One of the worst starts in history occurred at the beginning of 2022. However, during a downturn, cryptocurrency has hit even harder than tech stocks being a market leader and at the forefront of innovation. Kathy wood is no stranger to volatility and believes that we can actually benefit from it. Wood says the crypto rebound will be explosive and when it happens, it will be much like a coiled spring. She has never seen things this underpriced in her career, so far, venture capitalists may be predicting trouble ahead for the private market, but kathy wood has always been known for her bold and risky bets on tech and innovation. Arc invest has utilized the strategy to invest in innovation, based ideas like bitcoin, zoom and tesla kathy, also analyzes, the current markets record, high inflation and the rising volatility, as well as the chances of a global recession in 2022. Dont forget to like and subscribe. If you enjoy the content, we do here on this channel lets get right into the video, but you have a view on jack dorseys concept for uh block organizing and distributed uh bitcoin mining operation in every home. Well, we worked with square uh uh on on that concept. Theres a a video uh youtube video out. There called the b word and it was a half day of um talks. A lot of it. Uh was around environmental because at the time elon musk had had put put bit going on to his uh teslas balance sheet, but then said whoops, i didnt realize the environmental uh ramifications, and so we worked closely with square to do uh that video, the the first One is jack, dorsey, uh, elon, musk and uh, and – and i was with them and steve lee another person from square and we talked about the environment and it it came out of our research in collaboration with uh square.

That wait a minute. If you make bitcoin mining a part of the utility infrastructure, you actually will accelerate the adoption of renewables faster than would otherwise be the case because in st petersburg lets say here, youve got sunshine. You filled up the battery in your home uh. The excess power is just wasted. Why not have it? Why not have it uh go into bitcoin mining, which could shore up the ecosystem and help fund, uh, solar and wind and other renewables, so were were, were definitely seeing eye to iowa square on that one could uh proper regulation increase uh confidence in cryptocurrency, maybe iron Out some of the trading and blockchain infrastructure glitches and perhaps attract even more investment into uh cryptocurrency, or do you think itll have a negative and dampening effect? Well, it depends on the country. Some countries want to stamp it out right. Other companies want to invite it and thats been a good tension. If, if you believe in free free markets and not too much regulation, its been a good tension for our own regulators, you know they see um other countries, eager singapore, australia, uk eager to bring and uk, especially after brexit uh eager to bring innovation into their countries. Uh, so it it does put a bit of a break on our regulators. Ive ive seen it in other areas, the faa. When we first started the company in 2014, said drones, werent, going to be a consideration for years uh.

So amazon took its drones over to india and australia and hong kong and so forth, and the faa saw the light. I think the same thing is happening with crypto weve, gotten to know some of the regulators and im very impressed at what they know and the technology um dna they they are bringing into the discussion at uh, the sec, gary gensler at the sec. Having been hed been at mit working, i think he was a professor in the uh blockchain space. He sees the power of the technology and uh. I i think, at the end of the day, he wants to regulate it, but regulate it in a way that it leads to great success for the united states. In this new uh area of innovation, we did a uh a a study for institutional investors around the correlations between and among the various asset classes and its up on our site. I think we did it in 2020 and at least back then the the correlations were extremely low, with every asset class the highest was .34 with real estate. Believe it or not, now the one time you will see the bitcoin, the crypto markets highly correlated to equity markets is when theres a serious risk off. For example in i believe it was 2000 late, 2018 19 uh early 19 hedge funds. They had uh they. They were very involved with crypto and theyre. They were in very illiquid positions. So what was the most liquid of their positions? It was bitcoin, so bitcoin acted just like the stock market, but for the most part other than during those times.

When you know when funds are too leveraged over their skis and an exposure to any one market, you will see those occasional. We call them correlation to one moments but theyre, usually at extremes and theyre, usually near the lows. Uh, you mentioned the metaverse earlier. Do you have a sense of uh how quickly the metaverse, perhaps perhaps you could explain your understanding of what the metaverse is, how quickly that is likely to come upon us uh? One of our attendees mentions that uh on the on the q, a uh that south korea is doing a particularly strong job in this area. What are they doing that we are not doing yes well. First of all, lets describe a little bit more when we talk about nfts, especially non fungible tokens, so uh ill ill explain this a little bit like i did the monetary system, so first private global, again rules based property rights system from our earliest days. In speaking with regulators, both state and local state, because we have 50 states, each has regulators and the federal we have. I think six financial regulators, but my my first impression listening to them, describing what we were trying to understand and what they thought was that no regulator wants to be blamed for preventing the us from the next big thing: the next internet. And i i still think thats true, but i do think we need some regulation there. There is a lot of fraud taking place.

We need some uh protection. I will say the other thing, though you know this movement towards higher thresholds for accredited investors is really rubbing. Uh new investors, the likes of whom are in our funds the wrong way um. You know you should have to prove perhaps your knowledge of the risks, as opposed to have a certain income or assets threshold before you can be allowed to participate in certain markets. So, im just throwing that out there as well, because thats another regulatory conundrum when it comes to innovation. Because in my book, the most accredited investors in our funds are these young people who really know our research and are passionate about following it and and are using the technologies, as opposed to those with the higher income levels, which really dont know much theyre very index. Driven long term and short term investors are still above break, even pricing indicating that there may not have been a mass capitulation. The open interest in bitcoin futures contracts has also surpassed all previous records standing at over 480 000 bitcoins. The open interest study by arkhanvest confirms that bitcoins perpetual contracts are presently trading at a very bullish discount. After a string of several months in the red, it appears that bitcoin is about to break this trend and move in a more bullish direction. At the start of the week, bitcoin opened at twenty one thousand twenty eight dollars and is currently sitting at twenty thousand two.

Eighty overall, the total market cap increased to 3.1 percent in the last 24 hours, putting it at 1.33 trillion dollars, making it the leader in growth among the top 20 cryptocurrencies. What do you think about kathy woods? Current crypto and market outlook comment down below dont forget to like and subscribe. This is library of wealth.