All Hell Is About To Break Loose With Bitcoin | Cathie Wood

All Hell Is About To Break Loose With Bitcoin | Cathie Wood

this line will drop toward uh uh two to three% which um which as you can see we’ve only seen once it was in the 90s and uh you know after that uh you know all hell broke loose around the world um we’re we’re in a very interesting environment and it’s caused by um monetary instability around the world we can see that and and we believe that the the Bold Market in Bitcoin is not over in this video Kathy Wood and yasen elandra of Ark invest discuss the recent 15% increase in bitcoin’s value since the last having alongside an additional 3% rise just this week they dive into the robustness and potential long-term benefits of investing in Bitcoin compared to traditional assets as well as the domino effect that the current devaluations of currencies worldwide will have on bitcoin reflecting on the global shift towards cryptocurrencies as a defense against inflation and monetary instability they draw parallels with significant currency devaluations worldwide let’s listen more to what they have to say anyone with a connection to the internet now pretty much can uh establish or buy an insurance policy in the form of Bitcoin this monetary policy uh basically uh was written in five lines of code it is so ele so simple so straightforward this is uh m2’s uh M2 growth and it’s uh it’s a a 4-year annualized percent change this past march to March 4 years ago uh what is the monetary growth rate at an annual rate so that rate is about 8% and uh actually probably it’s closer to 6% but take a look at the 4-year growth rate of M2 and you can see it’s all over the place you can see in the 60s and 70s um it it was uh it moved toward double digits and we ended up with double digit inflation uh in the late 70s early 80s uh it took a while to get there and uh it seemed to be very sticky and then after uh after uh chairman vulker came onto the scene I think that was 1979 he said we have to get this thing under control and he started choking money supply and uh and that momentum actually continued into the mid90s and then in the mid90s it was very interesting because it’s somewhat similar to today in the mid90s um you know the the uh there was a domino effect of currency devaluations around the world um our monetary policy was propagating throughout the world because it is the world’s Reserve asset and uh the first devaluation actually was Mexico um and it was a big one I remember it very clearly because we were involved with Mexican stocks uh and then uh a few years later uh we had the Asian domino effect I think the taibat devalued in uh 1997 and then uh the rest of Asia’s currencies devalued we had uh the Russia Russian default in uh 1998 and then we had long-term capital falling apart um monetary policy uh propagates through the system and when it’s so unpredictable um uh it leads to all kinds of excesses and uh and so what do we have now where we we see what happened because of covid that drove the four-year annualized growth in M2 up to 12% and then now we’ve had a very sharp deceleration unlike the 70s 60s and70s where there was sort of an acceleration um at least in in in a the sense of a trend and a stabilization near double digits here we had um money thrown at the system uh to prevent an outright depression and uh if by the end of the year we stabilize around 0% year-over-year growth uh that’s year-over-year this line will drop toward uh uh two to 3% which um which as you can see we’ve only seen once it was in the 90s and uh you know after that uh you all hell broke loose around the world it is interesting to note that the devaluations there are many devaluations taking place in the rest of the world uh today uh I’ve mentioned in the past Egypt uh I think devalued by 40% in February or March uh and the Nigerian Nara is uh down 5050 to 60% in in the last nine months uh we’re seeing the Indonesian rupia uh devaluing at an accelerated rate uh and in Latin America of course Argentina basically recognized that uh the black market had it right that it’s uh its currency at least uh uh P publicly um stated was um about really about 50% of that rate in the black market and that was correct so um we’re we’re in a very interesting environment and it’s caused by um monetary instability around the world and uh so I often talk to uh Yasin about these devaluations and of course in Emerging Markets uh which uh just flipping back to the having in this purple line doesn’t doesn’t look anything like the volatility you see in uh monetary policy um here in the United States and and around the world uh and of course it’s controlled by human beings when we went off the gold exchange standard in uh and closed the gold window in the United States in 1971 monetary policy just became unhinged and it has been unhinged ever since although human beings have tried to contain uh contain the uh inflationary ramifications and they they uh they take it too far both ways and right now we think they’re taking it too far on the downside it’s amazing to me that uh chairman poell and the FED Governors as you mentioned there are no fed Governors here in the Bitcoin ecosystem but there are uh in in the United States and every time one of them speaks markets move and uh you know what uh as I said they overdo it one way then they overdo it the other way and it’s just contributing to a lot of instability not only in the markets uh but but also in the economy I would submit we can see that and and we believe that the the Bold Market in Bitcoin is not over what are your views on the current and future states of Bitcoin and other cryptocurrencies do you see yourself investing in digital currencies as an insurance or do you prefer traditional assets share your thoughts in the comments below if you found today’s discussion interesting please hit that like button and subscribe for more in-depth analysis stay informed on all things crypto by tuning into our Channel [Applause]

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