「Wood Sister」: Bitcoin is a key asset embodying three major changes, and its low correlation with gold will promote its attribute diversification

BlockBeats News, February 10th, Cathie Wood, also known as "Wood Sister," stated in her latest podcast that Bitcoin is not the traditional "digital gold" in a literal sense, and therefore, its short-term behavior does not align with that of gold. From 2019 to the present, the correlation coefficient of Bitcoin's and gold's returns is only 0.14. This is precisely the value of Bitcoin as a diversifying asset: low-correlation assets can enhance the risk-adjusted returns of the overall portfolio. She pointed out that the key to successful diversification is to add new assets with low correlation, and Bitcoin fits this criterion.

Furthermore, Cathie Wood defines Bitcoin as an asset that embodies "three revolutions in one":

Global digital, sovereign monetary system;

Adding a new layer to the internet stack to support native currency and intelligent agent/commerce;

A new asset class (with Bitcoin as the most secure, largest network representing encrypted assets).

She describes Bitcoin as being in the early stages of the innovation S-curve. Like all historically disruptive technologies, it experiences volatility, frequent pullbacks, but this is a normal part of the growth path rather than a signal of its demise.