therefore, ARK Investments concentrates on the next five years and not on the next quarter. ARK Big Ideas 2022 set the time frame up to 2030.

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The investor and cryptocurrencies

Asked which cryptocurrency she trusts the most, Bitcoin or Ethereum, Wood wrote that Bitcoin is the most profound use of public blockchains, “the basis of ‘self-determined’ digital money”. The Bitcoin protocol enabled two revolutions, the one for the Decentralized Finance System (DeFi) and the one for Web 3.0. They rely on both cryptocurrencies, but since the currencies are geared for different purposes, they cannot be compared to each other.
With blockchain technology, the traditional financial institutions that regulate access to financial services will become obsolete in the long run. And with that, banks have a problem, startup investor Cathie Wood told CNBC at the Bitcoin 2022 conference in Miami. They lose both business and talent to the crypto world. The growing interest of institutional investors in the decentralized financial system of the cryptocurrency world now threatens the traditional banking world.

Cryptocurrencies were originally created to bypass traditional institutions, and banks could now feel it, she said in an interview with CNBC “Crypto World.” It is also noteworthy that another part of the establishment with the political institutions is now reacting positively to cryptocurrencies, such as US Treasury Secretary and former Fed President Janet Yellen. It had recently been more open to cryptocurrencies, thus completing a turn of one hundred and eighty degrees.

ARK’s big ideas 2022

In their Big Ideas 2022, ARK analysts illustrate how public blockchains will replace institutions with decentralized, open source software and rely on a global peer-to-peer network to enforce rules, not individuals or institutions. This infrastructure serves as a basis for new forms of economic coordination and minimizes the need to rely on centralized institutions. Another benefit is the reduction in coordination costs. ARK compares the adoption of blockchain with that of the Internet: just like the information converted information into packets, all assets on the blockchain could be converted into blockchain transactions. This would then have maximum effect on all systems.

Concerns about Bitcoin’s unsustainability are unwarranted, Bitcoin could rather change money history towards globally equitably distributed economic freedom, the report continues. Bitcoin mining as a fast-growing industrial sector and innovations in the production and use of energy by bitcoin miners can also nurture success.

Bitcoin price target of $ 1.36 million

The ARK research report puts the price of Bitcoin at $ 1.36 million by 2030, which is huge even for Bitcoin enthusiasts. Because cyber currency cannot be measured by revenue or profit, forecasts for bitcoin are based on its prevalence and significance in financial transactions.
It remains to be seen how Bitcoin will integrate into the financial system and to what extent statements from ARK analysts regarding the transformation of the majority of financial transactions on the blockchain are correct.

Editing finanzen.net

Image Credit: Cindy Ord / Getty Images for Bloomberg Businessweek, Tomas Daliman / Shutterstock.com

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