Cathie Wood, the CEO of ARK Invest, recently expressed her preference for Bitcoin over Ethereum during an interview with Wilfred Frost on the Master Investor podcast. Wood discussed her outlook on the cryptocurrency space, emphasizing that Bitcoin is likely to dominate in the long term. She outlined her views on both Bitcoin and Ethereum, clearly indicating why she believes Bitcoin has a superior role.
Wood argued that Bitcoin is the leading cryptocurrency and will remain the most significant one.
“Bitcoin owns the cryptocurrency space when it comes to pure crypto. Bitcoin is the cryptocurrency,” she said.
She also emphasized that Bitcoin would remain “by far” the largest cryptocurrency moving forward.
According to Wood, Bitcoin stands out as a “monetary system built on rules” with a capped supply of 21 million units. As of now, nearly 20 million Bitcoins are already in circulation. Wood’s confidence in Bitcoin stems from its scarcity, transparency, and established presence in the market.
She contrasted Bitcoin with stablecoins, calling them cryptocurrencies that rely on collateral, mainly Treasury securities. Stablecoins, such as Tether and USDC, are tied to fiat currencies like the U.S. dollar. While they have a place in decentralized finance (DeFi), Wood believes they are secondary to Bitcoin in terms of overall impact.
Wood acknowledged that stablecoins have impacted Bitcoin’s demand to some extent. However, she pointed out that stablecoins provide higher returns compared to traditional banking systems.
“Lending out stablecoins allows for returns that banks can never offer,” she explained.
She believes that DeFi has improved transparency, offering a safer alternative to traditional financial systems.
In her view, blockchain technology has removed middlemen and reduced transaction costs. She highlighted that transaction fees could fall to 1% or less, compared to the high costs of traditional remittances. She also stressed that DeFi has allowed individuals excluded from the traditional banking system to access loans and earn income.
Despite this, Wood emphasized that Bitcoin remains the foundation of the crypto space. It is not just a store of value; Bitcoin also serves as a robust layer-one blockchain technology. This belief separates Wood’s outlook from others in the space, such as Tom Lee, who has suggested that Ethereum could surpass Bitcoin in value and influence.
Wood disagreed with the notion that Ethereum could surpass Bitcoin in the near future. She noted that Bitcoin serves three distinct roles: a global monetary system, a decentralized technology, and the pioneer in the cryptocurrency market.
“Bitcoin is the first of its kind in a new asset class,” she stated.
She acknowledged Ethereum’s importance in DeFi but reaffirmed Bitcoin’s central position. According to Wood, Ethereum plays a crucial role in the DeFi ecosystem as its native currency. However, she cautioned that the increasing number of layer-two solutions might lead to fragmentation, undermining Ethereum’s dominance.
Wood also highlighted ARK Invest’s Bitcoin holdings, confirming that the firm maintains exposure to both Bitcoin and Ether. However, she clarified that her firm’s focus remains on Bitcoin’s long-term potential.
Maxwell is a crypto-economic analyst and blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
TLDR Arizona introduces new regulations to curb crypto ATM scams and protect residents. The new…
Never Miss Another Opportunity.
Get hand selected news & info from our Crypto Experts so you can make educated, informed decisions that directly affect your crypto profits!
Type above and press Enter to search. Press Esc to cancel.
BC Game Crypto: 100% Bonus & 400 Free Casino Spins, Claim Here!