Although China restricts Bitcoin mining and Elon Musk has attacked it for harming the environment, Wood remains optimistic. She believes Musk received institutional recommendations to stop accepting Bitcoin payments but predicted that he would push Bitcoin back up.
Investor Cathie Wood is the founder, CEO and CIO of Ark Invest, known as the Warren Buffett of modern times. In recent days, she said that concerns about environmental damage from Bitcoin mining would diminish.
According to the executive, those concerns are unlikely to increase in the long term.
Despite Difficulties, Cathie Wood Remains Bullish on Bitcoin
Cathie Wood told CNBC that she continues to be optimistic about the future of the pioneering cryptocurrency. Not even China’s restriction on mining and Elon Musk’s tweets about its use of fossil fuels have discouraged her.
She believes that it is best to disperse this mining to other countries, such as the United States, where it is possible to use renewable energy.
Wood also reaffirmed her confidence in Tesla, calling Elon Musk a unique and visionary leader. She even compared him to Jeff Bezos, the founder of Amazon.
The ESG Movement Contributes to the Drop in the Price of Bitcoin
A tweet that Elon Musk, CEO of Tesla, sent in May contributed to discussions on Bitcoin’s energy use. Initially, he said that his company would not continue accepting payments with Bitcoin as the network increasingly uses fossil fuel.
Wood held Elon Musk and ESG (environmental, social, and governance) investment responsible for the recent drop in Bitcoin prices.
Due to the ESG movement, a large number of institutional purchases stopped and rushed. Elon Musk exacerbated the situation by saying that Bitcoin mining is facing real environmental problems.
The CEO of Ark Invest believes that some institutions may have requested Elon Musk to stop accepting Bitcoin as a means of payment. However, she predicted that he will positively boost Bitcoin and may help reduce its environmental footprint.
Since Musk has fostered conversation and analytical thinking, she believes he will become part of the process.
Wood, a leader to hundreds of investors, has always been a staunch advocate for Bitcoin. She takes a bullish position on Bitcoin, indicating that its price could reach USD 500,000.
The Expert Believes Elon Musk Will Support Bitcoin Again
Wood believes that the demand for cryptocurrency mining may lead companies to invest in renewable energy. She foresees a reduction in environmental problems in the coming years as the electrical grid transforms.
Musk’s decision to accept Bitcoin marked a watershed moment for considering it a transaction instrument. However, when Tesla stopped its Bitcoin transactions with consumers, traditional bankers scored a victory.
If this situation continues, Bitcoin could leave its current trading range. Bitcoin could be in trouble if transaction volatility keeps Musk on the sidelines.
However, if Wood’s views are accurate, Musk’s hesitation with Bitcoin is only temporary. Therefore, Elon Musk buying and accepting Bitcoin again at Tesla would be a catalyst for the price.
By Alexander Salazar