Even as the price of Bitcoin struggles at multi-month lows, Cathie Wood’s Ark Invest has made more extravagant predictions about the future value of the world’s largest cryptocurrency.
The American investment management firm believes that Bitcoin could grow to boast more than 26x its current price of $38k, to the point where a single BTC would be valued at over $1 million.
In a recent report, Ark Invest outlined its defense for Bitcoin hitting a value of $1.36 million per unit by 2030. According to the investment firm, by 2030, Bitcoin’s market cap could be as much as $28.5 trillion.
Here’s Why Bitcoin Could Flourish
In its “Big Ideas 2022” report, Ark Invest opined that Bitcoin’s market cap is likely to scale as more nation-states move to adopt it as legal tender. Ark Invest lists greater institutional involvement and further development of the network itself as factors that could spur Bitcoin’s growth to such unimaginable heights.
According to research conducted by the firm, the cumulative transfer volume of Bitcoin increased by 463% in 2021, and its annual settlement volume surpassed even Visa’s annual payments volume.
The investment firm adds that the Taproot upgrade, and the improvement of the Lightning Network could encourage wider use of Bitcoin, thus increasing its stake in the global markets.
The investment fund also adds that most Bitcoin investors have matured in their atitude towards the market, and now hold their assets for long-term gains, instead of short-term speculative gain. Ark Invest reached this conclusion on the basis that 13.5 million bitcoins haven’t been moved in more than 155 days.
On the Flipside
- The extreme power consumption of Bitcoin mining, said to be higher than that of the entire of Bangladesh, has raised serious concerns about the overall sustainability of Bitcoin.
Why You Should Care
Support from investors seems to validate the various predictions made around Bitcoin’s use cases that its value could astronomically increase with time.
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