Bitcoin Can Achieve $1.5 M By 2030, According To Cathie Wood
Since the March regional banking crisis in the United States, Cathie Wood has become even more optimistic about Bitcoin as an insurance policy.
Cathie Wood, CEO of ARK Invest, stated on Tuesday that her fund and she are now more certain about their “bull case” for Bitcoin (BTC): $1.5 million by 2030.
The increased confidence in the investment manager is a result of Bitcoin’s successful reaction to the regional banking crisis in the United States in March.
The Bear, Base, and Bull Case
In January, Ark released a bear, base, and bull thesis for where Bitcoin would be in 2030. All of the price projections, which were set at $258,500, $682,800, and $1.48 million respectively, were significantly higher than the current price of bitcoin.
The entire market share of the various financial use cases that Bitcoin could eat up was estimated differently in each case. The bull thesis was largely supported by the fact that Bitcoin had swallowed 50% of the market capitalization of gold, along with 6.5% of institutional asset base and 10% of M2 money supply in emerging markets.
In an interview with Bloomberg on Monday, Wood stated that the collapse of many regional banks, including Silvergate Bank, Signature Bank, and Silicon Valley Bank (SVB), in March had “increased” ARK’s confidence in the bull case.
“As regional banks are going bankrupt and the stocks are imploding across the board, Bitcoin rallied from $19,000 to $30,000,” Wood said.
According to Wood, this rally indicated an investor “flight to safety” that “everyone” will eventually desire.
Bitcoin As Security
For starters, according to Wood, Bitcoin protects against both direct and indirect wealth confiscation. Indirect confiscation, which is the devaluation of a national currency, is different from outright confiscation, which refers to the taking of someone’s assets by force. This is especially true for currencies whose supply has been artificially inflated by money printing.
The supply of bitcoin is artificially limited to 21 million units, making this kind of inflation impossible. Nevertheless, Wood claimed that Bitcoin still offers a hedge against counterparty risk in a deflationary environment for cash.
“We won’t have an 08’ / 09’ with Bitcoin,” she said. “Everything is decentralized, and transparent.”
There are other billionaires besides Wood who have a ferociously optimistic long-term thesis for Bitcoin. According to Michael Saylor, Executive Chairman of MicroStrategy, the market capitalization of Bitcoin might reach $100 million, which would translate to a coin price of $4.7 million.
Other bulls are certain that over the next 18 months, Bitcoin will do well. Both Standard Chartered Bank and Rich Dad Poor Dad author Robert Kiyosaki have projected for a $120,000 per coin price by 2025 this year.
