ARK Investment Management analyst Yassin Elmanjra backs his firm's prediction that the price of Bitcoin will cross the $1 million mark by the end of the decade. The price confirmation comes amid an ongoing bear market this year.
Cathie Wood, manager of ARK’s flagship innovation-focused ETF, predicted earlier this year that the world's largest cryptocurrency would surpass $1 million per coin by 2030. However, the price of Bitcoin continues to decline this year and has already lost almost 60% of its value. Regardless, ARK’s crypto analyst Yassine Elmandjra told Bloomberg TV that there is still significant opportunity in Bitcoin. He reiterated his firm's prediction that each coin would exceed $1 million in the coming years.
“When we look at Bitcoin’s potential, we segment it across several use cases - everything from it competing as a digital store of value, to a settlement network, to an insurance policy against arbitrary asset seizure,” he explained. “When you stack every use case one on top of another, you come to about a 28 trillion-dollar opportunity, which translates to more than a million dollars per Bitcoin.”
In addition to the ongoing crypto winter, ARK Investment itself is also experiencing some difficulties in 2022. During the summer, the company lost its place as the third largest shareholder of the American cryptocurrency platform Coinbase Global Inc., having disposed of some of its assets amid an investigation by the US Securities and Exchange Commission. By the end of July, ARK Investment Management LLC's three funds had sold over 1.41 million shares, worth $75 million at the time.
However, Elmanjra's long-term view of Bitcoin remains optimistic.
“When you look at Bitcoin as a strategic asset, non-sovereign, censorship-resistant money, competing against central banks and fiat currencies, Bitcoin supply being capped at 21 million, I think there is an arms race -- especially as we shift from the digital to the physical world -- to be an asset independent of the traditional financial systems and traditional asset classes,” he said in the TV interview.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.