Bitcoin To Hit $1 M by 2030

Cathie Wood, CEO and chief investment officer of Ark Investment, made a prediction in an interview with Bloomberg that suggested Bitcoin would reach a price of $1 million by 2030.

In a speech on December 20, Cathie Wood pointed out that Bitcoin’s (BTC) fixed supply of 21 million is the key denominator that will increase the value of the asset. He shed light on the scarcity of BTC as more than 19.5 million BTC has already been mined and said this has increased institutional investor hunger for the asset.

“Bitcoin is going to be the first of a truly new asset class and the biggest opportunity of all,” Wood said. He argues that as a result of increased institutional adoption and supply-demand dynamics, the odds of BTC reaching $1 million are now quite high. Referring to Ark Investment’s Big Ideas 2023 research report, Wood emphasized that the inherent scarcity of the asset is the main driver of increasing demand.

Responding to criticism of BTC’s speculative character, Wood drew parallels to gold in that both act as stores of value. He also noted that BTC’s annual supply growth rate has recently fallen to 0.9%, which is lower than gold’s long-term average supply growth rate of 1%, meaning BTC is more scarce than gold.

Wood said that in a rising price environment, gold could lead to increased supply, but BTC cannot do this due to its decentralized mechanism. “Like gold, Bitcoin is secured by its scarcity, but unlike gold, it is backed by the world’s largest computing system, making it the world’s most secure network,” he explained. Wood claimed that it is this mathematical scarcity, combined with its decentralized and rules-based design, that differentiates BTC as a financial asset for a whole new age.

Wood largely attributes the sudden boom in digital asset adoption to the COVID-19 pandemic, which he said has “accelerated” a period of financial self-education for young investors whose personal accreditation standards have traditionally fallen short. This change was also reflected in the statistics; 63% of people invested in cryptocurrency in 2021 during the pandemic; The majority of adopters consist of Generation Y and Generation Z.