Bitcoin is one of the most interesting subjects for people these days. As the pandemic occurred and as many people started to join the stock market, the interest toward Bitcoin has also increased in large steps. Since people, participating in the stock market and cryptocurrency market, desire to get information about the future, there are two people who have opposite opinions about the future of Bitcoin.
Cathie Wood is the founder of the ‘Ark Invest’ which is one of the most famous investment groups in the world. She is on the side that claims Bitcoin has trillions in market capitalization potential. She also mentions that U.S. corporations, including Tesla, are considering Bitcoin as their economic resources, and actually Tesla has revealed that it bought $1.5 billion in Bitcoin(e.g. Gurdus, ”Ark Invest’s Cathie Wood on bitcoin ETF prospects and Tesla’s billion-dollar investment‘‘, CNBC). Therefore, Cathie Wood states that Bitcoin will rise steadily, and it has high potential.
On the other hand, Michael Burry who is famous for the ‘Big Short’ in the mid to late 2000s, demonstrates that the increase in Bitcoin these days is a bubble. ‘Short’ in the market refers to ‘fall’ or decrease in price, and in the late 2000s, there was a ‘big short’ due to the subprime mortgage crisis(2007). Michael Burry is a person who had predicted and invested on the short. Burry stated, “BTC is a speculative bubble that poses more risk than opportunity despite most of the proponents being correct in their arguments for why it is relevant at this point in history. If you do not know how much leverage is involved in the run-up, you may not know enough to own it,” in his tweet, which is now deleted(e.g. Mohamed, ”’Big Short’ investor Michael Burry slams bitcoin as a ‘speculative bubble’ – and says a crash is coming”, Markets Insider). He also mentions that the current fad is similar to the housing market of 2007 and the IT bubble in 1999.
Cathie Wood has claimed that Bitcoin has a total $900 billion of market cap. Hence, it will keep on rising, and many companies are considering whether to put Bitcoin in their balance sheets or not. On the other hand, Michael Burry mentions that Bitcoin is a speculative bubble, and the current situation is very similar with the past.
By: Sonbom Lee