- Ark Invest’s CEO Cathie Wood has maintained her position that Bitcoin will hit $500,000.
- She believes Bitcoin mining can cause high adoption of solar energy.
The CEO of Ark Investment Management, Cathie Wood has reaffirmed her longstanding prediction of Bitcoin hitting $500,000. In an interview with Bloomberg, she clarified that her prediction still stands despite the asset facing a high sell-off in the past few days. She, however, agreed that the environmental concerns on Bitcoin have changed drastically after the Tesla CEO, Elon Musk raised concerns.
Bitcoin mining is reported to have a negative impact on the environment. Like a few other high-profile individuals, Cathie’s company objects to this notion and claims Bitcoin generates more electricity from renewable carbon-free sources.
Bitcoin mining can accelerate solar adoption
Cathie explained that the percentage of Bitcoin mined with renewables and hydroelectric power is quite substantial.
Bitcoin mining is being integrated into the electricity distribution grid. This means solar roofs, power walls in homes, merchant power producers, and others are starting to integrate Bitcoin mining into the ecosystem.
They do this because renewables are intermittent power sources. Bitcoin mining can take off if there is excess energy from solar loaded into power walls then offloaded into Bitcoin mining.
Cathie also said the whole ecosystem has become more economic, and with this happening, there will be a dramatic acceleration of solar adoption.
Last month, the director of research at Ark Invest, Brett Winton said that without Bitcoin mining, solar energy could only supply 40 percent of grid power.
But with Bitcoin mining integrated into a solar system (solar + batteries) however, we believe energy providers — whether utilities or independent entities — could play the arbitrage between electricity prices and Bitcoin prices, as well as sell the ‘surplus’ solar and supply almost all grid power demands without lowering profitability.
“This is a period of capitulation”
Cathie believes it is hard to know how low the Bitcoin price can go when the market gets very emotional. According to her, many traders observed Bitcoin moving below the 200-day moving average which was at $40,000. From this point, the newer investors “dumped and ran”.
She revealed that indicators suggest Bitcoin is in the capitulation phase. According to her, this is the best time to buy.
No matter what asset it is, the capitulation phase is the best time to buy.
At the time of publication, Bitcoin was trading at $40,450 and recorded a 24-hour positive change of 5 percent.
Ark Investment Fund is a huge fan of Coinbase shares (COIN). Following the 14 percent weekly slide of $COIN, the company purchased more than $90 million worth of Coinbase shares to add to its portfolio.
When $COIN made its market debut last month, three funds belonging to Ark Investment Management purchased $246 million worth of Coinbase shares. Ark Innovation ETF, Ark Fintech Innovation ETF, and Ark Next Generation Internet ETF made a combined purchase of 749,205 Coinbase shares.