A research team from American investment management firm ARK Invest envisioned a highly optimistic future for bitcoin. According to him, the price of one coin could cross $1,000,000, and the market capitalization of the asset could reach $28.5 trillion by 2030.
Bitcoin tops $1 million
ARK Invest, a Nasdaq-listed company led by Katherine Wood, has been an advocate of the cryptocurrency industry, particularly bitcoin, for some time. In July last year, the organization bought an additional 450,000 shares of Grayscale Bitcoin Trust in two days. As of now, the firm holds over 6.5 million shares of GBTC.
In turn, Cathy Wood – has also displayed a pro-Bitcoin stance at times. Late last year, he made a bold prediction that the leading digital asset could reach $500,000 in five years.
In its most recent research, ARK Invest envisions an even more significant expansion for bitcoin – $1.36 million per single coin by 2030. The team speculated that this price increase could be because the cryptocurrency has a market cap of $28.5 trillion:
“According to our research, the market capitalization of bitcoin could exceed 25 times over the next decade, each exceeding $1 million in value.”
ARK Invest outlined a number of achievements that the primary digital asset recorded over the past months. These include crossing $1 trillion in market capitalization in February 2021, the approval of the first BTC ETF by Canadian regulators, and the SEC’s green light on a bitcoin futures ETF in October.
Subsequently, the team pointed out that the crypto asset has received more attention from institutional investors who want to hold it for a longer period of time. It also outlined El Salvador’s pioneering move to adopt bitcoin as legal tender within its borders.
‘Ethereum is a work in progress’
Apart from Bitcoin, the team at ARK Invest also predicted a bright future for Ethereum. The research argued that the second largest blockchain could displace many traditional financial services, while its native token ether could compete as global money. The latter’s market capitalization could exceed $20 trillion over the next ten years, ARK Invest suggested.
Looking at today’s total supply of ETH, if such a market cap is reached, a coin would be worth around $175,000.
Analysts described Ethereum as a “work in progress” as it is on its way to updating its network to Ethereum 2.0, which is expected this summer. As a result, the project will move from Proof-of-Work mining to Proof-of-Stake and thus become “greener”.
Many believe that the protocol will become more scalable after the transition. Currently, Ethereum can process 15 transactions per second, while Ethereum 2.0 should be able to reach 100,000 TPS.
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