Cathie Wood: October Crypto Update!
As there was some very interesting developments, ranging from banks losing out to crypto to bitcoin mining, now being powered at the top of a volcano, so in this video well be covering why the banks are under pressure and worrying right now, el salvador setting up a bitcoin Node at the top of a volcano and finish up with what she believes is one of the best hedges against a crisis right now, as always, if you do enjoy anything in the video, then drop a like always appreciated. Now, one of the key ways that banks make money is by lending out customer deposits. However problem is many of the top. Banks have had negative loan growth this year, so why was this check it out? We are beginning uh to see the banks worrying about loan growth because of defy decentralized finance and the crypto world, and we do believe there is a a lot of reason to worry. Uh regulators are going to insinuate themselves into that process. Of course, uh and well see what happens, but uh defy is flying uh just to give you a sense of that uh. Last year, around this time, uh there was less than 10 billion dollars, uh locked in defy on the ethereum network uh today that is 120 billion dollars. So, at the margin that is making a difference uh for the banks, so the banks are worried, theres, an enormous amount of money, leaving the banks and moving into defy she referenced ethereum, going from 10 billion to 120 billion in just one year.
But when we include all of the protocols, its actually now over 190 billion, so huge growth going into the new financial system now kathy wood is obviously a crypto bull and she believes that crypto is a new asset class. But she was also very interested to see what is going on in el salvador right now. Not only have they made bitcoin legal tender, which we all know by now, but theyve just finished up. Setting up a node at the top of a volcano sounds a bit like something out of a james bond movie right check this out and we think uh crypto prices uh a new asset class uh will continue to move up its very interesting to watch el salvador. El salvador has deemed bitcoin legal tender and its president tweets almost every day about this uh initiative. So far, 2.7 million out of the roughly 4 million eligible have uh have uh downloaded their chivo wallets uh with thirty dollars worth of bitcoin in it. Uh whats interesting about that 2.7 million is only 1.2 million people in this country of six or seven million people. Uh have checking accounts its also interesting to learn that the government started mining bitcoin using energy from its volcano and were wondering if theyre going to actually uh include bitcoin in their reserves, which we think would be a very smart thing to do. And the reason it would be smart is were beginning to see the dollars strength hitting emerging markets.
Um. A lot of emerging markets have dollar denominated debt, so when the dollar goes up, it takes that much more to service the debt. This is often a harbinger of risk increasing in emerging markets. Very often there will be runs on the currency as their populations try to shift into dollars. So el salvador is not going to have that problem this time and we think other emerging markets are going to start uh taking its example, so over 60 percent of saladorians have not just activated, but they are actually using the governments cheeva wallet. This was after the government did a multi million dollar airdrop, giving 30 dollars to everyone who downloaded and like something out of a james bond movie. We now have the first volcano node, which also begins to destroy the narrative about bitcoins carbon footprint, as they are pioneering geothermal energy, which makes bitcoin a key part of accelerating renewable energy. Okay. To finish up kathy wood believes there is an asset thats, not just a key inflation hedge, but also a great crisis hedge. Can you guess what it is? Take a look uh. Many people wonder why are we positive on crypto um, especially bitcoin, which is mathematically metered to top out at 21 million units, were somewhere between 18 and a half and 19? I think now, um and and yes thats. If, if there were an inflation, thats, a beautiful hedge but uh when youre talking about emerging markets and and or youre talking about a situation like 0.
809 here in the united states uh when theres a crisis, counterparty risk, uh is uh, high and and rising. So to have a backstop like uh bitcoin, we think, is an excellent insurance policy. So the key takeaways from this months market review. There are continued huge outflows going from banks into d5 protocols led by ethereum, going from last year at only 10 billion to now over a hundred and ninety billion dollars. So far, bitcoin adoption in el salvador seems to be going very well. Over 60 percent of eligible people have downloaded the governments, chivo wallet and its amazing, that only half that amount have an actual bank account and we could now start seeing the domino effect as more emerging markets begin to follow suit. And if you want a good inflation and crisis hedge kathy wood believes look no further than bitcoin as mass adoption continues. So there you are guys. Those were the key crypto highlights from kathy wood for october now, look out for wednesdays video as we could be on the precipice of a big bull run in the crypto market, and this is what ill be covering for now, just to say, if you did enjoy Anything in the video then drop a like and a big thank you to everyone who does. If you havent yet subscribed to the channel, then click below and join us got some great videos coming up that you dont want to miss.