Cathie Wood is standing firm in her support for Bitcoin (CRYPTO: BTC) despite a 5% weekly decline, tweeting that the apex crypto is backed by the world's largest computer network.
What Happened: The Ark Invest CEO remains unfazed by sliding Bitcoin prices, sharing analysis by the Director of Digital Assets at ARK Investment Management Yassine Elmandjra:
Bitcoin is backed by the largest computer network in the world, a network orders of magnitude larger than the combined size of the clouds that Amazon, Google, and Microsoft have built over the last 15-20 years. https://t.co/TsSDyTTyuk
— Cathie Wood (@CathieDWood) January 19, 2024
Elmandjra highlighted in his tweet that the Bitcoin hash rate peaked at an all-time high of 500 exahashes in January 2024. He added that in terms of raw operations per second, Bitcoin is around 500 times more performant than the world's most powerful supercomputer and finished his statement with the words, "Yet, there are skeptics out there that still believe 'bitcoin is backed by nothing.'"
Why It Matters: Wood has a significant personal stake in the success of Bitcoin, with her firm Ark Investment Management purchasing around 1% of its own ARK 21Shares Bitcoin ETF (BATS: ARKB).
Her take echoes the words of Michael Saylor, executive chairman of MicroStrategy (NASDAQ: MSTR), who in June 2022 said that “Bitcoin is the only digital scarcity, backed by the world’s most secure computer network, and meets the fundamental need everyone has for a long term Store of Value.”
Bitcoin supporters on social media applauded Wood's statement, with one user saying it “is not hyperbolic, but it is incorruptible mathematical truth.”
Eric Yakes, author of "Bitcoin and the Monetary Revolution," said on X: “Bitcoin isn't backed by the largest computer network in the world. It's secured by it.”
He explained that the difference is “because good money isn't backed by anything - it has fundamentally sound monetary properties. Bitcoin miners, nodes, people, and companies create these properties.”
What's Next: Bitcoin could face more short-term sell pressure from outflows, analysts widely expect the halving to be a bullish catalyst in the medium term.
Photo: Shutterstock and Ark Invest
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