Cathie Wood – the founder of Ark Invest (a crypto investment firm) – has dumped the entirety of the company’s holdings related to PayPal and expressed having a substantial trust in the long-lasting development of the payment system of Cash App which utilizes the Bitcoin Lightning Network. The respective step of the company was elaborated by Wood at the conference named Miami Bitcoin 2022 which was closed on 9th April.
The LN (Lightning Network) counts to be a layer-2-based solution for BTC which pursues to serve rapid as well as economic transfers. PayPal (a financial technology firm) runs the payment application called Venmo presenting a direct competition for the Cash App of Block (previously called Square). CNBC interviewed Cathie Wood on 8 April in which she disclosed her decision to leave PayPal in comparison with Cash App because of its additionally comprehensive attitude toward the integration of wallets for digital assets.
She added that even though Venmo has started to support BTC, Ark Invest follows Cash App to a great extent. In her words, their decision is related to the expected winners therefore they prefer Block instead of PayPal. Wood moved on to say that the respective step is based on the concept that the user growth of Cash App is organically driven whereas Venmo utilizes a top-down methodology.
Generally, Wood considers that the progress of the crypto market up till now is dependent on retail investors. According to her, the organizational investors are not in the position where they should ultimately be. At present, 70M consumers as well as $850M amount in profit is compared with $2.03B in gains as well as 44M consumers of Cash App during the previous year, as per the data provided by Business of Apps (an app tracker).
Another motivating aspect for the evaluation of the above-mentioned brands by Ark Invest would be denoted as the stark contrast in both the applications’ capability to net gains. As a bullish stance has been taken by Ark Invest on Cash App, the Bitcoin product thereof front-runs Miles Suter, declared on 7th April, noting that consumers from America would be permitted to make automatic investments to the direct deposits thereof into BTC (Bitcoin).
Cathie Wood is known as a strong believer in Bitcoin who reiterated her anticipation in the interview, stating that the point of $1M would be hit by BTC by 2030.