ARK Invest: Bitcoin price to exceed $1 million by 2030

By 2030, Bitcoin prices could reach $1.36 million, and Ethereum’s market capitalization could reach $22.5 trillion. These projections were made by analysts at ARK Invest.

ARK Invest predicts that Bitcoin price may exceed $1 million in 2030; Ethereum’s market capitalization may exceed $20 trillion in the next decade. https://t.co/RnUNpuSdrh

— Wu Blockchain (@WuBlockchain) January 26, 2022

Analysts justified their outlook for digital gold by expectations of its legalization by governments as legal tender, as well as by a rising share of global asset capitalization.

Analysts pointed to ‘healthy’ blockchain network metrics for Bitcoin. In particular, they mentioned the growth in the number of addresses holding BTC and the coins they own. They estimate that the amount of on-chain value transferred in 2021 rose by 463% to $13.1 trillion, 20% above Visa’s payments volume.

As of November, the share of ETP, of countries, public and private companies, accounted for 7.9% of Bitcoin’s supply. ARK Invest expects further growth in this indicator. Regarding Bitcoin mining, experts forecast a shift of miners toward renewable energy sources.

According to the experts, over the next decade Bitcoin’s capitalization could grow by 25.9 times to $28.5 trillion. By comparison, the corresponding figures for gold were $10 trillion in November, global equities $106 trillion, bonds $124 trillion, and real estate $220 trillion.

Under this scenario, BTC would reach $1.36 million. Its value would be composed of the following components:

• remittances (50% of the market);
• currencies of developing economies (10% of the aggregate M2 money multiplier, excluding the top four countries);
• a unit of account (25% of the US banking metric);
• government reserves (1% of the aggregate metric);
• an asset free from expropriation (5% of the wealth of the most affluent citizens);
• institutional investor investments (2.55% of the asset base);
• corporate reserve asset (5% of the magnitude of companies whose shares are in the S&P 500 index);
• digital gold (half of the market value of all mined gold).

Ethereum’s market capitalization over the period could rise 56-fold to $22.5 trillion. ETH could challenge the status of global money as DeFi protocols push traditional financial institutions aside. Another driver would be the continued popularization of NFTs and stablecoins.

Pantera Capital co-CIO Joey Krug predicted that in 10–20 years half of transactions will be on Ethereum.

Earlier, Fidelity Digital Assets predicted governments would buy Bitcoin.

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