Cathie Wood Likes Bitcoin as Both Deflationary and Inflationary Hedge

Cathie Wood, the founder of investment manager ARK Invest, has expressed her belief that bitcoin (BTC) can serve as a hedge against both deflation and inflation. In a recent appearance on Merryn Somerset Webb’s podcast for Bloomberg, Wood highlighted the lack of counterparty risk in bitcoin due to its decentralization and transparent transaction network. She contrasted this with the opaque inner workings of the banking system, stating that banks are losing deposits and funding them by selling securities. Wood also referred to the regional bank crisis in the U.S. in March, which contributed to a significant price increase in bitcoin. She emphasized that the recent pumping of bitcoin’s price and the decline of the regional bank index further support the concept of bitcoin as a hedge against centralized financial systems. Wood also noted that while actual gold can also serve as a hedge against inflation and deflation, she would choose bitcoin as her preferred asset for the next 10 years due to its potential and the growing interest from institutions and younger generations. ARK Invest, the company led by Wood, holds significant investments in cryptocurrency exchange Coinbase (COIN) stock and the Grayscale Bitcoin Trust (GBTC). The company has also filed for its own spot bitcoin ETF with the U.S. Securities and Exchange Commission.