Environment in focus: Cathie Woods ARK Invest: Tesla Groinvestor contradicts Elon Musk on Bitcoin | message
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Musk’s environmental concerns at BTC are not shared by ARK Invest
Investment company even sees positive consequences from BTC mining
Cathie Wood remains bullish on Tesla and Bitcoin
With a statement on Twitter, Tesla boss Elon Musk wreaked a bloodbath in the crypto market. Just a few weeks after the start, the entrepreneur announced that the electric car manufacturer would stop payments with Bitcoins again. As a reason he cited the rapidly increasing consumption of fossil fuels for the production of and transactions with Bitcoins.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
– Elon Musk (@elonmusk) May 12, 2021
ARK contradicts Musk
In fact, the power consumption that occurs when mining bitcoins has been a thorn in the side of critics for some time. But one of the best-known Tesla investors, the investment company ARK Invest, contradicts this claim.
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“Please tell me your account has been hacked without telling me your account has been hacked,” replied ARK analyst Yassine Elmandjra to the Musk tweet.
Tell me your account got hacked without telling me your account got hacked. https://t.co/mRxfNtK4Yz
– Yassine Elmandjra (@yassineARK) May 12, 2021
Elmandjra is ARK’s Bitcoin expert and had already dismissed the supposedly high power consumption of Bitcoin as a myth several times in the past. In his view, mining Bitcoin is more efficient than mining gold or running traditional banking services when it comes to energy consumption. “The environmental impact of Bitcoin mining is low,” he emphasized last summer. “Renewable energies, especially hydropower, make up a large percentage of Bitcoin’s energy mix.”
Elmandjra underlined this assessment again after the Musk announcement: “Stay tuned,” wrote Elmandjra on Twitter. “Our research, which shows that Bitcoin is not only shifting towards renewable energies, but is also accelerating the use of renewable energies, has only just begun.”
A great opportunity to continue debunking the FUD.
Stay tuned. Our research demonstrating that Bitcoin is not only shifting towards renewables but also accelerating renewable deployment, is only getting started.
– Yassine Elmandjra (@yassineARK) May 12, 2021
Cathie Wood also disagrees
ARK boss Cathie Wood also apparently does not share Musk’s environmental concerns about Bitcoin. She retweeted a Twitter post by her analyst Elmandjra, referring to a Forbes article and emphasizing, “Stop ordering books online if you are worried about the environment”.
Stop ordering books online if you care about the environment.https: //t.co/6yWq6Af8uJ pic.twitter.com/5Tan7vMvD2
– Yassine Elmandjra (@yassineARK) May 14, 2021
In the latest ARK newsletter, the investment company takes a concrete stand on the events at Tesla: “Tesla’s decision seems to have been triggered by the plans of the private equity company Greenidge to revive a coal-fired power station in order to mine Bitcoin. Elon Musk referred in a tweet on the announcement. Greenidge then made it clear that his facility not only runs on natural gas and feeds the grid, but has also bought carbon credits to offset the emissions, “the ARK website said.
One does not share the concerns about the energy consumption of Bitcoin, these are “wrong”. ARK was convinced that mining the cryptocurrency could even have a positive impact on the environment. Using real data, it can be shown that renewable energies could only cover around 40 percent of the grid requirement without mining Bitcoin, 99 percent of the grid requirement could meanwhile be covered by renewable energies with the commercial “subsidies” in connection with Bitcoin mining.
Cathie Wood remains Tesla and BTC bull
Regardless of the current developments in the crypto market, which were triggered or at least reinforced by the statements of the Tesla boss, Cathie Wood is sticking to her bullish assessment of both the electric car manufacturer and BTC.
After ARK Invest had seen the Tesla share price for 2024 – adjusted for stock split – at $ 1,400 last year, the latest research suggests that Tesla shares could trade near the $ 3,000 mark by 2025, the writes Company in its most recent report. This is the base case, in the worst case the share price is expected to be 1,500 US dollars, the bull case is even 4,000 US dollars and above.
ARK’s flagship fund, the ARK Innovation ETF, continues to list Tesla as its largest holding: 3,458,034 Tesla shares valued at just under $ 2 billion are contained in this ETF alone.
At the same time, the investment company also owns three ETFs in the Coinbase crypto exchange, which had recently celebrated its trading life.
Finanzen.net editorial team
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