Bitcoin (BTC) has proven its worth over the past 10 years, the next decade will be decisive for it with forecasts of BTC at $ 100,000 or even $ 1 million. This investment company continues to bet on Bitcoin: it looks back on the main strengths of the oldest crypto and the risks hanging over the future of the latter.
Tesla’s mage predicts Bitcoin’s success
The investment company based in New York, ARK Invest, who predicted the success of You’re here, remain confident in the future of Bitcoin.
It has just published in a research report that the market capitalization of Bitcoin could exceed $ 5 trillion.
The report highlights in particular that Bitcoin is on the road to monetization, with significant growth potential.
This forecast may seem far too optimistic according to some, but the progression of Bitcoin in its 10 years of existence, seems to prove that ARK Invest.
The latter indicates that Bitcoin has potential for use at several levels: as global payment network, as protection against inflation and dilution of the value of traditional assets or as catalyst for demonetization in emerging markets.
The company believes that Bitcoin presents a convincing risk / return profile and as such, its market capitalization should be $ 1-5 trillion over the next 5-10 years.
A few investors are good, too many are bad!
Despite these positive points, ARK Invest do not fail to recall that many risks weigh on Bitcoin.
On the one hand, the numerous security breaches – like the one who brought down the platform MtGox – and bad management of exchanges, cost investors dearly: most lost millions of dollars without any legal remedy.
Other risks are linked to regulatory uncertainty and the over-institutionalization of Bitcoin with the massive influx of institutional investors.
For ARK Invest an over-institutionalization of Bitcoin could be at the origin of a monopoly – would an oligopoly be fairer? – transactions, a situation that would go against the principles of BTC and, which would therefore destroy its value proposition.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
The lack of a mechanism to automatically regulate the distribution of Bitcoins among its various holders, could be the Achilles heel of BTC. It would have been necessary to set not only a cap on the total available supply but also on the maximum number of BTC per wallet, to complicate any massive acquisitions of BTC that would be detrimental to it in the long term.
Litecoin, welcome in the Silver Age