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- The American investment management firm, ARK invest has made major predictions about the two prominent cryptocurrencies, Bitcoin and Ethereum.
- It predicts that half of the global remittances will be made via Bitcoin by the year 2030.
- It predicts global adoption of Bitcoin in the future, but ironically it’s said that 2022 might bring regulations and taxation for the industry.
ARK invest recently published a report in which it predicted that Ethereum’s market cap in the coming eight years might reach over $20 trillion and the whole crypto market might be worth $50 trillion. It was judged based on its current growth in utility and efficiency.
Major Predictions about Bitcoin and Ethereum
The report states that Ethreum’s growth in the recent two years can be connected to the developments in the sector of decentralized finance and its adoption by the public. And that DeFi promises transparency, interoperability, and financial services as it cuts down the intermediary fees and third-party risks. Ethereum proved to be dominant as the smart contracts platform for NFTs and decentralized finance in 2021. Ethereum’s market cap might rise to over $20 trillion by 2030.
ARK further noted that Ethereum has the ability to overthrow the services of traditional financial institutions. By then, the native token could also compete as a global currency.
But if Ethereum’s market cap is to rise to over $20 trillion, it means each of its asset’s value will be around $170,000 per unit. And currently, the asset does not even touch near the high value.
ARK invest also predicted the value of Bitcoin to rise to over $1 million and the market cap might be only a bit away from $30 trillion.
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This prediction is based on the increasing worldwide adoption the coin might witness in the future. It also expects half of the global remittances to be done via Bitcoin by 2030. And the asset might play a significant role in the emerging markets and transactions in the U.S. The value and importance of this very first cryptocurrency might increase in the coming eight years and more investors would welcome Bitcoin.
Although, Bitcoin mining has been a constant concern for environmentalists and governments. ARK says that Bitcoin mining was to incentivize more efficient forms of energy generation. They concluded that Bitcoin has emerged to be a multibillion-dollar industry as it can convert energy into monetary assets that might be criticized due to financial market volatility and geopolitical uncertainty.
It’s interesting to see the investment management firm making such massive predictions about an industry that is criticized for its volatility by some people. But it is to look forward to whether these predictions prove to be true, especially that of the worldwide adoption of Bitcoin. Because currently, 2022 is said to bring regulations and taxations for cryptocurrencies. But the popularity of the crypto industry and terms like Metaverse and NFTs indeed are constantly evolving while scepticism hovers around them.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
