The essential assumption in this hypothesis is the unstopped increase in the Bitcoin market cap over the forthcoming nine years.
American investment management firm Ark Invest has released a forecast reporting that Bitcoin (BTC) price could potentially glide past the $1 million mark by 2030.
Since the crypto token’s reach is yet to achieve its full potential, the firm believes that with an adequate market capitalization in the upcoming years, Bitcoin will serve as a promising asset to investors. According to ARK analyst, Yassine Elmandjra from the company’s “Big Ideas 2022” edition report, BTC is currently serving its purpose for a minute fraction of the global assets. It will eventually grow into its absolute worth as countries start adopting the currency as a legal tender.
In the Bitcoin outlook released on Tuesday, ARK also observed and reported that the cryptocurrency is positioning its market share as a global settlement network. According to ARK’s research, the currency’s aggregate transfer volume skyrocketed by 463% in 2021, with its yearly settlement volume overtaking Visa’s year-long payments volume.
Many technological updates and upgrades like Taproot and Lightning Network can also aid in the scaling of the global digital asset. With the widening of institutional possession of Bitcoin, ARK predicts Bitcoin to cross the $1 Million mark in the next ten years.
Famous American investor and founder of ARK Investment Cathie Wood recently predicted BTC to touch $500,000 by 2026. In a SALT conference in September last year, Wood asserted that if companies continue to induce variety and innovation into something like Bitcoin, the price of Bitcoin can surge to 10 times what it is today.
Cathie Wood, who is always eager to hop on the cryptocurrency regulation debate, in an interview claimed that no regulator actually wants to take the onus of discouraging the next huge technological leap in the world. Wood also stated her excitement when she learned that the chairman of SEC Gary Gensler comprehends the essence of crypto and the advantages of Bitcoin specifically.
The essential assumption in this hypothesis is the unstopped increase in the Bitcoin market cap over the forthcoming nine years. The model basically projects an astonishing increase in the current market cap of $1.1T to a $28.5T market cap. From an October 2021 report by securities trade group SIFMA, the United States equity markets possess a market cap of approximately $50T. Looking at these statistics, a $28.5T cap is not very unlikely.
Moreover, Elmandrja and the ARK Invest team believed that the current prediction might just not be as liberal as it seems. According to Elmandrja, even if Bitcoin touches $1 million, it will still be only a fraction of market capitalization.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.
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