Cathie Wood’s Ark Invest says the price of a single Bitcoin (CRYPTO: BTC) could rise above $1 million by 2030.
What Happened: Ark analyst Yassine Elmandjra wrote in the company’s annual research report titled “Big Ideas 2022” that “Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt as legal tender.”
Elmandjra wrote, as per Ark’s research, Bitcoin’s market cap could scale more than 25-fold in the next decade to $28.5 trillion. At press time, the BTC market cap stood at $707.9 billion.
Comparatively, in November 2021, the market cap of global equities and gold was $106 trillion and $10 trillion, respectively.
In a chart within the report, Elmandjra laid out the case for Bitcoin touching the value of $1.36 million per unit.
Assigning future valuations to different use cases, the researcher noted that if Bitcoin’s remittance network occupies 50% of global remittances at 1.5x velocity, it would see of a contribution of $0.3 trillion in 2030 in terms of market cap and $14,000 per BTC in terms of price.
Similarly, if Bitcoin could corner 50% of gold’s total market cap, its market cap would see a contribution of $5.5 trillion in 2020. In terms of value, per BTC, it would be $260,000 per BTC.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: In December, another Ark analyst, Frank Downing said that thanks to Bitcoin’s fair launch and decision to forego functionality such as smart contracts only the apex coin is optimized to complete the “money revolution.”
Wood’s Ark continued to load up on stocks of companies that have exposure to cryptocurrencies such as Coinbase Global Inc (NASDAQ:COIN) and Robinhood Markets Inc (NASDAQ:HOOD) in January.
A filing in October revealed that Ark Invest planned to extend the “Ark” brand to Bitcoin futures contracts trading on commodity exchanges.
Price Action: At press time, BTC traded 2.6% higher over 24 hours at $37,375.02.
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