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Cathie Wood of Ark Investment claims Bitcoin can reach $500,000 and that the mining industry is rapidly promoting green energy.
Cathie Wood, CEO of Ark Investment Management, claims Elon Musk, the notorious Tesla CEO and proponent of Dogecoin, will return to Bitcoin after the mining industry has adopted more green technology.
Despite Musk’s strained relationship with the Bitcoin culture, Wood expected that “Elon will come back and be a part of [the Bitcoin] ecosystem.”
Wood’s comments come on the same day that Ark’s Sam Korus published an update the firm’s “open-source Solar+Battery+Bitcoin mining model” to allow historic testing of the system’s efficacy.
Korus concluded: “The takeaway is that regardless of a Bitcoin bull of bear market, Bitcoin mining can incentivize additional solar and battery installations,” adding:
“The next step is to dimension solar+battery+Bitcoin mining at the household level.”
Musk replied to the post, noting that while such a system could be achieved over time, the recent “extreme” growth in Bitcoin’s hash rate could not have been supported by renewables.
He advocated for the top 10 mining pools by hash rate to post audited breakdowns of their energy sources.
Previously, we demonstrated how bitcoin minting could allow solar + battery systems to economically scale to provide a larger share of grid energy.
As expected (in this update) the result holds across different historical bitcoin pricing/hash timeframes https://t.co/s70jCvR5sd
— Brett Winton (@wintonARK) May 20, 2021
With Wood predicting that renewables will soon account for a greater share of the electricity powering the mining industry, the Ark Invest founder remains confident in her forecast of $500,000 BTC for the future, amid the recent crash that saw prices down more than 50% in less than two weeks.
Wood described the markets as being in a “capitulation phase,” claiming it is a “really great time to buy” while admitting that “you never know how low is low when a market gets very emotional.”
Wood is still putting her money where her mouth is, with Ark Invest amassing Coinbase shares when the stock is priced below its direct listing reference price of $250.
The crypto slump was accelerated by Tesla CEO Elon Musk’s apparent reversal on Bitcon, in which Musk criticised the environmental effects of Bitcoin mining.
Wood also claims that the significant price retracement increases the chances of US regulators allowing a Bitcoin exchange-traded fund, or ETF, saying, “The odds are going up now that we have had this correction.”