A cryptocurrency that can appreciate up to 2100%! Cathie Wood is the executive director and investment director of Ark Investan asset management company focused on disruptive technologies such as blockchain It is cryptocurrencies.
Wood and his team see huge potential across the cryptocurrency market, driven by innovations in smart contracts and decentralized finance. However, Ark is particularly optimistic about the Bitcoin (CRYPTO: BTC). Their optimistic valuation model prices Bitcoin at $1.48 million by 2030, implying more than 2,000% growth from the current price, which is close to $71,000.
Ark clearly sees the Bitcoin as an asset worth buying. However, investors should understand the investment thesis and potential risks before making any decisions.
The investment thesis for the Bitcoin It’s simple. Like any asset, its price is a product of supply and demand. O Bitcoin is a bit atypical because its supply is limited to 21 million coins due to the periodic reduction in mining rewards known as halving.
The limited supply could theoretically change, but the chances of that are slim. This would require a consensus among those who operate the nodes, the computers that run the software of the Bitcoin. However, these network participants would have no reason to approve such a change, as increasing supply would devalue the cryptocurrency.
Entire cryptocurrency market could appreciate with more expensive Bitcoin
For this reason, we can assume that demand will be the most consequential variable with regard to the Bitcoin. This means that more demand will raise your price and less demand will lower it. Currently, demand appears to be increasing.
Ark Invest published a Bitcoin valuation model in 2023 that proposes three price trajectories that the cryptocurrency could follow until the end of the decade: pessimistic, baseline and optimistic scenarios. In the report, Ark highlighted eight sources of potential demand that could drive the Bitcoinbut attributes most of the potential gains to four main sources of demand: emerging market currencies, high-net-worth individuals, institutional investors, and gold.
Source: Atrevida
Earl Johnson is a music writer at Gossipify, known for his in-depth analysis and unique perspective on the industry. A graduate of USC with a degree in Music, he brings years of experience and passion to his writing. He covers the latest releases and trends, always on the lookout for the next big thing in music.
