Headed up by veteran stock picker Cathie Wood, analysts at Ark believe Bitcoin’s $1-trillion value is set to rise tenfold in the coming years, as it moves from being a fringe asset to a mainstream financial tool.
The value of Bitcoin has doubled since January 2021 alone, compounding 500% gains made throughout 2020. As is normally the case, Bitcoin’s rising tide lifted all of the boats in the wider cryptocurrency marina, sending many to new all-time highs in the process. With the global market cap now worth just under $2 trillion, the climb to the $10-trillion mark doesn’t seem too far away.
Yassine Elmandjra, a crypto asset analyst at Ark, believes Bitcoin has the potential to surpass gold’s $10-trillion market cap:
“If you look at gold as a $10 trillion market cap, bitcoin is about 10 per cent of that, and if we believe bitcoin is a 100 times better version than that, then it’s fairly safe to say that there’s a stark chance that bitcoin captures a lot of gold and market share, and more.”
But what about the effect of regulation on the future performance of Bitcoin? Elmandjra responded to claims by United States Secretary of the Treasury Janet Yellen that Bitcoin was inefficient, unstable and often used for illegal activity.
“I really think that it’s just outdated arguments as a function of their complete lack of education, which is a function of just their lack of interest in learning about this,” said Elmandjra.