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- Renewable source of energy already in use by crypto miners as against Musk’s claims
- Ark Investments strategy might turn out to be true once a bullish trend ensues after a sell-off
- Many believe that her claims are unrealistic as the target might not be achievable any time soon
Bitcoin falling off the cliff is no old news as it is about to record its worst month in over three years. Hovering around its February low of $30k, Cathie Wood still believes that a jump of more than 13 times from its current level is still on the table. She acknowledged the concerns raised by Musk that mining consumes a lot of energy and fuel emissions are at an all-time high. However, the adoption of solar energy will turn things drastically in favor of investors.
Correction in times of highest inflation in the US
The US is currently heating up in terms of price level at 2.6%, while the covid outbreak in Asia is not helping in any way. A sell-off is visible across all markets, including cryptocurrency, where more than $600 billion were wiped off in just seven days. In times of turbulence, the voice of Cathie Wood should not be ruled out. Although an immediate target of such a high three-digit number would be a dream come true, the digital currency can lose more value.
She even joined the board of 21Shares parent company, Amun Holdings that helps investors get decent exposure to crypto through exchange traded products. With $50 billion AUM until February 2021, Ark Investment focuses on innovation and providing retail investors with the best ETF products. One of them is crypto-based ETFs that help small investors in diversifying their portfolios.
Bitcoin miners actually use renewable energy
Even before Musk tweeted against Bitcoin and the cryptocurrency world, Ark had issued a statement that read 76% of Bitcoin miners use renewable energy. It generates electricity from carbon-free sources, which is quite an efficient mechanism. The CEO does have a loyal and passionate fan base that would buy into her claims. China’s Sichuan district is currently witnessing to lowest electricity prices, and 95% of the Bitcoin mining power is from renewables.
The cost reduction will help improve the profits of miners and help incentivize others as well. Ark Invest also believes that 50% of the global crypto mining during the rainy season occurs in Sichuan. Hydropower is a cheaper form of energy than fossil fuels and helps fix the debate that a lot of energy is consumed for Bitcoin mining.
Risk return trade-off under the radar for cryptocurrency
A highly volatile digital currency is at a low from an all-time high of $61k in just under a month. No wonder that Ms. Wood’s comments are bullish for any fund manager or investor, but the risk-return trade-off needs to be well understood. Rising inflation and corrections in the growth stocks might have a huge impact on Bitcoin prices. We have seen that Bitcoin retraces to new highs after falling off the cliff, but it’s a different situation this time around.
- Renewable source of energy already in use by crypto miners as against Musk’s claims
- Ark Investments strategy might turn out to be true once a bullish trend ensues after a sell-off
- Many believe that her claims are unrealistic as the target might not be achievable any time soon
Bitcoin falling off the cliff is no old news as it is about to record its worst month in over three years. Hovering around its February low of $30k, Cathie Wood still believes that a jump of more than 13 times from its current level is still on the table. She acknowledged the concerns raised by Musk that mining consumes a lot of energy and fuel emissions are at an all time high. However, the adoption of solar energy will turn things drastically in favour of investors.
Correction in times of highest inflation in the US
The US is currently heating up in terms of price level at 2.6% while the covid outbreak in Asia is not helping in any way. A sell off is visible across all markets including cryptocurrency where more than $600 billion were wiped off in just seven days. In times of turbulence, the voice of Cathie Wood should not be ruled out. Although an immediate target of such a high three digit number would be a dream come true, it is possible for the digital currency to lose more value as well.
She even joined the board of 21Shares parent company, Amun Holdings that helps investors get a decent exposure to crypto through exchange traded-products. With $50 billion AUM until February 2021, Ark Investment focuses on innovation and providing retail investors with the best ETF products. One of them is crypto based ETFs that help small investors in diversifying their portfolio.
Bitcoin miners actually use renewable energy
It was even before Musk tweeted against Bitcoin and the cryptocurrency world that Ark had issued a statement that read 76% Bitcoin miners actually use renewable energy. It generates electricity from carbon-free sources which is quite an efficient mechanism. The CEO does have a loyal and a passionate fan base that would buy into her claims. Currently, China’s Sichuan district is witness to lowest electricity prices and 95% of the Bitcoin mining power is from renewables.
The cost reduction will help improve profits of miners and help incentivize others as well. Ark Invest also believes that 50% of the global crypto mining during the rainy season takes place in Sichuan. Hydropower is a cheaper form of energy than fossil fuels and help fix the debate that a lot of energy is consumed for Bitcoin mining.
Risk return trade-off under the radar for cryptocurrency
A highly volatile digital currency is at a low from an all time high of $61k in just under a month. No wonder that Ms. Wood’s comments are bullish for any fund manager or investor but the risk return trade off needs to be well understood. Rising inflation and corrections in the growth stocks might have a huge impact on Bitcoin prices. We have seen that Bitcoin retraces to new highs after falling off the cliff but its a different situation this time around.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
