ARK Invest CEO Cathie Wood recently shared her perspective on the evolving roles of stablecoins and Bitcoin, highlighting a significant shift in the cryptocurrency landscape.
Speaking on CNBC’s *Squawk Box* program with Andrew Ross Sorkin and Joe Kernen, Wood noted that stablecoins have begun to take over some of the functions initially expected to be fulfilled by Bitcoin. In particular, she emphasized how stablecoins are scaling much faster than anticipated, especially in developing countries.
“In these regions, stablecoins now function as a ‘digital dollar’ used for payments and savings, a role we previously thought Bitcoin would assume,” Wood explained. “Stablecoins are taking over some of the role we thought Bitcoin would play. Given what’s happening with stablecoins, we can maybe take $300,000 out of our bull case.”
This adjustment refers to ARK Invest’s earlier predictions for Bitcoin’s price by 2030. Initially, the firm set a bullish target of $1.5 million per Bitcoin. However, in April, this estimate was raised to $2.4 million through a more aggressive modeling approach. Their outlook also includes a $1.2 million base case and a $500,000 bear case.
Despite the evolving roles of stablecoins, Wood remains confident in Bitcoin’s importance. She described Bitcoin as “digital gold” and a cornerstone of the new global financial system. While dollar-pegged stablecoins represent cash-like assets, Bitcoin continues to serve as a unique, comprehensive asset class.
Wood also pointed out that institutional investors are only beginning to enter the Bitcoin market. She highlighted Bitcoin’s distinctive position, where “technology, a global monetary system, and a new asset class coexist,” underscoring the cryptocurrency’s long-term potential.
*This is not investment advice.*
https://bitcoinethereumnews.com/bitcoin/big-bull-cathie-wood-surprises-with-decision-to-cut-bitcoin-price-forecast/