Bitcoin had a strong start to the year. While this year has increased its price over 40% so far; also increased its market value to about 200 billion dollars.
Bitcoin price, which started the year at $ 7,000, saw many ups and downs in 2020, and digital gold fell below $ 4,000 before reaching well over $ 10,000 in March.
One of the leading investors in the electric car manufacturer Tesla is looking for a potential hedge against inflation seen as a result of epidemic government spending and money printing, and with many key investors who switched to Bitcoin this year, over the next five to ten years. He says he expects Bitcoin’s total value to be between $ 1 trillion and $ 5 trillion.
“Bitcoin offers one of the most compelling risk-reward profiles among other assets, because our analysis has a market cap of about $ 200 billion today,” said Yassine Elmandjra, research director of Ark Invest; It shows it needs to scale to $ 1-5 trillion over the next five to ten years. ” said. In a report last month, Elmandjra added that investors should not ignore Bitcoin as an asset class.
Crazy Price Predictions from Ark Invest
Ark Invest is best known for its wildly optimistic price target for Tesla – with the Tesla price quadrupling this year, they have price forecasts that have paid off a bit.
Bitcoin was the best performing asset of the last decade, and its price rose from almost zero to about $ 20,000 per Bitcoin token in late 2017. Based on many metrics, Ark Invest is giving bullish signals in Bitcoin.
“Our analysis shows that Bitcoin is on the way to earning money, with significant appreciation potential,” Elmandjra wrote. “In our view, bitcoin’s $ 200 billion market value will scale by trillions over the next decade.”
However, Elmandjra warned of some “risks” that could derail Bitcoin’s work. Difficult technological problems with holding large amounts of Bitcoin, an uncertain regulatory future, and “over-institutionalization” can prevent Bitcoin from seeing these values.
Ark said earlier this year that Bitcoin was “a competitor for the first global digital currency.”