ARK Invest: Why Bitcoin Could Be Worth $1 Million Per Coin By 2030
January 25 2022 - 7:50PM
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ARK Invest, the brainchild of savvy investor Cathie Wood, has had a
rough go over the past few months. The flagship fund ARKK is down
nearly 60% from it’s record high last year, however Wood and her
team of analysts aren’t stopping their full-focus on innovative and
forward-thinking investments – even when fundamental investments
are running the show. This week was host to ARK’s ‘Big Ideas
Summit,’ and ARK crypto analyst Yassine Elmandjra supplemented that
material with a boisterous bitcoin tweet that will be music to BTC
maxi’s ears. Cathie Wood & ARK Invest: Notorious Bulls
Elmandjra’s tweet, which can be found below, showcases how a single
BTC unit could hit $1M in value, with a couple prime assumptions:
The price of a single bitcoin could exceed $1 million by 2030. We
are still early. pic.twitter.com/rvja2h2vi5 — Yassine Elmandjra
(@yassineARK) January 25, 2022 Let’s take a look at that graphic
specifically to drill down on the assumptions being made here, and
why they’re important: The core key assumption here, of course, is
the staggering growth in bitcoin’s market cap over the next 9
years. In this model, the ARK team is projecting growth from a
current market cap of $1.1T to a $28.5T market cap. How does this
scale? According to an October 2021 report from securities trade
group SIFMA, the U.S. equity markets carry a market cap around $50T
– making a $28.5T market cap for a global bitcoin market seem not
all that unreasonable. Elmandrja’s graphic also states anticipated
breakdown of the use case allocated within the market cap, and it’s
representative contribution towards the price per BTC. Related
Reading | Bitcoin Recovers From Seven Month Low Of $33K ARKK, the
flagship innovation fund behind ARK Invest, has had a difficult
year following strong success. Can growth stocks and innovative
investments turn around? | Source: NYSE: ARKK on TradingView.com
More From The Research Desk… Elmandrja and the ARK Invest team
continue on to note that even assuming a $28.5T market cap could be
more conservative than ambitious. Elmandrja added, “If Bitcoin does
hit $1 million, it will still only represent a fraction of global
asset values” and also highlighted the notorious ‘diamond hands’
that bitcoin holders often exhibit, stating that “market
participants are maturing and remain long term focused. Aggregate
cost basis (realized cap) is at all time highs and more than 13.5
million btc are held by long-term holders.” This, of course, isn’t
likely anything groundbreaking to those who have studied the
bottom-line extensively. Compared to other relative global markets,
a $28.5T bitcoin market cap today would even be trading at
multiples less than comparable markets, such as the global real
estate market, global bond market, or global equities market.
Elmandrja’s full thread is a worthy read for these reasons and
several others that take deep dive into ARK’s optimism around
bitcoin (and crypto at large) as an investment vehicle. You can
also read their broader Big Ideas 2022 report here. Related Reading
| Bitcoin Whales Take Advantage Of Market Crash To Gobble Up
Millions In BTC Featured image from ark-invest.com, Charts from
TradingView.com The writer of this content is not associated or
affiliated with any of the parties mentioned in this article. This
is not financial advice.
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