Popular investor Cathy Wood has sent a message of reassurance to Bitcoin investors Amid the hustle and bustle of the harshest regulatory rhetoric, To the effect: “Officials will not be able to get rid of the largest cryptocurrency.”
The tough talk against cryptocurrencies from China and calls for greater scrutiny in Europe and the United States contributed to the decline of Bitcoin, but Wood insists that the virtual currency “is already on its way and will be impossible to stop.”
Wood said at the annual meeting conference hosted by CoinDesk that regulators “will become more crypto-friendly over time for fear of losing the innovation that the sector provides,” according to Bloomberg.
The most notorious recent campaign of criticism came from China, where the motive was to curb cryptocurrency mining there, in part due to concerns about increased coal mining to provide the power needed by the server centers that mine Bitcoin.
Billionaire Elon Musk has also highlighted the environmental risks of mining and announced that his company, Tesla, is suspending payments for the electric cars it produces using the most popular cryptocurrency.
Wood, founder of hedge fund Ark Investment Management LLC, indicated that focusing on environmental factors is likely to lead to a temporary hiatus in institutional buying of Bitcoin. He previously said that he expects the currency to rebound in the long term.
Bitcoin’s questionable environmental profile has eroded the argument that the token is sure to attract more investment, either as an online store of similar value to gold bullion or for speculative purposes.
Mask supported an effort to shed light on the energy consumption of Bitcoin miners in North America, including the planned use of renewable energy. But it will be many years before the largest miners can restore their power source.
Wood added: “Half the solution is understanding the problem … This scrutiny of what miners, and certainly North America, want to do about how much electricity they use and generate from renewables will accelerate this problem. dramatically and will encourage increasing the rate of adoption of renewable energy sources. “
Ark Investment Management published a report last month, saying that cryptocurrency mining could boost investment in solar energy and bring more renewable energy to the grid.
Bitcoin was trading around $ 38,000 as of Thursday night in Tokyo, almost 40% from an all-time high in mid-April.