The CEO of investment fund Ark Invest believes the U.S. economy has already entered a recession, but that innovation will prevail.
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- Cathie Wood spoke about inflation, geopolitics and crypto.
- “The revolution of cryptocurrencies is underway and will not stop,” he said.
- NFTs have innovative potential and could be the future.
La fundadora y CEO de la firma de inversión Ark Invest investing is when you put money in a financial scheme with the intent of making a gain. Cathie Wood gave her perspective on the current economic outlook in the United States and the downturn in the stock markets. She also discussed the future of cryptocurrencies and reiterated her confidence in the new asset class and its disruptive potential.
In a interview for the program Squawk Box de CNBC Tuesday, the economist and financial expert said the U.S. economy is already in a recession and admitted she had underestimated the severity and extent of inflation.
“ We believe we are in a recession ” , dijo Wood, señalando más adelante que la inflación había resultado ser más alta de las estimaciones debido a las interrupciones en la cadena de suministro y los riesgos geopolíticos. “ We were wrong about one thing and that was that inflation a general increase in prices and fall in the purchasing value of money. remained as sustained as it has been “, he said and added :
I can’t believe it’s taking more than two years and Russia’s invasion of Ukraine, of course, we couldn’t have seen it. Inflation has been a major problem, but it has prepared us for deflation. .
US inflation and the need for innovation
More than two years after the COVID-19 pandemic, consumers are feeling the effects of accelerated central bank money printing. Inflation rebounded by 8.6% in May from a year earlier, following the consumer price index (CPI), the fastest increase since December 1981.
The figures defied the expectations of economists, who had expected to have surpassed the highest peak of inflation earlier this year. In response, the US Federal Reserve (Fed) has been raising interest rates this 2022, which has caused turbulence in both traditional and cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. markets.
Technology stocks, which saw a steep rally in the pandemic, have been suffering from fears of a recession. Wood, who runs an innovation-focused investment fund, addressed this scenario. The manager analyzed the performance of stocks in Zoom, Tesla y Roku which rose during the pandemic due to excess liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. in markets and investor appetite for riskier assets, but have now fallen sharply.
Despite the most recent decline, Wood expressed confidence that tech stocks will rebound within five years, and argued his point around a central focus: innovation. “ We are focused on exponential growth trajectories driven by powerful new technologies. “, dijo . “ Innovation solves problems, and we have a lot of problems. “.
NFTs are the next revolution
Following this thread of ideas, the investor defended what she described as the “. revolution “of digital assets. “ We believe that the revolution around to cryptocurrencies is on the move and will not stop “.
This transformation, he explained, has seen three fundamental moments: Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance (DeFi), and the tokens Non-Fungible Technologies (NFTs), he explained. The first represented the “ money revolution “by creating the world’s first private digital currency currency is a medium of exchange that defines value. system. The latter is leading the financial services revolution, while NFTs will open the door to digital property rights.
“ We believe that the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. property rights that NFTs non-fungible token, a unique non-interchangeable piece of digital content that is stored on a distributed ledger (blockchain). represent will become incredibly important. “Wood said. Analogous to how property rights lifted many people out of poverty, the economist argued about the potential for digital collectibles to provide new, multiple and invaluable opportunities – though we may not yet be able to see how big and useful they will be, just as we couldn’t see what DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. was going to be, she added.
“We do believe that the revolution around #crypto is underway and it will not be stopped,” says @CathieDWood . “We do believe that digital property rights which NFTs represent are going to become incredibly important.” pic.twitter.com/gSq3wbQJH8
— Squawk Box (@SquawkCNBC) June 28, 2022
The director shared her growth forecast for disruptive developments, mentioning as an example digital wallets, which she believes will be one of the most important developments in the industry. Citing the report “Great ideas” mentioned the companies that Ark Invest considers that they could lead these developments, such as CashApp y Coinbase is an American company that operates a cryptocurrency exchange platform. and on which he bets .
While aware of the sharp downturn the cryptocurrency market an area or arena, online or offline, in which commercial dealings are conducted. has experienced in recent months, Wood expressed optimism. “ We are impressed by how robust the ecosystem has been. “ He said, hinting that investors could turn to new technologies for diversification diversification is a risk-management strategy that mixes a wide variety of investments within a portfolio. and on the basis of the innovation argument.
It should be noted that, in the report “ Grandes Ideas “, Ark predicted that the price of Bitcoin would soar to USD $1 million by 2030 her boldest forecast to date. Wood herself has also made bold predictions for the flagship cryptocurrency in the past.
- Institutional traders dump a sudden sell-off of digital assets. Bitcoin at record pace, but other metrics suggest bullish headwinds
- ARK Invest, de Cathie Wood, insiste con un ETF an Exchange-traded Fund, an investment fund that users trade on exchanges and trading platforms. de Bitcoin al contado
- “If Bitcoin is an undervalued currency, Ethereum a decentralized open-source blockchain with smart contracts functionality. is much more so,” says Cathie Wood
Article by Hannah Estefania Perez / DiarioBitcoin
Image from Unsplash edited in Canva
