In the last series tweets Cathie Wood, CEO of asset management company Ark Invest, said Bitcoin could be the new gold standard today due to its ability to increase purchasing power.
Cathie Wood: BTC is the new gold standard
Wood is convinced that current technological advances “outshines“The one from the end of the 18th century, mentioning blockchain and artificial intelligence as some of the examples of the most modern technologies that are available on the market today.
However, her new Twitter thread was intended to address some concerns of Tesla CEO Elon Musk about the unusually high ratio of the S&P 500 relative to US GDP.
The fund manager says breakthrough technologies tend to deflation in the first place due to Wright’s law. Soaring productivity means increased earnings, while interest rates close to zero make the S&P 500 index much higher than it theoretically should.
Technology-enabled platforms are deflationary by learning curves or Wright’s law. (…) As deflation exerted pressure on increasingly difficult to measure nominal GDP, exponential unit growth and rapid productivity gains, all of this increased the quality of wages, while low interest rates increased capitalization [giełdy]
– she explained.
According to Wood, at the beginning of the 20th century, the stock market was even three times higher in relation to GDP.
Bitcoin can outshine gold
Wood certainly knows something about breakthrough technologies, which she has expressed in the media many times. She has become a cult figure in the community of investors who are looking for innovative projects.
In February, Ark Invest reached $ 50 billion in assets under management, which was a milestone for the fund, which made high profits, including during the Tesla stock boom.
Ark cryptocurrency analyst Yassine Elmandjra says Bitcoin could one day outshine the gold market cap:
If you look at gold as a $ 10 trillion market capitalization, Bitcoin is about 10 percent of that amount, (…) it’s fair to say that there is a good chance that Bitcoin will significantly capture [kapitalizację rynku] gold.