According to ARK Invest founder Cathie Wood, Tesla’s Elon Musk and ESG movement are responsible for the Bitcoin crash

After Bitcoin climbed one record high after the other in April, things suddenly looked very different in May. Cathie Wood, ARK Invest founder, is certain who is to be blamed for the crypto crash. In case you do not like betting your money on cryptocurrency, you should try out Free Bets instead. 

Cathie Wood’s investment company ARK Invest (Active Research Knowledge) is well-known today, especially among younger investors. By 2020, ARK will manage nearly 30 billion dollars in assets through its five active funds. The Forbes magazine published a list of the 50 richest self-made women in America in 2020, which included Wood, who made $250 million. In the midst of the Corona pandemic, she even compared herself to veteran Warren Buffet and now she is considered one of the biggest women investors in a male-dominated industry.

Most recently, the prices of the most popular cryptocurrencies were mainly down. The best example is the cyber pioneer Bitcoin: while the digital coin still reached a record high at 64,863.10 US dollars in April, it recently fell to 30,000 US dollars. For the “best female investor in the world” and ARK Invest founder Cathie Wood, who has repeatedly expressed herself optimistically about the cyber motto, it is clear who is to blame for the recent drop in the price of digital assets: Tesla CEO Elon Musk and ESG Movement in the market.

Environment polluter Bitcoin: ESG trend hits the crypto market

In an online conference of the crypto portal CoinDesk at the end of May, the investor expressed her assumption that the trend towards sustainable responsibility has also reached the crypto market and influenced investors. The price drop was caused by the environmental-awareness movement and Elon Musk’s idea that there are some real environmental problems with Bitcoin mining. Some institutional buyers have paused their investments is what the founder said. In line with the acronym ESG, the acronym stands for Environment, Social, and Governance, which involves topics such as environmental protection, but also social aspects and management structures in companies. Investors have now become aware of this awareness as well. An analysis of the amount of electricity used in mining in February was published by Cambridge University. Bitcoin, the world’s most valuable cryptocurrency, requires 121.36 terawatt-hours of processing power. BBC reports that Bitcoin is just below the energy balance of Norway, but above that of Argentina. It is unlikely that consumers will decline, according to university scientists.

After crypto investment: Tesla drops Bitcoin

On his Twitter profile, Musk has always been enthusiastic about the crypto trend. He has particularly praised the crypto veteran Bitcoin and the virtual currency Dogecoin. A short time after that, Tesla announced that it had invested billions of dollars in Bitcoin and was also allowing its customers to pay for automobiles with the Internet currency. Later, the managing director of the group published a tweet in which it was announced that such a payment option had been discontinued. In bitcoin transactions and mining, fossil fuels are increasingly used, especially coal, which produces the most greenhouse gases of any fuel. This concerns the pioneer of electric cars. In many ways, cryptocurrency is a good idea, and its future looks bright, but we cannot do so at the expense of the environment, he strongly believes.

Wood considers it unlikely that Musk himself came to this conclusion, as she further explained to CoinDesk how institutions may have called him. It came to her attention how BlackRock is the third-largest shareholder in Tesla and Larry Fink is the CEO. His focus is on ESG and climate change in particular. I’m sure BlackRock has had some complaints, and maybe some very large owners in Europe react very sensitively to it. “

High potential: Wood with a mega price target

According to Wood, Musk’s wide reach will become crucial for Bitcoin in the long run. The former crypto enthusiast’s negative comments are generating more conversation and more analytical thinking, and therefore leading to further cryptocurrency development and a lower carbon footprint. As a result, institutional investors’ confidence would be re-established. Earlier this year, she told Bloomberg news agency that the rising supply of solar power would benefit cyber currencies. She firmly believes that central banks will soon invest in Bitcoin & Co. “We believe that the demand for solar power will increase dramatically – due to the possibility of Bitcoin mining,” Woods asserted with certainty. Therefore, she expects a bitcoin price of $ 500,000.