According to CoinDesk, Cathie Wood, founder of investment management company ARK Invest, said that in addition to its potential in an inflationary environment, Bitcoin can also be used as a hedge against deflation. She contrasted BTC with the opaque inner workings of the banking system, stating that there is no counterparty risk due to Bitcoin’s decentralization and visibility of all transactions on the network.
Wood reminded people of the regional U.S. banking crisis in March, when a handful of banks failed, sending the price of Bitcoin up nearly 50% to $30,000. She explained: “They (banks) were losing deposits and had to raise funds by selling securities, But the deposit outflows haven’t stopped, and banks have been forced to raise interest rates to compete with money market funds. Now you’ll see BTC rise again and see the regional bank index in the U.S. fall below March levels.”
