• Cathie Wood’s Ark Invest abandons PayPal in favor of the Bitcoin-friendly Cash App

  • Wood feels that Venmo is simply a clone of Cash App, which has more than doubled Venmo’s earnings from about half the number of customers.

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

    Wood discussed her company’s decision during the Miami Bitcoin 2022 conference, which concluded on Saturday.

    The Lightning Network (LN) is a layer-2 Bitcoin solution that allows for faster and cheaper transactions. PayPal, a financial technology business, operates the payment software Venmo, which competes directly with Block’s (previously Square) Cash App.

    Wood stated in an interview on Friday that she chose Cash App over PayPal because of its more complete approach to digital asset wallet integration. Although Venmo has began to accept Bitcoin, she claims that “it’s more of a follower of Cash App.”

    “We usually place our bets on who we anticipate will win […] We chose Block over PayPal as we consolidated our assets during a risk-off phase.”

    Wood went on to say that her company’s belief in Cash App originates from what she sees as organically-driven growth in users “as opposed to more of a top-down approach” from Venmo.

    Wood believes that retail investors have drove the crypto market to this stage, as she stated:

    “I don’t believe most institutional investors are now positioned in the way they will be in the future.” Retail has certainly taken the lead in this area.”

    According to app tracker Business of Apps, Venmo presently has 70 million users and a profit of $850 million, while Cash App has 44 million users with a profit of $2.03 billion in 2021. Another motivator for Ark’s evaluation of the two companies could be the significant difference in their capacity to generate net profits.

    Because Ark Invest is positive on Cash App, its Bitcoin product lead Miles Suter revealed on Thursday that American users will be able to automatically invest a percentage of their direct transfers into Bitcoin.

    Wood is a strong Bitcoin supporter, and she predicted in the interview that BTC would reach $1 million by 2030.

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