- Bitcoin is viewed as a “flight to safety” against devaluing fiat currencies, according to ARK Invest CEO Cathie Wood.
- Wood suggests that deliberate currency devaluations by governments in countries like Nigeria and Egypt are driving Bitcoin’s price performance in 2024.
- Bitcoin’s rise is not solely attributed to the launch of Bitcoin ETFs, as there are other factors at play, such as citizens seeking a hedge against loss of purchasing power and wealth.
Cathie Wood, CEO of ARK Invest, believes Bitcoin is rising as a “flight to safety” against devaluing fiat currencies. In a recent interview, Wood described Bitcoin as both a risk-on and risk-off investment.
Wood Suggests Fiat Devaluation Driving BTC Price
While new Bitcoin ETFs may be driving mainstream interest in 2022, Wood sees another key factor at play – currency devaluations by governments worldwide.
Wood referenced deliberate currency devaluations in countries like Nigeria and Egypt, where currencies have lost about half their value against the US dollar recently. She believes this “flight to safety” is driving Bitcoin’s rise as an insurance policy against “horrible fiscal and monetary policies.”
More to Bitcoin Than Just ETFs
Despite the Bitcoin ETF narrative, Wood has continued publicly supporting Bitcoin as ARK’s ETF competes with major asset managers.
ARK saw rare outflows this week, but Wood still predicts Bitcoin hitting $1 million before 2030 due to institutional money. She believes the majority of Bitcoin’s target market is not yet involved.
Conclusion
Wood concludes Bitcoin is a hedge against government currency devaluation and poor economic policy. She maintains long-term optimism despite short-term outflows from ARK’s Bitcoin products.
