Cathie Wood of ARK Invest arguesthat the new US Treasury Secretary Janet Yellen does not understand cryptocurrencies. She referred to a recent statement by a former Fed president in which she noted that Bitcoin is there “exceptionally” energy inefficient and a tool of criminals and terrorists.
Cathie Wood criticizes Yellen
Wood believes Yellen doesn’t understand how cryptocurrencies work. Hence her aversion to Bitcoin.
– Janet Yellen … did everything in her power to realize how speculative Bitcoin is and how not environmentally friendly (…) and how it helps to conduct illegal activities … Wood said. – I’m not entirely sure why he says that. All I know is she doesn’t understand cryptocurrencies. And I say it with all due respect for her. I just don’t think she understands it. As I understand it reacts to the price movement which is very fast – she added.
Debunking the myths
Wood also opposes the claim that Bitcoin is a waste of energy. He recommends careful analysis a white paper by Yassine Elmandjrythat debunks this myth. It claims that the amount of energy consumed by the Bitcoin network is a fraction of that needed to mine gold and maintain traditional financial infrastructure.
– If you compare the energy consumption of the Bitcoin network with the energy needed to mine gold … Bitcoin is digital gold, but that’s a fraction of it – she said. To this she added that “Bitcoin and other blockchains will allow transactions to be settled much faster than traditional financial institutions.” – Think about energy use in the traditional world of finance and you will see in this chart what Bitcoin is currently using in terms of energy, which, by the way, is mostly renewable (…). It’s a fraction again – she noticed.
Wood also disagrees with the idea that Bitcoin could help criminals. It notes that public blockchain actually makes it very easy for law enforcement officials to track illegal money flows.
– As far as criminal activity is concerned, I will only focus on a conversation I had once at a conference with an FBI agent (…). [tj. blockchain] the best thing that ever happened to us “ – she said.