Sister Mumu: Bitcoin is competing for the global market and AI is a catalyst for innovation

Author: Jose Antonio Lanz, Decrypt; Compiler: Songxue, Golden Finance

Cathie Wood, founder and CEO of ARK Investment Management, said she believes Bitcoin may be worth $1 million one day. But not anytime soon.

Wood, who has weighed in on topics ranging from interest rates to the emerging field of artificial intelligence (AI), said in a recent interview with Brazilian financial news portal Infomoney that she was as bullish on Bitcoin as ever.

“Gold is a multi-trillion dollar asset and we do believe Bitcoin will benefit significantly from it,”she explained how Bitcoin could reach 1 million per coin price in U.S. dollars. Wood saidThe comparison is not just about value, but also about the fundamental role that Bitcoin can play as a decentralized, private alternative to traditional money.

Wood said she also believesBitcoin plays a vital role in emerging markets as a hedge against erratic monetary and fiscal policies by individuals and institutions.

“Most emerging markets will use something like Bitcoin as insurance,” she elaborated, noting Bitcoin’s broad applicability.

According to Wood, Bitcoin represents a new era in finance - the world's first digital and decentralized currency system. This was a seminal development, especially considering the closing of the gold window in the United States in 1971. She said her conclusion was based on Bitcoin's scarcity, security and growing acceptance in the investment community.

“So as institutions get involved, the scarcity value is going to increase and we think that’s going to drive the price up quite dramatically,” she said, adding that among the million-dollar tokens, The road just needs more trust. "Right now, we're in the $40,000 to $43,000 range. As long as institutions put 2% to 5% of their asset allocation [in Bitcoin], we can easily get to that level."

She believes that widespread adoption of Bitcoin could be achieved if institutions included some Bitcoin in their portfolios, either directly or through ETFs, so that Bitcoin’s bad reputation as a venture capital investment would be offset by its positive attributes. benefits gradually fade.

If cryptocurrencies prove to be a new asset class, it will reduce their correlation with other alternative assets, thereby increasing their appeal among investors, Wood said.

“Institutions know that if a new asset class emerges, its returns will become less correlated with other asset classes, which generally means that when you include Bitcoin in your portfolio, every Returns per unit of risk will rise, and institutional investors "know they can't miss these types of opportunities," she said.

The conversation with Wood quickly turned to artificial intelligence and its profound impact on productivity and innovation Impact. She expressed strong confidence in the continued growth and importance of artificial intelligence, emphasizing the rapid progress in the field. In particular, Wood mentioned Tesla as an important artificial intelligence project, highlighting the technology The intersection with industry.

“The convergence of robotics, energy storage and artificial intelligence into autonomous taxi platforms creates an entirely new business model,” she said. In fact, Wood said she sells Nvidia stock to buy Tesla (and some Coinbase) because she believes some AI stocks are overvalued and Tesla has greater appreciation potential.

Wood admits she values ​​software more rather than hardware. She highlighted a key shift, noting that global spending on software is likely to dwarf spending on hardware in the future, with the share of software spending expected to increase 10 to 20 times.

“Coinbase, Tesla, Roku UiPath, Zoom, Block, and CRISPR Therapeutics are the top seven stocks in the portfolio ," she revealed. "The other three in the top 10 are Roblox, Twilio and Unity Software. ”

Wood’s final insight returned to the potential of AI:“AI will remain the greatest catalyst for other types of innovation,”she said.