Ark Invest CEO Cathie Wood expect bitcoin to reach $500,000 in five years. The firm’s conviction in ethereum has also strengthened, per comments in an interview with CNBC at the SALT Conference on Monday.
- Bitcoin will surge tenfold to $500,000 according to Cathie Wood.
- Ark Invest’s confidence in ethereum has gone up dramatically after its latest upgrade.
- “We’d still probably do 60% bitcoin, 40% ether,” she said.
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Wood’s price prediction depends on whether companies continue to jump on the bitcoin bandwagon by adding it to their balance sheets. Institutional investors would need to continue allocating 5% of their funds to the biggest crytpo by market cap.
In that case, “we believe that the price will be tenfold of where it is today,” she said. “So instead of $45,000, over $500,000.”
Wood told CNBC in the interview that she made her price expectations with a five-year horizon in mind.
She said that if she had to choose one cryptocurrency to own, she would default to bitcoin, “because countries are deeming it legal tender.”
El Salvador recently made bitcoin legal currency, while Panama and Ukraine are said to be doing the same.
Wood also pointed out the potential in ether, which is up 367% so far this year, and laid out a preference for a 60-40 bitcoin-to-ether crypto portfolio.
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“Ether, however, is seeing an explosion in developer activity thanks to NFTs and DeFi,” she said, referring to NFTs and decentralised finance (DeFi). “I’m fascinated with what’s going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now.”
Ethereum’s widely anticipated upgrade last month involved the implementation of EIP-1559, which provides the bedrock to shift the coin to a proof-of-stake system, under which users stake ethereum to gain access to verify transactions and rewards.
“Our confidence in ether has gone up dramatically as we’ve seen the beginning of this transition from proof of work to proof of stake,” Wood continued. “We’d still probably do 60% bitcoin, 40% ether.”
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