- Investment firm ARK publishes report with a projection of Bitcoin (BTC) market capitalization moving to the trillion dollars.
- ARK predicts that Bitcoin will take 15% of the total gold market value and represent 5% of total global wealth in upcoming years.
The investment firm ARK published a report on the most attractive investments for 2020. The report, “Big Ideas 2020”, points to Bitcoin as a disruptive technology that changed the traditional financial system. Bitcoin, according to ARK, is responsible for initiating a battle between monetary systems and is the competitor with the highest probability of winning said conflict. If it is established as the winner, ARK says, its performance will be measured in trillions of dollars, exceeding the 150 trillion dollars that make up the market capitalization of Bitcoin today.
ARK’s report aims to identify innovative technology investment opportunities that are not being understood by traditional investment fund managers. Bitcoin and digital wallets are among these technologies linked to the cryptoindustry because they promote advances that allow a sovereign, neutral, open and global monetary system without depending on a particular state.
Bitcoin on the way to a trillion dollar market cap
The section dedicated to Bitcoin starts by pointing out the changes that have occurred after its creation. The report designates two eras: Pre and Post Bitcoin. The second is made up of three major changes: money became a private initiative, the emergence of a monetary system independent of the state, the creation of viable forms of self-custody of wealth. The report contintues to analyze the 5 criteria that a cryptocurrency must have in order to position itself as an alternative to the traditional financial system:
Money will be transferred and stored seamlessly.
Money will not be diluted arbitrarily.
Money will not be frozen or seized.
Money supply will be auditable, and transactions will not be censored.
Record of transactions will be secure and immutable.
Bitcoin is positioned as the best option, according to ARK, in all these aspects. The Bitcoin network has managed to transfer more than 2 trillion dollars and its supply is scarce, with an emission rate that will be halved in May of this year. In addition, Bitcoin holders can audit and validate transactions in the blockchain and own their investment in BTC with private keys in a secure and immutable form. ARK reveals that these features have made Bitcoin continue to gain credibility in the financial community.
The report reviews the portfolio allocations of investment firms such as Fidelity, Bakkt, Square and Cambridge Associates. According to ARK, the demand for Bitcoin and client interest in the cryptomarket is growing. Their conclusions are similar to those published by Bitwise in a recent survey.
Finally, ARK mentions the use cases that will boost Bitcoin’s market capitalization to a trillion dollars. ARK states that Bitcoin’s potential as a medium of exchange and as a demonetizer of the currency is evolving rapidly in emerging markets. In addition to this, Bitcoin is increasingly positioned as a better store of value than gold, because of the above-mentioned characteristics, and as an asset that cannot be seized. The investment firm predicts that in the coming years Bitcoin will replace 15% of the total gold market share and 5% of total global wealth.
The price of Bitcoin is $8,921 USD, at the time the article was published, with a profit of 0.89% in the last 24 hours. The market capitalization of Bitcoin is $ 161,744,295,618.
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