By Kerry A. Dolan
Cathie Wood, the hugely successful fund manager known for her huge “bet” on Tesla, explained why she remains bullish on Bitcoin, citing the reasons her company sold almost all the Chinese shares it owned and revealed what Ark Invest now buys all this during a panel discussion, moderated by investor and businessman Jason Calacanis, as part of PreMoney, a 500 Global conference in Miami Beach, Florida.
More specifically, Wood – which was included in the Forbes list of the richest self-made women in the US in August, with a net worth of $ 400 million – predicted last September that the price of Bitcoin will skyrocket to $ 500,000 over the next five years. She is a staunch supporter of Bitcoin, and is not discouraged by the fact that the most valuable cryptocurrency in the world has fallen out of favor with a part of the market. “There is a sense that the Web3 world is moving away from Bitcoin and Ether, to cheaper and faster ‘cryptocurrencies,'” he said. In the reconstruction, that is, of an old structure in a new form. And Wood continued: “I heard that Bitcoin is obsolete. Big mistake. See what’s happening in El Salvador“.
Calacanis asked: “Do you believe this dictator (El Salvador’s president, Nayib Bukele)? Do not you think he is a bad actor?”
Wood replied: “They put $ 30 in each Chivo account [τα ψηφιακά “πορτοφόλια” που δημιουργήθηκαν για κάθε πολίτη στο Ελ Σαλβαδόρ]. Before Chivo, only 1.2 million people had a bank account. Today, 3 million of the 4 million beneficiaries use banking services. ”
Calacanis continued: “Most technologies do not last more than a decade. Why should Bitcoin last longer?”
Wood replied: “This is the safest blockchain technology out there. What is happening now would be his dream. [νομπελίστα οικονομολόγου] “Robert Mundell: a global monetary system that no one will control.” “Look at Turkey. The Turkish people have lost half their purchasing power since February. Wouldn’t it be nice to have a little bitcoin? ”
China
The debate then turned to China and Beijing’s moves to digital currencies in 2021: a “lockout” in cryptocurrency exchanges and a ban on mining, with Wood saying the company owned shares in Chinese e-commerce giant Alibaba , but sold them along with shares of other Chinese companies. “We have few shares there [στην Κίνα], because their fluctuations are unpredictable. “They are struggling with what most governments are struggling with: the gap between rich and poor.” government prefers to risk a downturn in the real estate market in order to address the “wealth gap”.
Calacanis remarked: “I think the ‘crazy king’ is circling because he feels threatened. I’m referring to Xi Jinping.”
And Wood replied: “I believe that if China is isolated, it will work in the United States’ favor. It will reduce the chances of it becoming a world superpower.”
What Ark Invest is buying now
Wood said Ark Invest was currently buying Robinhood – a stock that fell nearly 40% from its IPO in July – but did not elaborate. He added: “We are chasing digital wallets: Coinbase, Square Cashapp, less Paypal Venmo.” “Most analysts are focusing on banks, which we believe will deflate … DeFi and digital wallets.” That’s why Ark stays away from traditional banks.
Two more shares to buy: Zoom, a video communications company, and Twilio, both part of a new wave of telecommunications tools. “What I do not think people realize is that the telecommunications industry has not been renewed for the last 30 years. I say this as I think of Cisco … and the whole ‘old’ telecommunications industry. Covid-19, Wood said, has inspired the creation of a new “batch” of options.
Calacanis asked about electric car companies (probably referring to Rivian, though he did not specify): “Speaking of fraud, should a company that has not even sold a car be worth $ 150 billion?”
Wood’s response: “Investment is about the future. It’s not a scam, but it may be a miscalculation. No, I would not call it a scam.” Regarding listed electric car manufacturers, who have little to no revenue, Wood said: “We blamed Nikola Motor. We knew what he was saying. [ο πρώην πρόεδρος της Trevor Milton] was wrong. “We knew there was a problem.”In July, Milton was charged with fraud by the Manhattan District Attorney’s Office due to comments he made about a multi-year plan of the company in order to mislead small investors – he pleaded not guilty). Wood also referred to Rivian and Lucid, saying Ark did not own either. Why; “They are chasing niche markets.” He said that Ark Invest has talked to both companies about autonomous driving, but they do not focus on their activity. Wood’s view: without motor vehicles, both would not be enhanced. Rivian may find some support in its links with Amazon, which has a stake in the company and is committed to switching to electric delivery vehicles.
Wood’s bearish position is not surprising, given that it has invested in the biggest competitor of these companies. Wood pointed out that since 2014 Ark has been announcing its holdings at the end of each day. By far, its largest stake is in Tesla, where Ark “sits” on a share worth $ 2.4 billion.
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Source: Forbes
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