The Coming Bitcoin Surge w/ Cathie Wood

Added: Mar 1, 2024

Passive Investing and Misallocation of Capital

Wood explains that the shift towards passive investing has led to a misallocation of capital in the financial world. With a significant portion of assets under management in passive funds, there is a lack of active management and brainpower in the industry. This trend has resulted in a disconnect between market performance and actual innovation, hindering the potential for exponential growth.

Convergence of Technologies

Both Diamandis and Wood emphasize the concept of exponential growth and the convergence of technologies as key drivers of progress in the coming years. They believe that the next decade will witness as much advancement as the previous century, leading to significant changes in various industries. The convergence of technologies like AI, robotics, and biotech will create super-exponential growth, transforming the world in ways that are hard to predict.

Diamandis highlights the challenge of embracing exponential thinking, as many people tend to extrapolate linearly despite the evidence of rapid technological advancements. He discusses the importance of understanding the potential of exponential technologies and the need to adapt to the changing landscape to thrive in the future.

The Promise of Autonomous Mobility

Wood expresses her excitement about the potential of AI to revolutionize various sectors, particularly in autonomous mobility. She predicts a trillion-dollar revenue opportunity in autonomous taxi platforms by 2030, leading to a significant transformation in transportation and urban infrastructure. The adoption of AI-driven technologies like autonomous vehicles and flying cars will reshape the way people commute and interact with their environment.

Both Diamandis and Wood highlight the potential for cost savings, reduced congestion, and increased efficiency in transportation. They envision a future where electric autonomous cars will be significantly cheaper than car ownership, leading to a more equitable distribution of mobility services. The democratization of autonomous mobility will benefit people from all socioeconomic backgrounds, leveling the playing field and improving access to transportation services.

The Role of AI in Longevity and Healthcare

Diamandis emphasizes the importance of AI in the field of longevity and healthcare, predicting that AI and longevity will be the two biggest financial markets in the future. He discusses the potential for AI to revolutionize healthcare and extend human lifespan, offering personalized treatments and interventions that can significantly improve quality of life. The convergence of AI and biotech will lead to groundbreaking advancements in medical research and disease management, creating new opportunities for investment and innovation.

The Future of Education and Innovation

Wood shares her experience of integrating innovative technologies into the education system, emphasizing the importance of preparing students for the future of work. She discusses the role of AI in transforming the learning experience and empowering students to adapt to the rapidly changing technological landscape. By introducing AI-driven curricula and fostering a culture of innovation, schools can equip students with the skills and knowledge needed to thrive in the digital age.

Artificial General Intelligence

Wood continues by delving into the topic of artificial general intelligence (AGI). She mentions that futurists predicted AGI to be 80 years away in 2019, but with the rapid advancements in AI, it could potentially be achieved much sooner. Wood highlights the potential impact of AGI on various industries and the need for companies to focus on deep domain expertise, AI expertise, and proprietary data to stay ahead in the game.

Investing in the Future

As the founder of ARK Invest, Wood discusses her approach to investing in the future. She believes in investing in high conviction names that have the potential to deliver a minimum hurdle rate of return over a five-year period. She mentions the importance of trading around ideas, taking profits from high-performing stocks like Tesla, and reinvesting in undervalued opportunities in sectors like multiomics and AI.

Regulation and Innovation

Wood touches upon the challenges posed by regulations and government policies in the innovation space. She advocates for a more forward-thinking approach to regulation to allow for the growth of disruptive technologies like AI, quantum computing, and gene editing. She believes that the best way to predict the future is to create it, and she encourages entrepreneurs and investors to challenge conventional wisdom and think outside the box.

Human Longevity and Healthspan

Wood shares her insights on human longevity and the potential for extending healthspan through advancements in multiomics, AI-driven drug discovery, and gene editing technologies. She discusses the impact of reversing aging on society and the economic value of adding just one year of health to the US population. She believes that the tools are now available to understand and potentially reverse the aging process, leading to a healthier and more productive population.

Elon Musk and Tesla

Wood expresses her admiration for Elon Musk and his leadership at Tesla. She believes that Musk has the potential to become the first trillionaire, given his innovative approach to business and his focus on long-term value creation. She praises Musk's performance-based compensation structure and his commitment to driving Tesla's growth through innovation and sustainability.

Bitcoin

Wood discusses the recent success of the Bitcoin ETF and its implications for the cryptocurrency market. She highlights the significance of Bitcoin as a new asset class and a global monetary system. She predicts a bright future for Bitcoin, with a potential price target of $1.5 million in five years. She emphasizes the scarcity value of Bitcoin and the increasing institutional interest in the cryptocurrency.

Decentralized Finance

The conversation shifts to the topic of decentralized finance and its role in transforming the traditional financial system. Wood sees Decentralized Finance (DeFi) as the internet financial system, offering dematerialized and democratized access to financial services. She believes that the convergence of blockchain technology and AI will revolutionize the way financial transactions are conducted, leading to increased efficiency and accessibility.

Robotics

Wood expresses excitement about the advancements in robotics, particularly humanoid robots like Tesla Bot. She envisions a future where robots play a significant role in various industries, from healthcare to manufacturing. Wood predicts exponential growth in the robotics market, driven by the convergence of technologies and the increasing demand for automation.

Open Source vs. Closed Source AI

The conversation touches upon the debate between open-source and closed-source AI models. Wood advocates for open-source AI, citing its faster rate of performance improvement compared to closed-source models. She believes that open-source AI will lead to greater innovation and collaboration in the field, ultimately benefiting society as a whole.

Venture Fund

Wood discusses her venture fund, which aims to democratize access to high-growth investment opportunities. The fund allows retail investors to invest in transformative companies like SpaceX and Discord for a minimum investment of $500. She emphasizes the importance of diversification and access to venture investments for all investors, not just high-net-worth individuals.

Future Outlook

In closing, Wood and Diamandis reflect on the transformative power of exponential technologies and the need to redirect capital towards innovation and abundance. They highlight the positive impact of technology on society and the potential for a brighter future ahead. Wood encourages optimism and innovation in the face of challenges, emphasizing the role of disruptive technologies in shaping a better world.