Venmo, according to Cathie Wood, is just a clone of Cash App, which has more than doubled Venmo’s earnings from about half the number of users.
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 spoke about her company’s decision during the Miami Bitcoin 2022 conference, which ended on Saturday.
The Lightning Network (LN) is a Bitcoin layer-2 solution that allows for faster and cheaper transactions. PayPal, a financial technology business, operates Venmo, a payment app that competes directly with Block’s (previously Square) Cash App.
A Twitter user stated: ” @ARKInvest has sold and exited Paypal, whose Venmo is a major competitor to Cash App. (Cash App) has a lot more conviction, especially in terms of bitcoin.”
Wood told CNBC on Friday that she ditched PayPal in favour of Cash App because of the latter’s more complete approach to digital asset wallet integration. even though Venmo has begun to accept Bitcoin, she claims it is “more of a Cash App follower.”
“We tend to place our bets on who we anticipate will win […] We picked Block over PayPal to combine our portfolios during a risk-free period.”
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 Venmo’s “top-down approach.”
Wood believes that ordinary investors have pushed the cryptocurrency 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 been at the forefront of this.”
According to data from app tracker Business of Apps, Venmo has 70 million users and $850 million in earnings, compared to 44 million and $2.03 billion in profit for Cash App in 2021. Another driving factor in Ark’s evaluation of the two companies could be the glaring disparity in their capacity to generate net profits.
As part of Ark Invest’s optimistic attitude on Cash App, Miles Suter, the company’s Bitcoin product lead, revealed on Thursday that American users will be able to invest a percentage of their direct transfers into Bitcoin automatically. Wood is a firm believer in Bitcoin, predicting that it will reach $1 million by 2030 in the interview.