Cathie Wood, the CEO of ARK Invest, has firmly countered JPMorgan Chase CEO Jamie Dimon’s disparaging statements about Bitcoin , where he likened the digital currency to a “pet rock,” and said it has “no intrinsic value”.
This reaction from Wood follows Dimon’s recent remarks at the World Economic Forum , where he reaffirmed his previous negative view of Bitcoin, calling it “worthless” and a “hyped-up fraud.”
Among other things, Wood stated that Dr. Arthur Laffer, renowned for the Laffer Curve and a scholar in monetary economics mentored by Nobel laureate Robert Mundell , viewed Bitcoin as a return to a private, rules-based monetary system. He considered this development to potentially be the most significant advancement in global monetary history.
In her compelling response, Wood referenced a post by Yassine Elmandjra , ARK Invest’s Director of Digital Assets, to counter the JPMorgan CEO’s assertions.
In a recent series of Twitter posts , Elmandjra has boldly countered Jamie Dimon’s assertions about Bitcoin. Dimon, known for his skeptical views on Bitcoin, has claimed that the cryptocurrency has no intrinsic value and that it remains largely unused. He also referenced the latest Vanguard decision not to include Bitcoin ETFs into its offer.
Elmandjra argues that while Bitcoin’s value drivers are distinct from traditional assets, it’s misleading to say it has no intrinsic value. Unlike conventional cash flow-based assets, Bitcoin’s worth lies in its unique properties that resonate with both historical and modern monetary system requirements.
Referred to as digital gold by some of its supporters, Elmadjra notes these qualities not only give it utility but also position it as a potentially superior choice for global digital money.
Contrary to Dimon’s claim, Elmandjra highlights staggering usage statistics that paint a different picture.
According to him, Bitcoin’s usage statistics are impressively substantial, with a cumulative transaction volume reaching $41.6 trillion and a total of 954 million transactions. Alongside these figures, Bitcoin boasts a cumulative miner revenue of $58.8 billion, over 51.7 million addresses with a non-zero balance, and a market cost basis of $440 billion, reflecting its significant presence and activity in the financial landscape.
These figures demonstrate Bitcoin’s widespread usage and acceptance, contradicting the notion that it’s an unused asset. The transaction volume and count showcase the cryptocurrency’s active and growing ecosystem, while the significant miner revenue underscores its economic impact. The substantial number of addresses with a non-zero balance further attests to its wide user base.
Elmandjra’s response to Dimon’s criticism sheds light on the misconceptions surrounding Bitcoin. By presenting concrete data and emphasizing Bitcoin’s unique monetary properties, he makes a compelling case for the cryptocurrency’s intrinsic value and its evolving role in the global financial system. As the debate continues, these insights contribute significantly to the ongoing discourse about Bitcoin’s place in the future of money.
Despite Jamie Dimon’s skeptical remarks about Bitcoin, the cryptocurrency’s market performance tells a different story. Currently priced around $41,200, Bitcoin has experienced a surge of around 100% in the past year . This impressive growth has caught the attention of top asset management firms like BlackRock, Franklin Templeton, ARK 21Shares Bitcoin ETF, and WisdomTree, leading them to launch their own spot Bitcoin ETFs.
Cathie Wood has strongly rebutted Jamie Dimon’s criticism of Bitcoin and blockchain technology.
Wood, in a notable disclosure , revealed that Bitcoin comprises a significant portion of her personal investment portfolio. Excluding her stakes in ARK Invest and real estate, Bitcoin represents at least 25% of her net worth. This move showcases Wood’s strong belief in Bitcoin’s long-term value and potential as an investment asset.
Wood also drew attention to the massive scale of Bitcoin’s network infrastructure . She pointed out that Bitcoin is supported by the world’s largest computer network, one that eclipses the cloud computing systems developed by tech giants like Amazon, Google, and Microsoft over the last 15-20 years, highlighting the strength and resilience of Bitcoin’s blockchain technology.