Cathie Wood, CEO of ARK Invest, has strongly rebuked JPMorgan Chase CEO Jamie Dimon’s dismissive remarks about Bitcoin, characterizing the cryptocurrency as a “pet rock.”
Wood’s response comes in the wake of Dimon’s comments made at the World Economic Forum, where he reiterated his earlier stance, labeling Bitcoin as “worthless” and a “hyped-up fraud.”
Cathie Wood’s data disputes Dimon’s assertion
In a sharp retort, Cathie Wood pointed to a post by Yassine Elmandjra, ARK Invest’s Director of Digital Assets, to counter Dimon’s views. Wood took to Twitter to express her dissent, stating, that JPM’s Jamie Dimon called blockchain technology small, and added that bitcoin, a derivative of blockchain technology, is the equivalent of a ‘pet rock.’ Data flies in the face of Jamie’s description.
Elmandjra’s post highlighted Bitcoin’s hash rate reaching an all-time high of 500 exahashes per second this month. To provide perspective on the significance of this milestone, Elmandjra made comparisons, noting that for every star in our galaxy, the Bitcoin network is calculating 5 billion computations per second.
He also underscored that this hash rate far surpasses the capabilities of the world’s most powerful supercomputer by a factor of 500.
Bitcoin’s market performance tells a different tale
While Jamie Dimon’s comments may downplay the significance of Bitcoin, its market performance paints a contrasting picture. The cryptocurrency currently hovers around $41,200, having surged by more than 100% over the past year.
This robust performance has garnered increased attention from leading asset management firms, including BlackRock, Franklin Templeton, ARK 21Shares Bitcoin ETF, and WisdomTree, which have recently launched their spot Bitcoin ETFs.
Cathie Wood’s investment in Bitcoin
In a noteworthy disclosure, Cathie Wood revealed that a substantial portion of her portfolio is invested in Bitcoin. Excluding her holdings in ARK Invest and real estate, Bitcoin accounts for at least 25% of her net worth. This revelation underscores Wood’s confidence in the long-term potential and value of Bitcoin as an asset.
Bitcoin’s massive network infrastructure
Cathie Wood further highlighted the sheer scale of Bitcoin’s underlying network infrastructure. She emphasized that Bitcoin is backed by the largest computer network in the world, one that surpasses the combined size of the cloud computing systems built by tech giants Amazon, Google, and Microsoft over the past 15-20 years. This assertion underscores the robustness and resilience of Bitcoin’s blockchain technology.
Bitcoin’s hash rate, as mentioned earlier, plays a pivotal role in the cryptocurrency’s security and efficiency. A high hash rate indicates the computational power dedicated to securing the network, making it more resistant to attacks.
The achievement of a 500 exahashes per second hash rate signifies the growing strength and stability of the Bitcoin network.
The growing interest from prominent institutional players in the cryptocurrency space cannot be overlooked. Major asset management firms entering the Bitcoin market with spot ETFs demonstrate a notable shift in the perception of cryptocurrencies as legitimate investment assets. This trend further bolsters Bitcoin’s standing in the financial world.