Ark Invest CEO Katy Wood expects bitcoin to grow tenfold in five years, surpassing the $ 500,000 mark. The investor predicted record growth at the Salt conference in an interview with CNBC. Excerpts from the material are quoted by Business Insider.
Wood is confident that soon companies will invest more in cryptocurrency, and large investors will begin to allocate five percent of their funds to it. “We are sure that the price will be ten times higher than the current one, so instead of 45 thousand dollars it will be more than 500 thousand dollars,” the expert summed up.
Speaking about various cryptocurrencies, Wood admitted that she considers bitcoin to be the main digital asset, “because countries now consider it legal tender.” So, the first country to make bitcoin its national currency was El Salvador, which officially bought its first 550 bitcoins on September 7. Ukraine also legalized bitcoin and virtual hryvnia.
In the interview, the investor also drew attention to the potential of another cryptocurrency, Ethereum, which has grown by 350 percent this year. Wood added that in her cryptocurrency portfolio, the ratio of Bitcoin to Ethereum is 60:40.
While Katie Wood predicts Bitcoin will grow tenfold in five years, in February, a number of experts predicted a digital coin price rise to $ 100-200 thousand in 2021 alone. Following this, according to one of the surveyed analysts, the rate will be adjusted.
By contrast, officials in some countries are skeptical about digital assets. For example, the head of the Central Bank of Sweden, Stefan Ingves, is confident that bitcoin is not viable without state support. Russia also does not share Wood’s optimism about virtual currency. Presidential press secretary Dmitry Peskov said that equating bitcoin with ordinary money will do nothing but harm to the Russian economy, and the government is not ready to take such steps.
Most of the claims against bitcoin are made because of its volatility – in April 2021, the value of the cryptocurrency exceeded the $ 62.7 thousand mark, but soon bitcoin began to fall rapidly. As a result, on June 22, the exchange rate fell to $ 29.7 thousand per coin.
Bitcoin has shown instability in connection with its recognition as the national currency in El Salvador. The day before the adoption of the law, the cost of bitcoin increased to 52 thousand dollars, but on the day of legalization – September 7 – the rate dropped to 46.8 thousand dollars, and by September 8 it had completely dropped to 45 thousand. As of September 14, Bitcoin is worth 46.4 thousand dollars.