Sister Mumu: BTC will reach 1 million US dollars

Cathy Wood, founder of Ark Investment Management, reiterated in her latest interview in January 2024:She believes that the price of Bitcoin will one day reach $1 million.

Choose companies that can change the world

Sister Mu Mu is the founder and CEO of American Ark Investment Company (ARK). Her real name is Cathie Wood.

It can be said that she is a well-known growth stock investor known for investing in disruptive innovative technologies, such as artificial intelligence, electric vehicles, blockchain, genetic sequencing, etc.

Her investment philosophy is to choose companies that can change the world, rather than companies that will not be changed as the world changes.

Her fund achieved a staggering 134% return in 2020, beating the S&P 500's 18.4% return. She is also the number one Internet celebrity in the global investment community, with many fans and followers.

Sister Mu Mu’s growth experience is very legendary. She was born in 1955, her father was a radar systems engineer and her mother was a housewife. She has been interested in technology and finance since she was a child, and graduated from the University of Southern California with a double major in economics and finance. She has worked in several investment institutions, including Janis Fund, United Capital, Tucson Capital, etc.

She once boldly predicted that Tesla’s stock price will reach $4,000 (based on the current stock split ratio), and holds a large amount of Tesla stock. She is also a loyal fan of Bitcoin and has repeatedly believed that Bitcoin is expected to reach the price target of US$1 million per coin.

She has accumulated rich experience and insight in the investment field, but she has also encountered many setbacks and doubts. She was fired for insisting on buying growth stocks such as Amazon and Tesla, and was criticized by the media and peers for fluctuating fund performance.

However, Sister Mu did not give up her beliefs and ideas. She founded Ark Investment Company in 2014 to focus on investing in disruptive innovative technologies. Her fund adopts an open and transparent strategy, announcing changes in holdings every day, and releases the "Big Ideas" report every year to share its views on future technology trends.

Her fund has also attracted a large number of investors and partners, including Tesla CEO Elon Musk and Twitter CEO Jack Dorsey wait. Her fund has achieved spectacular results over the past few years, becoming one of the most popular actively managed funds in the world.

Cryptocurrency will be a revolution

Sister Mu Mu is very optimistic about blockchain technology. She believes that blockchain is one of the three major revolutions, alongside artificial intelligence and gene sequencing. She believes that blockchain technology can achieve digital scarcity and proof of ownership, thus subverting traditional financial systems and business models. Moreover, new technologies will continue to lead to lower costs and create new market opportunities and demands.

In the January 2024 interview, Wood expressed his views on various topics, ranging from interest rates to the emerging field of artificial intelligence, and said that he was as bullish on Bitcoin as ever currency.

"Gold is a trillion-dollar asset and we do believe Bitcoin will get a piece of that," she said, explaining that Bitcoin Why coins can reach a price of US$1 million per coin.

“This comparison is not just about value, but about Bitcoin’s role as a decentralized, private alternative to traditional currencies. The fundamental role it can play.

Most emerging markets will use something like Bitcoin as insurance," she said, noting that Bitcoin wide applicability.

She also believes that Bitcoin represents a new era of finance - the first global, digital and decentralized monetary system. This was a groundbreaking development, especially considering the closing of the U.S. gold window in 1971. She said her conclusion was based on Bitcoin's scarcity, security and growing acceptance by the investment community.

"So as institutions get involved, that scarcity value will increase the price significantly," she said, adding that the path to million-dollar tokens The path just requires a little more trust. “Right now, we’re in the $40,000 to $43,000 range. It doesn’t take much for institutions to put 2% to 5% of their asset allocation in Bitcoin, and we can easily achieve that.< /strong>”

"Wide adoption of Bitcoin can be achieved if institutions include some Bitcoin in their portfolios, either directly or through ETFs. With Bitcoin Bitcoin’s reputation as a risky investment will fade away as the positive characteristics of the currency bring benefits.

If cryptocurrencies prove to be a new asset class, it will reduce its correlation with other alternative assets, which may increase their attractiveness to investors."

Finally, she said: “Institutions actually know that if a new asset class emerges, the return correlation with other asset classes will decrease, which generally means that when you include Bitcoin in your portfolio , the return per unit risk will rise. Institutional investors know it, but they cannot miss such an opportunity."

In March 2021, Wood also said at a group meeting held at the Chicago Board Options Exchange (CBOE) Similar views.

Wood believes that demand from institutions will be the driving force behind the rise in Bitcoin valuations. If institutions want to minimize volatility and maximize the Sharpe Ratio, a standardized measure of fund performance, they should invest between 2.5% and 6.5% of their portfolios in on Bitcoin because Bitcoin has a very low correlation to any other asset class.

Innovation never stops

Previously in Las Vegas In a speech at the Forbes/SHOK Top Consultants Summit held in Sri Lanka.

Sister Mu said that by 2030, the value of the innovation market will reach US$210 trillion (currently US$7 trillion). She also noted that disruptive stocks tend to be deflationary, a trend that should continue into 2023.

"Innovative trends such as electric vehicles, artificial intelligence, genetic sequencing and blockchain technology are highly deflationary," said Mu Mu. "However, today's market has extreme fear of inflation...No one is really making big bets, everyone is cowering, and cash is at an all-time high. Investors are 'too fearful of the innovation that's going on.'" However, the disruptive companies that Sister Mu is optimistic about have become "the new leaders of the next bull market cycle."

About cryptocurrency. At the same event in Las Vegas, she reinforced her support for cryptocurrencies.

"Bitcoin is indeed a monetary revolution," said Sister Mu. "This is a very important insurance policy for countries that do not have the U.S. dollar as a reserve currency like ours."

About the upcoming economic recession occurred. A recession is inevitable due to high inflation and interest rate hikes driven by the Federal Reserve, she noted in the same interview.

"(The Fed's interest rate policy) is a real shock to the system," she said. "I believe we're going to see the impact in a lot of ways. We're seeing housing closing. I think we're going to see a lot of other activities closing as well."

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"So we think we are in a recession, and We think the current economic downturn will continue," Ms. Mu said. "Also, if we see GDP growth, it could be because inventories continue to build, or imports are decreasing as companies try to unload their inventories."

About her reluctance to become a celebrity. In a recent CNBC interview, Sister Mu said that she has never made it her goal to seek media spotlight and fame.

"ARK does have a social strategy, but I want to make young people—analysts, portfolio managers, consultants—famous, not Myself," she said at a New York City media event.

Write at the end

Ark Investment Cathie Wood, the founder of the management company, is a well-known growth stock investor who focuses on investing in disruptive innovative technologies, such as artificial intelligence, electric vehicles, blockchain, gene sequencing, etc.

She believes that Bitcoin is a disruptive monetary revolution that is expected to reach a price of $1 million per coin and will be widely adopted and supported by institutions. She has worried about economic recession, but she also values ​​the role of disruptive innovation, believing that innovation can solve problems and is a driver of deflation.