Cathie Wood, founder of global asset management firm ARK Investment, claimed that leading crypto asset Bitcoin is a much bigger idea than tech giant Apple or Amazon.
Wood: “Bitcoin is a bright future product…”
In a recent Yahoo Finance interview, Wood explained why he believes Bitcoin and other cryptocurrencies have a bright future.
“We were expecting institutions to start switching to Bitcoin and other crypto assets, but first of all, Bitcoin is the safest of all blockchains. If you look at the correlation of Bitcoin’s performance with other asset classes, you will see that it has the lowest correlation. So if you buy some Bitcoin, you will further diversify your portfolio and increase your returns with lower risk.
Institutions look for this low correlation. Bitcoin has it. This is obvious. We now have a 10-year history. ”
Corporate interest was surprising
Wood also noted that institutions are betting heavily on BTC, with MicroStrategy and MassMutual leading the way.
“What surprised me and us in general was MicroStrategy, which invested all the money on its balance sheet in Bitcoin. Then Square put 1% of all its assets in Bitcoin and I think you’ll see more of that. We did not expect this. What we expected was for institutional investors to come in because of the low return correlation.
The most surprising for me so far has been MassMutual. He invested $ 100 million in his general account. Now the overall account is huge, so something like a hundred million dollars .001, but this move shows us that MassMutual is very conservative and very highly regulated and therefore needs to overcome many more regulatory hurdles. ”
In terms of technological impact, the ARK Invest manager believes Bitcoin is a far greater force than Amazon or Apple.
“Bitcoin has a market value of roughly $ 600 billion, so it’s not even half of Apple or Amazon. But he still has a really big idea. I think it’s a much bigger idea than Apple or Amazon. The first truly global digital currency on the market and completely decentralized. ”