ARK Invest’s Cathie Wood says that the chances of Bitcoin (BTC) eventually hitting $1.5 million are improving for one key reason.
In a new update to investors, Wood says that it’s looking more likely that Bitcoin will increase by 1,455% its current value due to increasing adoption by financial institutions.
“Many people know us for our bull case, $1.5 million. And we actually think the odds have gone up that our bull case will be the right number because of what is becoming the institutionalization of this new asset class. So many institutional investors are now looking at Bitcoin and thinking that they need to add it to their asset allocation, because its return profile looks so much different and its risk profile looks so much different from all of the other assets in their portfolios.”
Wood also says that the use of stablecoins is growing fast, with the total value of transactions made last year using digital assets pegged to fiat currency surpassing $15 trillion.
“I do think it is quite a surprise to learn that stablecoins in total, the transaction value of all of them is roughly, or was last year, $15 trillion. That was more than either Visa or Mastercard. And by the end of the year, the run rate was nearly double that, $30 trillion.
Now when we say that, I want to make sure you understand that this is transaction value. There are very large transactions taking place with stablecoins. Transaction volume, or the number of transactions, Visa and Mastercard still have many more transactions. But the value that is ramping through the digital asset ecosystem as decentralized finance takes off, or, another way of saying it, the internet financial system takes off, that is scaling tremendously, in a way that I don’t think people really understand.”
Bitcoin is trading for $96,422 at time of writing, flat on the day.
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