Cathie Wood, the CEO of ARK Invest, shared her bullish outlook on Bitcoin during a recent interview, underscoring its role as the dominant cryptocurrency in the long run. This assertion was made on the Master Investor podcast, where Wood articulated her belief that Bitcoin will outpace all other cryptocurrencies, including Ethereum.
Wood firmly posited that Bitcoin stands alone in the cryptocurrency sphere, asserting, “Bitcoin owns the cryptocurrency space when it comes to pure crypto.” She expressed confidence that Bitcoin will continue to be the largest cryptocurrency by market capitalization, pointing to its capped supply of 21 million coins as a key advantage. Nearly 20 million Bitcoins are already in circulation, bolstering Wood’s argument about Bitcoin’s scarcity and established market presence.
In contrasting Bitcoin with stablecoins, Wood described stablecoins like Tether and USDC as collateral-backed cryptocurrencies that rely on traditional fiat currencies. While she acknowledged their role within the decentralized finance (DeFi) ecosystem, she suggested that they should be viewed as secondary to Bitcoin in terms of overall significance. Stablecoins do provide higher returns compared to conventional banking options, attracting interest; however, Wood emphasized that they do not match Bitcoin’s foundational impact on the crypto market.
Wood highlighted the transformative potential of DeFi, lauding its capacity to enhance transparency and reduce transaction costs. She noted that fees can potentially drop to 1% or less, markedly cheaper than traditional remittance costs. Moreover, she pointed out that DeFi has created opportunities for individuals typically marginalized from the conventional banking system to secure loans and generate income.
Despite the emerging landscape of DeFi, Wood maintains that Bitcoin is much more than a store of value. She regards it as a robust layer-one technological solution, which establishes its critical role in the wider cryptocurrency ecosystem, separating her perspective from those who speculate that Ethereum could someday surpass Bitcoin.
Wood articulated that Bitcoin serves multiple functions: as a global monetary system, a decentralized technology, and as the trailblazer of a new asset class. She acknowledged the importance of Ethereum within DeFi but remains steadfast in her belief that Bitcoin’s supremacy will persist, suggesting that Ethereum’s increasing fragmentation through layer-two solutions could diminish its dominance in the future.
In the context of ARK Invest’s portfolio, Wood confirmed that the firm holds both Bitcoin and Ether, yet she underscored a clear prioritization of Bitcoin’s long-term potential.
