Bitcoin, Ethereum, and many leading digital currencies have all fallen over the past few days. No doubt the crypto industry is suffering like it never has before, and yet not everyone is convinced the space is going to the gutter. Cathie Wood, for example – the woman in charge of Ark Invest – is suggesting that bitcoin cold potentially hit $1 million by the year 2030.
Cathie Wood Is Positive About Bitcoin
In addition, with Ethereum’s market capitalization on the rise, Wood sees the digital currency arena reaching a valuation of approximately $20 trillion. In a recent interview, Yassine Elmandjra – an analyst with Ark Invest – explained:
We believe bitcoin is the most profound application of public blockchains, the foundation of ‘self-sovereign’ digital money. Bitcoin’s market capitalization still represents a fraction of global assets and is likely to scale as nation-states adopt it as legal tender. According to our estimates, the price of one bitcoin could exceed $1 million by 2030.
A boost to $1 million would represent a surge in bitcoin’s price by more than 2,050 percent. Last year, the price of bitcoin was helped by several factors including the Central American nation of El Salvador accepting the asset and utilizing it as legal tender. Companies such as Fidelity Investments are confident that many additional countries are going to follow in El Salvador’s footsteps given the instability of fiat currencies as governments continue to print money like it grows on trees.
In addition, Wood is seemingly splitting her prediction into two parts, as according to statements she made last year, bitcoin is likely to hit a price of $500,000 by the year 2026. This means that it would have to grow by approximately $100,000 per year beginning in 2021. She is also very bullish on Ethereum and predicts that the world’s second largest digital currency by market cap could see its overall valuation shoot up by roughly 6,000 percent.
Ethereum’s price has jumped heavily over the past 12 months as more traders begin entering the worlds of defi (decentralized finance) and non-fungible tokens (NFTs), both of which are based on Ethereum’s smart contract technology.
Elmandjra explains:
Ethereum could displace many traditional financial services, and its native token, ether, could compete as global money. As financial services move on-chain, decentralized networks are likely to take share from existing financial intermediaries. The beneficiaries of this shift include Ethereum, the base protocol, and defi, the decentralized applications built on top of Ethereum. As the preferred collateral in defi and the unit of account in NFT marketplaces, ether has the potential to capture a portion of the $123 trillion in global M2 [a measure of the money supply that includes cash, checking deposits, and easily-convertible near-money].
Ethereum Is a Solid Coin
In 2021, Wood said:
We’ve become just as bullish on [Ethereum]. We see defi and NFTs taking off on the Ethereum network.
