Since years, the Bitcoin versus Ethereum debate is a constant and grows stronger with each passing year. The market’s greatest pleasure has been pitting the top two cryptocurrencies against one another. Not everyone believes they should be competing.
Cathie, CEO at ARK Invest, is well known for sharing her perspective on Bitcoin. Ethereum has been largely overlooked in this conversation. Wood’s bitcoin at $500,000 prediction is what makes her most famous in crypto space. She has supported it at different points.
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As CEO, she has stated that bitcoin was still undervalued. However, there are many things that can be done in the future. Wood however pointed out that the top altcoin, ethereum (number one), is less undervalued than Bitcoin.
Ethereum is still undervalued
Wood was on CNBC’s Squawk Box to talk about the crypto market. Wood, CEO said that ethereum is still highly undervalued. The CEO put it in context using bitcoin, the biggest cryptocurrency on the marketplace, and she still believes it is greatly undervalued. Wood stated that even though bitcoin is highly undervalued, ethereum remains a far more valuable cryptocurrency than it.
The utility of ethereum is one of the main reasons for ethereum investments. Decentralized finance (DeFi), a relatively new concept, is enjoying tremendous success. Ethereum hosts the vast majority of DeFi activities. Wood reiterated the fact that DeFi was the driving force behind the digital asset’s success.
“The fact that it is the venue, or the protocol, for DeFi and for NFTs suggests to us that it is even more undervalued than Bitcoin is, just because there are new worlds growing up on top of it.”
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
According to CEO, Ethereum is still in its early stages and has much to learn, but bitcoin can be considered a monetary system. She added that institutions are going to move more into DeFi and NFTs, which would “accelerate” its growth.
Still Bullish On Bitcoin
Wood didn’t fail to reiterate her stand on bitcoin. Wood noted that institutions were investing in the digital asset. It is impossible not to embrace Bitcoin and Wood said that institutional investors must explore it. “Institutional managers have to look at new asset classes that are evolving and that have low correlation,” the CEO said. “That’s the Holy Grail in terms of asset allocation.”
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Bitcoin’s over 10 years of existence has been a successful one. Cathie Wood believes that the asset will continue to grow. According to Cathie Wood, bitcoin’s value could grow as institutions invest more in it. This means that the asset could be worth as much as $500,000 over the next five-years.
Featured Image from Crypto Adventure. Chart from TradingView.com