ARK Invest – Bitcoin is the Best Available Hedge Against Inflation
Cathie Wood, Star fund manager, points out Bitcoin’s (BTC) ability to act as a hedge against inflation. While having a chat with Yahoo Finance, the CEO of ARK Invest opined that Bitcoin will continue to eclipse gold.
“I believe there is no better hedge against inflation than Bitcoin. As we know, gold has been moving, although now it’s lagging Bitcoin fairly dramatically so there’s probably some share shift but I do believe that both of them will do well over time.”
Wood states that she also anticipates Bitcoin’s adoption to increase among top enterprises and institutional investors.
“I think we’re going to hear about more companies putting this hedge on their balance sheet as well particularly tech companies who understand the technology and are comfortable with it.”
Woods states that Bitcoin’s comparatively quick rebound from its huge bear market that started in the beginning of 2018 is unique. She trusts that the macroeconomy performed a major role in the quick rebound of top cryptocurrencies.
“Usually when there’s a parabolic move like Bitcoin enjoyed in 2017, it usually takes a generation for that asset or that stock to get back to that peak. I think part of this or the follow-through might have been triggered by again the bond yield pushing, doing what many people did not expect it to do.”
ARK has been having a bullish view of Bitcoin (BTC) for several years. The fund bought its initial Bitcoin six years back when the numero uno crypto was trading at about $250.