Elon Musk’s role in highlighting Bitcoin’s environmental considerations contributed to the cryptocurrency’s collapse, but its influence on the virtual token will be more constructive in the future, according to Cathie Wood.
Bitcoin, which has lost about 50% of its price in recent weeks, last quoted around $37,000 on Friday. The elegance of highly volatile assets has slipped into the mainstream over the next year, but has lost momentum as the debate about their energy-intensive extraction. the procedure has arisen.
“It has been caused through the ESG [environmental, social and governance] motion and through this notion, which has been exacerbated through Elon Musk, that there is a genuine environment with bitcoin extraction,” Wood said at CoinDesk’s Consensus 2021 convention this week. Many institutional purchases have been disrupted. “
But the star investor is positive about Bitcoin’s long-term outlook and expects Musk to be a positive figure for its environmental reputation. “It fostered many more conversations, a much more analytical thought. And I think it’s going to be a component of the process,” he said.
The head of the billionaire Tesla recently recommended the most sensible miners to turn out to be green energy to melt their negative image.
Read more: A dogecoin millionaire explains why the recent fall doesn’t take away his optimism in the room itself, and stores his tips for new buyers.
Wood also predicted that some central banks may begin adding cryptocurrencies to their balance sheets, as their own currencies face the threat of devaluation.
Regulators can also take a more space-friendly stance not to take advantage of the innovation provided by the industry, he said.
Wood’s investment firm, Ark Invest, released a report last month suggesting that bitcoin mining encourages the adoption of renewable energy and can lead to cleaner energy solutions.