The global cryptocurrency market value reached a record high of $2 trillion this Monday. Among them, Bitcoin’s market value share accounted for more than half, as high as $1.1 trillion.
Bitcoin Can Do More
In the view of Ark Invest, a subsidiary of Cathie Wood, Bitcoin’s journey to skyrocketing market value is far from the end.
People’s interest in Bitcoin increases. So there are signs that Bitcoin has gradually moved from the edge of the global financial market to the mainstream. The price of Bitcoin soared by more than 500% throughout the year in 2020. Also, it has doubled again so far this year, hitting a record high of $61,606 last month.
Coinbase, the largest cryptocurrency exchange in the United States, recently announced that it is scheduled to go public on April 14. This has become another milestone in the cryptocurrency industry.
In this regard, Yassine Elmandjra, a crypto asset analyst at Ark Investment, said that Bitcoin has the potential to exceed the total market value of $10 trillion in the gold market.
Elmandjra pointed out, ‘If you look at gold as a $10 trillion market cap, Bitcoin is about 10 percent of that. If we believe Bitcoin is a 100 times better version than that, then it’s fairly safe to say that there’s a stark chance that Bitcoin captures a lot of gold and market share, and more.’
Elmandjra also criticized policymakers including U.S. Treasury Secretary Janet Yellen. Yellen has previously warned that Bitcoin is extremely inefficient, unstable, and is often used for illegal financing.
In this regard, Elmandjra retorted, ‘I really think that it’s just outdated arguments as a function of their complete lack of education, which is a function of just their lack of interest in learning about this.’
Elmandjra admits that Bitcoin has ‘huge price fluctuations’ every day. But he argues that the fluctuations in this asset highlight its credibility and independence.
$1 Trillion Market Value Is Not A Big Deal
In fact, not only Elmandjra, but Cathie Wood, the head of Ark Investments, is also a fan of Bitcoin.
She said last week that Bitcoin’s recent $1 trillion market value is not a big deal. Also, she added its market value may far exceed this level in the not-too-distant future.
When referring to the topic of Bitcoin, Wood said: ‘If we add all of the potential demand relative to the limited supply, we come up with incredible numbers over the long term. We have just begun. One trillion dollars is nothing in comparison to where this ultimately will be.’
As the price of Bitcoin continues to widen the gap with gold. More and more market participants have recently begun to focus on the comparison between the two.
JPMorgan Chase also pointed out in a report last weekend that ‘Mechanically, the Bitcoin price would have to rise to $130,000, to match the total private sector investment in gold.’