Ark Invest CEO Cathie Wood, known for her unwavering belief in Bitcoin’s (CRYPTO: BTC) potential, called out the naysayers with a weekend tweet, saying: “Bitcoin skeptics can’t have it both ways.“
The tweet aimed to amplify a thread by Yassine Elmandjra, Director of Digital Assets at Ark Investment Management, titled “The Truth About Bitcoin: A Comprehensive Thread Debunking Common Myths.”
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Myth #1 — “Bitcoin is backed by nothing.”: Elmandjra points out that Bitcoin is backed by “the most powerful computing network in the world.” It boasts 500 exahashes per second, leading Elmandjra to proclaim: “Miner backed > government backed.” While one can disagree with the approach, Bitcoin’s user base and transaction volume have steadily climbed, highlighting a growing global interest.
Myth #2 — “Bitcoin is too volatile”: Bitcoin “does not prioritize exchange rate stability” because it limits its supply, which inevitably leads to volatility, Elmandjra argues. However, its volatility is decreasing, which Elmandjra illustrates with an example: “$1 billion in new demand on a $10 billion market capitalization should impact bitcoin’s price more significantly than $1 billion in new demand on a $100 billion network value.” Thus, the argument goes, “volatility should not preclude bitcoin as a store of value.”
Myth #3 — “Bitcoin wastes too much electricity”: Bitcoin’s energy usage is not wasted but “purposefully allocated to sustaining a network that carries profound significance for the future of money,” according to Elmandjra. He highlights that many miners “utilize energy that might otherwise go unused” and that Bitcoin mining can “act as a stabilizer for renewable energy grids.” He also stresses that “Bitcoin mining should be weighed against the intrinsic value of a decentralized, global, secure, transparent money that transcends borders and political regimes.” In other words, compared to the energy usage of the entire financial sector, Bitcoin does not seem so wasteful.
Myth #4 — “Bitcoin is used by criminals”: Elmandjra flips the argument on its head: because Bitcoin is neutral, it allows anyone to transact, which can also include illicit use cases. However, this “does not make it an…
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