Home News Cathie Wood’s Ark Invest dumps PayPal, favouring Bitcoin-friendly Cash App

Cathie Wood’s Ark Invest dumps PayPal, favouring Bitcoin-friendly Cash App

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Cathie Wood, the founder of crypto investment firm Ark Invest, has sold all of the firm’s PayPal assets and expressed greater trust in the Cash App payment system, which uses the Bitcoin (BTC) Lightning Network, for long-term growth.

At the Miami Bitcoin 2022 conference, which ended on Saturday, Wood outlined her company’s decision.

The Lightning Network (LN) is a Bitcoin layer-2 solution designed to make transactions faster and less expensive. PayPal’s Venmo payment app competes directly with Block’s (previously Square) Cash App.

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Wood said she chose Cash App over PayPal because of its more complete approach to digital asset wallet integration, according to a Friday interview with CNBC. “It’s more of a follower of Cash App,” she remarked, despite the fact that Venmo has begun to accept Bitcoin.

“We usually bet on the winners […] During a risk-free period, we used Block over PayPal to combine our portfolios.”

Wood noted, “as opposed to more of a top-down approach” from Venmo, her firm’s belief in Cash App originates from what she considers as organically-driven development among users.

Wood believes that ordinary investors have pushed the crypto market to this position, as she put it:

“I don’t believe most institutional investors are in the position they will be in the end. Retail has been the driving force behind this.”

Glaring disparity in the capacity to generate net profits

According to data from app tracker Business of Apps, Venmo has 70 million users and $850 million in profit, while Cash App has 44 million users and $2.03 billion in profit in 2021. Another driving element for Ark’s evaluation of the two companies could be the glaring disparity in their capacity to generate net profits.

As part of Ark Invest’s optimistic attitude on Cash App, Miles Suter, the company’s Bitcoin product lead, said on Thursday that American users will be able to automatically invest a percentage of their direct payments in Bitcoin.

Wood is a strong supporter of Bitcoin, predicting that it will reach $1 million by 2030 in the interview.

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