Are Bitcoin and Ethereum the Safe Havens for Economic Uncertainty?

ARK Invest CEO Cathie Wood recently claimed that Bitcoin and Ethereum are acting as safe havens in times of economic turmoil and are being used as a “flight to safety” during this volatile macroeconomic and geopolitical era. Inflation is still high, and geopolitical tensions are escalating day by day.

In her recent episode of the In The Know podcast, Wood compares the market capitalization of the two leading digital assets to gold and emphasizes that despite being known as volatile assets, they are behaving like reliable options for investors looking to protect themselves against global financial disruption.

“These previously volatile, risk-on assets are behaving like a flight to safety. We think this is a theme to watch,” says Wood. “The fact that they are being considered a flight to safety like gold suggests a much broader adoption and acceptance than I think most people understand.”

Wood also adds that blockchain technology innovation cannot be stopped, meaning that the disruption in the world order is led by crypto assets themselves.

“You can’t stop innovation,” she emphasizes.

At present, Bitcoin is trading at $30,300, while Ethereum is valued at $2,087, both with a slight increase in the past 24 hours.

Who is Cathie Wood?

Cathie Wood is a well-known figure in the American venture capital scene. As the CEO and founder of ARK Investment Management, LLC, she focuses primarily on investing in the latest, most disruptive technologies. She is known for her vision on the enormous potential of blockchain, artificial intelligence, genetics, and robotics.

Wood’s approach is characterized by her unbridled passion for innovation and technology. She has a keen eye for detail and conducts extensive research on future technology developments, allowing her to make accurate predictions about the future performance of technology stocks.

Her investment strategies have earned her several awards. In 2020, she won Bloomberg’s “Stockpicker of the Year” award, and in 2021, she was named “Person of the Year” by the Financial Times. In short, Cathie Wood is an absolute giant in the world of venture capitalists and continues to amaze us with her inexhaustible knowledge and passion for innovation.

In conclusion, while the opinions on the safety of Bitcoin and Ethereum as investments may vary, the statements made by Cathie Wood on their potential as safe havens in times of economic uncertainty are noteworthy. The continuous rise of their market capitalization suggests that they are gaining more adoption and acceptance, which may eventually lead to their wider use as an alternative asset class. However, as with any investment, it is crucial to conduct thorough research and seek professional advice before making any decisions

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. The information provided may contain errors and inaccuracies, and readers should always do their own research before making any investment decisions