Ark Invest's Cathie Wood has been saying all along that certain characteristics of cryptocurrency make it a good bet for the future.
She argues that the banking crisis, including the Silicon Valley Bank (SVB) collapse, offers more evidence to support this claim.
DON'T MISS: Cathie Wood Says Mainstream Got One SVB Assumption Wrong
In a series of tweets she wrote the evening of March 22, she details her views on some specifics of the ongoing situation and the virtues of crypto.
"Ironically, as crypto assets soared during the Silicon Valley Bank meltdown, this administration suggested that investors in regional banks -- equity and bond holders -- should prepare to be 'wiped out' in the aftermath of an unprecedented 20-fold increase in the Fed funds rate," she wrote.
She followed that initial note with a deeper dive into her take on events happening currently.
"Now we are hearing anecdotes not only that businesses and individuals are hedging their fiat assets with some crypto assets but that they also are lowering risk and increasing returns by shifting from low yielding bank deposits into higher yielding money market funds, a win-win," she tweeted.
"As a result, now that they can borrow at will from a government facility at ~4.5%, regional banks seem to be moving from a liquidity crisis to a slower moving solvency crisis," she added.
"Given this negative feedback loop, why will deposits flow back to regional banks?" she wondered. "If they do not, then M2 growth is likely to accelerate further into negative territory for the first time since the 1930’s, putting significant stress on both commercial and residential real estate."
Wood then proceeded to explain why she thinks bitcoin and other crypto assets appreciated during the banking crisis.
A bitcoin, for example, has increased in value from $20,207.10 on March 10 to $28,041.90 on March 23.
"In our view and in contrast to those in the traditional financial world, many crypto assets face no central points of failure: they are decentralized, transparent, and auditable," Wood wrote.
"Why would regulators deprive US citizens of access to crypto assets, 'insurance' born in the 2008-09 global financial crisis against the probability, hopefully low, that once again the Fed and regulators have made policy mistakes that threaten our well-being?" she asked.
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