Ark Invest's Cathie Wood defends bitcoin as an inflation hedge in crypto panel with Elon Musk

<p><img src="https://static3.businessinsider.com/image/60f87a7afc253600181faeb7-1488/Untitled design.png" border="0" alt="Cathie Wood" data-mce-source="Cindy Ord/ Getty Images" data-mce-caption="Cathie Wood"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>Ark Invest founder and CEO Cathie Wood defended <a href="https://markets.businessinsider.com/currencies/btc-usd">bitcoin's</a>&nbsp; role as an <a href="https://markets.businessinsider.com/news/stocks/bitcoin-inflation-hedge-property-btc-cpi-portfolio-theory-risk-cryptocurrency-2021-5">inflation hedge</a> during a Wednesday panel discussion alongside Jack Dorsey and Elon Musk.&nbsp;</p><p>The fund manager said bitcoin will serve as a hedge against inflation in certain situations, citing emerging markets as an example.&nbsp;</p><p>"There are a lot of emerging markets that are suffering from significant inflationin other words, the purchasing power of those populations is going down. So they are going to migrate to bitcoin and other ways to preserve purchasing power," Wood said.&nbsp;<em data-stringify-type="italic"><br></em></p><p>She made the remarks when asked what advice she would give for institutions looking to put bitcoin on their balance sheets. Wood added that being able to sell to people who have migrated to bitcoin in inflationary situations would be "very useful" for corporations.</p><p>Earlier in the panel, Wood discussed how bitcoin's fixed supply of 21 million tokens helps it's role in preserving purchasing power.</p><p>&nbsp;</p><p>&nbsp;</p><p><a href="https://markets.businessinsider.com/news/cryptocurrencies/cathie-wood-ark-bitcoin-inflation-hedge-purchasing-power-deflation-2021-7#comments">Join the conversation about this story &#187;</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/how-long-human-survive-outer-space-without-spacesuit-2017-5">How long humans could survive in space without a spacesuit</a></p>
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