A new Ark Invest report by Cathy Woods predicts that Ether (ETH) will reach or even exceed a market capitalization of $ 20 trillion over the next 10 years, equivalent to a price of around $ 170,000-180,000 for ETH.
The report also predicted big things for Bitcoin (BTC), saying it “is likely to increase when nation states adopt it as legal tender … the price of one bitcoin could exceed $ 1 million by 2030.”
Ark Invest is a technology-driven U.S. asset management company based in the United States with $ 12.43 billion in assets under management.
# VelikeIdeje2022 The report is here!
To enlighten investors about the impact of breakthrough technologies, we began publishing great ideas in 2017. This annual research report seeks to highlight our most provocative research findings for the year. Download! https://t.co/QvUbuqVpIL
– ARK Invest (@ARKInvest) January 26, 2022
Forecast in Ark Invest report “Great Ideas 2022” is based on how quickly the Ethereum network has grown in usability and efficiency. Much of the growth over the last two years comes from decentralized finance (DeFi). Ark described DeFi’s complaint, stating:
“Decentralized finance promises more interoperability, transparency and financial services, while reducing brokerage fees and counterparty risk.”
According to Ark, smart contracts and decentralized applications on Ethereum “usurp traditional financial functions on the edge.” The report pointed out that banking and lending, stock exchanges, brokerage, asset management, insurance and derivatives can all be found on Ethereum-based smart contracts.
What’s more, DeFi is also much more efficient. Ark estimated that DeFi has surpassed traditional finances in terms of revenue per employee from $ 88 million to $ 8 million over the past 12 months.
As for Bitcoin, the report predicts $ 1.36 million on BTC with a market capitalization of $ 28.5 trillion by 2030. Ark researchers have assigned eight estimates of Bitcoin use estimated future value and used the sum of all to come to a conclusion on BTC’s price. .
By 2030, the company expects Bitcoin to account for 50% of global 1.5-fold remittances, 10% of emerging market currencies, 25% of U.S. bank settlement volumes, 1% of U.S. treasuries worldwide, 5% of global personal assets with high net worth, 2.55% of the institutional asset base, 5% of the S&P 500 cash and 50% of the total market capitalization of gold.
Ark also argued that Bitcoin mining “could revolutionize energy production”. While global concerns have been expressed about the huge amount of energy required by Bitcoin mining, researchers believe that “bitcoin mining will stimulate and generate more electricity from carbon-free renewables.”
“Adding Bitcoin mining to power developer toolboxes should increase the overall addressable market for renewable and occasional energy sources.”
Related: Less likely to be banned? Putin says cryptocurrency mining has advantages in Russia
According to CoinGecko, both ETH and BTC have fallen by 22.2% and 13% respectively in the last seven days.
