The bitcoin and cryptocurrency price race has stalled after the phenomenal rebound in the first half of this year, with some warnings about the prospects for Bitcoin.
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The price of bitcoin has not been able to stay above $ 50,000 per bitcoin despite multiple attempts to overcome the psychological barrier. Meanwhile, ethereum, the second-largest cryptocurrency after bitcoin, has also moved away from its all-time high in May.
Despite recent Bitcoin fights, Cathie Wood, the chief executive of Ark Invest, has become famous with big bets on bitcoin and Elon Musk’s electric car company, Tesla
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Cathie Wood, CEO of Ark Invest, has long been a supporter of Tesla CEO Elon Musk … [+]
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“If we are right and companies continue to diversify their cash into something like bitcoin and institutional investors start allocating 5% of their funds, we believe the price will be double the current one,” Wood said. a CNBC presenter Andrew Ross Sorkin at the Salt Technology Conference in New York. “So instead of $ 45,000, more than $ 500,000.”
In July, Wood joined Twitter’s Musk and Jack Dorsey in a live discussion that saw the trio discuss the potential of Bitcoin, as well as the merits of ether and meme-based dogecoin.
Wood, who said he set price targets on a five-year calendar, called Bitcoin as its main cryptocurrency, as “countries now consider [bitcoin] legal course, ”although it also has an upward trend in the price of ether and sees Ark’s portfolio split by 60%, 40% between the two.
Earlier this month, El Salvador made history when it adopted bitcoin as its official currency alongside the US dollar, sparking speculation about other countries. Some have suggested that Ukraine could adopt Bitcoin after it moved to legalize it last week and a Malaysian prime minister has done so dit his country should “encourage” cryptocurrency holders to invest in Malaysia.
Much of the rise in cryptocurrency prices this year – which has seen the combined market for cryptocurrencies skyrocket from about $ 700 billion to more than $ 2.1 billion – is due to concentrations in ethereum and its numerous market-seeking rivals.
“[Ethereum] is seeing an explosion in developer activity thanks to NFT and DeFi, ”Wood said, referring to the fashion of digital collectible non-fungible tokens and an explosion of decentralized cryptography-based finance designed to recreate loans and interest without the need for banks.
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The price of bitcoin has risen more than 300% since this time last year, with an increase in the price of ether … [+]
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“I’m fascinated with what’s happening at DeFi, which is collapsing the cost of infrastructure for financial services in a way that I know the traditional financial industry doesn’t appreciate right now,” Wood said. “Our confidence in ethereum has increased dramatically as we have seen the beginning of this transition from the job test to the participation test.”
Late last year, ethereum began a long-awaited transition away from the energy-intensive test to the game test, designed to help the etereum scale and increase its efficiency. However, the upgrade will not be completed until 2022.
Wood, who sees Elon Musk’s Tesla valuation already soaring in the coming years, praised the dogecoin-loving billionaire. “[Musk is] a visionary and sees the future so clear, ”he said, predicting“ explosive growth ”and committing Ark to“ nothing more than disruptive innovation ”.
“I think both cryptography and equity markets will be fueled by millennials,” Wood added.