The Bitcoin Halving and Its Impact
The supply of it grows about 1 per year, on average over a very long period of time when the price spikes yeah. That percentage will go up because people have more incentive to mine for more gold. Well, something is going to happen this year with Bitcoin, which means that its Supply growth is going to drop below below the supply growth of gold. It has been growing 1.8 per year. The number of Bitcoin out there for the last four years in April, its going to go through Whats, called the having h v, having that growth rate will be cut in half to about 0.9 for the first time falling below gold.
Bitcoin as a Scarce Asset
Now, why is Bitcoin a scarce asset? Gold is because its hard to find and hard to mine. Why is Bitcoin? It is because its mathematically metered to have the growth rate every four years, so in four years, itll start growing, 0.4, not 0.9 or 0.4, and the number of Bitcoin there will ever be in the world is 21 million, and right now were at 19.5 million outstanding And its only going to 21 million. If you look at that 19.5 million – and you can see this – this networks completely transparent, 15 million of that 19 million in are in what we call strong hands. They have not moved their Bitcoin in uh more than 155 days. That means theyre hodlers.
The Bitcoin Price Surge
Bitcoin has experienced a dramatic surge in price since the approval of the Bitcoin ETFs and the majority of experts believe that this is just the beginning.
The Bitcoin Halving Event
With the Bitcoin Halving event quickly approaching, Bitcoin is bound to explode. In a latest interview, Kathy Wood noted that Bitcoin’s supply growth rate has been around 1.8 annually for the past 4 years. However, following Bitcoin’s Halving event, this rate will halve to approximately 0.9. This marks the very first time it falls below the supply growth rate of Gold. This means that Bitcoin will undergo a supply shock, becoming scarcer than gold itself.
Disruptive Innovations and Technology
Kathy also explains how disruptive innovations like Bitcoin and AI have shaped today’s technology. Think about how 15 out of 19.5 hodling right now, with only 1.2 million left for institutions to get involved. The SEC has given it the green light, in the form of an ETF. Institutions are now starting to become involved in Bitcoin, which is pretty exciting.
Institutional Involvement
As institutions become more involved in Bitcoin, they will have to compete with hodlers who are holding onto their Bitcoin. Back in 2015, Bitcoin was priced at $250. Despite the recent price surges, Kathy Wood believes that Bitcoin has just begun its journey, with institutions only now starting to enter the market. This increasing institutional involvement is a positive sign for the future of Bitcoin.
The Potential Scale of Bitcoin
We think it could scale depends on the you know. We have a base case, a bar case a bull case, but it could scale from 43000 to 650000 or 1.5 million per coin or even higher as institutions get in. But the most important thing is, we talk. Talk about these themes is be prepared for huge volatility.
Preparing for Volatility
You know there’s the Hypes and you know so there, the booms and the busts and the booms and the bust. The trend line should be up, but you have to prepare especially young people for volatility. The seeds for everything that is happening today were planted in the 20 years that ended in the Tekken Telecom bubble right and then there was the crash, so all the seeds were planted there.
Technological Readiness
The reason the crash happened is because the Technologies were not ready. Even if they were kind of getting ready, the costs were prohibitive. Just to give you a good example of the second one in 2003, but we were thinking about it in the late 90s, in 2003, the first whole genome was sequenced. We were able to understand all of the 6 billion bits of code in one person’s body so that we could understand what was going wrong. That cost 2.7 billion just for one person and it took 13 years of computing power. We were not ready for prime time, but biotech was a big part of that bubble. Right. The Technologies weren’t ready.
The Evolution of Technology
It is crucial to understand the evolution of technology and how breakthroughs have reshaped various industries over the years. The emergence of cloud computing in 2006 revolutionized the way data is stored and processed. Subsequently, advancements in artificial intelligence (AI) with breakthroughs in deep learning in 2012 and the Transformer architecture in 2017 opened up new possibilities for automation and machine learning.
The Impact of Major Platforms
Cathie Wood highlights the importance of scaling five major platforms – robotics, energy storage, artificial intelligence, blockchain technology, and multiomic sequencing in the Life Sciences. These technologies are set to transform the way we live and work, with significant implications for sectors such as healthcare. The increasing adoption and integration of these platforms signify a shift towards a more technologically advanced future.
Investor Psychology and Risk-taking
Wood acknowledges the apprehension and fear among investors when it comes to investing in emerging and disruptive technologies. However, she emphasizes the need to take risks and embrace volatility in order to reap substantial returns. Managing risks effectively and leveraging volatility can prove beneficial in navigating the uncertainties associated with disruptive innovation.
The Future of Disruptive Innovation
Looking ahead, Wood predicts that disruptive innovation will continue to redefine the global landscape in the next 5 to 10 years. Industries will undergo profound transformations driven by technological advancements, presenting new opportunities for investors to capitalize on emerging trends. As investors gear up to navigate this rapidly evolving landscape, the ability to adapt and capitalize on disruptive innovation will be key to success in the future.
The Shift in Investment Strategy
After the tech and Telecom bust in the early 2000s and the global financial crisis, investors started shifting their focus towards investing in public markets such as the S&P 500, NASDAQ, or MSCI World. This change in strategy stemmed from the need to react quickly to constantly bombarding information and make decisions swiftly. However, traditional investing methods are becoming outdated as they rely on past performance to guide future decisions.
Disruptive Innovation and Its Impact
Disruptive innovation has the power to turn sectors upside down and inside out within a span of 5 to 10 years. The stocks at the top of traditional indexes may not necessarily reflect this disruptive shift, leading to missed investment opportunities. The ability to adapt to real-time information in the digital asset world, or the crypto world as it is commonly known, is crucial in identifying potential investment prospects.
The Importance of Reacting in Real Time
The crypto world operates 24/7, meaning that investors need to stay vigilant and responsive to market fluctuations at all times. This contrasts sharply with traditional markets where reaction times are slower due to reliance on historical data. Investing in the digital asset space requires the ability to absorb information rapidly and make decisions on the spot.
Cathie Wood’s 2024 Crypto Prediction
Cathie Wood, a renowned investor and founder of Ark Invest, predicts a significant shift in investment trends by 2024. She believes that traditional investing methods will become increasingly obsolete as disruptive innovations reshape various sectors. Wood advocates for active engagement with real-time information and quick decision-making to navigate the rapidly evolving digital asset landscape.
Kathy Woods’ Expert Insights on Bitcoin and Disruptive Innovations
Now, Kathy Woods talks about expert insights on bitcoin and other disruptive innovations. Kathy highlights that these technologies, such as robotics, AI, blockchain, and genomics, are all basically ready for implementation. It’s only a matter of time before all these technologies disrupt all of the world’s societal systems.
Disruptive Innovation Reshaping Industries
Kathy predicts that disruptive innovation will reshape industries over the next 5 to 10 years. With the rapid advancements in technologies like blockchain and AI, traditional industries will be forced to adapt or risk being left behind. This transformation will not only impact businesses but also the way we live our daily lives.
Managing Risk in the Face of Investment Fear
With the upcoming Bitcoin halving, Kathy stresses the importance of managing risk in the face of investment fear. While the halving event may create uncertainty in the market, she believes that long-term investors should focus on the potential for growth in cryptocurrencies. By diversifying their portfolios and staying informed about market trends, investors can navigate through periods of volatility.
