Cathie Wood Critiques Memecoins While Praising Bitcoin’s Potential
Cathie Wood warns that most memecoins may become worthless due to the influx of blockchain technologies and advises caution for investors. Conversely, she endorses established cryptocurrencies like Bitcoin, projecting its value could exceed $1 million by 2030. Current Bitcoin is priced at $83,355.43, with Ether at $1,937.82.
Cathie Wood, the founder and CEO of ARK Investment Management, expressed skepticism regarding the future value of most memecoins in the cryptocurrency market, currently valued at $2.6 trillion. She highlighted that the surge of blockchain technology and artificial intelligence has led to the creation of “millions” of memecoins that are unlikely to hold value.
Memecoins, which are cryptocurrencies often inspired by jokes and cultural phenomena, include popular examples such as Dogecoin and Donald Trump’s self-branded coin. Wood indicated that her investment funds do not favor these coins, cautioning potential investors: “If I have one message for those listening who are buying memecoins: buyer beware.” She warned that many will realize the lack of regulatory oversight from agencies like the SEC.
Referring to memecoins as future digital collectors’ items, she asserted that while a few might withstand the test of time, most would likely not endure. In contrast, Wood remained positive about established cryptocurrencies such as Bitcoin and Ether. She advocated for their growing use cases and projected that Bitcoin could surpass $1 million by 2030.
As of March 19, Bitcoin’s price was $83,355.43, reflecting a slight increase of 0.28% from the previous day, with a market cap of $1.65 trillion. The second-largest cryptocurrency, Ether, was priced at $1,937.82, advancing 1.80% with a market cap of $233.75 billion. Despite a recent decline, Bitcoin remains below its resistance level of $85,000 and is under its 50-day Exponential Moving Average (EMA). Additionally, Tokyo Stock Exchange-listed Metaplanet Inc. expanded its Bitcoin holdings to a total of 3,200 BTC.
Investors are advised to consult with certified financial experts before making investment decisions pertaining to cryptocurrencies.
Cathie Wood’s commentary emphasizes a critical viewpoint of memecoins amidst the expanding cryptocurrency market, cautioning investors about their potential lack of long-term value. In contrast, she expressed optimism towards established cryptocurrencies like Bitcoin and Ether, noting their increasing significance and predicting substantial growth for Bitcoin in the coming years. Investors should remain vigilant and seek professional guidance when engaging in cryptocurrency investments.
Original Source: www.livemint.com
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