Blockchain technology as a overlooked solution for market crisis, according to Cathie Wood

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Bradley Welsh
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Blockchain technology as a overlooked solution for market crisis, according to Cathie Wood

Cathie Wood, CEO of ARK Investment Management LLC (ARK Invest), has said that the “wall of worry” the equity market faced in 2022 led to blockchain technology being overlooked as a game-changing innovation.

In a recent blog post on the ARK Invest website titled “What The Market Overlooked in 2022”, Wood wrote that fears of inflation and higher interest rates had engulfed equity markets and raised a “wall of worry”.

The year 2022 was a challenging period as innovation-focused companies took a substantial hit. Wood said she had never seen the market so dislocated. Despite that, Wood believes that innovation strategies will prosper when the market recovers. After the ongoing market crisis subsides, Wood expects public blockchains like Bitcoin and Ethereum to triumph.

“I believe that the current market dislocation presents an opportunity for innovation strategies to thrive when equity markets recover. Fear of the future is palpable, but crisis can create opportunities,” Wood said.

Overlooked problem-solving innovation

Wood praised blockchain technology as a breakthrough technology that the equity market had largely ignored in 2022.

Since the 2021 Terra collapse, the crypto sector has faced several challenges. Six major crypto companies crumbled, including Voyager. In November 2022, the downfall of FTX wiped out billions of dollars in user assets and threatened the future of other crypto companies.

However, that does not interfere with the blockchain technology itself, which continues to function.

“Despite the recent collapse of crypto exchange FTX, underlying public blockchains like Bitcoin and Ethereum have not skipped a beat in processing transactions, highlighting that their transparent, decentralized, and auditable ledgers could be a solution to the fraud and mismanagement associated with centralized, opaque institutions,” Wood said.

The other game-changing innovations that Wood said were ignored by the market last include digital wallets, 3D printing, artificial intelligence, electric vehicles, and industrial robots.