The CEO of Ark Investment Management, Cathie Wood, believes the controversial Tesla CEO and Dogecoin proponent, Elon Musk, will once more embrace Bitcoin as soon as larger adoption of renewable vitality has occurred inside the mining sector.
Despite relations between Musk and the Bitcoin community souring, Wood predicted: “Elon will come back and be part of [the Bitcoin] ecosystem.”
Wood’s feedback come on the identical day that Ark’s Sam Korus published an replace the agency’s “open-source Solar+Battery+Bitcoin mining model” to enable historic testing of the system’s efficacy.
Korus concluded: “The takeaway is that regardless of a Bitcoin bull of bear market, Bitcoin mining can incentivize additional solar and battery installations,” adding:
“The next step is to dimension solar+battery+Bitcoin mining at the household level.”
Musk replied to the put up, noting that whereas such a system might be achieved over time, the latest “extreme” development in Bitcoin’s hash price couldn’t have been supported by renewables.
He advocated for the highest 10 mining swimming pools by hash price to put up audited breakdowns of their vitality sources.
Can you put up audited numbers of renewable vitality vs not of your personal jets?
— Dan Hedl (@danheld) May 20, 2021
With Wood anticipating renewables will quickly signify a bigger share of the vitality fueling the mining sector, the Ark Invest founder is steadfast in her predictions of $500,000 BTC for the longer term regardless of the recent crash that noticed costs tumble more than 50% over the course of two weeks.
Wood characterised the markets as having entered a “capitulation phase,” asserting it is “a really great time to buy” regardless of acknowledging: “You never know how low is low when a market gets very emotional.”
Wood is placing her cash the place her mouth is too, with Ark Invest accumulating shares in Coinbase whereas the inventory has been buying and selling beneath its direct itemizing reference worth of $250.
The crypto downturn accelerated with Tesla CEO Elon Musk’s obvious u-turn on Bitcon, with Musk criticizing the environmental impacts of Bitcoin mining.
Wood additionally believes the heavy market retracement improves the prospects of U.S. regulators approving a Bitcoin exchange-traded fund, or ETF, stating: “The odds are going up now that we have had this correction.”