Summary
- Cathie Wood believes in the decentralised and transparent Bitcoin network.
- She said Sam Bankman-Fried hated it for that very fact – that he couldn’t control it.
- Additionally, she encourages people of all ages to embrace technology as a means for change.
Founder, CEO and CIO of ARK Invest, Cathie Wood is a staunch supporter of Bitcoin (BTC). Her investment management firm, ARK Invest is known for its risk appetite and for doing things differently. She recently joined Journalist and Bitcoin educator Natalie Brunell for an interview.
A Lesson in Financial History
Wood started by going back all the way to the 1960s, when the United States experienced a recession and double-digit inflation. One notable difference from today is that debt levels were not as extensive as they are today.
This is where Wood identifies a significant contemporary problem – uncontrolled government spending. Combined with a Federal Reserve that communicates confusing and contradictory messages, Wood believes the economy will face a much harder landing.
Enter Bitcoin
For the founder of ARK these are very good reasons to be into Bitcoin. She explains that the recent failures of regional banks led to Bitcoin’s price rising from US $19,000 ($30,000) to US $30,000 ($47,000).
She asked,
What did that tell us? It tells us that because of the decentralisation and the transparency in the network, that counterparty risk is not an issue for Bitcoin. And so, there was a flight to safety. Into Bitcoin.
Cathie WoodFTX Proves Bitcoin Right
While some may cite FTX as a reason to label cryptocurrencies as unregulated or dangerous, Wood holds the opposite view. If anything, the FTX debacle showed that decentralised finance and transparency prevail over a centralised system, where one individual or a group holds all the power.
Wood stated that Sam Bankman-Fried, the now disgraced founder and former CEO of FTX, currently facing trial for several counts of fraud, believed he was the “master of the universe.”
She added, “FTX was completely centralised, completely opaque and a fraud. Bitcoin is transparent and decentralised. He couldn’t control Bitcoin and that’s its beauty. That’s its beauty.”
Finally, Wood suggests that innovation plays a crucial role in addressing and resolving the various challenges we face. She emphasised her desire for not only investors but also individuals from different generations, such as parents, grandparents, and students, to embrace and adapt to positive changes brought about by innovation.
In essence, she encourages people to be open to change and view it as an opportunity for improvement and progress.
We want to inspire young people to get on the right side of change and then enjoy a wonderful life. Is writing the change instead of being caught in the disruptive innovation that is going to, you know, disintermediate and perhaps destroy certain industries. So, I’ll leave it with get on the right side of change. There’s so much hope, so much opportunity, and it’s going to be so exciting.
Cathie Wood
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