Fund manager Cathie Wood says she believes Bitcoin’s (BTC) market capitalization could rise meteorically and become more valuable than most fiat currencies around the globe.
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In a new interview on What Bitcoin Did with BTC advocate Peter McCormack, the ARK Invest CEO says she asked prominent economist Art Laffer to “rip apart” Bitcoin’s whitepaper to see if BTC can serve the three roles of money, which are store of value, unit of account and medium of exchange.
Wood says Laffer said Bitcoin could potentially be the asset that upholds the value of the US dollar.
“Art [Laffer] did rip it apart, which was fantastic, and he came back to us and said, ‘I’ve been looking for this ever since we went off the gold exchange standard. It’s a rules-based monetary policy, rules-based monetary system.’ And he said… ‘It’s a rule and we need to get back to this.’ And I said to him, ‘Art, how big could this be?’ And he said, ‘Well, how big is the US monetary base?’
Now, Bitcoin was $250 at that time so roughly a $6 billion network value or market cap. I said, ‘It’s $4.5 trillion.’ He said, ‘There’s your answer.’”
Wood says that Laffer’s response motivated her to ‘immediately put a lot of money’ in BTC.
“So I put, I don’t think I’ve disclosed this before, but I put $100,000 in. I don’t even know [the amount of BTC bought], and I wasn’t counting at the time. And I’ve kept it all. Because as soon as he said that, a light bulb went up.”
At time of writing, Bitcoin is trading at $19,215. With a market capitalization of over $368 billion, BTC could rise more than 1,122% if it’s valuation soars to $4.5 trillion.
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