We recently highlighted the large cryptocurrency ARK Invest that was recently released as part of their “Great Ideas 2022” report. The big idea we covered was one of the ARK’s loudest moves in the whole report, modeling the potential bitcoin pathway at a cost of $ 1 million per token by 2030.
However, the report on big ideas has more to sum up – an annual summary of innovations, five years in a row, from the team at ARK Invest. Let’s take a look at some other crypto and blockchain insights from the ARK team that came to light in this recent paper.
Bringing great ideas…
There are a number of blocks related to blockchain and cryptocurrencies covered by the Big Ideas report, so while we spare you content and perspectives around electric vehicles, AI and 3D printing, we will of course dive into ARK’s sentiment about Ethereum, Web3, digital wallets and more .
ARK sees blockchain technology advancing with 43% compound annual growth rate (CAGR) over the next 8 years, expanding from a current market capitalization of approximately 1.4T to 2030 of approximately $ 49T. This is a more aggressive CAGR than any other major category that the ARK emphasizes with the exception of robotics.
Furthermore, the company sees blockchain technology as a whole as a ship in a world where “everything could become like money: replaceable, liquid, quantified” and that digital wallets have great disruptive power, adding that wallets can enable consumers to retain bank branch power. pocket money and require wholesale prices for many financial transactions. ”
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When in doubt, zoom it out. The 5-year BTC chart is a stark reminder that big price forecasting for BTC isn't necessarily unreasonable. | Source: BTC-USD on TradingView.com
More on digital wallets
Centralized and not necessarily cryptocentric digital wallets have already emerged to become major players in finance. Cash App, Venmo and competitors are attacking personal finances, and ARK predicts a scale of growth at an annual rate of almost 70%. Digital wallets surpassed cash at points of sale last year, and blockchain and crypto can certainly absorb some of that growth. In addition, ARK aptly notes that digital wallets can also serve as a touch point for embedded Web3.0 assets, such as NFT.
Let’s talk about the wider blockchain
As crypto continues to evolve, ARK remains focused on the genesis of BTC, stating that the firm “believes (s) that bitcoin is the deepest application of public blockchains”, but adding that it has spurred DeFi and Web3.0 revolutions. ARK Invest emphasizes and celebrates the public blockchain infrastructure as a whole because of their decentralized nature without permissions, its open source networks, and the broad participation and engagement of users. Furthermore, the report cites the vision of public blocs affecting large asset classes (cryptocurrencies, cryptocurrencies, NFT, DAO, etc.) in the same way that the internet has revolutionized various asset classes such as online radio, TV, news and e -shop).
This idea was further elaborated and broken down into three buckets of revolution: money, finance and the internet. The graphic below, taken directly from the Great Ideas report, shows this picture in an interesting way:
Further in the report, there is a separate section for Ethereum and DeFi, as well as Web3. In these sections, ARK highlights DeFi and NFTs driving demand for Ethereum, raising expectations for Ethereum 2.0 and boosting demand for Layer 2 solutions. Meanwhile, ARK Invest predicts that Ethereum will potentially grow over 50x in market capitalization over the next decade. . In addition, the ARK calls for DAOs without permits, transparent and public characters to be particularly unique, and cites digital ownership as an accelerator for society’s continued shift in the online world.
Finally, while NFTs are a little more ‘raped’ today, ARK Invest envisions blurring the line between spending and investment, and a more holistic experience around the NFT and Play-to-Earn worlds.
More ‘Great Ideas:’ Focus on Bitcoin
As the ARK team has done before, they have devoted an entire section of the report to great ideas for Bitcoin and Bitcoin only. The ARK sees network participants as mature and with a particular focus on the long term, while still showing remarkable growth over the previous year on almost all metrics – including average transaction values, average daily transfer volumes and cumulative annual transfer volumes. How will this continue? The report highlights the growth of the Lightning Network, increased adoption and growing institutional bearers – among other things.
In fact, according to the report and the numbers collected in November 2021, “products traded on the stock exchange, countries and corporations held 8% of the bitcoin supply.” Spiel continues to address environmental, social and governance (ESG) issues that critics often mention, and highlights cryptocurrency mining as a “digital-monetary energy network” – saying mining has the potential to “revolutionize energy production” and stimulate green energy.
Of course, we would be wrong not to state the bravest attitude of them all – and what has brought us to this point today – price of 1 million BTC tokens. Pinch me 2030.
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Featured image from ark-invest.com, Charts from TradingView.com The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.