Cathie Wood: The crypto market in a “period of explosive innovation”

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In a recent interview with Yahoo Finance, Founder, CEO and CIO of Ark Capital (global asset investing group) Cathie Wood refuted claims by skeptics such as John Paulson that the crypto market does not is only a short-term bet and a bubble that will inevitably burst.

When host Brian Sozzi asked Cathie Wood to comment on the skepticism of people like Paulson, Wood said a lot of people ask me: are we in a bubble? We couldn’t be further by continuing with a remark suggesting that those who bet against the cryptocurrency are doing so out of ignorance rather than diligence. She added that I don’t believe investors, the average investor shall I say, understand how good these next five to 15 years are going to be.

The provocative nature of this not-so-distant future that Wood refers to is the speed at which the crypto and blockchain sectors are growing in terms of innovation and industry, citing Coinbase as an example of innovation in the space. . She also touched on Robinhood as a traditional player in the industry who has successfully shifted to crypto.

Cathie Wood Shatters John Paulson’s Crypto Bubble Theory

Cathie Woods’ remarks stem from a previous interview with prominent investor and short seller John Paulson, conducted by Bloomberg Wealths David Rubenstein on September 1. In the interview, Paulson discussed what he believes to be a lack of investment viability. in the crypto market.

According to Paulson, the cryptocurrency market is a bubble with a limited supply of nothing because he believes crypto has no intrinsic value, concluding that he would not recommend anyone to invest in cryptocurrencies. In addition to these comments, Paulson further criticized the crypto investment market, saying that crypto has unlimited drawbacks and is too volatile to compare crypto investments to a get-rich-quick scheme in the short term.

John Paulson is a multi-billion dollar hedge fund manager who heads New York-based investment management firm Paulson & Co, which he co-founded in 1994. Paulson is known for being the subject of the critically acclaimed book The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History, which chronicles how Paulson made over $ 15 billion in 2006 by betting heavily against the real estate bubble and winner.

Her comments are revealing of what Cathie Wood describes as an overly risk-averse and benchmark-sensitive baby boom generation of investors who rely too much on statistical data provided by indexes such as NASDAQ due to for having experienced several important bubbles such as dotcom. bubble and the 2008-2009 collapse.

According to Wood, the problem here is that those who rely solely on these indices to inform their investment decisions are missing out on key emerging and innovative markets that these indices simply do not cover, such as blockchain and crypto.

Guess what? Much of the innovation, which concerns the future, is not captured by indices. In fact, we think very little is captured by the clues and she adds that we are in a time of explosive innovation. -curves because these S-shaped curves feed off each other [they will] enter exponential growth trajectories that we have never seen before.

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