Top Cryptocurrency to Purchase Before It Rises to 2,100%, Per Cathie Wood’s Ark Invest Review

Cathie Wood is the CEO and CIO of Ark Invest, an asset management firm that specializes on cutting-edge technology such as bitcoin and blockchain.

Wood and her colleagues anticipate significant growth in the bitcoin space due to advancements in decentralized finance and smart contracts. However, Ark has a lot of optimism for Bitcoin (CRYPTO: BTC). By 2030, Bitcoin is predicted by its bull-case valuation model to be worth $1.48 million, which represents a more than 2,000% increase from its current price of roughly $71,000.

It’s obvious that Ark believes Bitcoin to be a valuable asset. However, before making any decisions, investors should be aware of the investing thesis and associated risks.

The Bitcoin investing thesis

The Bitcoin investment thesis is straightforward. Its price is determined by supply and demand, just like any other asset. Due to recurring reductions in mining rewards known as halvings, the total quantity of Bitcoin is limited to 21 million coins, making it fairly unique in the market. To put it another way, miners receive Bitcoin for adding blocks of legitimate transactions to the blockchain; however, after every 210,000 blocks, their reward is divided in half.

The supply restriction may, in theory, be altered, but the chances of that happening are very low or nonexistent. A consensus would be necessary among people in charge of the nodes, or the machines that run the Bitcoin program. But since expanding the supply would make the cryptocurrency less valuable, those network users would have little incentive to support such a move.

Because of this, we can presume that, in terms of Bitcoin, demand will continue to be the most importbitcoin chart

ant factor. Accordingly, a product’s price will rise in response to increased demand and fall in response to decreased demand. Demand appears to be increasing at the moment. According to Fidelity, the number of wallet addresses with at least $1,000 in Bitcoin hit a record-breaking level in late December 2023.

In order for the value of a single Bitcoin to reach $1.48 million by 2030, demand would need to rise significantly. Up until then, Wood’s Ark Invest has described a number of prospective demand sources that back up its valuation methodology.

The Bitcoin valuation methodology by Ark Invest

In 2023, Ark Invest released a model for valuing Bitcoin that suggests three possible price paths for the digital currency by the end of the decade. These paths (as well as the predicted increase from the $63,000 current price) are:

In the bear scenario, $258,500 (up 360%)

$682,800 in the base case (960% upside)

Bull scenario: $1.48 million with a 2,100% gain

Eight demand drivers were identified by Ark in the research as potential catalysts for a spike in the price of Bitcoin. However, only four of these drivers—Bitcoin’s use as a corporate treasury asset, a nation state treasury asset, a remittance asset, and an economic settlement asset—have any discernible effect on price trajectories. Rather, Ark attributes the great bulk of the possible benefits to the following four demand sources: