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Bitcoin vs Gold: Wood Eyes $1.2M Target
17 Jan
Summary
- Cathie Wood believes Bitcoin's fixed supply makes it scarcer than gold.
- Wood projects Bitcoin could reach $1.2 million by 2030.
- Bitcoin offers diversification benefits due to low asset correlation.
Ark Invest CEO Cathie Wood maintains that Bitcoin is a superior scarce asset compared to gold. She argues that Bitcoin's mathematically capped supply and declining issuance rate, which is set to fall to approximately 0.9% after the next halving, creates a structural advantage over gold, whose supply can still increase through mining.
Wood forecasts Bitcoin's price could surge to $1.2 million by 2030, a slight revision from her earlier $1.5 million projection. She also points to Bitcoin's diversification benefits, citing its low correlation with traditional assets, including gold and bonds, as key reasons for its appeal to investors.
Despite gold's recent strong performance, outperforming Bitcoin in the past year, Wood frames Bitcoin as the ultimate portfolio diversifier. She suggests gold's current rally might indicate "irrational exuberance," while Bitcoin offers a compelling case for allocators due to its asymmetric upside potential and historically faster growth.
