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The main advantage of Bitcoin is that, due to its limited emission, it is a scarcer commodity than precious metals, said Cathie Wood, founder and CEO of the management company Ark Invest.
In her opinion, Bitcoin should be considered in an investment portfolio as a special class of asset, the value of which is determined not by fears of inflation, but by the discrepancy between growing global capital and limited supply.
Since the fall of 2022, the first cryptocurrency has shown an increase of 360%, and gold – by 166%. The gap is driven by “global wealth creation” outpacing the small annual increase in gold supply of about 1.8%. The supply of the first cryptocurrency is mathematically programmed to grow by 0.82% over the next two years, after which the figure will decrease by 0.41%, noted the CEO of Ark Invest.
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“If Bitcoin continues to grow in popularity, the leading crypto asset will benefit more than gold due to its nature,” Wood explained.
The founder of Ark Invest pointed out its diversification potential as another advantage of Bitcoin. The correlation between cryptocurrency and the precious metal turned out to be lower than between shares of companies included in the American stock index S&P 500 and bonds.
This allows us to consider the first cryptocurrency as an effective tool for increasing profitability in investment portfolios in the long term, Wood concluded.
Earlier, Ark Invest analyst David Puell suggested that by 2030 the Bitcoin rate could reach $710,000, and with a stable bullish trend even exceed $1.5 million.
