Crypto News

Cathie Wood: Bitcoin and Ether are the new ‘Flight to Safety’ Assets

Published by
Nonhlanhla P Dube
  • Cathie Wood, CEO of ARK Invest, believes that Bitcoin and Ether are acting as “risk-off” assets and as a “flight to safety” for investors amid macroeconomic uncertainty. She notes that Bitcoin’s resilience throughout the most recent banking crisis has been “the most remarkable” of all indicators her tech-focused investment management firm is monitoring.
  • Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund by assets under management, does not share Wood’s sentiment.
  • Despite previously describing Bitcoin as “one hell of an invention,” Dalio recently said that he wants to see an “inflation-linked” coin be built that would ensure consumers secure their buying power.

ARK Invest CEO Cathie Wood believes that Bitcoin and Ether are acting as “risk-off” assets and as a “flight to safety” for investors amid macroeconomic uncertainty. In an interview on April 15, she noted that Bitcoin’s resilience throughout the most recent banking crisis has been “the most remarkable” of all indicators her tech-focused investment management firm is monitoring.

Wood claimed that Bitcoin and Ether are now disrupting the traditional world order, and their being considered a flight to safety asset is interesting and suggests much broader-based adoption and acceptance than most people understand.

Wood thinks cryptocurrency will eventually become an “election issue” when the sector becomes more broadly accepted, and the public can more clearly see the kinds of regulatory pressure that the United States government is applying to maintain centralized control of money and monetary policy.

However, not all share Wood’s sentiment. Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund by assets under management, thinks Bitcoin could not serve as an “effective currency” because it is too volatile, and central banks won’t adopt it. I

n an interview on April 12, he said that Bitcoin is neither an effective store hold of wealth nor a medium of exchange, so it is not an effective currency. Dalio added that Bitcoin’s volatility has no relation to anything and is a poor alternative to gold. He thinks that they can outlaw or regulate Bitcoin, and central banks and countries pretty much don’t want it anyway.

He emphasized that gold is the third-largest reserve held by central banks, trailing only the US dollar and euros. Despite previously describing Bitcoin as “one hell of an invention,” Dalio recently said that he wants to see an “inflation-linked” coin be built that would ensure consumers secure their buying power.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Share
Published by
Nonhlanhla P Dube

Recent Posts

Tesla Unveils Refreshed Model 3 in North America with Exciting Upgrades

Model 3 Refresh: Tesla introduces a restyled Model 3 in North America, featuring a rear…

January 11, 2024

SEC Twitter Account Compromised, False Bitcoin ETF Approval Post Triggers Market Volatility

Unidentified individual accessed SEC's Twitter through a third party. Lack of two-factor authentication heightened vulnerability.…

January 11, 2024

Global Currency Markets Navigate Economic Uncertainties: Yen Weakens, Dollar Awaits U.S. Inflation Data

Japanese yen falls against the dollar and euro due to persistently shrinking real wages for…

January 11, 2024

Oil Prices Unmoved as Unexpected U.S. Inventory Build Raises Concerns

Unexpected Inventory Build: U.S. crude inventories unexpectedly grew, sparking concerns about weakening fuel demand and…

January 11, 2024

YanGuFang International Group Appoints Interim Executives Amidst CEO and CFO Detainment

Leadership Shake-up: CEO and CFO of YanGuFang International Group detained by Shanghai Police, prompting interim…

January 11, 2024

Cryptocurrency Market Analysis: SHIB, SOL, and ETH Navigate Challenging Terrain

SHIB breaches 200-day EMA, signaling bearish sentiment. Historical data suggests strong buyer reactions and potential…

January 11, 2024