A new report by Cathy Woods of ARK Invest predicts that Ethereum (ETH), will reach or exceed a $20 trillion market capital within the next 10 year. This would translate to a price between $170,000 and $180,000 per ETH.
According to the report, Bitcoin (BTC) is also expected to grow rapidly as more countries adopt it as legal tender. The price of one bitcoin could reach $1 million by 2030.
ARK Invest, a tech-focused American asset management company, is based in the United States and has $12.43 billion in AUM.
The #BigIdeas2022 report is now available! We started publishing Big Ideas in 2017 to inform investors about the impact of new technologies. This annual report highlights our most innovative research findings for the year. Download! https://t.co/QvUbuqVpIL
— January 26, 2022, ARK Invest (@ARKInvest).
The prediction in ARK Invest’s report Big Ideas 2022 rests on how fast the Ethereum network has grown in utility, efficiency and speed. Decentralized finance (DeFi) has been a major driver of much of the Ethereum network’s growth in the last two years. ARK stated that DeFi is attractive because of its appeal:
“Decentralized Finance promises greater interoperability and transparency while minimising intermediary fees.
According to ARK smart contracts and decentralized applications (DApps), Ethereum smart contracts are “usurping traditional finance functions at the margin.” This report highlights that Ethereum-based smart contract can be used for banking, lending, exchanges and brokerages, as well as asset management and insurance.
DeFi is also much more efficient. ARK estimates that DeFi has outperformed traditional finance in the past twelve months in terms revenue per employee, from $88 million to $8million.
The report predicts that Bitcoin will reach $1.36million per BTC by 2030, with a market capital of $28.5 trillion. ARK researchers gave an estimate of future value to eight Bitcoin use cases and then used the sum of them all to arrive at their conclusion about BTC’s price.
The firm projects that Bitcoin will account for 50% global remittances by 2030 at 1.5x velocity, 10% emerging market’s currency, 25% US bank settlement volumes, 5% global high net worth individuals (HNWI wealth), 5% of US nation-state treasuries globally, 5% institutional asset base, 5% cash from S&P 500 businesses, and 50% total gold market capital.
ARK also argued Bitcoin mining could revolutionize energy production. While there are global concerns about Bitcoin mining’s enormous energy consumption, the researchers think that Bitcoin mining will promote and generate more electricity using renewable carbon-free resources.
“The inclusion of Bitcoin mining in the toolboxes of power developers should increase the overall addressable markets for intermittent and renewable power sources.”
Related: Is a ban less likely? According to Putin, crypto mining is a good option in Russia
According to CoinGecko, both ETH and BTC experienced a downturn of 22.2% and 13% in the past seven days.
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