A $600,000 bitcoin is the lowest target for an analyst over at Ark Invest, who believes bitcoin will not only much but surpass the entire market capitalisation of gold.
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Ark invest believes that bitcoin’s total market will someday “comfortably eclipse” that of gold, exceeding $10 trillion, as the London Times reported.
Spearheaded by veteran stock picker Cathie Wood, analysts at the firm believe that bitcoin’s $1 trillion value is set to rise tenfold in the coming years, as it transitions from being a fringe asset to a mainstream financial tool.
Since January 2021, bitcoin value has doubled, compounding 500% gains made throughout 2020. As is typical, bitcoin’s rising tide lifted all boats in the cryptocurrency Marina, sending most altcoins to new all-time highs in the process. With the global crypto market cap now just over $2 trillion, the climb to $10 trillion doesn’t seem that far off.
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.”
Speaking about the effect of regulation on bitcoin’s future performance following claims by US Treasury Secretary Janet Yellen against bitcoin, Elmnadjra said:
“I really think that it’s just outdated arguments as a function of their complete lack of education, which is a function of just their lack of interest in learning about this.”
In truth, all players worth their salt are familiar with the toolboxes on either side of the isle. Before long, central bankers will announce ownership of bitcoin on their balance sheets, at which point the global financial poker game will reset.
In the meantime, I’m sure you’ll join me in cheering on Cathie Wood in her expectations of a $600,000 bitcoin. After all, the question is not ‘if’, but when on a long enough timeline.
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