Ark Invest CEO: “$ 1 trillion is nothing” compared to the fate of Bitcoin

Bitcoin’s market capitalization (BTC) of more than $ 1 trillion is just the beginning of the crypto price discovery, said Cathie Wood, CEO of asset management firm Ark Invest, during a virtual conference published yesterday. Wood said:

“If we add up all the potential demand in relation to the limited supply, we will arrive at incredible numbers in the long run. We just started. A trillion dollars is nothing compared to where it will be. “

She added that one of the most surprising developments recently – which Ark did not expect when the company was preparing its institutional report – is that large institutional companies have started to diversify their cash reserves with Bitcoin.

Wood explained:

“We saw Square do this, Tesla do this, put MicroStrategy, I mean, it’s defining its business around it now. And one of the reasons, as Tesla announced yesterday, is that it would like to do business in Bitcoin in regions of the world […] where converting from one fiat to another is prohibitively expensive. “

A truly new uncorrelated asset class

That’s because Bitcoin has become the “first truly new asset class” to emerge recently, with a low correlation with other markets, she argued. Therefore, it is attractive, as it is exactly the type of uncorrelated asset that investors in all sectors are looking for. Wood noted:

“We believe [Bitcoin] it is the first new asset class, truly a new asset class since 1600 – since stocks. So, we are very excited about this. “

At the same time, Wood urged American investors to refrain from selling and transferring their BTC until the Internal Revenue Service provides the appropriate guidance. Wood added:

“The IRS has something to say about it, so if you have big gains in your Bitcoin, I don’t think it would take much in the way of transactions until we get perhaps some changes on the fiscal front.”

As CryptoSlate reported, Jerome Powell, president of the United States Federal Reserve, said recently that Bitcoin is “essentially a substitute for gold”.

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