The founder and CEO of Ark Invest, Cathie Wood, assured that Bitcoin is an extremely safe asset, which can serve as a refuge from the inflationary potential of the current economic environment.
Ark Invest CEO Cathie Wood said that Bitcoin can serve as a refuge from the inflationary potential of the current economic environment. “Now you see how [Bitcoin] rises again and the US regional banking index falls below where it was in March,” he noted.
Wood participated in Merryn Somerset Webb’s podcast for Bloomberg. There the businesswoman explained to the audience that when a person or company invests directly in the digital currencyit does not assume counterparty risks thanks to the decentralization and transparency with which the cryptocurrency operates.
On the contrary, he said that in the banking system it works when clients withdraw their money, they are forced to sell securities to maintain a certain balancewhich compromises the security of the funds of those who have not yet withdrawn their capital.
The danger here is seen when people continue withdrawing money from the bank. “This is when entities are forced to raise interest rates to compete with money market funds,” Wood said.
The businesswoman recalled the banking crash in March of this year. At that moment, People saw in Bitcoin a possibility of safeguarding value, and despite the bear market, the digital currency rose almost 50%, reaching US$30,000 per unit.
Source: Ambito
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