Cathie Wood, the CEO of Ark Invest, has opined a striking new analysis, which packs a punch in all its simplicity. The price of Bitcoin has lately been experiencing bouts of pressure, encountering low price volumes at the same time. Wood, in her latest interview, shared a simple decision that the US can take to bolster Bitcoin’s scarcity dynamics without any additional effort. So what is this development all about?

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Cathie Woods on How the US Can Improve Bitcoin’s Scarcity Dynamics

Ethereum
Source – TheStreet

In her latest interview, Woods can be seen talking extensively about Bitcoin, sharing insights on how the US can play an instrumental role in bolstering Bitcoin’s scarcity dynamics. She shared how if the US starts to buy Bitcoin actively, it may help BTC scarcity metrics to improve at a greater speed.

Woods was quick to outline how she believes stablecoins have been “usurping” what originally was a planner layout mapped for Bitcoin.

“Well, you know, it seems to me that stablecoins are usurping a role that we thought Bitcoin would play when we put out our first white paper in 2015. Stablecoins are serving as the insurance policy that we thought Bitcoin would provide to people in emerging markets as they were trying to protect themselves from confiscation of their wealth, whether it’s in the form of inflation or just outright confiscation and capital controls and so forth. He ran with that, but I had to put that in context. That was everything else equal. Well, something else was going on, and that was the gold price moving up as rapidly and as much as it has during the past year. And so the digital gold role of Bitcoin, we think, is that much more valuable and probably more than offsets what I just said about stablecoins.”

The Ideal Bitcoin Solution

Woods later shared how the US could prove instrumental in the process by buying and adding more BTC to its reserves, which in turn can improve BTC’s value and scarcity statistics.

“So I think we’re sorting through that. I think if we get the U.S., for example, not adding just confiscated Bitcoin to a strategic reserve out there buying, but if they were to do so, I have a feeling that would set off what we’re all waiting for, which is, you know, the scarcity value to reassert itself again now that we’re near 20 million Bitcoin outstanding and we only have one more million to go. I think the party has just begun in that way. And so we’re still very optimistic.”

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