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⚡Bold $650,000 Vision for Bitcoin🥊

Croxroad

20 Nov 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🥈 Cathie Wood Breaks Down the Numbers

In a recent interview, Cathie Wood, the CEO of Ark Invest, mentioned that there's been a notable shift at the SEC regarding their application for a spot Bitcoin ETF. The SEC, which used to outright reject Ark's applications, is now asking questions about their hedge fund's Bitcoin ETF filing.

Wood is optimistic about Bitcoin's future, citing factors such as the upcoming halving and the digital currency's limited supply of 21 million. She expressed a base case price prediction of $600,000 to $650,000 for Bitcoin. However, she didn't provide a specific figure for Ark Invest's base case, emphasising the scarcity of BTC and anticipating increased interest from institutional investors if the SEC approves a Bitcoin ETF.

Despite the SEC's prolonged review process, Wood believes that institutional investors are likely to enter the market once a Bitcoin ETF is approved, considering it a signal that the regulatory cost is clear. She highlighted that many institutions have been researching crypto assets and view them as a new asset class.

Cathie Wood's positive stance on cryptocurrencies extends beyond the recent developments. In a CNBC appearance, she discussed Ark Invest's ETF products and the ongoing anticipation of SEC approval for Bitcoin ETFs. Ark Invest, led by Wood, has been a long-time supporter of blockchain and BTC, with Wood disclosing in a 2022 interview that she purchased $100,000 worth of Bitcoin in 2015 when it was priced at $250. With today's Bitcoin prices, this investment has grown to more than $14 million in unrealized profits.

Wood's initial investment decision was influenced by reading Satoshi Nakamoto's white paper on peer-to-peer electronic cash systems, demonstrating her early belief in the potential of Bitcoin. Despite the market's fluctuations, Wood has held onto her Bitcoin investment, reflecting Ark Invest's enduring bullish stance on digital currencies.

🇦🇷 Bitcoin Advocate Javier Milei Triumphs in Election

On November 19, Javier Milei, known for his pro-Bitcoin stance, emerged victorious in Argentina's presidential run-off election, securing over 55% of the votes and defeating his opponent, Sergio Massa. The victory was clear, with Milei holding a substantial lead of nearly 3 million votes when almost 99% of the ballots were counted, according to Bloomberg data. Despite the congratulatory call from Massa after 90% of the votes were tallied, Milei will officially assume office on December 10.

Argentina has grappled with a prolonged inflation crisis, with the Argentine peso experiencing a staggering 140% increase in annual inflation over the past 12 months. Milei, a vocal critic of the country's central bank, denounces it as a "scam" and a tool for politicians to impose an "inflationary tax" on the public. While expressing a favourable view of Bitcoin as a movement towards returning control of money to the private sector, Milei hasn't indicated any plans to make Bitcoin legal tender in Argentina.

In contrast, Massa's approach to financial matters appears to be at odds with Milei's perspective. Massa, who pledged to launch a central bank digital currency (CBDC) during his campaign, aimed to address Argentina's inflation crisis through this initiative. Although Massa secured a victory in the initial round of the presidential election in October, it wasn't sufficient to secure the presidency outright, leading to the run-off vote where Milei ultimately emerged as the winner. Notably, Milei had previously won Argentina's primary election in August, setting the stage for the later electoral showdown.

🥢 Hash Rate

Hash rate, in the context of digital currencies like Bitcoin, refers to the computational power or processing capacity of a network's participants, particularly miners. It represents the speed at which a mining machine can solve the complex mathematical problems necessary to add a new block to the blockchain. A higher hash rate indicates greater computational power and, consequently, a more secure and resilient network. Miners with higher hash rates have a better chance of successfully mining new blocks and earning rewards in the form of newly created cryptocurrency and transaction fees. The hash rate is a crucial metric for assessing the overall health and security of a blockchain network, as it directly influences its ability to resist attacks and maintain the integrity of the decentralised ledger.