Bitcoin Could Be Today's 'Gold Standard,' Cathie Wood Tells Elon Musk

Benzinga2021-04-12

ARK Invest CEO Cathie Wood thinks thatBitcoin (CRYPTO: BTC) could be today’s “gold standard” and increase purchasing power.

What Happened: Wood’s recent comments were a part of her response to Elon Musk’s question about the current ratio of the S&P market cap to GDP.

“What do you think of the unusually high ratio of S&P market cap to GDP?”Tesla Inc(NASDAQ:TSLA) CEO asked Wood on Twitter.

Wood responded a few days later, saying she had a hypothesis about why this may be the case.

“In the late 1800s and early 1900s – as telephone, electricity, and the automobile were emerging – the US equity market cap relative to GDP appears to have been 2-3 times higher than it is today,” she said.

ARK Invest founder noted that these technology-enabled platforms are deflationary, thanks to learning curves, or Wrights Law, and the gold standard was in effect during this era.

“As deflation pressured an increasingly difficult-to-measure nominal GDP (the denominator), exponential unit growth and rapid productivity gains increased the quality of earnings while low-interest rates boosted their capitalization (the numerator),” explained Wood.

“The technologically-enabled innovation evolving today dwarfs that of the late 1800s/early 1900s: genomic sequencing, robotics, energy storage, artificial intelligence, and blockchain technology. Moreover, Bitcoin could be today’s “gold standard,” increasing purchasing power!”

Why It Matters:Wood is a known advocate of Bitcoin, and at the helm of ARK Invest, her bullish stance on the cryptocurrency is apparent.

ARK is the largestholderof shares of theGrayscale Bitcoin Trust(OTCMKTS: GBTC), with over 8.5 million shares held.

On a recentpodcastbreaking down ARK Invest’s Bid Ideas Report, Wood commented on Bitcoin’s market cap crossing a trillion-dollar milestone.

“One trillion dollars is just half of what Apple is worth, and yet this is a global digital monetary ecosystem, and Bitcoin is the reserve currency of that ecosystem, and that is a very big idea,” she said.

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精彩评论

  • YiiYii
    2021-04-13
    YiiYii
    Oooo...[财迷] . Comment, please.
    • PJoo
      It will be interesting to see that come true.
    • YiiYii
      [安慰] [握手]
    • Acella
      😀
    • YiiYii
      [财迷] [安慰]
  • valueTrader
    2021-04-13
    valueTrader
    Bitcoin bubble?
  • Patjaslyn
    2021-04-13
    Patjaslyn
    Interesting
  • Yc3
    2021-04-13
    Yc3
    Like and comment please
    • YiiYii
      Done. Please help to comment back.
  • Boo2bear
    2021-04-13
    Boo2bear
    Yes. Supply limited.. Growing demand. Price would only go one direction in the long ten in my opinion. 
    • Patjaslyn
      Agreed
    • Boo2bear
      We are on the same page huh. Cud u pls click like my comment earlier. Tq
    • Boo2bear
      Are you invested in cryptos?
  • kenong62
    2021-04-13
    kenong62
    It takes many more years
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