ARK Invest Predicts Bitcoin Could Hit $1M By 2030
In a research report titled Big Ideas 2022, The U.S based investment firm said that bitcoin's global usage is still in its early days and they also predicted that it will gain market share as a global settlement network. According to ARK's analysis, BTC's total transfer volume increased by 463 % last year, and its yearly settlement volume exceeded Visa's annual payments volume. The Lightning Network and Taproot are supporting BTC's scaling efforts and increasing its usability. Their prediction is based on the increasing adoption of digital assets.
Analyst Yassine Elmandjra wrote in the report:
“Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt it as legal tender. According to our estimates, the price of one Bitcoin could exceed $1 million by 2030.”
ARK Invest has actively managed exchange-traded funds and plans to launch a Bitcoin ETF product in the near future. Cathie Wood, CEO of ARK Invest, believes that BTC’s scarcity will drive its price higher as usage grows.
According to ARK's report, Ethereum has value as a default currency in the decentralized finance space, for non-fungible tokens, and other Ethereum-native applications that could capture a significant portion of the global financial services market, which is expected to reach $123 trillion by 2030. As a result, Ethereum's market cap might reach $20 trillion by 2030.
ARK stated:
"According to our research, Ethereum could displace many traditional financial services, and its native token, Ether, could compete as global Money.”
Taking Ethereum's 120 million ETH supply into account, and assuming a 1 million coin burn every year after a switch to a Proof-of-Stake consensus mechanism, the cryptocurrency's circulating supply could be 110 million coins by then, which would mean the price of each token will be $180,000.