American investor ARK Invest believes that Bitcoin is a more reliable asset than gold, capable of creating a monetary system independent of the nation-state, being controlled by the users themselves.
The American investment company in Bitcoin (BTC), ARK Invest, believes that cryptocurrency has become a much more valuable and important asset than gold. Proof of this is that investors of the magnitude and potential of Goldman Sachs are adopting favorable positions regarding Bitcoin, although many other investors still maintain a negative opinion based on outdated information and erroneous and inconsistent perceptions about this crypto asset.
ARK Invest believes that informative and educational discussions are the best way to get institutional and potential investors to change their view of Bitcoin and conduct a deep analysis of its many benefits. The investment firm also believes it is prudent for institutional investors to realize the great importance of Bitcoin and cryptocurrencies for the diversification of investment portfolios.
Continuing with the positive perception, ARK Invest dares to affirm that Bitcoin has all the potential to replace the traditional financial model based on trust, with a much more practical and flexible one that questions the need for traditional financial organizations. In this sense, the company assures that the characteristics of Bitcoin, as a digital asset, play a key role in the development of a new financial system; characteristics that gold does not have, despite its great appeal to investors.
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Weaknesses of the traditional financial system
At report presented by ARK Invest, called “Bitcoin Part 1: A New Economic Structure”The company claims that the traditional financial system is weak, and that it is therefore subject to great inconsistencies and insecurity. According to the report, the weakness of the current financial system is due to a model based on trust, which is controlled by completely centralized financial institutions that mostly seek their own benefit.
“The direction and human errors (of the traditional financial system) expose participants to poor management, creating an unpredictable environment for economic activity.”
Although the financial system we know today has “worked” for decades, we must not forget the havoc caused by financial mismanagement at various points in history. For example, Bitcoin was born as an economic alternative to the poor management of financial institutions that caused the US mortgage bubble to burst in 2006, resulting in the collapse of the cryptocurrency market. 2008 Global Financial Crisis, known as one of the largest recessions of our economy worldwide.
So, as a way to improve the malfunctioning of traditional entities, Bitcoin emerges as a viable solution to establish a new economic order, which neither benefits the favored nor harms the unprotected. In the new digital and technological era, a transformative change to the financial system is essential, and for ARK Invest, Bitcoin is one of the best options. The company claims that the combination of disruptive technologies such as blockchain, cryptography and the fundamental concepts of programming and computer science are essential to establishing the new economic order that we so badly need today.
Bitcoin's substantial changes to the traditional financial system
First of all, the characteristics of Bitcoin, and several others cryptocurrencies, decentralized, they allow eliminating the need for a central entity to control monetary policy, the custody of assets or the processing of payments and transactions. This is a reality that Bitcoin has fervently demonstrated on many occasions, since the cryptocurrency does not depend on any particular government, entity, organization or person.
Similarly, other cryptocurrencies, such as Ethereum (ETH), also play a fundamental role in the development of a new financial model. Thanks to their potential, cryptocurrencies make it possible for users to control and manage their money and finances, and new and better applications are developed every day that seek to simplify management processes to be more accessible to everyone. Cryptocurrencies and new technologies are designed to provide modern and innovative financial services that do not depend on banking entities or intermediaries, but directly on the users themselves who have the right to manage and handle their own funds and assets.
Thus, thanks to this new form of money, we can enjoy in the not-too-distant future a new financial system that is transparent, secure, reliable, decentralized, censorship-resistant and, best of all, programmable. Based on this, ARK Invest claims that Bitcoin constitutes a fundamental change in the way the financial system distributes and manages trust, establishing solid foundations for the development of a financial model based on the fundamental principles of cryptography and computer science.
«Unlike a central bank that controls monetary policy, or a commercial bank that controls the custody of assets, or a payment processor that controls consumer transactions, the Bitcoin network and all of its participants oversee all of those functions.»
Bitcoin “operates as a single institution,” ARK Invest says, while traditional financial organizations require trusted personnel, third parties and intermediaries to handle all operations.
About ARK Invest
ARK Invest is a company founded in the United States, with the vision of providing feasible investment solutions for the management and handling of investment assets and digital assets at a global level. The company firmly believes that digital assets and cryptocurrencies, decentralized and written on open and auditable code, will be an indispensable part in the creation and development of a new financial model. A new system, digital and decentralized, that will allow storing and transferring value in a simple, safe and reliable way.
The company has a whole team of scientists and experts dedicated to the study of cryptocurrencies and digital assets. This team of researchers and analysts includes Catherine Wood, CEO of ARK Invest and expert advisor on stock market investments; James Chavis, the company's financial and administrative director and business intelligence expert with more than 25 years of experience, and Tom Staudt, COO of ARK Invest.
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