Like what it is beautiful to be rich and attractive, that is not everything. Indeed Cathy Wood has decided to drop PayPal to set his sights on a young kid: Cash App.
Cathy Wood and Bitcoin
Cathy Wood, the founder of crypto investment firm Ark Invest, has sold all of Ark Invest’s Paypal shares. It was during the Miami Bitcoin 2022 conference that Cathy Wood explained her decision.
The main reason for this is that she sees better growth potential in Cash App rather than Paypal. According to her, the integration of Lightning Network with the payment system, which uses the Bitcoin network would have greater potential for long-term growth.
Since the Lightning Network makes it possible, among other things, to allow its users to carry out faster payments at lower transaction fees.
Although we can buy bitcoins on paypal, which uses the Venmo payment application, itself the direct competitor of Block (Jack Dorsey’s company). The financial application founded by Peter Thiel and Elon Musk, among others, is more of an outsider vis-à-vis Cash App.
“We tend to bet on who we think will be the winners […] As we consolidated our portfolios during a risky period, we chose Block over PayPal. »
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Cathy Wood and Apps
Cathy Wood also argued that the organic growth in the number of users of the Cash App application is more significant than that of Venmo, which tends to stagnate or even decline.
In order to illustrate the point, here are some figures dating from 2021 which make it possible to highlight this opposition between Cash App and Venmo:
- Venmo currently has 70 million users and $850 million profit
- Cash App is 44 million users and $2.03 billion in profits
These figures come from the Business of Apps site.
As you can see, the contrast in earnings generated by Cash App is striking. We can therefore imagine that it was the app’s ability to generate profits that prompted Cathy Wood to invest in the Cash App business.
Contrary to what we might think, Cathy Wood claims that it is individuals and not institutions that have driven the crypto market.
“I don’t think most institutional investors are positioned the way they will eventually be. Individuals have really led the charge here. »
It seems that the tide is turning for Paypal in the cryptocurrency sector. Is the bullish position of Ark Invest on Cash App a good decision? The future will tell. But anyway, Cash App continues to expand the possibilities of its application. Indeed, in the USA it is now possible to automatically invest part of his salary in bitcoins on the Cash App application.
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