Cathie Wood Predicts Bitcoin To Hit $ 500,000 In 5 Years – And Says Ark Invest’s Confidence In The Ether Has Raised Dramatically | Currency News | Financial and business news

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Cathie Wood, CEO and Director of Investments of ARK Invest.

ARK Invest

Ark Invest CEO Cathie Wood expects bitcoin to hit $ 500,000 in five years, and her firm’s belief in the ether has grown significantly, the stock picker said in a statement. interview with CNBC presenter Andrew Ross Sorkin at SALT Monday.

Its price prediction depends on companies continuing to diversify their balance sheets into the largest cryptocurrency by market value and institutional investors starting to allocate 5% of their funds to it.

If that happens, “we think the price will be ten times what it is today,” she said. “So instead of $ 45,000, over $ 500,000.”

Wood told Sorkin earlier in the interview that his overall price targets were set with a five-year horizon in mind.

When asked if she could only own one cryptocurrency, she said she would use bitcoin by default “because countries now consider it to be legal tender.”

El Salvador has officially made bitcoin legal tender, while Panama and Ukraine are in the process of doing the same.

Wood also highlighted the potential of the ether, which has grown 350% so far this year, and expressed a preference for a 60:40 ether bitcoin cryptocurrency wallet.

“Ether, however, is seeing an explosion in developer activity thanks to NFT and DeFi,” she said. “I’m fascinated by what’s going on in DeFi, which is reducing the cost of financial services infrastructure in a way that I know the mainstream financial industry isn’t enjoying right now.”

Ethereum’s long-awaited upgrade to 2.0 has resulted in an overhaul of the entire network infrastructure into a proof-of-stake system, under which users offer ether for the right to verify transactions and earn coins.

“Our confidence in the ether has increased dramatically as we have seen the start of this transition – from proof of work to proof of stake,” said Wood. “We would probably still be making 60% bitcoin, 40% ether.”

Read more: Former Goldman executive turned crypto trading chief explains why he believes bitcoin can still hit $ 70,000 by year-end – and shares ‘a safe game’ that thinks outside the box

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