Summary of Article
- Cathie Wood’s ARK Invest expects that Bitcoin will reach $1 million by 2030.
- ARK’s investment thesis is based on five converging technological innovations, such as public blockchains, artificial intelligence, energy storage and multiomic sequencing.
- Digital assets are expected to drive an increase in online spending per capita due to the establishment of property rights.
Overview
Cathie Wood’s ARK Invest has released a report that predicts that Bitcoin’s price could rise to $1M per coin by 2030. The report is based on five converging technological innovations, namely; public blockchains, artificial intelligence (AI), energy storage, robotics and multiomic sequencing. Digital assets are expected to drive an increase in online spending per capita due to the establishment of property rights. Furthermore, digital wallets are predicted to save payment transactions nearly $50 billion in costs with 3.2 billion users already onboarded.
ARK’s Investment Thesis
ARK’s overall investment thesis is predicated on five converging technologies; public blockchains which allow for secure transfer of value between individuals without intermediaries; AI which can be used for a variety of tasks including decision making and data analysis; energy storage which allows for storing energy generated from renewable sources such as solar or wind; robotics which can automate manual processes such as manufacturing or logistics; and multiomic sequencing which allows for analysis of genetic data at large scales. These technologies have the potential to revolutionize our world and create economic opportunity for those who embrace them early.
Property Rights & Digital Assets
The establishment of property rights is expected to bolster the value of digital assets in the coming years as well. Historically, property rights have shown a positive relationship with GDP per capita – commonly used as a measure of standard of living – therefore it stands to reason that digital asset values should also increase with this trend. According NFT transaction volume is estimated grow from today’s $22 billion up to $120 billion by 2027 – more than a 5-fold increase – hence providing great potential opportunities for investors.