Cathie Wood Says Price of Bitcoin Will Go Through the Roof if People Lose Confidence in Monetary System

Cathie Wood, the CEO of ARK Invest, has said that the price of Bitcoin (BTC) could skyrocket if the public loses faith in traditional financial systems. In a recent YouTube update, Wood discussed the potential of BTC to be a store of value and attract capital from investors who are seeking a more reliable store of value compared to the conventional options available to them. Wood further elaborated that if the global monetary system loses the confidence of the people, crypto could experience a massive shift from a store of value perspective, eventually driving the price of BTC through the roof.

One of the significant reasons why Bitcoin has been surging recently is because it fulfills the crucial role of being a store of value. Investors, who are looking to park their money in an investment or asset that has a low risk and steady growth potential, are increasingly turning towards BTC. As the financial and economic uncertainty across the globe continues to grow, BTC has emerged as a feasible investment option. The finite supply of Bitcoin also adds to its appeal as it fulfills the long-term requirements of investors, who are looking for a reliable store of wealth.

The inflation rate of Bitcoin is 1.8% per year and will continue to decrease every few years as the supply steadily decreases. In a few years, the inflation rate will be less than 1%, driving the price up even higher. With only two million more Bitcoins left to be minted and 19 million units already in circulation, the limited supply and halving mechanism create a fertile ground for potential growth.

Although skeptics argue that Bitcoin has no intrinsic value, its price continues to rise as more investors see it as a legitimate store of value. Wood’s remarks come amid a global financial crisis that has affected the traditional systems and cast doubts about their future. In such a scenario, the decentralized and secure nature of Bitcoin could emerge as an ideal antidote to the problems of conventional financial systems.

Moreover, BTC’s recent rally amid the banking crisis and economic uncertainty shows that it is beginning to succeed in fulfilling the role of a store of value. The fact that developers, coders, and programmers have built a mathematical metering for Bitcoin strengthens investors’ trust in the cryptocurrency. The stable architecture of BTC assures investors that its value will stay the same as it is immutable and cannot be manipulated.

Several investors have also identified Bitcoin as a potential hedge against inflation. As the US Federal Reserve continues to print money to stimulate the economy, investors are turning towards Bitcoin in anticipation of its value increasing in opposition to the value of traditional currencies. The fear of inflation, spurred by the political and economic conditions of the world, has triggered investors to seek stability in BTC.

To sum up, the increasing uncertainty in the global financial system creates an ideal breeding ground for Bitcoin as a reliable store of value. Investors who are looking to park their money in a low-risk investment option are increasingly turning towards Bitcoin as it satisfies their long-term goals of wealth preservation. Moreover, the scarcity of Bitcoin and its stability make it an ideal hedge against inflation, a sentiment that is increasingly catching up among investors. As the market continues to recognize Bitcoin’s potential in the long-run, the cryptocurrency is poised for continued growth in the future.


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