Investing.com - Ark Invest CEO Cathy Wood made another bold prediction for the future of bitcoin, even as it is now struggling with multi-month lows, predicting that in 8 years thanks to network upgrades and the growing adoption of cryptocurrencies in various countries and institutions, the price of BTC will exceed $1 million per coin, writes Business Insider.
By 2030, the price of BTC could exceed $1 million as investors remain focused on its long-term value.
Today, the market capitalization of this largest cryptocurrency is only a fraction of the total value of global assets, but it will grow as bitcoin is recognized as a legal tender among other countries after El Salvador.
BTC has suffered slightly in recent days, dropping to a six-month low of around $33k in anticipation of a tightening of the US Federal Reserve's policy. It traded at $37,926 in European morning trade on Tuesday and was down 18% overall in January, according to data from CoinGecko.
According to the head of Ark, information about blockchain networks shows that at least 13.5 million bitcoins have not moved for more than 155 days, which indicates a long-term pattern of behavior for this currency, and the annual volume of bitcoin settlements exceeded the volume of settlements with Visa cards (NYSE: V): In 2021, over $13.1 trillion worth of BTC settlements were made on the network.
Other factors that could drive more widespread use of BTC include Taproot's upgrade, the first change to its protocol since July 2017, and the Lightning Network boosting the speed of its transactions.
Ark Invest research has shown that the attraction of bitcoin among institutions is also expanding, with players such as Grayscale, Block.one, MicroStrategy and Tesla (NASDAQ:TSLA) entering the “game”. According to experts, 8% of the circulating supply of bitcoins currently belongs to exchange products, corporations and states.
In addition, Ark Invest believes that talk about the negative impact of bitcoin on the environment simply does not have enough information.
It is known that bitcoin mining machines around the world consume as much energy per year as Bangladesh with a population of over 160 million people. But according to specialists from Ark Invest, BTC is the asset most compatible with ESG (environmental, social and corporate governance) standards.
“Our research shows that bitcoin has the potential to transform monetary history by providing financial freedom and empowerment in a fair, global and distributed way,” the company analyst wrote.