🌎 Bitcoin to Surpass Gold Market Value

Bitcoin’s Potential to Surpass Gold’s Market Value, According to Cathie Wood

Cathie Wood, the founder and CEO of ARK Investment Management, believes that Bitcoin has the potential to surpass gold’s market value in the future. Wood recently reacted to Federal Reserve Chair Jerome Powell’s comments on Bitcoin, describing the cryptocurrency as a virtual version of gold.

Wood stated that ARK Investment Management believes Bitcoin is “a much bigger idea” than gold. She drew comparisons between the two assets, noting that gold has a market capitalization of around $15 trillion, while Bitcoin’s market capitalization is currently at $2 trillion.

“At $2,700, gold is a $15 trillion market, compared to Bitcoin at only $2 trillion. Even after breaking through $100,000, Bitcoin still is in early innings,” said Wood.

Bitcoin’s Recent Price Surge

Bitcoin recently broke through the $100,000 ceiling, rising by 5% in the past 24 hours of trading. This is the first time in history that Bitcoin’s price has ever gone over $100,000. The cryptocurrency’s market capitalization followed suit, rising by 5.74% to a value of $2 trillion.

Fed Chair Jerome Powell’s Comments on Bitcoin

Hours before Bitcoin’s monumental jump to $100,000, Fed Chair Jerome Powell publicly dubbed Bitcoin as virtual gold due to how traders have a tendency to use both assets to protect the value of money rather than as a payment option. Thus, he sees Bitcoin as more of a competitor for gold instead of the U.S dollar.

Similarities Between Bitcoin and Gold

For years, traders have noted how Bitcoin and gold price movements have often gone hand-in-hand, usually with Bitcoin following soon after gold goes up. This is mainly due to both assets’ status as “safe-havens” that protect investors from the volatility of national currencies.

Some key similarities between Bitcoin and gold include:

Both assets are used as a hedge against inflation and economic uncertainty
Both assets have a finite supply, with gold being mined from the earth and Bitcoin being mined through complex mathematical algorithms
Both assets are not tied to any specific currency or government