Catherine Wood: “The fall in markets is caused by the trend on the environment and the tweets of Elon Musk”

According to Catherine Wood, Elon Musk and the green mining movement have caused the current decline in the markets. However, the cryptocurrency industry still has a lot of potentials.

The founder of Ark Investment Management believes that bitcoin, which has lost almost 50% of its value over the past few weeks, has come under pressure from institutional investors concerned about the environmental consequences of mining.

“This drop was triggered by the strengthening of the ESG [environmental, social and corporate governance] movement and its agenda, which was reinforced by Elon Musk regarding the fact that there are real environmental problems with BTC mining. Many institutional purchases have been suspended,” said the founder of Ark Investment.

Elon Musk, who has repeatedly provoked price changes in the cryptocurrency markets with his statements, recently said that Tesla is suspending accepting payments in BTC due to concerns about the environmental consequences of BTC mining.

“Elon has probably been approached by some big companies,” Wood said. “I noticed that BlackRock is the third-largest shareholder in Tesla, and Larry Fink is the CEO. It focuses on ESG and especially on climate change. I am sure that BlackRock has registered complaints, and perhaps there are very large investors in Europe who are sensitive to such problems.”

Wood remains confident about the future of Bitcoin, which she described as the first rules-based “global currency system in the world.” Recently, she said that bitcoin will grow to $500,000. In her latest speech, Wood predicted that central banks will start buying crypto-assets and that Musk will have a positive impact on Bitcoin in the long run, improving its environmental profile.

“He encouraged discussion and analytical thinking. I really believe that he will be a part of this process,” she said.

Wood also predicts a “significant” drop in commodity prices and that artificial intelligence and blockchain will help reduce business costs. This, in turn, may push some regulators in emerging markets or even in the Eurozone to switch to high-purchasing power money, including BTC.

“In emerging markets, if commodity prices fall, their currencies will come under pressure,” she said. “I wouldn’t be surprised if some of these emerging market central banks start buying bitcoin…”

According to Catherine Wood, governments have already realized that innovation is the key to long–term growth and that technology, be it cryptocurrencies and the Internet before them, and cannot be stopped.  She said that bitcoin has already established itself as a tool for preserving capital and a way to protect against the confiscation of wealth. She said that after implementing second-tier solutions, such as the Lightning Network, it has the potential to become a settlement network.

“We were intrigued by stablecoins, decentralized finance, and non-interchangeable tokens. We are very interested in developers moving to Ethereum as quickly as possible. I always tell our analysts, “Follow the developers, let’s see what they do.” Because it’s a very loud signal,” Wood said. Wood said that the activities of Elon Musk will help BTC miners “green” the industry. Recall that recently, North American miners created the Bitcoin Mining Council group to promote the use of energy that meets the requirements of sustainable development and transparency in the industry. The initiators of the Bitcoin Mining Council were Elon Musk and MicroStrategy CEO Michael Saylor.

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Author: Steve Cowan
Graduated From Princeton University. He has been at the Free Press since October 2014. Previously worked as a regional entertainment editor.
Function: Chief-Editor
Steve Cowan

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