Cathie Wood Bets on Bitcoin Over Gold and Cash as Deflation Hedge for Next Decade

cathie-wood-bitcoin — Source: Ark Invest / Instagram

Cathie Wood has reiterated her confidence in Bitcoin as the go-to asset as hedge against deflation over the next decade. Wood picked Bitcoin over traditional safe havens like gold or cash.

Wood believes that deflation is on the horizon, despite the markets’ current focus on heightened inflation risks driven by emerging technologies and innovations.

Cathie Wood Picks Bitcoin for 10-Year Investment Over Gold and Cash

In an interview with Bloomberg, Wood responded to a question about her preferred asset class for a 10-year investment horizon.

Without hesitation, she expressed her support for Bitcoin, citing its unique qualities as a financial instrument.

“Bitcoin, hands down. Bitcoin is a hedge against both inflation and deflation because there’s no counterparty risk, and institutions are barely involved.”

Wood referred to Bitcoin as “digital gold,” emphasizing hits utility in a variety of economic conditions.

Cathie Wood has long been an optimistic advocate for cryptocurrencies, foreseeing their symbiotic relationship with emerging technologies and innovations.

She has previously forecasted that the price of Bitcoin could surpass $1 million within the next decade. Currently, the market value of the leading cryptocurrency is around $35,000, which is roughly half its peak value in 2021.

Ark Invest Looking to Benefit from Spot Bitcoin ETF

Recent rallies in the token are attributed to growing expectations that the U.S. Securities and Exchange Commission (SEC) might approve exchange-traded funds (ETFs) directly investing in Bitcoin.

Cathie Wood’s firm, ARK Investment Management, is well-positioned to benefit from potential ETF approvals, as they have applied for a Bitcoin ETF alongside 21Shares and invested in the Grayscale Bitcoin Trust.

Wood’s ARK Next Generation Internet ETF, holding significant stakes in GBTC, has performed exceptionally well, posting returns of about 224% this year. This outperforms the approximately 114% rally in Bitcoin itself. ARK sold some of its GBTC holdings in the previous month.

In her podcast appearance, Wood also touched upon the synergy between artificial intelligence (AI) and Bitcoin, predicting a convergence that would facilitate global microtasking and a division of labor in ways that are currently unimaginable.