In a Twitter on March 15th, 2023, Elon Musk and Cathy Wood engaged in a conversation about the current economic situation and its similarities to the Great Depression of 1929. Musk responded to a tweet by Wood about the crisis situation of banks such as Silicon Valley Bank (SVB) where bank runs occur and pointed out to regulators, “Focus on the centralized and opaque obstacles present in the traditional banking system, not DeFi.”

Musk has been warning since last year that the government’s interest rate hike will trigger an economic recession and crisis. He tweeted, “Lot of current year similarities to 1929.”

Cathy Wood, on the other hand, responded to Musk’s tweet by stating that the current economic situation is more similar to the early 1920s after a pandemic and a war, as three major innovation platforms were evolving into mass market opportunities – electricity, telephony, and the automobile, contributing to the breathtaking “Roaring Twenties”.

Wood believes that the current banking crisis could lead to “bad deflation” while innovation generates “good deflation”. She mentioned that five major innovation platforms are evolving at the same time – multiomics sequencing, robotics, energy storage, artificial intelligence, and blockchain technology, all of which are converging.

Tesla is leading the “charge” in three, but she wouldn’t be surprised to see four to five. Wood suggested that once the Fed stops looking backwards at CPI inflation and starts addressing the deflationary banking crisis that a 19-fold increase in short rates and an inverted yield have caused, we would not be surprised to see a return to the Roaring Twenties.

It is interesting to see two prominent figures in the business world engaging in a Twitter conversation about the current economic situation. It also highlights the potential impact of innovation on the economy and the importance of addressing banking crises to avoid deflationary impacts.

The period between 1929 and 1939 marked the most severe economic decline in the history of industrialized nations, commonly referred to as the Great Depression. Its onset can be traced back to the stock market crash of October 1929, which caused widespread panic on Wall Street and resulted in the loss of investments for millions. In the years that followed, there was a significant drop in consumer spending and investment, leading to a sharp decline in industrial output and employment. This resulted in the laying off of workers by companies that were failing. The Great Depression hit its lowest point in 1933, with approximately 15 million unemployed Americans and almost half of the country’s banks having failed.

#ElonMusk #Cathywood #Greatdepression

This article was republished from azcoinnews.com

Cathie Wood, the CEO of Ark Invest, has set a bold price target for Bitcoin: $1.48 million by 2030. Let’s delve into the reasons behind this ambitious prediction:
Global Growth Story:Wood believes that Bitcoin’s stratospheric rise is tied to its enormous global growth potential. As more nations accept it as legal tender and people use it for online transactions, Bitcoin’s share of global assets held by institutions will increase.Ark Invest identifies eight primary market segments (such as “emerging market currency” and “remittance asset”) where Bitcoin will see growth.Market Penetration Estimates:Ark Invest’s assumptions include Bitcoin accounting for up to 10% of the M2 money supply in emerging market countries. While only El Salvador and the Central African Republic have adopted Bitcoin as legal tender so far, other nations struggling with hyperinflation or devalued currencies could follow suit.Additionally, Ark Invest suggests Bitcoin capturing 25% of the “remittance asset” market and 50% of the “digital gold” market.Super-Bullish Scenario:To reach $1.48 million, Bitcoin would need super-aggressive growth, resulting in a market cap of nearly $31 trillion (equivalent to the entire S&P 500’s value).Wood’s prediction hinges on institutional adoption, global acceptance, and Bitcoin’s role as a store of value and efficient remittance method.
Remember that these projections are speculative and subject to market dynamics. Always Do Your Own research and NEVER INVEST more than you can afford to lose!🚀💡
Cover Image Source: cryptoslate.com
#BitcoinPrediction #Cathywood #bitcoin☀️

Cathy Wood, the CEO of ARK Invest, has made headlines recently with her comments on Bitcoin and the role of institutional investors in the cryptocurrency market.

Speaking on Bloomberg TV on March 21st, Wood expressed her belief that Bitcoin’s price hikes following the banking crisis will attract more institutional investors to the digital asset.

Wood argued that institutional investors should allocate between 2.5% and 6% of their assets to digital assets, a similar percentage to what they have historically allocated to new assets. She emphasized that Bitcoin behaves differently than the stock market, which makes it a valuable asset for portfolio diversification.

The ARK Invest CEO also commented on the recent trend of corporate finance departments holding Bitcoin on their balance sheets, noting that regulatory pressure has forced many companies to stop this practice. However, Wood believes that this trend will eventually resume as more institutional investors enter the market.

In a recent investment memo, ARK Invest highlighted the role of cryptocurrencies, including Bitcoin, as “safe havens” during times of market volatility. This is a significant departure from the traditional view of cryptocurrencies as risky and volatile investments.

Despite her bullish stance on Bitcoin, ARK Invest has recently sold shares of crypto exchange Coinbase (COIN). On Tuesday, March 22nd, ARK sold 160,887 shares of COIN, worth $13.5 million. This comes after a series of buys of Coinbase’s stock during the crypto winter of 2022. Throughout the year, COIN underperformed both Bitcoin and Ether, and its shares dropped 86%.

ARK’s most recent purchase of COIN was in early March when the company acquired over 350,000 shares of Coinbase, valued at $22 million. Year-to-date, COIN is up nearly 150%, closing the Tuesday trading day in the U.S. at $83.99. However, the stock is still down 54% over the last calendar year, having been listed in April 2021 at $342.

Despite the recent sale of COIN shares, ARK Invest has also announced the launch of a new private crypto fund, raising $16 million to invest in digital assets. This demonstrates the company’s continued confidence in the long-term prospects of the cryptocurrency market.

As institutional investors continue to enter the digital asset space, the role of Bitcoin and other cryptocurrencies in portfolio diversification is likely to become more significant. Cathy Wood’s comments on this topic are just one part of the ongoing conversation around the future of cryptocurrencies and their place in the global financial system.

#ARK #Cathywood #Coinbase #COIN #azcoinnews

This article was republished from azcoinnews.com