Bitcoin Could Hit $500,000, the Founder and CEO of Ark Invest Says

Discussion in 'Cryptocurrencies' started by dealmaker, Nov 21, 2020 at 9:10 AM.

  1. dealmaker

    dealmaker

    Bitcoin Could Hit $500,000, the Founder and CEO of Ark Invest Says

    By Shaina Mishkin
    Updated Nov. 20, 2020 4:26 pm ET / Original Nov. 20, 2020 4:04 pm ET
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    The price of Bitcoin has been on a tear, rising nearly 160% this year and about 25% month to date. That might be just the beginning, ARK Investment Management CEO Catherine Wood told Barron’s readers Thursday.

    Bitcoin’s recent rise to $18,640 may give investors flashbacks to 2017, when the cryptocurrency reached a high of $19,783.21 in December before selling off. This time is different for one big reason, Wood said: the involvement of institutional investors, which she said could drive Bitcoin’s price to $500,000.

    The founder of ARK and a noted booster of disruptive technologies such as Bitcoin and Tesla told attendees of Barron’s virtual Investing in Tech series that Bitcoin is the most recognized currency of the crypto-asset ecosystem. “It’s the equivalent to the dollar in the fiat currency system,” she said. “That’s a pretty exalted role.”

    Wood added that the rise of central-bank digital currencies, or CBDCs, has added legitimacy to Bitcoin, referencing China’s ambitions to launch a digital yuan.

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    Some investors, she said, see Bitcoin as a digital alternative to gold or an insurance policy against inflation. With the Federal Reserve’s decision to keep interest rates low for the foreseeable future, that’s one reason Bitcoin’s price could be rising. And if institutional investors like hedge funds were to take a greater interest in Bitcoin, it could send prices even higher, Wood said. What’s more, Wood noted the supply of Bitcoin units tops out at 21 million. There are about 18.5 million currently in existence, she said.

    Wood said institutions have been bumping up their exposure to the cryptocurrency recently, drawing a comparison to “the early days of institutions moving into real estate and emerging markets,” when allocations started small, then grew. “They started out with a half a percent allocation, then [1%], and then 5% or thereabout seemed to be the right number.”

    If all institutions were to assign a similar mid-single-digit allocation to Bitcoin, the cryptocurrency could rise “to somewhere in the $400,000 to $500,000 range,” Wood said.

    Tesla (ticker: TSLA) also has room to grow, despite its momentous 491% year-to-date rise, Wood said—although she added, “as the saying goes, the easy money has been made.”

    Wood said institutions focused on benchmarks “will probably move into the stock” following the company’s inclusion in the S&P 500, announced this week. “If we’re right, [Tesla] has miles to go—miles and miles to go.”

    Bitcoin USDSource: CoinDeskAs of Nov. 21, 7:04 a.m. ET
    2016'2005,00010,00015,00020,000$25,000
    Investors should look at Tesla as a true technology stock, not as an auto-manufacturing stock, she told attendees, adding that the stock’s lofty valuation shouldn’t be a concern. “Most people don’t understand what this animal really is,” she said. “It is a technology stock, and it is running away with the electric-vehicle market in a way that I think has been surprising to most.”

    The future for Tesla is in the autonomous vehicle space, Wood said. “We believe it’s in the pole position to become—in the United States, at least—the dominant autonomous taxi network within the next few years.”

    Wood also touched on recent news that Resolute Investment Managers, ARK funds’ U.S. distributor, moved to take over the business next year. She referred to ARK’s prior statement on this development, in which she said she was “disappointed” by the news. Wood said many know that “we do not want this to happen,” adding “we’re in negotiations, and so I’ll just leave it there.”


    Email: Shaina Mishkin at shaina.mishkin@dowjones.com

    https://www.barrons.com/articles/bi...ing-to-ark-invests-catherine-wood-51605906264
     
    Nobert and Trader Curt like this.
  2. Turveyd

    Turveyd

    BitCoin still going ?? pretty sure nobody cares anymore, maybe they'll care again, maybe they won't ??
     
    Jones75 and Nobert like this.
  3. maxinger

    maxinger

    BITCOIN could hit $1 000 000, $10 000 000, $100 000 000, $1 000 000 000 .... or beyond!!!!

    BITCOIN could also hit $10 000, $1 000, $100, $10, $1, $0.01, $0.001, $0.0001 or beyond !!!!

    says CEO of @maxinger.


    This is one of the extremely rare products where price can go very high or very low.
     
    Last edited: Nov 21, 2020 at 9:57 AM
    Jones75, albion, Snuskpelle and 7 others like this.
  4. There’s no limit on anything anymore thanks to the Fed.
    So many trillions sloshing around in the system.
    Fake internet money to the moon!
     
    Nobert, Trader Curt and RedDuke like this.
  5. Just like with every innovation, investors tend to overestimate its potential in the short term and undervalue it in the long run.

    Crypto is still in the hype cycle. If it sticks around, it is likely to reach mainstream adoption and maturity in what seems to be an average of 10-15 years. You can see this story again and again in e-commerce (2000), wireless (2001), biometrics (2002), podcasting (2005), digital video broadcasting (2007), cloud computing and e-book readers (2009), 4G (2010), NFC (2011), 3D printing (2012).
     
    Nobert likes this.
  6. Daal

    Daal

    Yeah, which is why the media needs to stop quoting investing dinossaurs based in the New York about this. Most dont know shit about technology and their potential. Some never got a tech trend early in their life, but somehow people think their opinion about tech matters
     
  7. While Bitcoin's rally lately has been pretty impressive, I find such statements somewhat ridiculous. Remember when John McAffee was saying similar stuff? It turns out he was paid to do so, and now he's facing the consequences. I wonder who is paying this lady.
     
  8. Uh, she runs an innovation-oriented fund, which includes crypto plays? Just like most quoted investors, she is the primary beneficiary of her own opinions.
     
  9. Turveyd

    Turveyd

    To be fair Bitcoin will always go up, because it's impossible to actually cash out, I've got 10Mil in bitcoin and other than exchanging with some other nut job for something you've got no way to actually spend the garbage.
     
  10. Specterx

    Specterx

    By far the worst thing about the Everything Bubble is that carnival-barker blowhards like Cathy Wood (and dare I say Elon Musk?) have become fabulously rich and famous, and we have to listen to everyone else spout off about what geniuses they are.

    Capitalism and markets once had a sort of built-in mechanism for dealing justice, insofar as the tide eventually went out. If LTCM, Enron, Worldcom, Lehman etc had been operating post-2008, they never would have failed.
     
    zdreg, Clubber Lang and Here4money like this.