The well-known investor Cathie Wood has set a very ambitious price target for the oldest crypto currency Bitcoin: she trusts the cyber currency with 500,000 US dollars. The high volatility on the crypto market and significant price collapses in the meantime have not let them deviate from their convictions. Instead of panicking during a weak phase on the crypto market and burying your head in the sand, the investor advises getting started. Because such surrender phases are “a really great time to buy, no matter what asset it is,” Wood said a few months ago to “Bloomberg”.
She herself acted according to this maxim for her investment company ARK Invest and has repeatedly increased her shares in the Coinbase crypto exchange and the Grayscale Bitcoin Trust in times of weak stock markets. In July, the investor even announced that it wanted to launch its own Bitcoin ETF, a corresponding application has already been received by the US Securities and Exchange Commission.
John Paulson as a crypto opponent
But not all well-known investors are so convinced of the future potential of Bitcoin. A few days ago, a former hedge fund manager, John Paulson, who had earned billions of dollars through short sales in the context of the US mortgage crisis, spoke up and gave Bitcoin & Co. the worst possible report: the cryptocurrencies would ultimately prove to be worthless. As soon as the exuberance subsided and liquidity dried up, they would go “to zero”, Paulson was convinced and advised investors for his part to invest their money in gold.
Cathie Wood thinks Bitcoin is more than a store of money
Cathie Wood now referred to this statement and explained in an interview with Yahoo Finance Live why the two investors approach the concept of cryptocurrencies so differently. “John Paulson made an incredible call during the mortgage crisis. I would say he’s been a gold bug for most of his career [Anmerkung der Redaktion: Ein Investor, der langfristig auf einen Goldbullenmarkt setzt]. And many investors who have focused on gold in their careers cannot understand the digital concept associated with gold, “said the founder of ARK Invest.
In her opinion, Bitcoin is “much more than just a store of value or digital gold,” the investor said in an interview. Critics of the cryptocurrency would miss some important points in connection with cyber currencies, stressed Wood. In her opinion, Bitcoin is a new global currency system, a rule-based one Monetary policy, “which is completely decentralized and therefore not subject to the whims of the political decision-makers,” said the ARK boss with a view to fiat currencies and the influence of the central banks. On the contrary, Bitcoin is even “a hedge against the whims of political decision-makers, especially in emerging countries”.
Wood has apparently not yet given up hope of convincing crypto critics. “I don’t know how exactly John Paulson and other pessimists dealt with the subject, but there are converts,” Wood continued. Specifically, she named Ray Dalio in this context, but also Stanley Duckenmiller, who were once critical of the Bitcoin concept, but now take a more differentiated view of it. Ray Dalio called the Bitcoin in a blog post “an insane invention”, gave up his complete defensive attitude towards the cyber motto and stated that he now has a more differentiated view of things. Crypto opponent Howard Marks, for example, had admitted some time ago that his first reaction to Bitcoin had not been correct and that he had since learned how much he actually did not know about the crypto currency.