Are you worried about the Bitcoin bull run? Well, me too! But Cathie Wood, head of ARK Invest, seems to be chilled out. She says that Bitcoin will still reach $500k, and she believes in it. These are some tough times for the market as there is a boatload of negative news, and then there’s the tax day, the rising inflation, the ban in China, and a lot more. This has the investors perplexed about the future of the currency. But like always, Bitcoin is recovering fast and is currently trading just below $41k.
The importance of Cathie Wood’s statement
How many times did you feel disoriented after feeling that what you believe isn’t right? I have been through that a lot of times. And what I have learned is it is important to back ourselves, and most of the time, we start to gain back that trust and belief we had. The same is the case with Bitcoin. Cathie said, “We go through soul searching times like this and scrape the models, and yes, our conviction is just as high.” And this is really a great perspective because it is not easy to digest that BTC just dropped to $30k.
But when you actually believe in something, it is important to keep that thought process strong even during times like these. This is also where the HODl mentality comes in. Cathie also said that she thinks no matter what, it is a great time to buy.
Why is Bitcoin important?
If you have $1000 right now, then by the end of one year, the purchasing power of that money will decrease by 5-8%, depending on the rate of inflation. Inflation is the rate by which the price of goods increases. And this is why Bitcoin is important. It preserves the value of your money. The year-on-year average return of Bitcoin has been over 250%, and that means it also increases the value of your money. Michael Saylor has been a strong advocate of Bitcoin, and he also said the same thing.
One could say BTC is volatile, and one can lose one’s money in it. Well, if you go by past records, anyone who has HODLED has never lost a penny in BTC. At the same time, if you keep your money in fiat, then it is going to lose its value anyway. Having a future where everyone can have a good life and money is not something controlled by the government. They print money whenever they want and make the value of money in your hands even less.
Do you think that the statement made by Cathie Wood regarding Bitcoin is an important thing? And will it have a positive impact on the market? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.