Cathie Wood’s Ark Invest published its Big Ideas report last week. Blockchain and crypto figured prominently in the report, and one of the stand-out predictions within it was for Bitcoin to hit $1.36 million by 2030.
Public Blockchains
“We believe bitcoin is the most profound application of public blockchains, the foundation of “self-sovereign” digital money. The Bitcoin protocol has enabled two other revolutions: The Financial (DeFi) and Internet (Web3) Revolutions.”
The report highlighted the difference between how institutions operated in the traditional financial space, and how public blockchains were completely disrupting this system.
Source: Ark Invest Big Idea report
It stated that public blockchains were catalysing three different revolutions, in money, financial, and internet. In addition, the report cites the ability to transform every traditional asset class.
Bitcoin
The report remarks that Bitcoin still only represents a fraction of global assets, but that it can scale as it becomes more adopted, especially at the national level. The forecast is that each Bitcoin will be worth more than $1 million by 2030.
Many areas where Bitcoin is succeeding were highlighted. Most of these are listed:
- Reaching a $1 trillion market capitalisation in 2021
- Market participants focussed on the long term
- Increased market share of global settlement network
- Scaling due to technological breakthroughs
- Attracting institutional holders
- El Salvador Bitcoin adoption
- Bitcoin lack of sustainability seemingly ill-informed
- Bitcoin mining becoming a multibillion dollar industry
- Bitcoin mining revolutionising energy production
- As only a fraction of global assets, Bitcoin has huge appreciation potential
Ethereum and DeFi
According to Ark’s research ethereum is the main collateral in DeFi, and it is the “unit of account” in NFT marketplaces. Therefore, it is likely to capture some of the $123 trillion global money supply.
Layer one smart contract platforms like ethereum are open and transparent, and they don’t rely on middlemen. With these qualities, smart contracts are able to easily displace traditional finance.
Source: Ark Invest Big Idea report
The report discussed how ethereum had grown due to DeFi and NFTs taking off. It looked at layer 2 scaling solutions in response to transaction fees exceeding those of Bitcoin, and it explained how crypto-powered finance could scale more efficiently than trad finance.
Stablecoins were covered in the respect of how they have fueled crypto trading, lending, and payments, and the ethereum section ended on how regulators were recognising the crypto innovations taking place, and especially those concerned with DeFi.
The ETH market cap was predicted to exceed $10 trillion in the next 10 years.
Many other facets of blockchain, crypto and other disruptive technologies were discussed in the report, such as Web 3, digital wallets, and AI. The full report can be downloaded here.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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