Competition in Transaction Fees
If adoption of Bitcoin as a functional currency continues to spread, it looks like money transfer companies will have to lower their transaction fees.
Cathie Wood, CEO of ARK Invest’, cryptocurrencies will become much more valuable and their use will spread to a wide range of areas.. This will result in all money transfers being free.
Contrary to Investment
Wood and his company are known for investing in innovative and disruptive technologies.. So it’s no surprise that they’re showing interest in Bitcoin.
ARK Invest has invested $1.7 billion in revolutionary technologies. Prior to ARK, Wood has 12 years experience in an investment management position at Alliance Bernstein. Wood has managed $5 billion of investments in this company.
According to the CEO, Bitcoin is because the internet does not come with a built-in payment system. strong> fills this gap and provides solutions to many problems.
The Big Piece of Pie
Currently, Western Union and PayPal make a big profit from international money transfers. The reason this is still going on is because there is so little competition.
For Wood, Bitcoin is the messiah who will save migrant workers trying to send money home because for every $100 they send these people’ It loses 8% of it to companies as transaction fees.. According to Wood, companies will have to lower transaction fees thanks to the competitive environment created by cryptocurrencies.
Wood believes that transfer fees will eventually be lifted because:
“Information is so valuable it will be that what companies really want to achieve will be transactions.”
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