Bitcoin vs gold: Why Cathie Wood feels cryptocurrency's 'turn is in' against the precious metal
AgenciesCathie Wood sees Bitcoin skyrocketing through the roof to $1.5 million by 2030.
Bitcoin has outpaced gold since August, and ARK Invest Chief Executive Officer (CEO) Cathie Wood said that the move in the Bitcoin-to-gold ratio is a very nice turn. Speaking on the latest episode of the In the Know podcast last week, she said, “Ironically, Bitcoin's known as digital gold for its store of value characteristics.”
Bitcoin to hit $1.5 million by 2030?
The ARK Invest CEO disclosed in a 2022 podcast interview that she bought $100,000 worth of Bitcoin at around $250 per coin, after reading the Satoshi white paper. At the current price of around $86,000, her Bitcoin holding would be worth more than $34.4 million, implying a whopping 34,300% return on her investment.
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Wood has noted that the major catalyst for Bitcoin in the near future could be institutional adoption. Heading into 2027, Wood is now highlighting another potential catalyst for Bitcoin, which is artificial intelligence (AI), Motley Fool reported. In one scenario that Ark Invest has highlighted, AI agents could use Bitcoin to make online transactions.
At the same time, gold has been correcting sharply after a skyrocketing rally seen earlier this year, strengthening the case for Cathie Wood’s bullish call. However, investors should remember what another Wall Street experts and perhaps a legend, Warren Buffett, said about Bitcoin.
Why Warren Buffett hated Bitcoin
Back in May 2018, Bitcoin was trading at a humble $9,850 when Warren Buffett was asked for his views on the digital asset. While the level seems marginal when compared to today’s massive price, Bitcoin had seen its fair share of jump even till then. The currency had soared from $0 in 2010 to near $10,000 back then, with investors growing more and more curious about the digital asset following stellar returns.
Buffett however didn’t mince his words while expressing his distaste for Bitcoin. It is “probably rat poison squared”, he said while speaking to CNBC at Berkshire Hathaway’s 2018 annual shareholder meeting. Charlie Munger, Berkshire’s then vice chairman and long-time Buffett collaborator, said during the meeting that trading in cryptocurrencies is “just dementia.”
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In January of the same year, he said he can almost certainly see a bad ending to the cryptocurrency. “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending. If I could buy a five-year put on every one of the cryptocurrencies, I would be glad to do it but I would never short a dime’s worth,” he said.
The legendary investor reiterated his bearish view on cryptocurrencies in 2021. During Berkshire Hathaway’s annual meeting, he avoided a question on Bitcoin as he didn’t want to get grief from everyone who is long bitcoin, relative to the few people who are short the digital asset.