Investment management firm Ark Invest says bitcoin is “likely to scale into a multi-trillion dollar market.” In its new report, the firm offers three bitcoin price predictions, including a bull case where bitcoin could rise to $1.48 million per coin. Ark Invest CEO Cathie Wood sees bitcoin as “an insurance policy for everyone against the confiscation of wealth.”
Ark Invest: Bitcoin Price Could Reach $1.48 Million
Ark Investment Management (Ark Invest) published its annual Big Ideas 2023 last week. The report “highlights the technological breakthroughs evolving today and creating the potential for super-exponential growth tomorrow,” Ark Invest’s analysts explained. The topics discussed in the report include artificial intelligence (AI), digital wallets, public blockchains, bitcoin, and smart contract networks.
Regarding bitcoin, the Ark Invest analysts wrote:
We believe Bitcoin’s long-term opportunity is strengthening. Despite a turbulent year, Bitcoin has not skipped a beat. Its network fundamentals have strengthened and its holder base has become more long-term focused.
They emphasized: “Contagion caused by centralized counterparties has elevated Bitcoin’s value propositions: decentralization, auditability, and transparency.”
The investment management firm provided three different price predictions for bitcoin in this year’s Big Ideas report, instead of a single prediction offered in the previous year. The “bear case” prediction puts BTC at $258,500 by 2030 while the “bull case” prediction sees the price of the cryptocurrency reaching $1.48 million per coin. The firm also offered a “base case” price target for BTC of $682,800, using the assumptions deemed most likely to occur.
Ark Invest CEO Cathie Wood has long been a supporter of bitcoin. She explained in an interview with Bloomberg last week why she and her investment firm remain bullish about the future outlook for the largest cryptocurrency.
“In the last three years, the fiscal and monetary responses to Covid in many countries are causing hyperinflation and physical crises. We are seeing protests and riots all over the place,” she described. “Well, where do these people go for an insurance policy against an implosion in their purchasing power and wealth? … It is in something like bitcoin.” The Ark Invest executive elaborated:
Bitcoin is an insurance policy, and it is an insurance policy for everyone against the confiscation of wealth.
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Do you agree with Ark Invest and its CEO Cathie Wood about bitcoin? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
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The ongoing digital revolution continues to profoundly shift society, culture, and the traditional economy. Cryptocurrency, a virtual asset made up of ones and zeroes, has taken the world by storm in recent years, largely owing to its decentralized, borderless, and unregulated nature. Recently, digital asset investor, ARK Invest, released a whitepaper titled “Perception of Cryptocurrency’s Potential Continues to Unfold.” The paper posits that Bitcoin, the most popular and longest-running cryptocurrency with a decade of trading history, could become a multi-trillion dollar asset by 2024.
The report focuses on three components – use cases, perception, and technological dimensions – to evaluate Bitcoin’s potential for an increase in price. ARK Invest looks at the potential for Bitcoin to be adopted and utilized as a global reserve asset, noting the history of gold and other non-fiat backed assets such as real estate. The report also evaluates the acceptance of Bitcoin as a payment system, citing increasing usage and acceptance by many central banks and global companies.
ARK Invest also considers Bitcoin’s potential as a store of value and inflation hedge, once again noting its decentralized nature and ability to be held much more securely than fiat currencies. In the “Perception of Cryptocurrency’s Potential Continues to Unfold” paper, ARK Invest argues that the market capitalization of Bitcoin will increase in the longterm, eventually reaching the multi-trillion dollar mark and, presuming the same rate of adoption, reaching the all-time high price of $1.48 million by 2030.
It is clear that ARK Invest sees immense potential in the cryptocurrency market and, among other digital assets, Bitcoin is highlighted as the most likely to gain the largest market share. Yet, despite its bullish assumptions, the report does note that there remain many regulatory and technological challenges, as well as the accelerated pace of innovation and adoption.
As the digital currency market continues to evolve and mature, investors, both institutional and retail, will be able to take advantage of the growth opportunities that emerge. ARK Invest expects that, with increased acceptance and adoption, Bitcoin could reach a multi-trillion dollar market in the near future and its price could reach $1.48 million.