Key Points:
- ARK Invest stated in its Big Ideas 2023 research report that despite the economic downturn, public blockchains continue to drive many revolutions, one among them being Bitcoin.
- In ARK’s view, Bitcoin is still on track to hit $1 million per coin within a decade because of its solid fundamentals, despite the turmoil in 2022.
ARK Invest stated in its 2023 Big Ideas research report that despite the economic downturn, public blockchains continue to drive multiple revolutions, one of which is Bitcoin (BTC).
In ARK’s view, Bitcoin is still on track to reach $1 million per coin within a decade because of its sound fundamentals, despite turmoil in 2022. ARK wrote in the report:
“Contagion caused by centralized counterparties has elevated Bitcoin’s value propositions: decentralization, auditability and transparency. Its network fundamentals have strengthened and its holder base has become more long-term focused.”
Compared to previous downturns, ARK backed up this claim by pointing to higher mining hashrate, long-term holder supply, and non-zero balance addresses. Due to this fundamental soundness, BTC continues to outperform traditional asset classes.
According to ARK, BTC has continued to outperform conventional asset classes due to this inherent soundness.
This is not the first time ARK or its CEO, Cathie Wood, has predicted with such confidence the increasing trend of BTC. During a Bloomberg interview in May 2021, Wood made her first audacious price prediction: she said BTC will reach $500,000 by 2026. She then increased the wager to $1 million by 2030 in early 2022. The paper included smart contracts and decentralized finance in addition to Wood and ARK’s stances and thoughts on BTC.
Throughout December and January, ARK was also a strong supporter of Coinbase, adding to its COIN holding by purchasing almost $30 million in shares. ARK also purchased shares of Grayscale’s Bitcoin Trust in November, showing that the company’s expectations for the largest cryptocurrency by market capitalization have not stopped.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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